£43.99 UK Ltd Company Formation Includes Gov Fee +£500 Gifts

There are several legal business structures in the UK, including community interest companies, co-operatives, offshore companies, and franchises. Below are some of the most common business structures used by businesses:

a) Sole Trader:

A Sole Trader is an individual who is self-employed and owns and manages the business personally. This is the simplest form of business structure, where there is no legal distinction between the business owner and the business itself, meaning the owner is personally liable for all business debts. Sole Traders differ from individuals who own a limited company or are in a partnership. If you earn more than £1,000 within a tax year, you must register as a Sole Trader by registering for Self-Assessment. Failure to register, or registering late, may result in penalties.

b) Partnership:

A Partnership is a business structure where two or more individuals or companies share ownership, profits, and liabilities through a formal agreement. Partners do not have to be individuals; a limited company, which has a separate legal identity, can also act as a partner. A Partnership must appoint a nominated partner who is responsible for managing tax returns and record keeping. It is mandatory to register the partnership for Self-Assessment with HM Revenue and Customs (HMRC) and submit partnership returns. All partners must also submit their own personal tax returns.

c) Limited Liability Partnership (LLP):

An LLP is a legal business entity that combines elements of both a standard partnership and a limited company. LLPs have members instead of directors, and you can set one up with two or more members. Members can be individuals or companies (known as 'Corporate Members'). Each member pays tax on their share of the profits, similar to a traditional partnership, but members are not personally liable for the business's debts. LLPs must have a unique business name, at least two designated members, and a UK registered office address.

d) Limited Liability Company (Ltd):

There are two types of Limited Liability Companies in the UK:

Limited by Shares:

A company limited by shares is a corporate entity owned by shareholders, who have specific rights. The company is legally separate from its directors and shareholders, and shareholders' liability is limited to the amount they initially invested. This structure is preferred by investors, making it ideal for raising capital. In case of insolvency, shareholders' personal assets are protected.

Limited by Guarantee (LBG):

A company limited by guarantee has 'guarantors' (also known as 'members') rather than shareholders, and these guarantors commit to paying a set amount towards the company’s liabilities. An LBG is legally separate from its guarantors, who benefit from limited liability. Members are only liable for the amount they have agreed to guarantee as outlined in the Articles of Incorporation. LBG companies are often used by non-profit organisations, while companies limited by shares are better suited for commercial ventures.

Our Limited Company (Ltd) incorporation service starts at just £43.99. To incorporate a company limited by shares, please see above. For information on incorporating a company limited by guarantee, contact us at [email protected].

With the introduction of the Economic Crime and Corporate Transparency Act 2023, Companies House has made it mandatory for all UK limited companies to maintain an appropriate address at all times. An appropriate address refers to a physical location within the UK. The registered office address of a company must be located in the same country where the company is incorporated. This address should be accessible to the company and its directors, and the company must be able to acknowledge receipt of documents delivered to this address.

Under the recent changes in Companies House policies, PO Box addresses are no longer accepted as a registered office address. Furthermore, both the company’s registered office address and directors’ correspondence addresses are publicly visible on the Companies House register for transparency purposes.

A Virtual Office Address provides an ideal solution for protecting your home or personal address from exposure on third-party websites. With a virtual office, you can also efficiently manage your mail and ensure that important official documents are received without any delays.

For more information about our Virtual Office Services, please Click Here.

Yes, a UK limited company can have director / shareholder who is a non-UK resident. There is no requirement for company directors to reside in the UK. However, every UK limited company must have at least one director who is a natural person (an individual, not a company).

While there is no residency requirement, directors must comply with UK company law and fulfil their legal responsibilities, such as ensuring the company meets its statutory obligations with Companies House and HMRC. Additionally, non-UK resident directors should be aware of any potential tax implications in both the UK and their country of residence.

The minimum age for a director of a UK limited company is 16 years old. There is no minimum age requirement for shareholders unless articles of association impose any age restriction, meaning even minors can hold shares in a company, however there may be legal considerations around minor’s capacity to enter into binding agreements.

A UK limited company must have at least one director who is a person. Corporate bodies or entities can also serve as directors and shareholders. However, there is no requirement for a director to also be a shareholder, or for a shareholder to serve as a director.

There is no maximum limit on the number of directors or shareholders a UK limited company can have. A company must have at least one director and one shareholder, but there is no upper limit on how many can be appointed.

