The Process of Limited Company Formation For Setting Up A Limited Company

The process of starting a limited company can be a bit difficult, because there are lots of formalities that are to be completed before opening a limited company. The process of limited company formation is difficult to be handled all alone. Therefore, a lot of entrepreneurs hire the professional company formation agents who are apt in carrying out the entire task in a quick and straightforward manner. Most of them are themselves legal experts, while others have some legal connections, which helps to carry out the corrections in the documents. The company formation agents are accepted to be playing the key role in opening a limited company, and it would be almost impossible to carry out the registration process without their help.

There are many things that are to be taken care, for carrying out the necessary steps towards limited company formation. First of all, it is essential to finalize the name of newly formed business. The Companies House is the legal body who is responsible for listing the name of all the companies that are registered in the United Kingdom. Thus, the Company House website carries the database of the names of various companies that are already registered with the Registrar of Companies, at the Companies House. The company formation agent can search the availability of the chosen name for the start up business. Any limited company's name must end with the word 'limited' at the end.

Setting up a limited company is not a joke. One has to learn about the different structures of limited companies, before making a choice between them. The limited company can be of two types- private limited company and a public limited company. The private limited company can further be divided into private limited company that is limited by shares, and the private company that is limited by guarantee. There is yet another category of private unlimited company that may or may not have any shareholder. The private limited company- limited by shares has a number of shareholders, who shares the liability of the company. Whereas, the private limited company-limited by guarantee do not have shareholders, rather there are the guarantors. A business holder must be informed about the minute details of the type of company, that he prefers to set up in the United Kingdom.

The company formation agencies have different strategies for handling the necessary files and documents, at the time of a limited company formation. While, some of them like to complete the registration process with the help of Internet, the others pay importance to the manual way of carrying out the entire task. However, the business holder must keep his eyes open for the company formation related scams. There are many fake company formation agencies, which will not answer to the queries of their consumers. They will misguide the business holders with their sugar coated promises but will never keep them. Thus, it is extremely essential to choose a reputable company formation service, that can put the sincere efforts for setting up a limited company, on behalf of their clients. The amount of money invested in hiring the company formation agency is actually worth investing.