Setting up a Limited company online

Discussion in 'General Business Forum' started by Adalberto P, Mar 20, 2021.

  1. Adalberto P

    Adalberto P UKBF Newcomer

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    I am going to set up a Limited Company for myself, as a sole owner. An accountant quoted me a good amount of money to do it. I have seen a number of online companies who say they help you do it for a fixed fee depending on the 'package' you buy. The can charge form only £12 to £200.

    I have even found some of these companies in the TrustPilot reviews with several reviews. I do not want to put the names here in case I am accused of promoting companies but, if somebody tells me it is OK to do so, I can mention them.

    Are they reliable or just cowboys looking for easy money?

    Has anybody here used them?

    Recommendations/referrals welcome

    Thanks
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #1
  2. Nico Albrecht

    Nico Albrecht Verified Business ✔️
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    Why not do it for yourself online and pay the £12 yourself.

    You can pay an account to do it and ask questions or do it yourself.

    You should know filing annual accounts cost money too for a limited company , and you will need most likely an account and doing it for you. From £500 to several thousands a year depending how complex it is. Your biggest challenge will be to get a decent business account with one of the main banks.
     
    Posted: Mar 20, 2021 By: Nico Albrecht Member since: May 2, 2017
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  3. Mark T Jones

    Mark T Jones Contributor

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    As above serving up a company yourself is easy and cheap

    It's after that the costs start creeping in

    It would be a great idea to go back to some of these companies and ask what it us they are actually offering for the money and then decide what you want
     
    Posted: Mar 20, 2021 By: Mark T Jones Member since: Nov 4, 2015
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  4. Adalberto P

    Adalberto P UKBF Newcomer

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    Yes, I know about the costs but my registration will also be to reduce my income tax and for other reasons (to protect my money by investing it in the company).
    I know I could do it myself but I find the documentation confusing.
    Also, even if I use an online company to do the registration, I will still get an accountant to do the accounts.
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #4
  5. Adalberto P

    Adalberto P UKBF Newcomer

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    Actually, one of the things those online registration companies offer is getting a business bank account. That is why I am asking people here if anybody has used them to register their company.
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #5
  6. intheTRADE

    intheTRADE Contributor

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    I would recommend Rapid Formations. Great company who I have used a few times
     
    Posted: Mar 20, 2021 By: intheTRADE Member since: Apr 14, 2019
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  7. KM-Tiger

    KM-Tiger Verified Business ✔️
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    Year ago now but I used Quick Formations to register my Ltd. As long as your requirements are simple, then DIY with one of the online services is the way to go.

    Interestingly, Quick Formations was set up by @Ozzy who now owns this forum.
     
    Posted: Mar 20, 2021 By: KM-Tiger Member since: Aug 10, 2003
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  8. Mr D

    Mr D Contributor

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    Then just get a cheap filing done - for £12 or £200 your end result is a company. Oh they may chuck things in that sound nice but never get used..... company seal, some letterheads etc.

    It really is quick and easy to set up a company.
     
    Posted: Mar 20, 2021 By: Mr D Member since: Feb 12, 2017
    #8
  9. japancool

    japancool Contributor

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    I used Companies Made Easy.
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
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  10. japancool

    japancool Contributor

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    They don't offer "getting a business account". They just refer you to a bank and you still have to go through the bank's usual process. It's no easier than approaching the bank directly.
     
    Posted: Mar 20, 2021 By: japancool Member since: Jul 11, 2013
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  11. Adalberto P

    Adalberto P UKBF Newcomer

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    Another associated question?
    What is the best method to invest your personal money in your company? Can it/should it be made 'official' with the Companies House? I think it lists your capital as you start it or is it after you submit the first accounts?
    Or is it done with a solicitor?
    Thanks
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #11
  12. Mr D

    Mr D Contributor

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    Enter it as directors loan account money owed to you.
    Then take it out later without it being subject to tax.
     
