Becoming a limited company
Aug 11 2006
If you decide to set up as a limited company, you must first register your business at the Registrar of Companies (Companies House). Visit the website by clicking here to download the required forms.
Companies House charges a standard registration fee of £20. It also offers a premium same-day registration service for a fee of £50. Most small businesses that opt for limited company status become private limited companies rather than public limited companies (PLCs). The main differences between them are that:
• PLCs can raise money by selling shares on the stockmarket - private limited companies cannot.
• PLCs must have share capital of at least £50,000.
• PLCs must have two shareholders, two directors and a qualified company secretary.
A private company limited by shares can convert into a PLC, but it will need to re-register in order to do this.
Companies House have a range of material available including a guide to company formation, click here to go to the site and download it.