Setting Up a Limited Company

Lowson Ward supplies a limited company free of charge to contractors who use our services for 12 months. Otherwise it costs just £99 plus VAT.

Companies can be formed with a name of your own choosing and are available within 24 hours. So many companies are in existence that you should have two or three alterative names in case your first choice is already taken. Suffixes such as ………….. Consultants Ltd or …….…….. Services Ltd may be sufficient to allow the name you want to be registered. Names of companies already registered are shown on the Companies House website. The alternative is to buy a ready-made company. This is commonly known as buying a company “off the shelf”. This will enable you to start working through the company immediately. Please contact us for further details.

The company needs to have an address in the same way that individuals do. This is known as the ‘registered office’. Most contractors use their home address.

There needs to be at least two people involved in the company, most often husband and wife or partner. One is the director and the other the secretary (and sometimes director as well). These are the “officers” of the company.

Shareholders own the company and again this is most commonly either the worker or the worker and spouse or partner. If more than one, the ratio of shares held by each can be one of the most useful tax planning tools available. It will depend on your personal circumstances. We will offer detailed advice tailored to your needs after a full fact find, taking into account the section 660 legislation. Again, please contact us.

A bank account needs to be opened in the name of the company and a deposit account if desired. We will supply you with a copy of the documentation that your bankers will need. We can arrange for a bank account to be opened for you or alternatively you can use your own bankers. Our bankers offer free banking and interest on current accounts.

We will discuss with you the need to register for VAT. If it is appropriate we will organise this for you.

We will register the company for PAYE on your behalf.

You may probably wish to create a company letterhead either on your own computer or by using a local printer. Letters should show the company name, registered office address, the company number and country of registration (e.g. registered in England no. 1234567).