How to set up a limited company in UK
Communication Team
Communication Team

November 24, 2022

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How to set up a limited company in UK

If you're looking to set up a limited company in the UK, you may already be familiar with the different types of business registration. For instance, there's the sole trader, which is just one individual who owns an enterprise; then there's a partnership (or general partnership), where two or more people own and run an enterprise together as joint owners; and finally there's a limited company (or corporate entity), which is owned by shareholders but controlled by directors through formal rules and regulations.

Limited Company

A limited company is a corporate entity that has a separate legal personality from its shareholders. It can own property, enter into contracts, and employ people to carry out commercial activities on its behalf.

A limited company can be voluntarily wound up by its shareholders or by the court if it's insolvent (unable to pay debts). Companies may be incorporated either as public or private companies. Public companies are those whose shares are freely traded on a stock exchange; private companies have no such obligation and can only trade their shares within certain circles (for example among family members).

Forms of business registration in the UK

  • The forms of business registration in the UK are as follows:
  • Limited Company (Ltd.)
  • Sole Trader (Trading As)
  • Partnership (LLP or LLP)
  • Trust

What does ‘Self-employed’ mean?

What’s the difference between being self-employed and being a limited company, in terms of tax, legal liability and social security arrangements? When you become self-employed, you can choose what hours you work and what services to offer. You have complete control over your business as well as its success or failure. You are responsible for paying your own taxes and National Insurance contributions (NICs). For example: If you work for yourself as a consultant or freelancer, this would be considered self-employment rather than limited company employment. If you run your own business using cash flow from clients or customers instead of loans from banks, it is also likely that this will be classed as self-employment rather than limited company employment.

What is a Directors' Service Agreement?

A Directors' Service Agreement (DSA) is a document that sets out the details of how a limited company will be run and managed. It also outlines what you are responsible for as a director, which parts of your job you'll take charge of and which parts you won't do yourself. The DSA must be signed by all directors to say that they agree with what it says. This way, you're all working on the same page when it comes to running your business and reaching goals together.

How to register a company in the UK as a non-resident

To register your company in the UK, you will need to:

  • Register as a director with Companies House.
  • Register your company with HMRC.

Every new UK company must be registered with Companies House and must be registered with HMRC for tax purposes. A new company will also be required to have a business address and a business bank account.

This is where wamo comes in

At wamo we’re able to do almost all of the work for you. You can register a UK company from inside or outside the UK, and a virtual office is included in the registration package. You will then be able to go on and open a wamo business account, meaning that within two days you can have a new registered company and a full-service business account up and running and ready for business.

The process of setting up a limited company in the UK can be complicated. You need to get an idea about all the available options and choose the one which fits your needs. As long as you follow these steps and keep your documents updated, you will be able to run your business smoothly. With https://get.wamo.io/company-registration-in-uk/, you can start your business in 2 days. All you have to do is upload your documents to wamo. wamo will complete the rest of the process for you. For more information, you can visit the wamo website.

Related: A Guide to Starting a Limited Company Online in the UK

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