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How to incorporate a limited company
Posted May 11, 2011
If you are thinking of contracting via your own limited company, there are typically three ways of incorporating your new company:
You can either use a formations agent to set up the company, apply to Companies House directly, or it is a service offered by many specialist contractor accountants.
Many contractors decide to use a third party to take care of the incorporation process. Formations agents charge anything upwards of about £35 to create your company.
You can choose to have a 'basic' service whereby you receive all paperwork electronically, or you can pay more for paper versions of your incorporation documents and certificate of incorporation.
Accountants will either offer this as a 'free' option if you sign up as a new client, or will charge a one-off 'set up' fee which may also include VAT registration and other processes.
Incorporating a limited company
If you want to set up a company yourself, you need to file three documents with Companies House;
1) Form IN01, which contains details of your registered office, the company officers, and details of the share capital.
2) Memorandum of Association - the details of subscribers who wish to form the company (you can download a pro forma standard memorandum here - PDF).
3) Articles of Association - details how the company will be run, its liability, and its internal management affairs.
After preparing these documents, you need to return them to Companies House with a filing fee.
If you use the web incorporation process, you pay £18.
The paper-based route costs £40 (with a 8-10 day turnaround), or £100 for a same-day service.
Further Information
- For more information on forming a company yourself, refer to this Companies House guide.
- For professional assistance, try our directory of specialist accountants.
- You can set up a company online via our formations partner, Duport
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