    Posted: Mar 20, 2021 By: Mr D Member since: Feb 12, 2017
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  13. Adalberto P

    Adalberto P UKBF Newcomer

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    What is the formal way to do it so that it is documented?....lest they think it is profits
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #13
  14. KM-Tiger

    KM-Tiger Verified Business ✔️
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    Just record it in your books as a loan. It's a balance sheet item so doesn't appear on the P/L account.
     
    Posted: Mar 20, 2021 By: KM-Tiger Member since: Aug 10, 2003
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  15. Adalberto P

    Adalberto P UKBF Newcomer

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    Will the PAYE for me be a separate thing with HMRC, have the Companies House got anything to do with it?
     
    Posted: Mar 20, 2021 By: Adalberto P Member since: Mar 20, 2021
    #15
  16. Mr D

    Mr D Contributor

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    No, thats between the company and HMRC.
    Companies house get involved in the company things, HMRC get involved in the tax things.
     
    Posted: Mar 20, 2021 By: Mr D Member since: Feb 12, 2017
    #16
  17. Mark T Jones

    Mark T Jones Contributor

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    No but you definitely need dedicated professional advice
     
    Posted: Mar 20, 2021 By: Mark T Jones Member since: Nov 4, 2015
    #17
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  18. Ozzy

    Ozzy Founder of UKBF UKBF Staff
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    This is where you need an accountant. It's fine to look after these things yourself if you understand the principles, but if you don't (and most people don't) then I would strongly recommend you use an accountant to get your accounts setup. A good accountant would help you setup something like Xero, Freeagent or whatever so you can get up and running on your own accounts - showing you what to do on a monthly basis. Then when it comes to the year end their fees will be fair and they only need a quick tap and knock, and your accounts are filed at Companies House and HMRC with ease.

    As a very general piece of advice, you actually won't have any pay for a while from your new company.
    You put a loan into the company, lets say for easy math you invest £12,000 into the company as a loan. That gets recorded on your Balance Sheet as a debt the company owes, as mentioned earlier. As far as Companies House would be concerned, should you file your accounts with them in that time, it would be a debt.
    You then take out of the company £1,000 a month to live on. This would not be wages, it would be the company paying you back £1k a month of that loan for 1 year.
    As far as the tax is concerned there is no PAYE because you haven't had any pay from the company, you've earned nothing to put it another way. However the company has gradually been repaying it's loan to you - and you have been using those repayments to put food on the table and live on.

    I'm perhaps oversimplifying it there, but that's a summary of a tax efficient way to invest into a company if any of that investment is needed to "pay" you too.

    As for using an online company formation service to setup your company, almost all the ones you will find online are powered by the software my day job creates for that industry. I'm bias but our software is easier to use and less complicated that the Governments own platform and the cost between them all us comparable, even Quick Formations mentioned earlier that I sold in 2014 still runs on our eFiling platform. You're no better or worse of using a formation agent website or doing it on the gov.uk website yourself at a basic level, I just think the formation agents website would be easier to use.
     
    Posted: Mar 21, 2021 By: Ozzy Member since: Feb 9, 2003
    #18
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  19. Adalberto P

    Adalberto P UKBF Newcomer

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    Ohhhh interesting, thanks.
    So there are two ways to draw my pay:
    (but the company is still making money from my work)
    1- As debt returned to me (no PAYE)
    2- As PAYE (instant income tax pay)
    Both ways I pay income tax at the end of the day
    But.....as I have been trading as sole trader, HMRC has sent me a heavy bill for Tax on account for the year April 2020-April 2021 (I paid half already) so, if I get on PAYE, I am paying tax for both years at the same time.
     
    Posted: Mar 21, 2021 By: Adalberto P Member since: Mar 20, 2021
    #19
  20. japancool

    japancool Contributor

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    You do not pay tax on a repayment of a director's loan.
     
    Posted: Mar 21, 2021 By: japancool Member since: Jul 11, 2013
    #20
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