The majority of new companies that are incorporated in the UK are ‘Limited’ (abbreviated to Ltd). The private limited company structure enables companies that generate profits to pay their shareholders using a tax efficient blend of salary and dividends.
Another reason this type of company is popular is because it limits the financial liability of the shareholders should the company become insolvent or face liquidation at any time. Because the company is a separate legal entity that is owned by the shareholders, each shareholder is only responsible for the amount of company debt equal to the value of their own shareholding, i.e. their personal finances are protected.
Other benefits of a private limited by share company include:
During the incorporation process, shares are issued to the initial shareholders of a company. However, new shares can be issued at any time to raise capital.
The share capital of a company is represented by the total number of shares in issue multiplied by the nominal value of these shares. As an example, if a company issues 100 shares with a nominal value of £5 (per share) then the company’s share capital would be £500.
Any unissued shares can be issued to a shareholder at any time providing the other shareholders agree. Issued shares can be transferred between shareholders or sold to a new shareholder
There are four simple steps in the 121 Company Formation process:
Once you have decided on the name you would like to use for your company, visit our homepage to use our quick check tool to verify its availability.
This quick search tool is connected to the Companies House database and can immediately confirm if your chosen company name is available and approved by Companies House. If the proposed company name is too close to, or the same as an existing company name Companies House will not approve its use
We are pleased to offer our quick search tool free of charge which means that you can try as many variations as many times as you like until you find one that is suitable, available, and approved.
There are three types of Limited company available:
Make your selection once you have decided which package is most suitable. You will be asked to complete your order details and submit payment through our secure process using a credit card, debit card, or via PayPal. An order confirmation and an invoice will then be emailed to you.
On receipt of your order and payment, you will be asked to complete a company incorporation document online which will prompt you to enter details of the company’s registered address, full details of its officers, its shareholders, SIC code and so forth.
We will review the application for errors and omissions before submitting to Companies House. Within 24 hours your company will be formally incorporated and registered at which time we will email your company’s statutory incorporation documents. Depending on the company formation package you purchase, you may also receive printed copies of the documents via the mail.
Order online, call or livechat with our friendly team to complete your order