So you’ve got a great business idea that’s going to propel your professional life into the stratosphere, but how do you go about actually getting a limited company up and running?
In this blog, we’ll take a look at the four key steps that you’ll need to take in order to create your limited company, from initial incorporation through to managing your accounts.
Register your business with Companies House
So, the very first step you’ll need to take when setting up a limited company is to register it with Companies House. Whilst, in essence, this isn’t too taxing, you will need to do a fair amount of planning before diving into the incorporation.
Firstly, you’re going to need a suitable company name which can’t be the same (or very similar) to another business or contain any explicit or offensive language. You’ll also need an official business address, at least one named director, information on company shares and the Standard Industrial Classification (SIC) code of your business. The latter isn’t anywhere near as complicated as it sounds – it just describes what your business actually does.
It’s then just a case of sending all of this information over to Companies House so that your information can be verified, and confirmation of incorporation can be issued.
Open your Business Bank Account
With the company now formally incorporated, the next step is to make sure that there’s a dedicated bank account for your income and expenditure. You’ll need to use a specialist business bank account so that company funds are kept separate from your own, plus it makes financial auditing significantly easier for you to manage.
Business bank accounts come with a number of essential features that you’re likely to need throughout your time trading. You’ll typically have online banking for easy financial management and a debit/credit card so that you can make business purchases online and on the move.
Set up your Business Insurance
The insurances that you’ll need to operate your business will largely depend on the industry that you’re in and your contract.
However, there are a couple of essential insurances that you’ll need to legally run a business in the UK as well as those which can help you save a fortune, should the unexpected happen.
Professional Indemnity | Protects you against claims of professional negligence, making a professional error or giving bad advice which results in financial loss.
Public Liability | Protects you against claims if a person, place or property is damaged as a result of your actions. This is also a must have if you work from home since clients could still pursue legal action if injured at your property.
Employers’ Liability | Compulsory for almost every UK business, Employers’ Liability insurance protects against legal action from employees. This could be due to factors such as a work-related injury or contractual disputes.
Appoint a specialist accountant
Finally, you’re going to need an expert accountant to tie all of your business finances together. It’s not just income and expenses that need to be taken care of – payroll, invoices, dividends, tax returns and a whole host of financial tasks need to be professionally managed to ensure that your company records are up to date and submitted on time.
Once you appoint an accountant, we’ll help to get your limited company up and running by incorporating your business with Companies House, setting up your business bank account, offering helpful advice on your essential insurances and much more.
As a client of Gorilla Accounting, you’ll have a direct line, e-mail and video conferencing access to your dedicated accountant who will be on hand to help you every step of the way.
For more information on the full range of services offered by Gorilla Accounting or to begin the process of appointing us as your accountant, contact us today and a member of the team will be in touch to discuss your options.
