How much does it cost to form a company?
It costs £13 to form a company and takes about 10-15 minutes.
Accountants can charge up to £150 + VAT simply to form the company (anything over £50 + VAT and you’re getting ripped off). We offer free incorporations to all our clients as we don’t believe in charging for something that only takes us 10-15 minutes.
What information is required to form a company?
Firstly, you will need to choose a company name. If you go to this link then you can type in your proposed company name and search the official UK company register. If your proposed company name does not appear then it’s free for you to take.
Secondly, you will need to decide where the registered office for the company will be. If you want an English company then you will need a registered address in England, the same applies for a Scottish company – you’ll need an address in Scotland.
Note that you can’t transfer a Scottish company to an English address or vice-versa, however this can usually be circumvented by using our office address as your registered address (additional charge of £5 + VAT per month applies due to the immense amount of spam letters companies receive!) or there are specialist companies online that let you use their address as a registered office (can be up to £150 + VAT per year).
The following additional information is required:
- Your full name
- Your current address (both company and personal address if these are to be different)
- Date of birth
- Occupation and type of work the company will carry out
- National Insurance number
- First three letters of eye colour (strange one, but required by Companies House!)
- First three letters of mother’s maiden name
- First three letters of town of birth
- How many shares will the company have? Speak to us for advice here
- How many shareholders and directors?
- Note that if more than one shareholder/director then the other person needs to also supply the above
Other information we usually ask for at this point (but isn’t required to form the company)
- Proof of ID – required to comply with HMRC Money Laundering regulations:
- Driving license/passport
- Utility bill dated in last 3 months
- Copy of your latest P45/P60 – this is so we can carry out tax efficiency calculations
- Copy of your last Self Assessment tax return if registered for Self Assessment
- Details of any other income (rental properties, investments etc.)
- Copy of your latest P11D (if applicable)
How long do Companies House take to form new companies?
After we carry out the incorporation for you, Companies House are pretty efficient and will generally get back to us within 24 hours saying that the company has been formed. You will be supplied with the following two pieces of information:
- Certificate of Incorporation – your official incorporation certificate with your registered company number
- Memorandums of association – long legal document with statutory company information. 99% of the time you can file and forget
Congratulations – your company is now officially formed and you can move on to the next step which is setting up a business bank account.
Do you need more information about company formations? Have a look at part 2 of our blog post here.
Are you thinking about starting a company and need more info?
Follow this link to contact the team at Source Accounting to find out moreGo