Starting up a LTD UK

[HasOzi]

Hey,

This is my first post to this forum. Me and a friend are planning on starting a t-shirt/sweatshirt business with our own designs. We are 18 and 19 respectively and studying at University, and wanted to make the business a LTD. I know basic information but don't know the ins and outs. Any help would be beneficial:

• Cost to form LTD
• Do we have to pay VAT
• Can the secretary be one of the Directors
• How do you allocate shares
• How much are the shares
• How many shares do you need to have
• etc

As you can probably tell, we don't know where to start, any help would be much appreciated!

Thanks

 

[Scalloway]

IT costs £15 to register a company at Companies House.
You only need to register for VAT when turnover reached £77,000 per annum.
The secretary can be a director but you do not need to have one.

You will find more information relating to your questions here

http://www.startups.co.uk/setting-up-a-limited-company-how-to-issue-shares.html

 

[HasOzi]

IT costs £15 to register a company at Companies House.
You only need to register for VAT when turnover reached £77,000 per annum.
The secretary can be a director but you do not need to have one.

You will find more information relating to your questions here

Thanks your help is much appreciated

 

[E-Accountant]

The cost for basic company formation from an online formation agent is around 13-20 Pounds. However, if you seek professional service from an accountant then it may cost you little higher depending upon your specific requirements and the accountant's reputation.

Well, you will have to pay VAT on your inputs, provided that your supplier is a VAT-registered business.

Yes, the director can also assume the role of a company secretary. However, the appointment of a company secretary is no longer mandatory. Its upto you if you appoint one or not.

A 'share' represents your proportion of ownership towards the company's assets. If you are pursuing with your partner on a 50/50 basis, then you may allocate the equal number of shares. Being a sponsor, its strictly your choice as to how you want to structure your company's share capital. That is to say, it is at your discretion to decide about the total number of shares to be issued and the nominal value per share.

 

[JacobCook715]

You only pay VAT once your companies revenue gets to a certain point, pretty high i believe

 

[TODonnell]

Understand that if you form a company you will need to submit annual returns to HMRC and Companies House. It's not onerous and you can do it online, but I believe it can get people in a tizz when the deadlines come around, so ...

... either get an accountant's help from the start or find out what the returns involve well in advance! e.g You need to sign up online and that involves passwords being posted to you and the like.

- We do company formations as part of our virtual office service. See my link below ...

 

[JamesCartwright]

The cost of forming a limited company can vary however depending on whether you use a company formation agent or do it yourself but it is pretty cheap.

You will only have to pay VAT if your turnover is reaching £79,000 (Effective 1st April 2013)

Yes, the Director can act as the secretary of the company.

It is usually advisable to allocate atleast a total of 100 shares as it makes allocation of the shares easier in the future especially when you wish to distrubute them. This is especially the case for a Private Limited Company guaranteed by Shares.

Hope this helps!

 

[14Steve14]

It could be to your advantage to be VAT registered depending on your circumstances. Your accountant will be able to advise you better.