The simple answer to this question is one. You can establish a limited firm with a single person in the United Kingdom.
As per the statistics published by the Companies House, there has been an increasing number of individuals who want to run their own business in the United Kingdom. So, it’s crucial that budding business owners realize their roles and responsibilities in addition to the benefits received from operating their independent company.
While filling in your application form, you must mention at least one shareholder and one company director. You will have no trouble listing a single individual in both positions. Meaning, a single person can establish a limited firm and register it at the Companies House.
This is helpful for several small business owners wanting to work independently or don’t want a business partner. Additionally, the structure of a limited firm is quite flexible. Thus, additional company directors or members can be appointed if necessary, after the business has been officially registered.
Virtually anyone can set up a limited firm in the UK, provided they’re not an undischarged bankrupt or ineligible director and at least 16 years old. Even those who’re non-UK residents are free to form a limited firm in the UK. However, you must remember that a company’s articles might exclusively ask for a greater minimum director number. Here, the company is required to fulfil the said minimum requirement.
Important: The primary focus of this article is a private limited firm and not a PLC or public limited company. A PLC may have further requirements, primarily the need for appointing no less than two directors along with a secretary.
How To Set Up A Limited Firm In The UK?
Along with naming one or more members or directors, you must disclose your registered office address while incorporating your company. The same address is likely to be used as your official company address, and it needs to be situated in the same jurisdiction where you want to incorporate it.
The correspondence sent by the government agencies, including HMRC and Companies House, will most probably be delivered to the office address of your company. Hence, ensure it is an authentic physical address and not a general PO Box number where you can easily receive the mail.
How Soon Can I set Up A Limited Firm In The UK?
Companies House website will publish all the details of your company address for public viewing, along with the statutory records.
One of the easiest ways to register your company is by using a regulated company formation agent… like us!
The application must provide the following information:
- Name of your company
- Address registered as the official company address
- Type of business operations
- Company director(s) information, which also includes service addresses
- Partner details with service addresses included
- Model articles and memorandum
- Information about PSC’s
Through an agent, you can request approval for your company in almost 3 – 6 hours. However, the process may take an extended time when the application is made, as Companies House will still need to approve the application.
A Limited Firm Or Independent Trader?
You must also consider the positives and negatives of establishing a limited firm in contrast with working as an independent trader. The primary benefits of operating as a limited firm include tax planning and limited liability, but both these choices are pros and cons. We highly suggest you discuss your requirements with a trustworthy company formation agent in order to get professional assistance before making your final choice.
The idea of running a company as a single person can be rewarding and exciting. Nonetheless, don’t overlook the fact that you are required to take certain responsibilities as the only shareholder and director of your company. In case you submit the necessary information late or are unable to pay the dues on time, you may face some huge fines. Besides, your accountant needs to be made aware of all the applicable deadlines to make sure you stay updated and avoid possible penalties.