Most small businesses choose to set themselves up as a private limited company. A limited company is a separate legal entity, owned by its shareholders and run by the director(s). In this section we will give you information on how to set up a company and enable you to set up your company online in association with company registrations agency.

The main advantages of setting up a limited company are:

Limited liability - this means that the shareholders will not be held personally liable for company debts.

Separate entity - this means that the company has its own legal identity separate from the shareholders and officers.

Setting up a Private Limited Company
There are two main ways of setting up a private limited company:

1. Ready Made Company

You can buy an 'off-the-shelf' limited company, that is a company that has already been formed and already has a company name. The company can be available within two hours, which means you can trade almost immediately.

All that will be required is the name(s) of the Director(s), the name of the Company Secretary and the company's proposed address. The cost for a ready-made company can range from £85 to £135 +VAT. However, in association with company registrations online, we can offer you a ready made company for £80 inc VAT.

2. Tailor Made Company

To set up a private limited company you will need to:

Select a name for your limited company - You will need to check first of all if the name is available. You can check the availability of your choosen name here or you can phone 0870 333 3636. If you are in doubt about whether your choice of company name is acceptable, you can telephone: 029 2038 0018 if your company is registered in England & Wales, or call 0131 535 8831/5832 if your company isregistered in Scotland.

Appoint at least one Director for the Company - This can be anyone who does not have an undischarged bankruptcy or is disqualified by court from holding a directorship, unless given leave to act in respect of a particular company or companies.

Appoint at least one secretary - If you are the company's sole director you cannot also be the Company Secretary. You therefore need to appoint a Company Secretary who can be a spouse, relative or friend to take on this role. No formal qualifications are required.

Establish a Registered Office - This is the address where letters and reminders from Companies House will be sent to you. The address can be anywhere in England and Wales (or Scotland if your company is registered there). If you change your Registered Office address after incorporation, the new address must be notified to Companies House on Form 287.

A private limited company can be set up with a company registration agent. Prices start from about £100 to £138 + VAT. However, in association with company registrations we can offer you a limited company for £80 inc VAT! The company can be incorporated normally within seven working days.

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