How many people do you need to register a new company?
A look at the required appointments to form a UK limited company
You’re probably ready to register your company and started wondering how many people you would need to round-up to do it. On your own, you can form a company limited by shares (owned by one shareholder). As you are the only shareholder, you will own 100% of your company. If you would like to add shareholders later, it’s important to point out that there is no limit to the number of shareholders you can add.
When forming your company, as the sole owner, there are three important roles you will need to take on. Here is a list of those roles and the duties to follow:
Role of the Director
This role simply means you will be managing the day-to-day tasks in the company. Due to this, directors will carry out duties owing to the company, it’s shareholders and other important activities within the company.
Duties of this role:
- Keep all company records and report any changes to HMRC or Companies House
- Carryout activities that will make the company a success
- Ensure that all company records are correct
- File reports and company Tax Returns
- Follow all company rules detailed in the articles of association
- Inform all shareholders if you might personally benefit from a transaction the company makes
- All decisions should be made in the benefit of the company and not your own
- Pay Corporation Tax
- Complete registration for Self Assessment and send a personal Self Assessment every year
More information found here <(link article about directors).
Role of the Shareholder
Register your company with a formations agent
A shareholder backs the company with financial investment. This gives the shareholder/s voting rights to elect directors and navigate the direction of the company.
Role of the person with significant control (PSC)
To improve transparency within the corporate industry as of the 6th of April 2016, a register of people with significant control will be required. All companies will also be required to submit information held on this register to Companies House when filing their annual confirmation statement (previously called annual return).
Who is a PSC?
- Someone who owns more than 25% of company shares
- Someone who holds more than 25% of company voting rights
- Can appoint or remove most of the company directors
- Can exercise significant influence or control over the company or a trust, if it meets one of the first four conditions
As a person of significant control, there are no duties to be carried out under this role.
If you should decide to appoint a secretary (optional) when forming your company, please keep in mind that the role itself is only concerned with carrying out admin duties and filing.
That’s all the roles you will need to take on if you decide to form a company on your own.
Ready to form your company? Smarta Formations provides a simple and affordable process, click here to find out more and get started (external site, link opens in a new tab).