Below is a list of often asked questions about forming a
UK limited company. If you have any further questions that you would like
answered, please send them to us, by completing the below online 'ASK
FBS A QUESTION' form, and we'll do our best to answer them.
Can I choose any name I want
for my company?
Unfortunately you will not always be able
to have the name you want for your company. There are a number of
regulations that apply when a company name is chosen.
The name you choose must be unique and must not include
the words “limited”, “unlimited” or “public limited company” (or their
Welsh equivalents) or any abbreviations of those words except at the end
of the name to indicate the company's status.
You cannot choose a name that would be considered
offensive or whose use would constitute a criminal offence.
It is important to avoid choosing a name which is “too
like” existing registered companies or brand names e.g. “Harrods”,
“Virgin”, “Corus”.
The for more guidance on choosing a company name refer
to the online Guidance Booklets and FAQs on the Companies House website.
How can I check the
availability of a name?
You can check the availability of
a name by searching the Companies
House database (this service normally operates Monday
to Saturday, 7 a.m. to 12 Midnight UK time) or alternatively, when
you place an order we will verify availability and advise if
necessary.
Who owns the company and who
runs it?
The directors run the company and the
shareholders (members) own it. The directors may also be shareholders. You
require only one member, and in addition to the director, you must have a
company secretary. If there is only one director, the secretary must be a
person other than the sole director. This means there must be at least two
people involved in running a company.
Can anyone be a
director?
Yes, but it is generally up to the members (usually shareholders) to appoint people they
believe will run the company well on their behalf.
You may not be a director:
- if you are an undischarged bankrupt
- if you have been disqualified by a court from acting as a company
director
What are the directors'
powers, duties and responsibilities?
The directors are
responsible for the management of the company. While their powers can be
restricted by the company's articles they can in most cases can do
anything that the company can do. With these powers come responsibilities.
Since the directors can act as and for the company, they must ensure that
the company does everything that is is obliged to do by law and that the
decisions they make are in the best interests of the company (i.e. the
shareholders as a whole).
Directors must:
- carry out duties diligently and honestly
- not carry on the business with intent to defraud creditors or for
any fraudulent purpose
- not knowingly allow the company to trade while insolvent. Directors
who do so may have to pay for the debts incurred while insolvent
- not knowingly deceive the shareholders
- have a regard for the interests of employees in general
- comply with the requirements of the Companies Acts, such as the
preparation and circulation of accounts to the members and submission to
Companies House within the time allowed
Will I need to employ an
accountant?
There is no legal requirement to use an
accountant, although it is usually advisable to employ the services of a
suitably qualified accountant e.g. someone who is a member of a recognized
body, as they will help with your book keeping, preparation of your tax
returns and prevent you from making costly mistakes.
There are four recognised bodies which will be of
interest to you as a small business:
- The Institute of Chartered Accountants in England and Wales, whose
members put ACA or FCA after their name.
- The Institute of Chartered Accountants of Scotland, whose members
put CA after name.
- Chartered Association of Certified Accountants who members put ACCA
of FCCA after their name.
- The Chartered Institute of Management Accountants, whose members put
ACMA or FCMA after their name.
Must all company
accounts be audited?
No. If they qualify for exemption and
wish to take advantage of it, most very small companies and dormant
companies are not required to have their accounts audited.
- To qualify for audit exemption as a very small company, the
companies turnover must be less than £1 million (£250,000 for companies
that are charities) and have assets of less than £1.4 million.
- Dormant company audit exemption may be claimed by a limited company
that has not traded during a financial year, unless it is a banking or
insurance company or an authorised person under the Financial Services
Act 1986. Dormant companies do not need to appoint auditors and can
deliver very basic accounts to Companies House.
What are the set-up
costs?
Prices start from £69 (£81.08 including VAT) for the Economy package. This includes an off-the-shelf or own-name company, fully
inclusive of all charges and fees.
If you purchase a ready made company, then you will be
able to open a bank account and trade as soon as payment is cleared.
We also offer Standard and Deluxe packages. Both packages come with FREE domain name,
E-mail account and VAT registration forms. Standard package price £99 (£116.33 including VAT). The Deluxe package also
includes seal and hard register. Deluxe package price £199 (£233.83 including VAT). To place an order visit
our order
form or if you require further information please e-mail sales@first-business-systems.co.uk.
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