Forming a limited company (Ltd) in the UK is simpler than many people expect. In just a few steps, you can register your business and begin trading with the benefit of limited liability.

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The first step is choosing a company name and deciding who the directors and shareholders will be. Often, the same person fills both roles. You’ll also need to decide how many shares to issue – most small businesses start with a straightforward structure.

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Next comes the paperwork. Every company needs a Memorandum of Association and Articles of Association, which set out how the business will be run. Standard templates are provided when you register, although customised documents can give you more flexibility.

 

Registration itself is quick. You can apply online through Companies House and approval usually takes less than 24 hours.

 

Once incorporated, you must register for Corporation Tax, open a business bank account, and, if relevant, register for PAYE or VAT.

 

Running a limited company also brings ongoing responsibilities. You’ll need to file annual accounts and a confirmation statement, as well as keep your company records up to date. Many business owners choose to appoint an accountant, though this isn’t compulsory.

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In short, setting up a limited company is straightforward and gives your business a strong legal and professional foundation.

 

If you need ready-made Articles of Association, Shareholder Agreements or other company formation documents, you can purchase them at Legal Forms Direct for a one time fee.