Structuring a business

Choosing the limited company structure brings with it many distinct advantages when it comes to tax and personal liability, but entrepreneurs should also be aware that it also has several important obligations and responsibilities.

A limited company must be registered with Companies House and you need to provide details of the registered office and the company officers. This includes people of significant control within the business. Companies need only to appoint at least one director as part of their incorporation.

If you do not have commercial premises and do not wish to use your home address as registered office you can use our address for a small annual fee.  However, our office cannot be used as a trading address.

Establishing a shareholding

Before the company commences trading, you must set up the necessary shareholdings. In most small and medium businesses are set up with just ‘ordinary’ shares that are typically only held by directors. However, it is possible to set up different classes of shares with varying rights, if appropriate.

Selling shares of a business is one way in which a company can raise funding and investment, but it is important to note that anyone owning shares in the business will be entitled to dividend income if this is paid out on their class of shares. They also hold a stake in the company if it is sold or wound up, the size of which is based upon the rights of the class of shares.

Seed Enterprise Investment Schemes (SEIS) could also help your start-up company raise money. Investors who buy your shares receive tax relief and, in return, you could receive up to £150,000 through SEIS investments.