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Whether your limited company will be a brand new startup or you’re a sole trader that’s incorporating your business, setting up a limited company is a significant milestone for any self-employed person.
You’ll no doubt want to get set up and trading quickly, but a natural question to ask is how long does it take to set up your limited company? There are various factors at play but it can generally take less time than you might think, especially if you engage a professional to handle the process for you.
In this post we’ll explore the key steps involved to set up your limited company and how we can help make the process as quick and smooth as possible.
What is a Limited Company?
Before focusing on the company registration process, it’s worth understanding what a limited company is. A limited company is an incorporated business that’s a distinct legal entity from its owners. This limited company business structure offers various benefits for the self-employed including financial protection in the form of limited liability, meaning your personal assets are safeguarded from creditors if the business encounters financial difficulties.
It also offers significant scope for improved tax efficiency. As a limited company director, you can pay yourself a combination of salary and dividends. Dividends are taxed at a lower rate than income tax on salary and aren’t subject to NICs so with the right structuring, significant tax savings can be made meaning you keep more of your earnings.
How Long Does The Company Formation Process Take?
The company formation process is relatively quick and straightforward when done online if you’re familiar with the process and have all the required information needed.
Various factors can impact how long it takes such as the day and time of day that you submit your application to Companies House. Applications submitted during working hours and on weekdays will be processed more quickly, usually the same day. The accuracy of your details also plays a part with missing documents, errors or inconsistencies likely to delay the process.
Delays can also occur if your chosen company name is too similar to an existing one or it doesn’t meet the guidelines as you’ll have to go back to the drawing board and find a name you like that isn’t already taken. It’s a good idea to use the Company Name Availability Checker beforehand to ensure your chosen company name is available.
Online applications can often be processed the same day, or usually in less than 24 hours, but postal applications will take significantly longer. If you’re in a rush, Companies House do provide a same day online incorporation service for a £50 fee.
What’s Needed to Register Your Limited Company?
The following is needed to complete a company formation:
- A unique company name that meets Companies House guidelines
- A UK registered office address
- One or more directors
- One or more shareholders
- Share capital details
- Articles of association and Memorandum of Association
- A Standard Industrial Classification (SIC) code to describe your business activity
What Happens After Your Limited Company is Registered?
After your application has been approved by Companies House, your limited company is a legal entity. You’ll then receive your Certificate of Incorporation and Company Registration Number from Companies House, but it’s important to be aware of the additional responsibilities that incorporation brings.
You’ll need to register for Corporation Tax within three months of the date your business commences trading and then pay Corporation Tax owed on your taxable profits. A business bank account, such as Mettle by NatWest, is also a legal requirement to keep your business and personal finances separate.
Accurate financial records must be kept and annual accounts must be filed with Companies House as well as a Confirmation Statement, and Statutory Registers must be maintained. The best way to ensure that you meet all your obligations and remain compliant, as well as to ensure your business is operating as tax-efficiently as possible, is to engage an accountant. They will even be able to handle the Company Formation process for you, and this is where we come in.
Limited Company Formation and Accounting With Gorilla
It can be daunting to try and form your own limited company yourself, but our limited company formation service makes it easy and we can usually have your company set up the very same day! We’ll handle the whole incorporation process for you from start to finish ensuring that you are compliant, that everything is filed correctly and your application is right the first time.
Once your company is set up, our limited company accountancy service provides the support you need to help your business flourish. You’ll work with your own dedicated accountant who will expertly manage all your business and personal accounting needs, ensuring that you’re fully compliant and operating as tax-efficiently as possible to maximise your take home pay.
MTD-compliant FreeAgent accounting software is included at no extra cost saving you up to £330 a year and you’ll receive a same working day response to your queries thanks to our client service guarantee.
Request a callback today to speak to an accountant and find out more about our company formation and limited company accounting services or get an instant online quote here.
