Complexity of registering an LTD???
Discussion
I have been working on a small business for a number of months getting bits ready.
The business is to be an LTD with two directors, both with equal shares and voting rights etc.
Most of the info that is needed seems simple enough - addresses, company name etc.
The Model Articles downloaded from the Gov.uk website appear to need nothing amending at all, just submitting as they are.
The Memorandum of Association has also been downloaded and this has two columns titled:
Name of each subscriber, and, Authentication by each subscriber
I presume this is just a name and a signature?
But now I am reading about the Persons of Significant Control - this doesn't need to be anything complex - we will split the company and control 50:50 - but I can't see a form etc. to put this info on. Will there be boxes to complete regarding this when I hit the 'Register Now' button?
The company is a small, simple company so I'd rather just complete the registration myself rather than use an accountant etc. Is there much to be caught out with or is it simple?
Thanks,
The business is to be an LTD with two directors, both with equal shares and voting rights etc.
Most of the info that is needed seems simple enough - addresses, company name etc.
The Model Articles downloaded from the Gov.uk website appear to need nothing amending at all, just submitting as they are.
The Memorandum of Association has also been downloaded and this has two columns titled:
Name of each subscriber, and, Authentication by each subscriber
I presume this is just a name and a signature?
But now I am reading about the Persons of Significant Control - this doesn't need to be anything complex - we will split the company and control 50:50 - but I can't see a form etc. to put this info on. Will there be boxes to complete regarding this when I hit the 'Register Now' button?
The company is a small, simple company so I'd rather just complete the registration myself rather than use an accountant etc. Is there much to be caught out with or is it simple?
Thanks,
An accountant won't charge much at all to set up a company and they will have done it so often that they will ensure all bases are covered and you will just need to sign and return some forms.
I like to save money as much as the next man but this will be money very well spent.
If the business goes well a good accountant will be well worthwhile to have on board for other issue which will arise. Hopefully you'll be busy doing what you are good at; running the business and making the money. Let an accountant do what they are good at and save you a headache or two.
I like to save money as much as the next man but this will be money very well spent.
If the business goes well a good accountant will be well worthwhile to have on board for other issue which will arise. Hopefully you'll be busy doing what you are good at; running the business and making the money. Let an accountant do what they are good at and save you a headache or two.
trickywoo said:
An accountant won't charge much at all to set up a company and they will have done it so often that they will ensure all bases are covered and you will just need to sign and return some forms.
I like to save money as much as the next man but this will be money very well spent.
If the business goes well a good accountant will be well worthwhile to have on board for other issue which will arise. Hopefully you'll be busy doing what you are good at; running the business and making the money. Let an accountant do what they are good at and save you a headache or two.
Thanks - I thought that might be the answer and it makes sense. However, I wasn't sure if people would come along and just say "yes its simple it takes 2 minutes"....I like to save money as much as the next man but this will be money very well spent.
If the business goes well a good accountant will be well worthwhile to have on board for other issue which will arise. Hopefully you'll be busy doing what you are good at; running the business and making the money. Let an accountant do what they are good at and save you a headache or two.
It is simple and does take c. 2 minutes 
person of significant control is in your case simply going to be a duplication of the directors...
it is there to allow for people who are exerting control without being a registered director (think - Mafia Capo behind the business / mother-in-law
)
I have set up many - and see no point in spending the money with an accountant to do it - and why an accountant? This is business set-up not accounts... better a lawyer if you need a professional!
one point to note - always plan a business with several things in mind:
- the structure you need to run the business
- the structure you need if successful (i.e. will you need to bring in investors etc.)
- the structure you need if un-successful - how will you resolve issues between you?
one golden rule is be very cautious about having 50:50 control between two people - a good recipe for stalemate... if you need an equal split then find someone experienced as a mentor and give them 1% to hold to arbitrate if needed - if you set up the share structure correctly they don't need to take out of the business financially, but can have a vote if there is a stalemate. Everyone starts a business with optimism and assumes that it will all go as expected, but it is very easy to clash opinions... and then a business can stagnate...
person of significant control is in your case simply going to be a duplication of the directors...
it is there to allow for people who are exerting control without being a registered director (think - Mafia Capo behind the business / mother-in-law
)I have set up many - and see no point in spending the money with an accountant to do it - and why an accountant? This is business set-up not accounts... better a lawyer if you need a professional!
one point to note - always plan a business with several things in mind:
- the structure you need to run the business
- the structure you need if successful (i.e. will you need to bring in investors etc.)
- the structure you need if un-successful - how will you resolve issues between you?
one golden rule is be very cautious about having 50:50 control between two people - a good recipe for stalemate... if you need an equal split then find someone experienced as a mentor and give them 1% to hold to arbitrate if needed - if you set up the share structure correctly they don't need to take out of the business financially, but can have a vote if there is a stalemate. Everyone starts a business with optimism and assumes that it will all go as expected, but it is very easy to clash opinions... and then a business can stagnate...
I'm an accountant and NEVER set up companies for clients. It really is quite simple for the peopel setting up the business to set up the company - and it can be pretty cheap - under £50.
The real complexities of running companies and preparing annual accounts come AFTER the company has been set up.
The real complexities of running companies and preparing annual accounts come AFTER the company has been set up.
Gassing Station | Business | Top of Page | What's New | My Stuff