Cheapest way to form/ set up a company.

[Schermerhorn]

Apologies in advance if this has been done before but the Search function seems not to be working tonight unfortunately.

Right, with so many companies out there advertising that they can form and incorporate a new company with Company's House for £X amount, has anyone on here actually done it?

What has been your experience and who is the best recommended company to use? What documents are 100% required and what are not neccesary/waste of money. Obviously your Company registration number is pretty standard but anything else?

Has anyone had any bad experiences with any of these (potentially dodgy) companies?

Welcoming all feedback!

[Jasandjules]

After much discussion on here, I opted to get an accountant to do it. Just in case. After all, if the company is not set up properly, goodness knows what problems you might have. It wasn't the cheapest in terms of money but it was in terms of mental stress!!

[Dicky Knee]

I set accompany last year but through an accountant. It may cost you a little more but should be less than £200 and I'm sure he or she will throw in some advice as to whether you are doing the right thing which may save you a world of pain down the track.

[PetrolTed]

I've done both - through and accountant and direct with Companies House. I'd have no qualms about doing it through Companies House - it's a very simple online process these days.

[jogon]

PetrolTed said:

I've done both - through and accountant and direct with Companies House. I'd have no qualms about doing it through Companies House - it's a very simple online process these days.

Yep all the dodgy land brokers in Africa, Wine traders, Forex dealers, metal traders and ticket resellers used companies house with no issues what so ever. Crack on.

[Pit Pony]

I used companies made simple on line. It was quick, standard, and cheap but then I was spammed for weeks afterwards with people attempting to flog me things my new business might need. I guess that's their business model. Selling information.

Then I went to HMRC website and registered for VAT (which took 6 months to arrive) and to become an employer.

[Schermerhorn]

Sound advice guys - please keep it coming.

Should I register for VAT immediately or wait till I cross the £60,000 mark?

Also - accountants aside - who are the recommended companies who won't spam or take shortcuts and those who I should avoid totally?

[Pit Pony]

Schermerhorn said:

Should I register for VAT immediately or wait till I cross the £60,000 mark?

Is that the limit ? Thought it was higher.

Question is whether your customers are VAT registered. If they are, you stand to make a few % by being vat registered they can claim it all back so no issue. If not, you stand to loose customers due to higher price.

Check the HMRC website for flat rate scheme too. If customers are VAT registered and your costs don't incur much VAT, then it can work out that you end up a bit richer. Legally.

I went Vat Registered straight away with turnover of 42K in first year, and then Flat Rate from start of second year (which the first accountant didn't tell me about another person in a parallel line of business told me about) Saved me personally about £1500 a year.

[Eric Mc]

VAT threshold is currently £81,000.

I used a reputable company formation agent - such as Stanley Davies or Jordans.

They charge less than £50 to set up a company.

[truck71]

PetrolTed said:

I've done both - through and accountant and direct with Companies House. I'd have no qualms about doing it through Companies House - it's a very simple online process these days.

This. Companies House website has improved significantly over the last few years, it's very simple to set up a company- it's just admin.

[sumo69]

If you only require a simple share structure, then CH is the cheapest and probably quickest - however, if there's more than 1 shareholder or you are trying to structure the shares to minimise tax on dividends,I suggest getting some advice before pressing ahead yourself.

David

[Schermerhorn]

sumo69 said:

If you only require a simple share structure, then CH is the cheapest and probably quickest - however, if there's more than 1 shareholder or you are trying to structure the shares to minimise tax on dividends,I suggest getting some advice before pressing ahead yourself.

David

It would just be me to start with - 100% mine. People would be able to buy shares into it when the time is right but I'd see the accountant about that.

[jonamv8]

Just register it yourself for £20. I don't know why people with simple company formations pay an accountant to do it.

[Schermerhorn]

jonamv8 said:

Just register it yourself for £20. I don't know why people with simple company formations pay an accountant to do it.

An accountant will charge more than £20, surely?

[Eric Mc]

I certainly wouldn't

[jonamv8]

Schermerhorn said:

An accountant will charge more than £20, surely?

Generally yes, that is why I am saying dont go through one and do it yourself!!!

[TheHound]

We registered for VAT day one, this was for several reasons including giving us more legitimacy and also so there would be no nasty surprises to our clients when we hit the threshold and have to add on VAT to our fees.

Would be worth taking further advice on whether to go VAT registered day one, it will suit some businesses but not others.

[951TSE]

The other thing you may want to consider in this connected day and age is if there are suitable website names available for your chosen company name before you go ahead and register the company name.

[Schermerhorn]

951TSE said:

The other thing you may want to consider in this connected day and age is if there are suitable website names available for your chosen company name before you go ahead and register the company name.

I have a company name and website in mind but how do I register the website?

[red_slr]

123reg.

Make sure you keep a log of all key dates.
Things like web site renewal, CT600 dates, vat submission dates.

If you form a company your admin will need to start from day 1 and you make sure you do things on the specified dates or you might find CH/HMRC will BF on you.