The facts about forming a Limited Company
This page gives you the basic and honest facts about forming a UK limited company and all of the information below can be confirmed at Companies House.
In this article
Are the companies we form complete?
Yes, every company formed by Companies MadeSimple comes with all the required documentation, registered with Companies House, 100% legal, totally complete. Our companies do not require any other documents. Certain competitors will employ scare tactics to try and claim your company is not legally compliant in order to sell you services that you do not require.
Beware of these scams and feel free to contact us should you feel you are being targeted. You should also report fraudulent activity to Companies House.
Companies House is the United Kingdom Government Department through which all UK companies are registered.
What documents do you need to form a limited company?
As we do online company formations you will not be required to submit any document in paper form. We will simply ask you to complete our online form. To complete this form, you will find all the information needed is here.
- Every company must have at least 1 director and at least one shareholder.
- The director can also be the only shareholder which means you can incorporate a single person company.
- All directors must be 16 years or older.
- Shareholders can be of any age. However, please seek professional advice if appointing a shareholder that is under 18 years.
- Directors do not have to be UK residents (they can reside anywhere in the world).
- Shareholders do not have to be UK residents (they can reside anywhere in the world).
Corporate (company) directors are permitted but cannot stand alone in the position. You need at least 1 human director to be appointed regardless of how many corporate directors.
As a director of a limited company, you must:
- try to make the company a success, using your skills, experience and judgment
- follow the company’s rules, shown in its articles of association
- make decisions for the benefit of the company, not yourself
- tell other shareholders if you might personally benefit from a transaction the company makes
- keep company records and report changes to Companies House and HM Revenue and Customs (file your accounts with Companies House and your Company Tax Return with Corporation Tax
- register for Self Assessment and send a personal Self Assessment tax return every year - unless it’s a non-profit organisation (eg a charity) and you didn’t get any pay or benefits, like a company car
You can hire other people to manage some of these things day-to-day (eg an accountant) but you’re still legally responsible for your company’s records, accounts and performance.
Company Incorporation Filing Fee
We include the Companies House filing fee in all of its package prices. When using other incorporation agents make sure you are not caught out with added filing fee charges once you want to submit your application.
Filing your accounts
What does a set of accounts include?
Generally, accounts must include:
- a profit and loss account (or income and expenditure account if the company is not trading for profit);
- a balance sheet signed by a director;
- notes to the accounts.
Accounts must generally be accompanied by:
- a directors' report (with a business review if the company does not qualify as small);
- an auditors’ report (unless the company is exempt from audit).
Who is responsible for preparing accounts?
The directors of every company must prepare accounts for each financial year. These are called individual accounts.
What period must the accounts cover?
A company's first accounts cover the period starting on the date of incorporation, not the first day of trading. They end on the accounting reference date or up to 7 days either side of that date.
Please ensure you are aware of what a UK company's mandatory annual requirements are.
Please note: we do not offer professional business advice and so if you do need advice, please contact an accountant or Companies House.