According to recent statistics from Companies House, almost 10% of online incorporation applications – and around half of paper applications – are rejected. Many of the reasons for rejection are easily avoidable, and we will take a look at some of the key problem areas below. Company names There are a whole array of rules…
The company formation process in the UK is relatively straightforward, but it’s easy to make mistakes that could cause your application to be rejected or require correction after incorporation. These simple errors and oversights are completely avoidable. Based on our experience, as well as information obtained from Companies House, this blog reveals the most common…
There is no requirement for directors of UK limited companies to live in or be based in the UK – they do not even need to be British nationals. The same applies for company secretaries and even shareholders. But there are certain eligibility rules for UK company directors, and geographical requirements for UK companies, which…
When you decide to start a new business, setting up a limited company is one of the most crucial steps you need to take. Company formation not only offers you and your business a wide range of essential legal protections, but it also cements the foundation of your business, so should never be left to…
Address requirements can cause a great deal of confusion when setting up a business. If you find yourself in this situation, you’re not alone. When you start any type of small business, whether you set up as a sole trader or register a limited company, you will need to nominate at least one address for…
Most private limited companies in the UK have to put ‘Limited’ or ‘Ltd’ at the end of their name when they are registered. Welsh companies can use ‘Cyfyngedig’ or ‘Cyf’ instead. However, some companies are exempt if they can satisfy specific criteria.
Limited by guarantee companies are an alternative type of business structure that are normally used by non-profit organisations. They don’t have share capital or shareholders. Instead, they are owned by one or more ‘guarantors’, each of whom guarantees a fixed sum of money to the business in the event of insolvency. Typically, guarantors do not take…
You can change a company name any time after incorporation. This can be done either by having the members (be they shareholders or guarantors) pass a special resolution or (if the company’s Articles permit it) by the Directors resolving to do so. The first thing you should do is check the articles to see which…
We are often asked to explain the difference between ‘Limited’ and ‘Ltd’ at the end of a company name. There is absolutely no difference, other than the fact that one is a complete word and the other is the shortened form. So, you can use whichever one you like.
Yes, you can reserve a company name, but only by registering a limited company. If you have a name in mind, it’s a good idea to reserve it even if you are not quite ready to start trading.
Subscribers are the first shareholders in a limited by shares company, or the first guarantors in a limited by guarantee company. They are called ‘subscribers’ because they subscribe (add their names) to the memorandum of association during the company formation process. By doing so, they are agreeing to form the business and become members of…
It is not possible to convert an existing limited company to an LLP because they have completely different internal structures and taxation requirements. If your business is currently set up as a limited company and you want to change it to an LLP, you will have dissolve your existing company and register your business as a Limited Liability Partnership.…
