Forming a Business

3. Becoming Limited

3.1 You can set up a new limited company with minimal effort using a company registration agent, or your accountant or solicitor.

• Check whether the agent you use is known and reputable.
• Most agents can also provide a full 'company kit' to save you time. It includes a company seal (if required), a combined register containing the required statutory registers, and all the necessary documentation. Additional services might include providing a registered office and company secretary.
• Most companies are created with Memorandum and Articles of Association, based on a standardised form, setting out what the company and its directors and shareholders may and may not do. The aim is to achieve a good balance of flexibility and protection for all concerned.
• Alternatively, any special needs can be met by drafting them into the Memorandum or Articles. For example, you might put in provisions about transferring shares.

3.2 To speed up the process, you can buy an 'off-the-shelf' (ready-made) company.

• An additional fee may be payable for changing details such as the company name and the amount of share capital.
• Many reputable agents can incorporate a company electronically on the same day for no additional fee.

3.3 You can complete the whole company formation process yourself, using the guidance notes and forms provided by Companies House (0870 333 3636). However, many people start out using this approach, only to give up once they realise how complex the process is.

3.4 When you are setting up the company, you must appoint at least one director, and a company secretary (who can be a second director, but does not have to be).

• The same person cannot act as both sole director and company secretary.