Although it is possible to incorporate a limited liability company yourself, you may decide to use the services of a UK limited company formation agent. This will ensure that all the forms are completed correctly, the appropriate fees are paid, and – if you use a good formation agent – Companies House are notified of the appointment of you (and others, if applicable) as directors and company secretary.
Company Names
Some companies are incorporated from scratch, whereas others may have already been incorporated and you can buy them ‘off the shelf’. In the case of the latter, the company may have a different name to the one you want to use and your company formation agent should provide you with the appropriate forms to send to Companies House, with the amended Memorandum and Articles of Association showing the new name. There is a small fee if you want to change a company’s name, and you also need to pass a resolution with the directors of the company to confirm the change.
Fees
A good company formation agent will incorporate your company for you and then send you all the requisite documentation. The fee for incorporation is £20, which can be expedited to same-day incorporation for a fee of £50. Obviously this fee is payable to Companies House and using a formation agent will cost more than this. However, if you choose a formation agent to incorporate your company, you can choose a company that was incorporated some time ago, which some people prefer as it makes their business look as though it is more established.
Documents for Incorporation
There are four main documents that the formation agent will lodge at Companies House: The Memorandum of Association, which sets out the company’s objectives, (which is sometimes simply to carry on business as a commercial enterprise) its registered office, its capital and liability; the Articles of Association, (which details the structure of the company); Form 10 that stipulates who the first director, and company secretary of the company are; and Form 12, that confirms that the Companies Act requirements have been compiled with.
Extra Services
If you wish to ensure that your company is incorporated properly and within a short period of time, you would be wise to use a formation agent. A good UK company formation agent should offer you a comprehensive service that could include telephone support in relation to your new formation, as well as advice on marketing, insurance and trademarks.
However, you can always expect the following: a limited company, with the name of your choice, and the official certificate that proves incorporation at Companies House. You will also receive share certificates, and the first and second meeting minutes. It is very important to ensure that you also receive a certificate that confirms that the company has never traded. This is because if your company has previously traded, it may have run up bad debts or be liable for other matters of which you are not aware – and this is something that you certainly need to avoid!
