Setting Up a Limited Company

Why you should unleash the potential of setting up a limited company

Take a bold step towards financial freedom and business success when you discover the power of setting up a limited company.

Setting up a limited company is like a business’s metamorphosis. It’s a leap from the constraints of being a sole trader or a partnership into a world of immense potential and new horizons. In the realm of business, the prospect of setting up a limited company holds a compelling allure. One of the main attractions is the concept of limited liability. By its very nature, a limited company is a separate legal entity. This means personal assets are protected if the business encounters any financial turbulence. Such circumstance is unlike being a sole trader or partnership, where you are the business. However, when you make the leap into forming a limited company, you create a legal distinction between yourself and your business. By doing so, you gain a protective shell around your personal wealth.

Setting up a limited company can also significantly enhance your business’s credibility. Limited companies can be more attractive to prospective clients and suppliers. The very title ‘limited company’ imparts a sense of permanence and commitment to your business. This sense makes others more inclined to trust and work with you. It can open doors to opportunities that might have remained closed as a sole trader or partnership. Beyond the protection and perception, setting up a limited company offers financial advantages. For instance, it opens up the prospect of tax efficiency. While sole traders are taxed on their personal income, a limited company pays corporation tax on its profits. Profits like these can be considerably lower. Plus, limited company owners can pay themselves a small salary and then take extra income as dividends, which can also bring tax savings.

Setting up a limited company can also make raising finance for business growth easier. Limited companies can issue shares to investors, providing a straightforward way to raise capital. This can be particularly beneficial if you have ambitious plans for your business and need an injection of funds to make them a reality. Remember, much like the process of metamorphosis, setting up a limited company is not a decision to be taken lightly. It requires careful thought and planning and an understanding of your responsibilities as a company director. However, the right advice and guidance can be a transformative step for your business. It can open up a world of potential and set you up on a path towards tremendous success. In the next section, we’ll delve into how you can set up a limited company β€” guiding you through the process step by step.

Stay tuned for a comprehensive guide that demystifies the procedure and puts your business on a new path of metamorphosis.

The Top Five Benefits of Setting up A Limited Company

Embarking on the voyage of success with Birkett & Co today.


  1. Limited Liability
    Establishing a limited company creates a legal distinction between you and your business. So your personal assets remain safeguarded even if your company runs into financial difficulties.
  2. Enhanced Credibility
    Operating as a limited company can significantly enhance your business’s credibility. This status can make your business more appealing to potential clients, suppliers, and investors.
  3. Tax Efficiency
    Limited companies often have greater tax efficiency. They offer more flexibility in how you can extract profits, potentially reducing your overall tax bill.
  4. Ownership & Control
    In a limited company, the directors maintain complete control over the business’s operations. This allows you to chart your course and make decisions aligning with your business vision.
  5. Investment & Growth
    Limited companies have an easier time attracting investment, which can fuel growth. Plus, the enhanced credibility and potential tax savings can be reinvested back into the business.

A Step-By-Step Guide to Setting up A Limited Company

Charter your course with Birkett & Co and confidently begin setting up a limited company.

Embarking on setting up a limited company can feel akin to standing at the helm of a ship, preparing to navigate uncharted waters. You’re filled with a sense of adventure, anticipation, and perhaps a touch of trepidation. But rest assured, every successful voyage starts with careful preparation and a well-planned route. This journey, while potentially complex, becomes far less daunting when you have a clear understanding of the path that lies ahead. That’s where we come in. At Birkett & Co, we’re committed to equipping you with the knowledge, advice, and tools to navigate these waters confidently.

From choosing your company name to registering for Corporation Tax, we’re here to guide you every step of the way . . .

Choose Your Company Name

Choosing a company name is your first step, akin to christening your ship. This name is a crucial part of your brand identity and is the first impression you make on potential clients and customers. As such, you’ll want a name that’s unique, memorable and reflects the essence of your business. It must resonate with your target audience and stand out in the sea of competitors. Additionally, ensuring your chosen name complies with Companies House rules is essential β€” it cannot be identical or too similar to an existing company name.

The process might seem daunting, but it’s also an exciting opportunity to define your business’s identity!

Define Your Share Structure

Next, you’ll need to define your share structure. In the maritime world, this is similar to deciding who gets a seat on your ship and what their roles will be. As a limited company is owned by its shareholders, you must determine how many shares to create and their value. It’s also important to consider whether different classes of shares will have different rights. This decision can impact your company’s governance and financial structure.

So it’s crucial to seek professional advice to choose a structure that suits your business’s unique needs.

Prepare the Required Documentation

A ship’s captain must possess certain documents before setting sail. So, in much the same way, you’ll need to prepare critical documents before your limited company can be brought into existence. The Memorandum of Association and the Articles of Association are essential. The Memorandum provides details about the shareholders’ agreement to form the company. Meanwhile, the Articles set out the company’s rules and the directors’ responsibilities. These documents include your company’s constitution. They also provide the legal framework within which your company will operate.

They require careful consideration and drafting to ensure they serve your business effectively.

