Notes on the Incorporation
of a Limited Company
If one or
more persons wish to conduct business on a corporate
basis then it is important to ensure that the following
matters are reviewed before commencement.
- Obtain advice from an Accountant/Solicitor or
Company Formation Agent to incorporate a limited
company and to explain requirements generally. It
is important to photocopy all signed documents
before release to a formation agent.
- Agree allocation of the shares of the Company.
- Open a Company bank account and ensure all
directors are signatories. Consider whether
two/three joint signatures are required for all
cheques etc.
- Consider registration for VAT. Turnover threshold
£52,000 for compulsory registration. It may be
advisable to proceed with voluntary registration
at turnover level below the official registration
threshold.
- Prepare business stationery and ensure full name
of limited company, place of registration,
company number and address of registered office
are shown on letterheads, orders, etc. Invoices
may be printed or an ink stamp may be used in a
duplicate book. Ensure any VAT registration
number is shown on invoices.
- The Company may adopt a Business Name. If so,
complete a Business Name Registration Notice to
be displayed at all places of business.
- Take out Business Insurance to cover public
liability risks. For the construction industry,
£2,000,000 is usually minimum level. Ensure
employers liability cover is commenced at the
start of business. Please note that the
Directors, Company Secretary, casual
workers/sub-contractors are all regarded as
employees for insurance purposes.
- Take advice on suitable book-keeping
requirements.
- Obtain advice regarding operation of a wages
scheme for the Directors and any other employees.
- Consider taking legal advice regarding business
operation, terms and conditions of business etc.
- Consider early advice from an Accountant to
assist with commencement of the business and to
deal with year-end accounts, tax etc.
November
2000
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