How do I set up a limited company

Setting up a limited company is one way in which you can structure a business. A limited company (as opposed to a sole trader or a partnership) is a separate legal entity distinct from its shareholders or members and directors. Certain steps must be followed to set up a limited company; incorporation with Companies House applies whether the limited company is a private or a public company.

Registration

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  Certain documents must be posted to Companies House. mail box. post box. post box in wall image by L. Shat from Fotolia.com

  Send application form IN01 to register your limited company with the Registrar of Companies at Companies House; this must provide details of your company's registered office, type of articles, the names and addresses of all directors and include a statement of capital and initial shareholdings.

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  Send a Memorandum of Association to Companies House, providing the names of each subscriber and confirmation that they have agreed to become members of your company.

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  Send Articles of Association to Companies House (unless the company adopts model articles in their entirety), describing how the company will be run, what rights shareholders will have, the powers of the directors and whether there are any restricted objects.

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  Wait for confirmation from the Registrar of Companies that your application for limited company status has been approved; this will be by way of a certificate of incorporation.

Legal Requirements

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  Your company name must be clearly displayed at the registered office. office 2 image by Omely from Fotolia.com

  Display your company's name at its registered office or place of business, making sure it can be clearly seen by all visitors.

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  Your company name must be on all business stationery. fax image by Ewe Degiampietro from Fotolia.com

  Display your company's name clearly on all its business stationery, eg, letters, invoices and receipts.

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  All company emails must include certain information. email simbol image by vladislav susoy from Fotolia.com

  Display your company's place of registration, registered number and registered office address on all business letters, order forms, emails and faxes.

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  Include all directors' names in letters; if any director's name is mentioned (other than in the text or as the signature), they all must be.

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  Let Revenue & Customs know you have set up a company. telephone image by Vasiliy Koval from Fotolia.com

  Phone Revenue & Customs to let them know you have set up a limited company and to receive instructions in relation to Corporation Tax.