Registering a company online.

[Scott330ci]

Is it all Legit?

How much should I be paying?

Any preffered sites to do so?

This one looks ok http://www.registeracompany.co.uk/

Thanks

Scott

[Eric Mc]

You are not "registering a company online". You are contacting a privately run company formation agent and instructing them to set up a company on your behalf at Companies House. For this priviledge, they will charge you a fee.
There is absolutely nothing wrong with this and many people use company formation agents to set up their companies for them. This has been going on since the invention of limited comapnies over 100 years ago. The only difference these days is the the internet does away with a certain amount of paperwork and speeds up the process.

Whether this particular formation agent is any good I would not know. On the whole, they are all pretty much OK but have a look around the internet at company formation agents and see which ones seem to offer the best service. Price wise they do vary a bit - starting at around £30 or so up to around £200.

The important thing is that you know and understand what setting up a limited company implies and that you know and understand the duties of directors and the rights of shareholders.

You should also know and understand the ramifications tax wise of setting up a limited company and what additional tax registrations you need to get involved in. The company formation agent will not help you in this area. For that you will probably need an accountant.

Edited by Eric Mc on Friday 19th February 09:57

[therealpigdog]

Depends whether you just want the Company forming (c£30-50) or want them to prepare statutory books and send you a nicely bound folder.

If you have multiple shareholders then consider going to a solicitor to get a shareholders' agreement and bespoke articles drawn up. Expect to pay anything from £750 upwards depending on complexity for a proper job.

If you just need the company, have you considered DIY? Forms are on companies house website and you would have to give all the same information to the agent anyhow.

[Scott330ci]

therealpigdog said:

If you just need the company, have you considered DIY? Forms are on companies house website and you would have to give all the same information to the agent anyhow.

TBH I hadn't

Its quite a bit cheaper too. £20

Have printed the forms now and am going to do it that way.

Scott

[Eric Mc]

Have you considered the issues I raised?

[Scott330ci]

Eric Mc said:

Have you considered the issues I raised?

Hi Eric - Apologies.

I understand we need to file tax returns once per year or face hefty fines. I also am not 100% sure on the issues regarding shareholders. I think I need to spend the time reading over the weekend on what needs what.

Have you set up on your own Eric? Any tips?

[Eric Mc]

I don't set up companies - but I have dealt with hundreds of small limited companies as an accountant.

Why are you setting up a limited company?

Can you do what you want to do without a limited company?

[Scott330ci]

Eric Mc said:

I don't set up companies - but I have dealt with hundreds of small limited companies as an accountant.

Why are you setting up a limited company?

Can you do what you want to do without a limited company?

To be brutally Honest Eric, I don't know. I assumed this protected myself and other parties should things start pointing upwards.

I (and others) will be offering PC support to a small number of businesses to our local area (inc. Home users). There isn't much initial outlay hence a shareholders agreement would only cover a small start up cost and any profit. If we were to make any.

I have little knowledge with regards to business side of things - I did A level business which is as far as my knowledge extends to. Could you offer some advice as to which would be better for us?

Sorry if I sound a bit thick. But I am

[Eric Mc]

Limited companiesm DO offer the benefit of "limited liability" - that's why they were invented. There are also some tax advantages that can be availed of if you operate through a limited company PROVIDED the company is set up properly and a decent remuneration and directors'/shareholders' payment strategy is worked out AT THE OUTSET.

One disadvantage of limited companies is that the accounts relating to them are much more complicated than for a simple sole-trader or a partnership. The additional complications means that related accounting fees will allways be higher compared to a non-limited company set of accounts of the same size.

Another disadvantage is that the company has more onerous bureaucracy to deal with.

It must file annual accounts with Companies House - there are fines if you miss the filing deadline.

It must file an Annual Return (nothing to do with the accounts) at Companies House.

It must file the annual accounts and Corporation Tax return with HM Revenue and Customs - and it must pay Corporation Tax on the company profits (if there are any ).

It will probably have to register for PAYE so that it can handle wages and salaries for directors and employees.

There is a certain level of record keeping and minute taking that should be done (over and above normal bookkeeping requirements)- especially if the company wants to make use of dividends as a means of paying directors/shareholders.

On the setting up front, it is allways recommended that the shareholders/directors sort out a shareholders' agreement regarding their rights etc within the company. This is a bit like a pre-nuptial agreement in that everyone is going into the arrangement with their eyes open and with full knowledge as to what happens in the event of disputes and disagreements - which often happen.

[Scott330ci]

Eric Mc said:

Really useful information

Eric, thanks for taking the time to respond. Much appreciated. TBH that sounds like a lot for us. Could 5 of us set up a partnership that isn't like the above. Like a sole tradership or a partnership?

Sorry Eric - If you can't be bothered no worries. Obviously I will still need to register I assume.

Thanks

[528Sport]

Hi, Company formations did it for me £30
Very easy
I spoke to Leon and it was done within 4 hours
http://www.completeformations.co.uk/index.html

Telephone Cardiff Office:
UK 02920 504 804


Dave

[JohnnyPanic]

Sorry to hijack, but is it (relatively) straightforward to start off as a partnership or sole-prop and incorporate to a Ltd company at a later date?

Or if you're aiming to be Ltd - say 12 months down the line - should you just start as you mean to go on?

[Eric Mc]

Scott330ci said:

Eric Mc said:

Really useful information

Eric, thanks for taking the time to respond. Much appreciated. TBH that sounds like a lot for us. Could 5 of us set up a partnership that isn't like the above. Like a sole tradership or a partnership?

Sorry Eric - If you can't be bothered no worries. Obviously I will still need to register I assume.

Thanks

To be honest, I think a limited company is probably a better way if there is going to be a group involved. Partnerships have their own specific issues regarding accounting and taxation which makes them complicated in their own way. Even if you went down the partnership route, I would suggest that a partnership agreement be set up for the same reason as a shareholders' agreement in a limited company.

[Eric Mc]

JohnnyPanic said:

Sorry to hijack, but is it (relatively) straightforward to start off as a partnership or sole-prop and incorporate to a Ltd company at a later date?

Or if you're aiming to be Ltd - say 12 months down the line - should you just start as you mean to go on?

I'd start as I intend.

Closing down a partnership can be quite complicated.

[JohnnyPanic]

Eric Mc said:

I'd start as I intend.

Closing down a partnership can be quite complicated.

Thanks Eric, that's pretty much what I figured. I've still got a while before I'm at that stage but I like to get everything sorted out in my mind beforehand.

[Eric Mc]

I am not overly keen on LLPs. They were invented for professional firms that were barred from operating through limited companies but wanted the benefit of limited liability.

I am not that sure they have much to offer ordinary trading operations.

[Scott330ci]

To be honest I am quite overwhelmed how difficult it appears to be.

I think some reading is in order over the weekend.

Is there anyone I could actually speak to who offers free advice or is this a type of advice chargable?

[Eric Mc]

YHM

[Scott330ci]

Eric Mc said:

YHM

Cheers Eric - Unfortunatley I dont think "the man" will appreciate me sitting here discussing.

I can get away with a cheeky web surf though

Thanks Again

[therealpigdog]

YHM