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Companies House application advice please
bluewomble88
Posts: 2,860 Forum Member
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Hi
I want to register a new company with Companies House.
I am going to be building websites and charging for it. Just me, nothing special. Rather than do it cash in hand etc, I want to trade under a company name I've made up so everything is above board.
Anyway, look at this image of the application. I have absolutely no idea how to fill this page out. Can anyone offer some advice please?
Thanks in advance.
I want to register a new company with Companies House.
I am going to be building websites and charging for it. Just me, nothing special. Rather than do it cash in hand etc, I want to trade under a company name I've made up so everything is above board.
Anyway, look at this image of the application. I have absolutely no idea how to fill this page out. Can anyone offer some advice please?
Thanks in advance.
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Comments
Easiest way is for shares to be £1 or whatever you use to open a company account. Just keep the text in the other box.
Tbh, this is probably the easiest bit of running a company. Have you considered being properly self employed? You could still have a name.
Pick class of share 'ordinary'
Number of shares 100
Amount paid up on each share £0
Amount unpaid on each share £1
Aggregate nominal value £100
Don't change the prescribed particulars from the suggested one.
This means you owe the company £100 for your shares, to be paid at any time in the future. You could do it with less, say £2, just substitute the different figure. For your purposes there's no real need to invest much in initial share capital, and all choices you make now can be changed in the future.
To register as self-employed you can start trading immediately, you just need to inform HMRC of your self-employed status within 3 months & keep a record of all transactions. You can trade as whatever name you like - (as long as it's not a registered / copywrited e.g. MacDonalds....!)
Decide on your company name and include a footnote on all your invoices etc as 'yourname' trading as WebWomble.com' or whatever you want to call yourself. You can still create a brand/logo etc as WebWomble.
My husband in comparison has set up a Limited Company (even tho it's only him) as the tax benefits work better for us this way - but I can tell you that his is 10 times more admin, Corporation Tax, he needs to hire accountants etc whereas I get by doing my own.
But like gemma when I first read the OPs thread I thought just use a formation company, £60 to £80, all sorted.
But before forming OP should make sure they own/register an email and web address that matches the company name.
Didn't realise that. I thought accounts still had to be certified even if not audited.
But small companies don't need auditing.
I'm not sure given the nature of the OPs venture why he wants to start of with a limited company.
I'm so confused now though.
I am in full time employment and I will remain so. However, I've been learning how to design and develop websites. I now want to make some money from this in my spare time at home on my Mac. However, I want to advertise my services in a professional way under a company name, not just my name. So, what do I do?
For example, let's say I want to advertise myself as 123 Designs Ltd. Is it MANDATORY for me to register this company name with Companies House (assuming it isn't already taken)?
If not, how do I make sure I am declaring my income and correct rates of tax?
Thanks for reading.
But I have always thought a limited company free from audit still had to have accounts signed off by an accountant,---is this not the case?
Forming a Ltd Company just complicates things for you. Be self-employed for this work (and remain employed for your main job). Just tell HMRC (the "Tax Office") and fill in a self-assessment form each year where you declare your earnings. You are over thinking and over complicating things. You would effectively be "Fred Bloggs" trading as "123 Designs" (NOT a Ltd Company!)
Yes, you can't pretend to be a limited company unless you are one.
But first I think you need to work out whether you actually want to set up a limited company. And you seem to be getting confused between company names and trading names. You can be a sole trader (as explained above) and trade as "123 Designs". Legally you'll be "bluewomble88 trading as 123 Designs" and you'll pay Income Tax.
Listen I am not knowledgeable at all in this field but am wondering why the rush for a limited company?
In any case if you don't own a limited company, legally you can't trade as one.
You could register the name as a limited company but keep it dormant thus protecting the company name you have come up with.
You will need to submit dormant company accounts each year but you can do this yourself online with no need for an accountant, the procedure is fairly straight forward.
Now having done the above you could start off using your name but trading as 123 designs, ( but not using the words limited or company ).
So long as no money or transactions go through the dormant company in other words dormant company doesn't trade, you will be fine doing this.
As for paying tax, other liabilities, NI and so on you will effectively be self employed, how you go about paying those dues?---- you submit tax returns but there is more to it and you will require proper advise.
As your business grows fire up the dormant company and start trading as 123 designs Ltd.
This is only my opinion, you may feel you want to start straight off trading as a limited company.
EDIT, and while Keefy is correct, I still think you should use a formation company if you are going down starting the limited company route.
The advice given so far is both good and a little confusing in places. I started from a similar position as you, ie employed by another company and looking to make a little more in your spare time.
I eventually stopped working for my employer when my business took off, and its the best thing I ever did. I'm not trying to put you off, but do it in small steps as tax and legals can be a pain in the arse.
If you are currently employed and have no intention of stopping work tomorrow at 9am consider setting yourself up as a sole trader, or a partnership. There is absolutely need for you to jump to ltd company.
setting yourself up as a Company LTD etc gives you the headache of submitting company accounts. You CAN set yourself up as a company and submit limited accounts if your profit is under a specific limit, but you would have to speak with your current employers as their PAYE will affect your own LTD taxaton.
You do not need to register a Ltd company. I would advise against this. I think it is just unnecessary for your sort of one-man-band business and over-complicates things with regard to money, paperwork and tax.
You can register as a self-employed sole trader, pay your own N.I contributions and pick a trading name (although your name etc. needs to be on your receipts).
Being registered as a self-employed sole trader is enough to legally trade, advertise your services 'XYZ Web Design.com etc' and get things like a business bank account.
This is what most contractors, individual website designers, decorators, drivers etc do.