setting up aLimited Company

shopfrontuk · Jun 29, 2006

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 · Jun 29, 2006

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 · Jun 29, 2006

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 is who I use, they're very good. Speak to Alan.

Hayles · Jun 29, 2006

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 · Jun 29, 2006

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 · Jun 29, 2006

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 · Jun 29, 2006

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

Ozzy · Jun 30, 2006

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.

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setting up aLimited Company

shopfrontuk

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