Part 2, of our article 'How to set up and register a limited company in the UK'
May 21, 2007 by Brad Horowitz
How much will the registration cost?
- Companies House charges a standard registration fee of £20 and it also offers a premium same day registration service for a fee of £50.
- Memorandum and Articles of Association can be obtained from law stationers or various company formation agents and cost around £15.
- The cost of having form 12 witnessed is around £10.
Check around and get help
- Companies House can advise you on the basics of the registration process but they will not give you detailed advice on how to draw up the necessary documentation.
- A company formation agent, solicitor or accountant can carry out the process for you, for a fee, as well as offer advice. Look under company formation in your local telephone directory, business directories or search the web where you’ll find lots of great deals.
The various taxes related to a limited company
- Limited companies have to pay corporation tax on their income and profits if there are any.
- Additionally they also need to operate a PAYE (pay as you earn) system to collect and pay the income tax and National Insurance contributions of their employees and this includes those of the company’s directors.
- The company itself must calculate how much corporation tax it needs to pay using a self assessment system and to avoid paying penalties it's important to understand how this system works and when your company needs to make its returns.
- When you register a new company, the Companies Registrar will pass on its details to HM Revenue & Customs (HMRC) but you must also contact your own local HMRC office to let them know that your company exists.
- Unless you or someone related to your company feels comfortable with attending to these tax issues then please contact an accountant or auditor that will do the job for you. The penalties can be very expensive.
- If you have any questions about tax then you should contact the HMRC Employers helpline on Tel 08457 143 143 or for new businesses contact the HMRC New Employers Helpline on Tel 0845 60 70 143
What more do I need to be aware of ?
- In addition to registering your business as a company there are several more things that you need to do to put it on a proper legal footing.
- Display your company's name clearly on the outside of all its offices and other places of business.
- Display your company's name clearly on all its business stationery, including letters, invoices, receipts and cheques.
- Show your company's place of registration and its registered number and office address on all of its business letters and order forms as well as on electronic business communications.
- Send all of the required registration documents and forms to the Registrar of Companies, completed and signed.
- Check that you have received confirmation of your certificate of incorporation from the Registrar of Companies and that your application for limited company status has been successful. The company comes into existence only when the Registrar of Companies issues a certificate of incorporation.
- Contact HM Revenue & Customs.
- If you have a company website it has to show the company's name, the location of its registered office, its registered company number, VAT number and the place of registration. It must also include a working email address.
We hope that you found our article both useful and instructive.
Return to Set up and register a limited company in UK. Part One.