When forming a new private limited company there are some essential dos and don’ts:

Do…

• Be sure that a limited company is the vehicle that you want to use to operate your business from.   Remember that as a director of the company it is your responsibility to ensure that the Company operates lawfully.
• Check that the name you want is not already being used, including the website address (URL) and trademark.
• Make sure you have considered the benefits and drawbacks of using your home address as your registered office.
• Know how the Companies Act 2006 affects your new business. For example you may want to consider providing a service address for a company set up after 1^st October 2009.
• Weigh up the advantages of using a company formation agent against incorporating your company yourself.
• Consider whether you appoint a company secretary.  Among other things their tasks include Companies House filing and maintaining the Company Register
• Seek professional advice after you have incorporated your company to make sure that you are complying with the requirements of CA2006 and HMRC in relation to your book-keeping.
• Consider if you are required to be VAT registered or if you should voluntarily register.
• Select a formation agent that offers free customer support and is backed by a firm of Chartered Accountants.
• Take advantage of help opening a business bank account

Don’t…

• Be pressured into buying a premade ‘package’ when forming your company where you end up with more than you originally wanted and have to pay more.
• Forget to check that your company formation agent’s mail forwarding service includes forwarding normal post without further charges.
• Buy an ‘off the shelf’ company.  You cannot be certain that the initial officers and subscribers’ reputation will not tarnish your company.  In addition, you cannot be certain of the Companies trading history.
• Start your company without putting in place a business plan.  Without one you do not have a “road map” helping you with what direction you are going.  In addition you may well have to provide a plan to your bank.
• Pick the most expensive formation agent you can find. More expensive doesn’t always mean better quality.

For further advice, contact our qualified staff on 0844 893 0808.