Register with Companies House

A ship must be registered before it can set sail, and a limited company must be registered with Companies House before it can officially exist. This process, known as incorporation, gives your company legal standing. You’ll need to provide your company name, address, and details of the directors and shareholders. You’ll also need to submit the Memorandum and Articles of Association. This might seem intimidating, but it’s integral to setting up a limited company.

Once your application is approved, you’ll receive a Certificate of Incorporation β€” marking the birth of your limited company.

Register for Corporation Tax

Just as every ship must pay its dues for docking, every limited company must register for Corporation Tax with HM Revenue & Customs (HMRC). This crucial step marks your company’s entrance into the financial landscape. It’s important to note that this must be done within three months of starting to do business.

The term ‘doing business’ covers a wide range of activities, including . . .

🟦 | Buying
🟦 | Selling
🟦 | Advertising
🟦 | Or renting a property

You must provide details about your company and its business activities during registration. Following your registration, HMRC will send your company’s Unique Taxpayer Reference (UTR). They’ll also set a deadline for paying Corporation Tax. As part of the ongoing responsibilities of a limited company, it’s essential to file accurate tax returns. You must also pay any owed Corporation Tax in a timely manner.

Land Ahoy! With the successful completion of these steps, it’s time to raise the flag and let the sails billow with the winds of success. Your limited company is now set up, officially recognised, and ready to make its maiden voyage on the seas of business. It’s a moment of triumph, marking the start of a new chapter in your entrepreneurial journey. But remember, a captain’s duty doesn’t end once the ship leaves the harbour. Running a limited company comes with ongoing responsibilities. These include filing annual accounts and confirmation statements with Companies House. Plus, you must ensure that you meet all your tax obligations with HMRC.

Navigating these responsibilities might seem overwhelming, but you’re not alone.

At Birkett & Co, we’re committed to providing ongoing support and advice to help you successfully steer your limited company. Our accountants and tax advisors are ready to guide you through the complex world of corporate finance and governance. We’ll ensure your company remains compliant and financially sound. In the next section, we’ll delve deeper into how Birkett & Co can assist you in successfully managing your limited company. Together we’ll keep you on course for success and growth.

Stay with us as we chart a course to a successful future for your limited company.

Setting up A Limited Company with Birkett & Co

Transcend business boundaries with your trusted partner in setting up a limited company.

Like a lighthouse guides ships safely to shore, Birkett & Co is a beacon of knowledge and expertise. We’ll illuminate your path as you venture into setting up a limited company. This final section of our guide focuses on what you stand to gain from Birkett & Co. With our in-depth understanding of the financial landscape, and we endeavour to . . .

🟦 | Provide strategic and shrewd business advice
🟦 | Tailored to your unique circumstances

Below, we’ll delve into the valuable support and services we provide to help you establish and manage your limited company . . .

Strategic Business Planning

Setting up a limited company is akin to plotting a course for a long voyage. It involves making crucial decisions that shape your business’s future trajectory. At Birkett & Co, we assist in charting this course. We’ll offer strategic business planning services that align with your goals and aspirations. However, we understand that every business is unique, with its challenges and opportunities. That’s why our team works closely with you to understand your business’s unique needs, ambitions, and market dynamics. We’ll help you identify critical milestones, potential challenges, and strategies to overcome them.

We’ll cover all aspects of your business plan, from . . .

🟦 | Assessing financial viability
🟦 | Developing marketing strategies
🟦 | And finessing operational plans

Moreover, we delve into the financial aspects, including . . .

🟦 | Revenue forecasts
🟦 | Cash flow projections
🟦 | And investment strategies

We don’t just present numbers; we provide a strategic analysis. Our team are here to help you understand the financial implications of your business decisions. This comprehensive business plan serves as your roadmap to success. We’ll help ensure that your journey in setting up a limited company is well-navigated and your business vision is realised.

Financial Management & Accounting

Navigating the seas of a limited company requires expert knowledge and meticulous attention to detail. Our accountants and tax advisors ensure your business stays financially sound and compliant.

We’ll provide services such as . . .

🟦 | Bookkeeping
🟦 | Financial Forecasting
🟦 | And Cash Flow Management

Our team goes beyond crunching numbers; we’ll help you interpret these figures. We’ll provide insights into your financial performance and business health. In tracking vital economic indicators, we can help you . . .

🟦 | Make informed business decisions
🟦 | And foresee potential financial issues

We’ll ensure your company meets all its legal obligations regarding annual accounts and confirmation statements. We assist with the preparation and filing of these documents. In doing so, we’ll ensure they accurately reflect your company’s financial status. Plus, we’ll ensure they comply with Companies House and HMRC regulations. Our financial management and accounting services aim to provide you with a clear financial picture. A picture that empowers you to steer your business towards financial success.

Tax Advisory & Compliance

As a limited company, your tax obligations can be more complex. Our team provides expert tax advice, helping you understand and manage your corporation tax, VAT, and other tax obligations. We demystify tax regulations, helping you navigate the complexities of tax compliance. Effective tax planning is crucial for your business’s financial health. We aim to . . .

🟦 | Maximise your tax efficiency
🟦 | Identify legitimate opportunities for savings
🟦 | Ensure your company is compliant with HMRC regulations

This includes advice on capital allowances, R&D tax credits, and other tax relief schemes your business may be eligible for.

