Our newest presentation highlights 10 important questions you may ask yourself when considering the route of company formation. Company registration is a relatively easy process, but it can be confusing to an individual without experience. This presentation highlights 10 things for you to consider when you register a company. The presentation covers a number of aspects, from the decisions to be made during the company formation process; to other questions you need to ask with regards to your newly set up company. This guide will help leave any questions about limited companies and their requirements unanswered, ensuring you have all you need when you register a company. This, and other presentations, is brought t you by Wisteria Formations. Wisteria Formations is a leading company formation agent, backed by Wisteria Chartered Accountants. Register a company now for £24.99 at www.wisteriaformations.co.uk

1. 10 KEY DECISIONS WHEN SETTING
UP A COMPANY
The process of company registration can bring out
many questions for those new to business. We
highlight some key things to consider.

2. 1) WHAT TYPE OF BUSINESS?
The first thing that those starting a business need to consider is which
structure will be most suitable for their needs. The main structures in the
UK for start-ups are:
Private Limited Company
Sole trader:
(LTD):
 Limited liability  Owner and the business
 Separate legal entity
are the same legal person
(unlimited liability)
 Prestige
 Often higher tax burden
 But administrative
 But lower administrative
obligations (annual requirements.
return and accounts).
For further advice on which structure is best
for you, please visit our presentation on Sole
Trader vs LTD.

3. 2) WHAT IS THE COMPANY NAME?
There are a number of different factors that need to
be taken into account when deciding on your
company’s name. It is important to get it right at the
start, because it requires filing to change it after
company formation.
1. Is the name original? You can’t use the name of
a company that already exists.
2. Does it contain any sensitive words?
Companies House restrict the use of certain
words in company names.
3. Trading names? Could you use any other names
to trade under for different activities.

4. 3) WHO ARE THE DIRECTORS?
The directors of the business are those that are in
charge of making important business decisions.
The directors must take responsibility and act
properly to promote the success of the business.
Most people can be directors of a UK limited
company, though there are restrictions on:
 Under-16s
 Those who are un-discharged bankrupts
 Those who have been disqualified from holding the
office

5. 4) SHOULD YOU APPOINT A COMPANY
SECRETARY?
 The office of company secretary is no longer a
compulsory position at company formation.
 The company secretary can be held by a director.
 The secretary has varied responsibilities: statutory
filings, convening and administrating meetings,
updating the register.
 The work completed the secretary may help to
avoid incorrect/late filing penalties and fines.

6. 5) HOW WILL YOU ISSUE SHARES?
There are a number of important considerations when deciding
the share capital upon company registration...
Who?
Individuals or companies can be shareholders – these will be the
legal owner of the business.
Rights?
Should all shareholders have the same rights? Are all entitled to
vote? Should some have preference dividends?
What percentages?
When deciding on the number of shares and shareholders to
have at company registration, it is important to consider the
level of control you want to retain in the company. Some
company decisions require 75% shareholder agreement.

7. 6) WHERE TO HAVE YOUR REGISTERED
OFFICE ADDRESS?
All UK limited companies are required to register a
company address that is situated in the UK, known as
the registered office. Although this can technically be the
home address – many would prefer to used a registered
office provider.
Some of the main factors to consider include:
 Are you happy having all post (including junk mail) to
your home? Or would you rather it sorted?
 Are you happy with your home address appearing on
the company’s public register?
 Does your mortgage/rental agreement allow you to run a
business from your address?

8. 7) DO YOU NEED A BANK?
This question is quite simple to answer. Yes.
All UK limited companies are legally
required to keep their company and
personal finances completely separate.

9. 8) DO YOU NEED TO COMPLETE VAT
REGISTRATION?
There is a legal requirement to register for VAT in the
UK after a certain level of turnover.
The threshold for compulsory VAT registration in the
UK is at taxable turnover of £73,000 in the past 12
months.
 It is also possible to voluntarily register for VAT.
This can give benefits such as allowing you to claim
back VAT from suppliers that charge it; you can
claim on costs of set-up; and there are image
benefits.

10. 9) DO YOU NEED TO REGISTER AS AN
EMPLOYER (PAYE)?
PAYE is the system by which the UK government
deducts Income Tax and National Insurance
Contributions from salaries of employees.
The legal obligation to register for PAYE is associated
with the level of salaries that your company is
paying. If you are paying any employee (including
directors) over a certain amount you will have to
register.

11. 10) DO YOU NEED AN ACCOUNTANT?
All limited companies have certain administrative
obligations that they are required to complete, for
Companies House and other government bodies.
The two main obligations are:
 The Annual Return
 Annual Accounts
It is important to consider the appointment of an
accountant for your newly set up company, to help
you complete these filings. For those without
experience, professional advice can help avoid the
incorrect filing of accounts, saving time and money.

12. W: http://www.wisteriaformations.co.uk
@: formations@wisteria.co.uk
T: +44 (0)844 893 0808
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