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Setting Up A Limited Company? Here’s What You Need To Know

Two people shaking hands

Whether it’s your first time setting up a limited company or you’ve done it before, it’s always good to make sure you’ve got everything covered. So, let’s take a look at the top five things you need to know about setting up a limited company.

1. Choosing the right company name

When it comes to choosing a company name, you need to find one that not only fits your business but is also available for you to use. When registering with Companies House, they do not allow duplicate or similar names on the register; if you’re not sure whether the name you want is available, use our free limited company name check.

Once you find out if the name is available, you now need to make sure you do a sense check. Is the spelling confusing, and are people able to find it online? If you’re using an unusual spelling, you need to make sure you can be found and not confused with other companies.

2. Annual account dates

Glass jar with money in it

When you’re running a limited company, you need to be aware of important accounting dates. Remember: you still need to file annual accounts if your company is dormant.

You must file your annual accounts with Companies House by the due date. For your first set of accounts, this is 21 months from the incorporation date. Any subsequent accounts then need to be filed nine months from the accounting reference date, typically the last day of the month the company was incorporated. However, you can change the accounting reference date if required; just remember this will impact the financial year for your company.

3. Corporation Tax

Every limited company needs to pay Corporation Tax on its profits, as stated in the company's annual accounts.

Currently, the rate of Corporation Tax is:

  • 25% if the company made more than £250,000 profit (known as the main rate)
  • 19% if the company made less than £50,000 profit (known as small profit rate)
  • Companies with profits between £50,000 and £250,000 may be entitled to Marginal Relief, which allows rate reduction from the 25% main rate

There are multiple ways you can pay Corporation Tax, but you need to ensure you make the payment before the deadline, otherwise, your company may face financial penalties.

4. The confirmation statement

This is an annual statement that confirms the details of your limited company are correct. You need to confirm the registered office address, registers, officers, business description (SIC), and the share capital of any shareholders.

If it’s your first confirmation statement, you need to provide details for all of the people with significant control (PSCs).

There is a fee of £13 to submit your confirmation statement.

5. How much does it cost to register a limited company?

If you’re using the Company Wizard for the first time, you can register your limited company from as little as £13.95 for the basic package. That’s all there is to pay with no hidden fees.

Ready to register your limited company?

Start Limited Company Registration

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