Company formation
Start your company the way you would want it set up in five years' time
Forming a company takes minutes. Forming it correctly, with the right shareholdings, the right registrations and a plan for how you will pay yourself, is what saves money and awkward corrections later.
The journey
From idea to trading company
- Step 01
Choosing a company name
It must be unique on the Companies House register, avoid sensitive words without permission and not infringe an existing trade mark. Check the domain and the trade mark register before you commit.
- Step 02
Directors, shareholders and shares
We agree who is appointed, who owns what and whether separate share classes are needed. People with significant control must be recorded correctly from the outset.
- Step 03
Companies House registration
Incorporation with a registered office, SIC codes that describe what you actually do, and articles suitable for your ownership. Usually completed within a day.
- Step 04
HMRC and corporation tax
The company is registered for corporation tax and we confirm the accounting reference date and the first return period, which is often longer than twelve months.
- Step 05
PAYE and VAT
A PAYE scheme where you or anyone else will be paid a salary, and VAT registration where turnover requires it or voluntary registration is beneficial.
- Step 06
Business bank account
Opened in the company name before you trade. Company money and personal money must never share an account; mixing them creates directors' loan problems.
What happens after incorporation
The certificate is the beginning, not the end. In your first year the company acquires a set of obligations that run to fixed dates, and Companies House does not send reminders you can rely on.
- Confirmation statement due each year, separate from the accounts, confirming the register is accurate
- First accounts due 21 months after incorporation, then nine months after each year end
- Corporation tax payable nine months and one day after the year end, with the CT600 due at twelve months
- PAYE submissions on or before each payday once anyone is on payroll
- VAT returns quarterly once registered, filed digitally
- Statutory registers, share certificates and board minutes kept up to date
Common mistakes in the first year
Paying yourself before there are profits. Dividends can only be paid from distributable reserves. Drawing money anyway creates an overdrawn directors' loan, which can trigger a corporation tax charge under s455 and a benefit in kind on top.
Running personal costs through the company. The weekly shop on the company card is not a business expense. It is either a loan or income, and both cost more than paying for it personally.
Ignoring the confirmation statement. It is not part of the accounts and it is easy to miss. A company that falls behind risks being struck off, which can freeze the bank account.
Waiting until the year end to think about tax. Pension contributions, equipment purchases and dividend timing all need deciding before the year closes, not afterwards.
What this means for you
A company registered in an afternoon can still cost you money for years if the shareholdings, the registered office or the PAYE set-up are wrong from day one. Getting the structure right before you start trading is far cheaper than unwinding it later.
We set everything up in the correct order against Companies House and HMRC guidance, so nothing is left to catch up on once you are busy trading.
Questions
Company formation FAQs
Ready to set the company up properly?
We will talk through structure, shares and how you will pay yourself, then handle every registration for a fixed fee.