To ensure you meet all deadlines and avoid penalties, we’ll assist with . . .

🟦 | Tax Registration
🟦 | Tax Preparation
🟦 | And Submission of Tax Returns

We liaise with HMRC on your behalf, handling any tax inquiries or disputes that may arise. Our tax advisory and compliance services aim to reduce your tax burden, improve your bottom line, and ensure peace of mind.

Company Secretarial Services

Running a limited company comes with numerous administrative responsibilities, from . . .

🟦 | Maintaining statutory registers
🟦 | To filing necessary documents with Companies House

Our company secretarial services ensure your limited company meets all its legal obligations. We handle the administrative tasks, freeing you to focus on steering your business towards success, and assist with . . .

🟦 | The appointment and resignation of directors
🟦 | The issuance and transfer of shares
🟦 | And changes in the company’s registered office

We also monitor filing deadlines. So we can ensure you meet all regulatory requirements and avoid penalties. Plus, we guide corporate governance. In doing so, we aim to help you understand directors’ duties and responsibilities. Our company secretarial services aim to provide you with a seamless administrative experience. We handle the paperwork, so you can focus on what you do best: running your business and driving it towards success. But what comes of streamlining your administrative processes and ensuring regulatory compliance?

We can help you avoid potential pitfalls and legal issues, thanks to our . . .

🟦 | Meticulous attention to detail coupled with
🟦 | Our extensive understanding of corporate laws and regulations

Make us your reliable partner in managing your limited company’s secretarial responsibilities.

At Birkett & Co, we believe in the power of partnership. We’re committed to . . .

🟦 | Working one-on-one with you
🟦 | Understanding your unique circumstances
🟦 | And providing the strategic advice

In short, we provide everything you need to make every move slick and compelling. Our expertise extends beyond just setting up a limited company. We are here to assist you through every stage of your business journey. We are here to provide ongoing support and advice as your company grows and evolves.

With our extensive range of services, from . . .

🟦 | Strategic Business Planning
🟦 | And Financial Management
🟦 | To Tax Advisory and Compliance

We help ensure your company remains financially sound and compliant with all legal obligations. We aim to be your trusted partner, guiding you through the often-turbulent corporate finance and governance seas. Yet, we are more than just accountants and tax advisors. We are your navigators in the business world, your compass pointing towards success. As you embark on the exciting journey of setting up a limited company, you can count on Birkett & Co to be with you every step of the way. We’ll ensure your voyage is as smooth and successful as possible. With Birkett & Co, setting up a limited company is not just a business move. It’s the start of an exciting journey towards achieving your entrepreneurial dreams. So, come aboard, and let’s set sail together towards the horizon of business success. At Birkett & Co, we don’t just account; we count on your success. Your voyage into the realm of limited companies starts here. We are ready to steer the helm alongside you, guiding you towards your business goals.

Welcome to a partnership where your financial success is our shared destination.

How can we help?

I need help with my tax

It's no secret that individuals and businesses want to pay the least amount of tax possible. This is what fuels all our taxation services and is why we've built a reputation for minimising our client's tax liabilities. It's our savvy and skilled advice that keeps both our clients and the authorities happy.

I’m running a business

Running a business requires excessive plate spinning – far more than most people bargain for. As a business leader, we know you’d rather be getting on with the stuff you love doing: thinking creatively, nurturing your ideas and loving every minute of it – which is where we come in.

I want to start a business

Helping business ideas take off is incredibly rewarding, not least because of the creativity of our clients’ start-ups. We’re proud to support a rich variety of innovative and entrepreneurial ventures. We work one-on-one with clients to ensure their businesses don’t just survive but thrive.

I want to grow my business

There’s no doubt that scaling your business is tough. It requires tactical decision-making and a watertight strategy with one goal in mind: growth, and lots of it. Our proactive approach has seen many of our clients’ businesses thrive beyond expectations.

Contact Us if You’re Setting up A Limited Company

Unlock the secrets of business success with Birkett & Co.

Are you ready to take your business to the next level? Birkett & Co can help you unlock the secrets of business success. Our unique, proactive approach has helped thousands of businesses prosper since 1979. Our team of highly experienced professionals shares the Birkett ethos. We combine open, candid communication with industry-leading financial and business advice. This is because we understand that every business is different, so we take the time to gain a broad perspective of your business, including . . .

🟦 | Where you are today
🟦 | Your risks and opportunities
🟦 | And your aspirations for the future

We work with many clients across many sectors, from individuals and partnerships to small companies, with turnovers of Β£10.2m. Our passion and success lie in understanding our clients’ businesses from the bottom up. By understanding your unique needs, we can help you succeed and excel.

So, if you’re looking for a trusted partner to help you make your money work harder, faster, and smarter, contact us today if you’re setting up a limited company.

We Guarantee . . .

  • ο…Š A holistic approach that's best for the business and you
  • ο…Š Strong foundations that are fit for you now and in future
  • ο…Š To communicate with clients in words they understand
  • ο…Š Industry-leading knowledge with industry-leading software