setting up aLimited Company

[shopfrontuk]

Hi,

I have been thinking of setting up a limited company but need some more info on this.

I have been looking at http://www.quickformations.com/

They offer a package for £35 wich is a basic formation

surely this isnt all it costs to setup a Ltd company, what about the shares etc dont I need to pay for them.

Also with the company being limited how do I give the startup capital, is this a loan or is it just done by buying the shares?

[Sharon]

I'm sure people could answer more effectively than me, but in layman's terms...

It is all you need really! I've just done it for the second time!

Shares, just a formality, we typed into the 'number of shares' box 10, @ £1 each... tokens really, we'll make sure they're accounted for in the accounts.

Start up, we've set up a 'loan account' in our bookkeeping software, whatever we put in, we can take out whenever we want, no tax etc.

[DuaneJackson]

Yes, that's all it costs. I've formed companies via Quick.

Regarding the startup capital, they'd be a number of factors to consider. Best to talk to an accountant about your specific situation.

www.alphalimited.co.uk (http://www.alphalimited.co.uk) is who I use, they're very good. Speak to Alan.

[Hayles]

We now use Alphalimited and can recommend him. Wish we'd used him for advice when setting up; we'd have saved ourselves so many problems.

Give him a call - he's really friendly, but can talk for ages... ;-)

H

[shopfrontuk]

Ok,

so the £35 is all I need, thats brilliant as I though it would cost a lot more than that.

with the shares im still not 100%, if I say I want 10 shares at £1, it will cost me £10 more.

Thanks

[Cornish Steve]

I know the process is different in the US, but the share issue is the same. We started out with 1,000 shares to give us some flexibility. My business partner and I were strongly advised not to split them equally since this can lead to indecision. As a result, I have 550 and she has 450. Since then, we've issued smaller numbers to two helpers. We couldn't have done this if only ten shares were issued initially.

[Sharon]

Nope! Your accountant will tell you how to record them in the end of year accounts.

[Ozzy]

The "issued" shares (the £10 you refer to) would be the shares that the shareholders have technically purchased from the company, so in theory you would need to pay that £10 to the company for them. In reality the issued share capital on such small amounts is offset against expenses and drawings which your accountant would sort out for you.