Online business formation and registered addresses

[J Sidoli]

Hi all -- in short, myself and a friend are forming a ltd company for a project we've been doing for a few years and really need to make it legally legit (until now we've made no money and done everything at-cost, but we've realised the best way forward is a proper limited company and do it right for tax etc.)

We realise it's very easy to do the docs ourselves but we're not short of the cash so we are thinking of using an online agent to make it even simpler. However, one issue we've been mulling over is where to use as our address because we're both moving soon and can't really use our own houses (plus privacy etc).

I've just noticed some online agents offer registered addresses, e.g. companywizard (at .co.uk but I can't post links as my account is quite new) offer a "London Registered Office" From £69.99 + vat (they also forward statutory mail from companies house for free, and the rest for a charge of postage -- we won't have much else tho, if anything).

Is this legit and does anyone recommend it? Or is there a downside? It looks ideal!

Thanks

 

[KAC]

As it is you and a friend, it is more important that you draft a shareholder agreement before/ at the same time as/you form the company and sign it when the company is formed

 

[J Sidoli]

Yes -- we will get that stuff done as well, thanks for mentioning it, but the main issue we are facing is whether to a) use an agency and b) if we use an agency whether to use one where we can get a forwarding address because we currently lack a suitable address... but hence my post, does anyone have experience with registered address services like the one I mentioned?

 

[KAC]

Appoint an accountant. Most will form the company and, dependent upon the nature of your business, may be-prepared for you to use their off as the registered office.

 

[J Sidoli]

Hi KAC, appreciate the advice but I honestly think we'll be fine doing the books ourselves and we're not going to be turning over more than £20k so filing will be pretty simple too.

(it's an extremely simple buy x and sell y affair with no PAYE -- if it gets messier we will hire someone to help later on)

 

[Newchodge]

Hi KAC, appreciate the advice but I honestly think we'll be fine doing the books ourselves and we're not going to be turning over more than £20k so filing will be pretty simple too.

(it's an extremely simple buy x and sell y affair with no PAYE -- if it gets messier we will hire someone to help later on)

You can separate the company formation from the registered address. provider, there are lots of address providers out there. I would strongly recommend googling the address and having a look on google maps to see what your customers will see if they check up on you.

Incidentally, if you are not running PAYE how are you going to get money out from the company?

 

[J Sidoli]

It's more of a project than a money-making scheme, but it does and will make money and if we want anything out we will do a dividend/director's fees.

i.e. yes it will make money but we're not in need of the money and would rather use the profit to keep doing what we do with the company

 

[Gecko001]

Do not go near companies who will register businesses. They are mostly scams. There is no legal requirement in the UK to register a business or a business name.

 

[J Sidoli]

Thanks for the comment Gecko and appreciate the input, but can you explain more? I've read plenty of positive comments about some providers, including the one I mentioned above, and it seems like for £50 it's an easy way to get all your paperwork filled out by default, no?

 

[Gecko001]

Thanks for the comment Gecko and appreciate the input, but can you explain more? I've read plenty of positive comments about some providers, including the one I mentioned above, and it seems like for £50 it's an easy way to get all your paperwork filled out by default, no?

If the company is offering to form a entity such as a Ltd Company then that is different. They are not scamming you, but those who infer that you must "register" a business and charge say £100 for doing so are probably scams. They might just list your business name in some spurious business directory and that is all.

There is no legal requirement to register a business in the UK. You can operate large businesses as a sole trader or as a simple partnership without having to register them with any authority.

 

[J Sidoli]

Hi Gecko -- thanks for clarifying. No I am talking about an online formations company (like companywizard -- dot co dot uk, I am not allowed to post URLs bc my account is new) that does the articles, memorandum, etc. for you -- and my question is, does anyone know about also using them for forwarding addresses and have any experience (positive/negative) with doing so?

I also know I could be sole trader or we could form a partnership, but we'd rather just keep this as a separate project that doesn't interfere in our very real and very full-time jobs and which we can create as a separate entity. I also understand from my research that the partnership route can get quite messy and after a lot of homework the simple conclusion has been a limited company.

 

[Gecko001]

Hi Gecko -- thanks for clarifying. No I am talking about an online formations company (like companywizard -- dot co dot uk, I am not allowed to post URLs bc my account is new) that does the articles, memorandum, etc. for you -- and my question is, does anyone know about also using them for forwarding addresses and have any experience (positive/negative) with doing so?

I also know I could be sole trader or we could form a partnership, but we'd rather just keep this as a separate project that doesn't interfere in our very real and very full-time jobs and which we can create as a separate entity. I also understand from my research that the partnership route can get quite messy and after a lot of homework the simple conclusion has been a limited company.

