Frequently
asked Questions - Electronic Filing |
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What
is a Limited Company?
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limited company is a separate legal person created
by incorporation at Companies House. Its profits,
losses, assets and liabilities are its own. The company
is owned by its members (the shareholders) and run
by the director (or directors) whose assets are protected
from loss if the business should fail. This is sometimes
referred to as limited liability. Because a company
has a life of its own the business can continue despite
the resignation or death of any directors or shareholders
and the sale of the business or the introduction of
outside investors is simplified. Reasons for wanting
or needing a limited company may include ownership
of property, obtaining outside finance, taxation,
status and protection from risk. |
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How
long does it take to form a company? |
Our
system uses the Electronic Filing facilities at Companies
House. This means that when you place an order on
our website your request is sent processed and sent
to Companies House. Companies House then aim to respond
to electronically filed documents within 4 working
hours. Although this is not always possible, it does
generally mean that if you placed an order before
midday on a normal working day we can have your company
incorporated by the end of that same day. Whether
you opt to receive the incorporation documents via
email or by post these will be sent to you immediately. |
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Can
I choose any name I want for my company? |
It
is important to check that the name you want is
acceptable to Companies House.
Briefly,
the restrictions are that:
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you cannot register the same name as another
company;
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the use of certain words is restricted; and
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names likely to cause offence are not allowed.
It
is also important to check whether your chosen
name is similar to any other names already on
the register. If your chosen name is too like
another name, an objection could be made within
the 12 months following the incorporation of your
company and you could be directed by the Secretary
of State to change the company's name. Certain
words and phrases are classed as sensitive by
the Department of Trade and Industry. If this
is the case you will be prohibited from using
them or you might have to justify you are entitled
to use the name. For more information on this
subject see Companies House notes CHN2, CHN3 &
CHN11
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On
which documents must my company name be shown? |
The
company must state its name, in legible lettering, on
the following:
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all the company's business letters;
- all its notices and other official publications;
- all bills of exchange, promissory notes, endorsements,
cheques and orders for money or goods purporting to be
signed by, or on behalf of, the company.
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Where
must my company name be displayed? |
Every
company must paint or fix its name on the outside of every
office or place in which its business is carried on - even
if it is a director's home. The name must be kept painted
or fixed and it must be both conspicuous and legible. |
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Do
I need a company seal? |
Changes
to the Companies Act in 1989 mean that a seal is no longer
required and therefore our standard package does not include
a seal. For those still requiring a seal we are able to
supply a hand plier type seal for £25.00 (please contact
us for further details). |
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Are
the first Board Meeting Minutes provided? |
First
Board Minutes before electronic company formation used to
make reference to the appointment of replacement director(s)
and secretary in place of the nominee officers used to incorporate
the company. Although not now a requirement we feel that
the First Board Minutes continue to be an important part
of the post-incorporation documents as they serve to clarify
the position at the outset and act as a statement of the
company's position. |
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Are
Stock Transfer Forms provided? |
Companies
are usually formed with the correct share holders from incorporation,
so there is no need for initial share transfer forms. Importantly,
this also means there is no need to pay stamp duty on the
transfer of any shares either. There are occasions where
our clients request that we act as subscribers to the initial
shares in which case transfer forms will be used. |
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What
is the Accounting Reference Date and how do I change it? |
Form
225 is used for determining a company's accounting reference
date (of the accounts year end). It is set automatically
depending on the date of incorporation and so for example
if the date of incorporation is 14th March 2005 then the
default accounting reference date is the anniversary of
the last day of that month, in this case 31st March 2006.
Should you wish to alter the default date you are permitted
to do so once in every five years using form 225. When completing
the form remember to state whether the date is to be extended
beyond the default date or shortened from it. As a guide
when shortening the date the shortest possible accounting
period following incorporation (or the last accounting date)
is six months and when extending the date it is possible
to extend it to eighteen months following the incorporation
date (or the last accounting date). A period of 10 months
following the accounting reference date is permitted in
which to file the accounts of the Company (private limited
companies only) although it must be remembered that the
greatest period of time permitted to file accounts following
incorporation is 22 months. |
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What
is meant by the Authorised Share Capital? |
This
is the number of shares your initially authorise your company
to issue to shareholders/subscribers. Usually a share issue
of 1000 with each share valued at £1 is used.
The authorised share capital should be sufficient to enable
the Company to sell shares to raise money it needs to carry
on business in the future. The fact that a company may have
a £10,000 authorised share capital does not mean that
it is obliged to issue and pay for all of the shares, many
small private companies operate with only one or two shares
regardless of its financial requirements (one share is now
the minimum required under the Companies Act). It is best
to regard a £10,000 authorised share capital as 10,000
shares which are available for a company to issue.
It is worth noting that although you may authorise 1000
shares, if only 1 share is isued to one person, that person
becomes 100% shareholder in the business. |
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How
do I issue more shares? |
If
you wish to issue further shares up to the authorised share
capital form 88(2) should be completed and sent to the Registrar
of Companies. You can increase your authorised share capital
by passing an ordinary resolution at a general meeting.
A copy of the resolution and Form 123 detailing the proposed
increase must then reach Companies House within 15 days
of being passed. On a similar note, the authorised share
capital of a company can be reduced using Form 122 and must
reach Companies House within 1 month. |
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What
if I no longer need my company? |
Private
companies that have not traded or otherwise carried on business
for at least three months may apply to the Registrar to
be struck off the register using form 652(a). |
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What
is a Registered Office? |
The
registered office is an address in England or Wales (or
Scotland if your company is registered there) where documents
can be delivered to the company. Companies House uses the
Post Office address file to verify addresses; so, to avoid
delays, please ensure that your proposed registered office
address is recognised by the Post Office and always give
the correct postcode on forms sent for registration. |
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Can
I change my Registered Office? |
If
a company changes its registered office address the new
address must be notified to Companies House on Form 287. |
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Do
you offer a Registered Office Facility? |
| No,
we do not currently offer Registered Office services. |
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What
is included in the Incorporation Package? |
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OPTION
A
£59.99 (inc)
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- Registration
with Companies House
- Your
own choice of Company Name
- Certificate
of Incorporation
- Memorandum
and Articles of Association X3
- Minutes
of First Board Meeting
- Completed
Share Certificates
- Completed
Company Registers
- Forms
225 + 88(2)
- Documentation
sent to you by Email
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OPTION
B
£89.99 (inc)
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- Registration
with Companies House
- Your
own choice of Company Name
- Certificate
of Incorporation
- Memorandum
and Articles of Association X3
- Minutes
of First Board Meeting
- Completed
Share Certificates
- Completed
Company Registers
- Forms
225 + 88(2)
- Documentation
sent to you by Post
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