UK limited companies must have company names that are unique and distinct from the names of existing companies and comply with UK regulations. It is important to check if the name you have chosen for your company is available or not before submitting your company incorporation application (IN01) or a company name change application (NM01) to Companies House.

You can check the availability of your chosen name using Companies House company name availability checker tool. To check your company name availability, Click Here.

In the UK, certain sensitive words and expressions are restricted or require prior approval when used in a company name. These include:

Sensitive Words: Sensitive words can imply a connection to certain professions or areas of activity that require regulatory oversight. Examples of Sensitive Words are: Bank, Insurance, Building Society, Trust, Royal, British, Group, Institute, Charity, etc.

Expressions Requiring Approval: Some words and phrases need explicit permission from relevant authorities or regulators before they can be included in a company name. Examples include: FCA (Financial Conduct Authority), Regulated, Association, University, College, etc.

Offensive or Misleading Terms: Names that are considered offensive, misleading, or imply illegal activity are also not allowed.

It’s essential to consult the Companies House guidelines or seek professional advice to ensure compliance with naming regulations before finalising your company name.

To check the list of sensitive words click here.

We require identification documents for all directors and beneficial owners of the company before proceeding with the formation. These documents must be uploaded through the ID upload section after logging into the customer portal.

See here for the documents that we need: https://iconoffices.co.uk/id-page.php

A subsidiary company is a company that is controlled by another company, known as the parent or holding company. In a subsidiary arrangement, the parent company owns more than 50% of the subsidiary's shares, giving it the ability to influence or dictate its operations and decisions. While a subsidiary operates as a separate legal entity and maintains its own financial records, it is ultimately subject to the control of the parent company, which can affect its overall strategy and management.

Once we have received and verified the necessary identification documents for the account handlers, directors, and shareholders of the company, we will submit your company formation application to Companies House. Typically, Companies House processes company formation applications within 1 to 2 working days. However, please note that the processing time is at the sole discretion of Companies House.

All company formation documents will be sent to you via email. This includes Certificate of Incorporation, Memorandum of Association and Articles of Association. Authentication Code, UTR or Corporation Tax Activation codes are not considered as company formation documents. For further information, please refer to point 13 below.

The Authentication Code, UTR, and Corporation Tax Activation Code will be sent by post to the company’s registered office address, typically within the first 2-3 weeks following company formation. If you are using our virtual office address for your company, you will be notified via email when we receive any post for you.

Below are some of the key compliance requirements for a UK limited company:

Annual Confirmation Statement: Companies must file a Confirmation Statement (CS01) at least once a year to confirm company’s details, including registered office address, directors, shareholders, and share capital.

For our confirmation statement filling service please click here.

Annual Accounts: Companies are required to prepare and file annual financial reports to Companies House. These accounts must comply with accounting standards and provide a true and fair view of the company's financial position.

Corporation Tax Return: A limited company must file a Corporation Tax Return (CT600) with HM Revenue and Customs (HMRC) within 12 months of the end of its accounting period. This return details the company’s income, expenses, and tax liability.

VAT Registration (if applicable): If a company's taxable turnover exceeds the VAT threshold (currently £90,000), it must register for VAT and submit regular VAT returns.

Payroll and PAYE: If the company has employees, it must operate a Pay As You Earn (PAYE) scheme to deduct income tax and National Insurance contributions from employees' wages.

Register of People with Significant Control (PSC): Companies must maintain a register of individuals or entities that have significant control over the company and provide this information in the Confirmation Statement.

Health and Safety Compliance: Companies must adhere to health and safety regulations to ensure a safe working environment for employees and visitors.

Data Protection Compliance: Companies must comply with data protection laws, including the General Data Protection Regulation (GDPR), which governs the handling of personal data.

Insurance Obligations: Depending on the nature of the business, certain types of insurance, such as employers' liability insurance, may be required by law.

Filing Changes: Any changes to the company structure, such as appointments or resignations of directors, changes in registered office address, or share capital alterations, must be reported to Companies House.

Ensuring compliance with these requirements is crucial for the legal operation of a UK limited company and to avoid potential penalties or legal issues.

Payments made to us for company formation are non-refundable and non-transferable. If your application is rejected, you will need to make a new payment and reapply. However, Icon Offices offers Company Formation Protection for just £3.99, including VAT. If you take this protection, we will reapply for you again without any charge.