If you want to save your business from all kinds of problems and liabilities that you cannot afford then you need to register as a limited company. Any small business, other than sole traders, can set up as a limited company. A limited company means that the business’ finances are totally separate from the finances of business owners. There are times when company directors may be required to guarantee loans made to the company but any shareholders will not be responsible for the company’s debts.

 

• Memorandum of Association – this includes the name of your company, your business address and the type of business you are in.
• Articles of Association – gives information on the powers that Directors might have and also the rights of share holders
• Form IN01 – details of your registered office and details of directors and consenting secretaries. Subscribers details, and if you have shareholders, details of the share capital.

 

You can have the above documents prepared by your accountant if you choose but this is not an actual requirement. Private limited companies, which is the usual format of most small businesses in the UK may not offer shares to the public but may have existing share holders. A company must have a director to make management decisions and also a company secretary. You can go online to form your limited company because it is a quick and simple way of doing so.