You heard us right, we are definitely not talking about setting up a deck of cards but setting up a limited company of yours is as easy and inexpensive, just like that.
When we say setting up a company, the first-ever thought that strikes you and your calculations will be, “whose gonna arrange the cost for it?” Well, it’s quite a common notion that to set up a company means you have to empty your bank balance or sell your ancestral property or something like that. Nope, not at all. This is not a 19-century movie to do such heavy sacrifices, forming a limited company in the UK today can be done between £17 and £100. Wait, did you just drop your jaw?
Limited Company Formation
Setting up your brand-new private limited company can be achieved via many methods. You can either make use of an intermediary, a formations agent to set up the company on your behalf, or dial up a company formation firm to do the paperwork and procedures (which is not so much) or simply visit GOV.UK to know the procedures and carry out the registration of your new venture yourself without any middlemen.
In the UK, limited companies are registered at Companies House where a live database of all such registered limited companies is kept. It gets its own identity then and has its own status for taxation, financial and general legal purposes. For registering yours online directly with Companies House, your company must be limited by shares and use standard articles of association (known as “model articles”).
How much does it Cost?
If registering via Companies House web incorporation service; the standard registration will cost you around £12, which can be paid via debit or credit card or Paypal account and may take up 2 days to register. You just have to download several online forms which together make up Form IN01 (including company director details, the company’s registered address, the company’s proposed share capital, and shareholder details), fill it up and submit. If in case, some errors pop up in your application, it will come back to you via post and you will have to resubmit all again only via post and not electronically.
If via post; then it will cost you £40 with a waiting period of 8 to 10 days. If you want the same-day service, you will be required to pay £100 + VAT and the application of which must arrive the Companies House by 3 p.m. with the envelope marked “same day service” in the top left-hand corner.
After registration, you’ll get a ‘certificate of incorporation’ which confirms the legal existence of your company. You must then proceed to register for Corporation Tax which should be done within 3 months of starting your business. As per the norms, your limited company must submit an Annual Return (AR01) a year after the incorporation which will cost you around £13.
Setting up your limited one is at all inexpensive but can flare up if you end up making certain silly mistakes like errors in form-filling for which you will have to pay all again, any change in decisions like the name of the company or address for which Companies House charges £30 (software / Web Filing); or £50 (paper form), any late submissions of accounts or forms for which you will have to pay penalties. You may have to pay up any professional or accountancy fees if you have hired someone on your behalf to do the job.
In a nutshell
Getting started with your limited company is no big deal. You may find it easy to register yourself but chances are you may end up paying more due to some minor errors which will not happen if you assign the task to us. If you want to save yourself from the cost calculations or the form-filling and submitting sessions, and need expert attention in setting up yours, then hiring a company formation agent as well as limited company accountants like us won’t shake down your budget down. At a very minimal cost, we will hand over a registered limited company of yours without any errors or resubmissions within a short period of time. for more information please drop an email at firstname.lastname@example.org