There are lots of advantages to Ltd companies such as possible tax savings and creating a ready-made structure for the business. It also has the Ltd liability aspect where it gives substantial (not complete) protection to your personal finances.

Many clients like working with Ltd's because they can do due diligence on a Ltd company supplier using a few clicks of a computer mouse and vice versa. However, this could be a disadvantage in many cases as anybody can find out details of the financial situation of the company, directors names, etc. very easily. There are some clients who will see the limited liability aspect of working with a Ltd as risky, but that is less and less of a problem nowadays.

 

[J Sidoli]

Thanks for the tips -- when it comes to the public image and supplier stuff, we're simply not worried about any of that as we have nothing to hide and we already have our clients/sales sources in place. It's really just a case of turning this into a legitimate business on paper rather than me and my bank account and struggling to keep the two separate and legal!

Once again, we are not looking to start a full-time business... this will make money but not a lot. We don't need or want a wage from it right now but might do in a few years, who knows. We're doing it because it's a DIY project that we love and just need to separate the finances out from our own and let it be itself separately from us. It really seems a limited company is the easiest way and the only difficult or complicated aspect I can see is that we might have to spend a few bob to do the paperwork to shut it down in a few years if we get bored with it.

Anyway, I'd still really like to hear from anyone who has used a registered address offered by online company formation websites? We are thinking of using companywizard.co.uk

 

[Lee Oakley]

Anyway, I'd still really like to hear from anyone who has used a registered address offered by online company formation websites? We are thinking of using companywizard.co.uk

Good luck with the business. I have many small business clients that use formation agents like company wizard and I've personally used yourcompanyformations.co.uk for my wife's consulting business (with a business address to get the companies house mail) and there are cash back incentives if you open up a business bank account with Barclays through them.

For a project that doesnt need a trading address a registered address is a very popular option.

There is a debate in SEO that the volume of businesses at the same virtual office addresses may affect search rankings for local SEO but its a low ranking factor and its more important to consider that if your virtual address will never be used to 'trade' or be open to the public and you list your address in the Google My Business page (with opening hours etc) that you are breaking the GMB terms and could have your GMB page suspended if its looked into.

 

[J Sidoli]

Thanks Lee -- and no, we don't have any premises or SEO concerns so it sounds ideal. Thanks for your info.

 

[Nochexman]

I've just noticed some online agents offer registered addresses, e.g. companywizard (at .co.uk but I can't post links as my account is quite new) offer a "London Registered Office" From £69.99 + vat (they also forward statutory mail from companies house for free, and the rest for a charge of postage -- we won't have much else tho, if anything).

Is this legit and does anyone recommend it? Or is there a downside? It looks ideal!

Welcome to the forum, J Sidoli.

It sounds like a legit service. Can you identify whether the supplier is legit?

Bear in mind that once your business is registered, you will almost certainly be the recipient of non-statutory mail and that your agent will apply a charge for forwarding this on to you.

Good luck.

 

[J Sidoli]

"you will almost certainly be the recipient of non-statutory mail and that your agent will apply a charge for forwarding this on to you"

Ha -- I hadn't thought about that, very good warning point!!!

 

[Miguel-DesFran]

Setting up an offshore business in not an easy feat. Several procedures have to be followed. And so, one needs to consult with a reputable institution to know how company formation is being done properly.

 

[Anonimouse]

I was in a similar position - Small side business run alongside a full time job, but wanted to do everything by the book. I used 1stFormations and opted for their privacy package, which provides you with a registered/business address in Covent Garden, London.

My limited company was formed within a few days at a cost of around £30 exc. VAT. I believe the annual renewal fee is around £70, which also includes mail forwarding (via scanned documents).

I notice this thread has been bumped, so perhaps you managed to find a formations agent! However hopefully this post helps someone else ...

 

[MyAccountantOnline]

Hi all -- in short, myself and a friend are forming a ltd company for a project we've been doing for a few years and really need to make it legally legit (until now we've made no money and done everything at-cost, but we've realised the best way forward is a proper limited company and do it right for tax etc.)

We realise it's very easy to do the docs ourselves but we're not short of the cash so we are thinking of using an online agent to make it even simpler. However, one issue we've been mulling over is where to use as our address because we're both moving soon and can't really use our own houses (plus privacy etc).

I've just noticed some online agents offer registered addresses, e.g. companywizard (at .co.uk but I can't post links as my account is quite new) offer a "London Registered Office" From £69.99 + vat (they also forward statutory mail from companies house for free, and the rest for a charge of postage -- we won't have much else tho, if anything).

Is this legit and does anyone recommend it? Or is there a downside? It looks ideal!

Thanks

Is a limited company definitely the best structure for your business now?

If you've got other income and have businesses losses you may be able to offset those losses to get some tax refunds. You wont be able to do that if you trade via a limited company.