Setting up a limited company could be a great choice for the entrepreneurs. This is an option that will help you come up with a business whose assets are separate from your personal finances.

Setting up a limited company could be a great choice for the entrepreneurs. This is an option that will help you come up with a business whose assets are separate from your personal finances. This is so to mean that you will never have to worry about loss of your property in case of a problem after forming your limited company. Today, with the right decisions, you are guaranteed of many benefits after you set up a limited company. This is why prior research is imperative to help you define your steps accordingly. There are three noticeable benefits that you get from the use of this business structure.

As aforementioned, a limited company separates the assets of the investors from those of the company. This is what will enable you to set up a company without the worry of going down with it. Second, the limited company tax is quite efficient as opposed to sole proprietorship. The dividends are not as heavily taxed as salaried income. Thirdly, the limited company will help you to succeed in certain industries. There are essentially three steps you have to take when you set up a company.

The first step is that of getting the basic information as stipulated by Form IN01. In this stage, you will have to come up with the name of your company and the physical address. It is also at this phase that you will be required to give details of your business objectives and the physical address of your office.

When choosing the business name to go with, it is highly recommended that you use the Company House guidance GP1. There are rules governing the choice of a business name. Additionally, your business name has to be unique; it should not be in use elsewhere.

Secondly, once the first step is complete, the next thing that you have to do is submit your memorandum of association. This contains the names and addresses of the initial shareholders. It is this document that shows the intention of each party when you start a company. The third step is that of submitting the Articles of Association. This document describes how your limited company is going to operate. It is imperative that you give accurate details when it comes to this step. It is the details on the Article of Association that dictate if you get the rights to start your business. Today, there are mainly two options that you can use to start a company.

The most widely used option by people as they set up a limited company is the online alternative. This is a choice that helps save on both time and money. It only costs 18 Euros for you to complete registration online. All that is required from you is to logon to the Companies House website and complete all the relevant forms. The second option is for the new investors or people running on a tight schedule. When setting up a limited company tax using the second option, you need to hire a professional in the same. This could be an accountant or a limited company formation agent.

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Barry Edwards is the author of this article on set up a company.
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Author: Barry Edwards.

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