Setting up a Ltd company

[Dr Imran T]

Hello Chaps

I have had a read through some previous threads but I am still unclear on what needs to be done when forming a new Ltd company.

My intentions are to use an agency and pay them to set it up as cost is not an issue for me. What I need to know is can I set up a company now even though all interested parties have not decided on how the profits are going to be split?

We do have a rough figure in our heads, but would this need to be done prior to forming the company?

I should also add the CEO is an Indian citizen. I am expanding the UK operations here for this transcription/ data entry services company.

Myself and a fellow partner would be the nominated directors here in the UK. The CEO I assume would be an equal shareholder? does this sound about right chaps?

This is the agency I am planning on using : http://www.companiesmadesimple.com/company-formati...

many thanks

Imran

[Eric Mc]

In a limited company, profit share (in the form of "Dividends") is paid to the shareholders based on the number and classes of shares they own in the company.

It's up to the shareholders to decide how the shareholdings are allocated.

[10JH]

I'd recommend for formations - http://www.wisteriaformations.co.uk/

Not the absolute cheapest but they were very helpful and answered a few questions I had. Nice and easy to use website too.

[11SJC]

try walker associates in harogate 01423 501385 ask for dan he will look after you and set up everything you need

steve

[Mattt]

Do you have a CEO in a private limited company? I thought only for PLC?

[Dr Imran T]

Thanks for the replies chaps. The gentleman who started the company in India is the CEO, not sure if the rules are slighlty different there. This was already done prior to any involvement from myself.

Is there any reason why some of you suggest an alternative agency/company to the one I suggested in my first post?

[therealpigdog]

Money isn't an issue you say ...

Seriously though, the incorporation is the easy bit (Companies House forms and £20) - you are paying for the snazzy set of statutory books. The harder bit is getting a shareholders' agreement and articles that meet your needs. There isn't a one-size-fits-all solution so take good legal advice.

[Dr Imran T]

therealpigdog said:

Money isn't an issue you say ...

Seriously though, the incorporation is the easy bit (Companies House forms and £20) - you are paying for the snazzy set of statutory books. The harder bit is getting a shareholders' agreement and articles that meet your needs. There isn't a one-size-fits-all solution so take good legal advice.

I don't mind paying a 'small' amount, that said I also don't want to be paying for stuff I do not need. Is the shareholder's agreement just the way the shares area allocated to the three interested parties?

I believe share capital has been abolished now?

Edited by Dr Imran T on Wednesday 28th April 23:16

[Eric Mc]

You believe wrong.

Share capital has NOT been abolished.

Did you not read my previous post about issuing shares?

A shareholders' agreement sets out the terms and conditions under which the owners of the company relate to each other and should cover aspects which are perhaps not covered automatically by Company Law or by the company's Memorandum and Articles of Association. Areas such as appointments, resignations, share allocations etc might be set out in such an agreement.
They are always worthwhile considering - especially if things go wrong.

[therealpigdog]

Especially before things go wrong!


edited to correct formatting

Edited by therealpigdog on Thursday 29th April 13:52

[Dr Imran T]

Eric Mc said:

You believe wrong.

Share capital has NOT been abolished.

Did you not read my previous post about issuing shares?

A shareholders' agreement sets out the terms and conditions under which the owners of the company relate to each other and should cover aspects which are perhaps not covered automatically by Company Law or by the company's Memorandum and Articles of Association. Areas such as appointments, resignations, share allocations etc might be set out in such an agreement.
They are always worthwhile considering - especially if things go wrong.

I did Eric yes, I was speaking to an agency and only went on the information given. I will look in to it further and update accordingly.

I just want to make sure that everything is in good order before the business get in to full swing.

[escargot]

Mattt said:

Do you have a CEO in a private limited company? I thought only for PLC?

You can if you want but it doesn't actually 'mean' anything legally as I understand it, unlike a Directorship.

[blindswelledrat]

Dr T, my only contribution to this thread is to advise you that Eric Mc only states facts.
He is a rare internet phenomena in that if he says something you don't have to check out the validity of it (except for when he claims that seeing aeroplanes is interesting)
Thus what he said.

[Eric Mc]

Me

[Dr Imran T]

Thanks for all your input chaps. Much appreciated.