Introduction to this document

Flow chart - forming a limited company

Limited companies are often created specifically for tax reasons although primarily their purpose was to limit their owners financial and other liabilities. Forming a limited company can be a simple process but if the company has special requirements it can be more complicated. You can choose to do it yourself or use a company formation agent. Either way youll need to take the first steps yourself.

Flow chart

The Flow Chart - Forming a Limited Company will help you prepare the information you need to form and register a limited company.

Definitions for the flow chart:

  • Persons with significant control - companies are now required to keep a register and notify Companies House of any persons, whether they are shareholders or directors, who can influence how a company operates
  • Company formation agents - businesses which specialise in setting up companies and handling their legal responsibilities, e.g. maintaining the company register
  • Memorandum and articles of association - these are a set of rules which every company must have to confirm basic details, e.g. the companys full name and share issue, and rules of conduct, such as what powers the directors have
  • Company limited by guarantee - these are companies in which no one has an equity share, that is, no entitlement to its assets. The guarantors also have a variable but limited financial liability if the company becomes insolvent. They are typically used for not-for-profit organisations.