Limited Company FAQs

WHAT IS THE BENEFIT OF LIMITED LIABILITY? 

Limited Liability protects the owner of a Limited Company from personal loss as the company is a separate entity and hence has its own profits and debts. This is unlike the owner of a business (sole trader) as his business debts would in fact be his personal debts.

HOW DO I CHECK IF MY CHOSEN COMPANY NAME IS AVAILABLE? 

You can check the availability of a Limited Company name via our online search service. When choosing your name there are some factors to consider. It needs to be unique and must not be offensive, constitute a criminal offence or give the impression that the company is connected with the Government or a Local Authority. If you have any queries, please contact us and we will be able to offer expert advice.

WHAT INFORMATION DO I NEED TO SUPPLY FOR THE NBR TO FORM MY LIMITED COMPANY? 

1) the company name.
2) the people:
3) – names and addresses of the shareholders
– names and addresses of the directors
– dates of birth
– telephone numbers
4) – town of birth
– mother’s maiden name
5) a registered office address
6) – company objectives / activities
– the number / type of shares being issued

CAN I FORM A LIMITED COMPANY AND TRADE USING A DIFFERENT NAME? 

Yes, although it may be wise to protect your trading name using our Business Names Protection service before commencing business so as not to infringe on an existing trading name and to ensure protection of your name for the future.

CAN I FORM A LIMITED COMPANY AND LEAVE IT DORMANT UNTIL I WISH TO TRADE? 

Yes, once the company is formed and the company officers are in place, the company can remain dormant until you need it. However, on the anniversary of its incorporation you must file a confirmation statement and dormant accounts (“nil” if it has never traded) with Companies House. You must also remember to keep Companies House informed of any changes within the infrastructure of the company as they happen e.g., if there are changes in Directorship or Registered office address. This requirement is also the same for companies that are trading, and we can assist you with these ongoing matters.

WHAT OFFICIAL DETAILS AND PERSONNEL DO I NEED IN ORDER TO FORM A LIMITED COMPANY? 

To form your company, you will need at least one director and at least one shareholder (these can be the same person). A UK registered office address is also required. This can be your address, or we can provide you with a registered address service.

WHAT ARE THE COSTS INVOLVED? 

To set up a new company costs £135 inc. VAT and a full company kit.

WHAT IS INCLUDED IN A FULL COMPANY KIT? 

The cost includes all formation fees and expenses and the unique National Business Register full company kit. This comprises of a smart attaché case containing 6 copies of the memorandum and articles of association, the certificate of incorporation, we complete the company register, PSC (Person with Significant Control) information, director forms and share certificates, plus any extras as required.

HOW LONG WILL IT TAKE? 

To form a new company takes around 24 hours. Our expert team are on hand to advise what is best for you and guide you through the process so if you have any questions get in touch.

LLP FAQs

IS AN LLP A BUSINESS OR A COMPANY? 

The general answer is both, technically it’s a company, but has tax advantages of a business and limited liability.

WHO CAN BECOME AN LLP? 

Any profit seeking commercial business and professional firms. This type of formation is most commonly used by professionals looking to go into business together; for example, law and accountancy firms.

WHAT IF THE BUSINESS RUNS UP DEBTS? 

Registering as an LLP means you are protected against debts the business incurs and any debts a ‘partner’ may also incur.

DOES THE LLP HAVE TO FILE ACCOUNTS LIKE A LIMITED COMPANY? 

As technically it is a company it must file company accounts although these are usually filed in a brief, modified form for small companies.

WHEN WOULD I HAVE TO FILE ACCOUNTS? 

Your accounting period would be 12 months from the end of the month in which your company is formed, you must submit those accounts within 10 months after the end of your financial year. (The actual accounting period can be changed in the first year using form LL AA01).

HOW MANY PEOPLE ARE NEEDED TO FORM AN LLP? 

A minimum of 2 people.

HOW IS AN LLP TAXED? 

The same as a normal partnership.

CAN I TRANSFER FROM A PARTNERSHIP TO AN LLP? 

Yes, it’s straightforward and we can assist you, but basically the act is designed to enable you to become LLP without tax implications.

IS STAMP DUTY CHARGED ON TRANSFERRING ASSETS? 

Stamp duty is not charged if the assets are transferred into a new LLP.

I RUN MY BUSINESS FROM HOME CAN I STILL HAVE AN LLP? 

Yes, there is no legal restriction at all.

Business Name Protection FAQs

HOW DO THE NBR CHECK THAT MY NAME IS AVAILABLE? 

We carry out comprehensive searches against 2 million businesses, 2.3 million limited companies, 2.5 million UK trade marks, 7 million European trade marks and 4 million domain names – that is over 10 million UK trading names.
Search Your Business Name Now

CAN I REGISTER MY NAME WITHOUT BECOMING A LIMITED COMPANY? 

Yes, we register your business name whatever the status of your firm giving you protection and peace of mind.

WHAT DO I NEED TO DO TO REGISTER? 

