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What information do I need to set up a limited company?

You will need a company name, a registered office address in the UK, and the director / shareholder details (can be the same person), e.g. name, date of birth, occupation, nationality, residential address.

For further details see - Required Information for Company Setup.

Are the package costs one-off, or annual charges?

They are one-off charges, and there are no extra costs payable to form a limited company or LLP.

However, if you purchase the Digital Plus, Compliance or All Inclusive Package, they includes the preparation and filing of your company’s first confirmation statement (previously known as the annual return), and you may wish to renew this service for year 2 at a cost of £34.99 +VAT.

Do I need more than one person to form a limited company?

No, only one person is required. Although all limited companies require at least one director and one shareholder, it is common for one person to perform both roles. A Limited Liability Partnership (LLP), however, requires at least two members (partners).

Do I need an accountant?

We recommend the assistance of an accountant with your company’s annual accounts and annual tax return, which will be due for filing (at Companies House and HMRC) 9 months after the end of your first financial year.

We would also recommend an accountant sets up your financial record-keeping and you obtain advice on how to take money out of your limited company.

Rapid Formations provides a free consultation with an accountant - either at one of their offices, or via Zoom, Teams or Skype - where you will be introduced to the accountant's services and you will also have the opportunity to obtain some free tax and accounting advice.

Can I open a bank account in the UK if I don’t live there?

Our relationship with our banking partner Wise provides our non-UK resident customers with the facility to open a business bank account.

The application process is online and does not involve the requirement for hardcopy documents or a visit to the UK to open an account.

Please have a look at our blog on the subject: Business bank accounts for non-UK residents.

Why do I need to pay for postage with the business address service?

When you purchase our business address service, you are buying the right to use our address as your business address and publish it on your letterheads, invoices and website. We will also receive and log your mail onto our system and send you an acknowledgement that your mail has been forwarded to you.

Unlike our service address and registered office services, we do not include the free forwarding of business mail to you, as we are unable to assess just how much mail each client will receive, and therefore require charging the cost of the Royal Mail postage plus a 15% handling fee for mail forwarding.

Do any of your packages include company address services?

None of our packages include company address services; however, they can be added to any package at discounted prices, during the order process.

If I buy a registered office address, does this cover all of my mail?

The registered office address can only be used for UK government mail and Court documents. If you also wish to use our address for general business mail, you should purchase the business address service.

Do I need to register my company for VAT?

You do not need to register for VAT until your annual turnover exceeds the VAT threshold, which is £85,000.

You can, of course, decide to register for VAT on a voluntary basis if your turnover is less than the threshold figure. As a VAT registered company, you can reclaim VAT paid on all goods and services purchased by the company.

For further reading on VAT, consult the Rapid Formations blog: Do I need to register my limited company for VAT?

How do I reserve a company name?

There is only one way to reserve a company name at Companies House, and that is to actually form a limited company. No facility exists to simply reserve a company name without forming a company.

If you wish to reserve a company name for future use, you should let HMRC know that your company is dormant. Consequently, HMRC will not expect a tax return to be filed, and you will only be liable to file inexpensive 'dormant accounts' instead of annual accounts.

For further reading on dormant companies, have a look at our blog: A guide to dormant companies.

What type of company do I need?

Limited by shares companies:

The vast majority of companies are formed with the objective of making a profit for their shareholders, and a private limited by shares company (also referred to as a 'limited' or 'ltd' company) is the standard corporate vehicle used for this purpose. A limited company is generally suitable to carry out most commercial business activities.

Limited by guarantee companies:

This type of company is generally used by non-profit organisations such as workers co-operatives, membership organisations including students’ unions, sports clubs, and also charities.

This type of company has no share capital or shareholders, and instead has guarantors who undertake to guarantee a certain amount of money should the company become insolvent.

This type of company has no share capital or shareholders, and instead has guarantors who undertake to guarantee a certain amount of money should the company become insolvent.

LLPs:

Limited liability partnerships, or LLPs, are similar in structure to a traditional partnership; however, they enjoy the same limited liability of a limited company. They are generally used by professionals such as solicitors, dentists and accountants.

The decision of whether to opt for a limited by shares company or LLP is not straightforward, as there are many differences between the two company types - perhaps the most important being taxation. For further reading on this subject, have a look at our blog: Limited company or LLP?