How to Become a Limited Company

It is important that a business decides what type of company they would like to become before they trade under a company name. There is an array of business names to trade under, such as a limited company, sole trader, partnership or a co-operative. The type of company a business decides to trade under will ultimately affect their tax deductions.

Any business hoping to become a limited company should ensure they consult a company formation agency. It is illegal for a business to trade as a UK limited company if they have not received a limited company registration.

By becoming a limited company, a business must be prepared to face restrictions on names as it could possibly be similar to or the same as a name which is already being used by another limited company. Also, a businees cannot use the words ‘Authority’, ‘International’ or ‘Royal’ etc. in a limited company name. Business names can be found in Companies House’s Registration Office.

All limited companies are required to pay corporation tax on all of their profits, and the company owners must pay income tax on their wages.

By choosing a company formation agency, a business can receive a limited company registration within just a few hours. Therefore, it makes sense to hire their services instead of filling out incessant forms with Companies House. A company formation agency can deal with all of a business’s paperwork and a business will receive their company formation registration within just a few hours.

Most company formation agencies can grant businesses with a limited company registration electronically, and they are then free to trade as a limited company once they receive their registration.  Starting my business.biz is a leading online provider of limited company registration and can deliver affordable and competitive company registrations for England, Wales and Scotland.

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