Search your business name here and apply online here. Once registered, will send you a certificate of registration which, when displayed, meets all the requirements of the Section 1200-1206 Companies Act 2006.

WHAT HAPPENS IF MY NAME IS ALREADY IN USE? 

We can search altnerative names for you free of charge or you can suggest alternatives for us to check with no obligation.

ARE THERE ANY WORDS I CANNOT USE IN MY NAME? 

There are a number of restricted words, which need to be approved by the Business, Enterprise and Regulatory Reform (BERR). Restricted words or terms are usually phrases associated with already established official bodies, for example; government departments, health care organisations or other public services. Please note if the restricted word is being used appropriately for your business we will gain permission on your behalf for use of a ‘restricted’ word. If you have any queries please do contact us before applying.

HOW CAN I PROTECT MY BUSINESS NAME? 

Registration with National Business Register specifically provides protection against “Passing Off”, the common law term used to describe copying of a trading name by another business. Your annual subscription means you have peace of mind when it comes to safeguarding your business identity. We will instigate and pay for all necessary legal proceedings in protecting your business name using our solicitors and counsel where necessary.

HOW LONG DOES IT TAKE TO REGISTER MY NAME? 

Registration takes 2 business days from receipt of your application form and remittance.

HOW LONG DOES THE REGISTRATION LAST? 

A registration is renewable on an annual basis. A renewal notice will be sent to you before your registration expires or you can select to set up a direct debit when protecting your business name. Please note, 2 or 5 year protection plans that come with discounts.

CIC FAQs

CAN A CIC BUY AND SELL GOODS OR SERVICES? 

Yes. A CIC can run much like a normal business provided it acts responsibly and its actions are subject to scrutiny by the CIC Regulator.

CAN A CHARITY BUY AND SELL GOODS OR SERVICES? 

A charity is not allowed to “permanently trade.” This means it can run a temporary fund-raising event but not run price list of items permanently on sale. Many charities get round this problem by setting up a separate company (CIC or Guarantee) that dedicates its earnings to the charity.

CAN WE PAY OUR EXECUTIVES AND DIRECTORS? 

For charities and companies limited by guarantee it is not permissible to pay salaries to trustees. This rule can be circumvented in certain exceptional cases. For instance, where a trustee serves as part of his or her official position (e.g., a church or religious leader, a mayor or council leader). In some cases, this means that the person who founded the organisation and its main driving force cannot be on the board of Trustees.
For CICs there is no such restriction provided the salaries can be shown to be reasonable (this is subject to scrutiny by the CIC Regulator).

HOW LONG DOES IT TAKE TO REGISTER A CIC COMPANY? 

There is a difference in processing time between the distinct types. The slowest is the Community Interest Company (CIC) because it must pass through the normal Companies House procedures AND be checked by the CIC Regulator’s office. Furthermore, CICs (Community Interest Company) cannot be formed electronically. We must submit documents by post. The process is usually completed within 4 weeks.
On the other hand, companies limited by guarantee (whether or not they are to be charities) can be registered electronically. Because they need special documents they are not as fast as regular limited companies, but they are normally processed in one or two days.

IS IT FASTER, OR BETTER, TO FORM A REGULAR LTD FIRST AND THEN CONVERT IT TO A CIC? 

No, it is not. CIC conversion takes about as long as forming a new CIC and, of course, it increases the cost. There is also a risk that you will end up with the wrong structure because most LTD formations default to the “limited by shares” format, which may not be the right format for your CIC. Take the time to think through the options and discuss it with one of our advisors if you need help. You can convert a “limited” into a CIC; but, if you know from the outset that it is a CIC you require, it is best to order a CIC from the start.

WHAT ARE THE PROTECTIONS FOR THE DIRECTORS AND MEMBERS/SHAREHOLDERS? 

As with normal companies the CIC benefits from “limited liability”. This means that the CIC will be liable for the actions of its directors and directors will not incur personal liability, except in certain exceptional circumstances (such as where the director has acted fraudulently or continued to trade when the CIC has become insolvent). Shareholders will only be liable up to the amount of their contribution (where a CLS), and members only up to a nominal amount (usually £1) in the event it winds up (where the CIC is limited by guarantee).

WHO REGULATES CICS? ARE THE REPORTING REQUIREMENTS THE SAME AS FOR NORMAL COMPANIES? 

CICs are regulated by the CIC regulator with what is intended as a “light-touch”. This compares with the relatively “heavy” regulation of charities by the Charity Commission. However, the CIC regulator will respond to complaints from stakeholders and has considerable powers to act to protect the community interest.
As with all companies, CICs are required to file annual accounts and an annual return with Companies House. In addition, a CIC must file a community interest report annually, which will explain how the CIC pursued the community interest and involved its stakeholders and will, if applicable, give details of payments to directors and any dividends paid.

WHAT DO I NEED TO DO TO SET UP A CIC? 

Firstly, you will need to make an application. The application will set out the CIC’s social purpose and the activities it will carry out to achieve it. Provided there are no issues raised by the CIC regulator or Companies House, the CIC should be registered around two to three weeks from the application date.