Generally speaking, most things in life are cheaper and easier if you do them yourself, but only if you know what you’re doing. Starting your own business or trying to form a limited company can be a scary and daunting time. On the other hand it’s exciting and you’re probably quite enthusiastic.
Only fools rush in
There’s a lot of truth in the old statement “only fools rush in” – starting a new business requires plenty of planning, research and forethought. You want everything to be just perfect and all go smoothly. Of course life is never that easy and there are bound to be some hiccups along the way. The important thing is trying to get it right.
Planning and research
There are plenty of things to think about when starting your own business including choosing a suitable business name, picking an appropriate location, carrying out market research, raising the right amount of finance and many other things. One which might not have entered your mind is the legal aspect. New businesses and limited companies are governed by a number of laws put in place to protect the public and the business as well. There are tax laws, VAT registration, data protection, health and safety regulations and many other things to consider.
Company Formation implications
Starting a limited company, you will need to be aware of the regulations placed on you by the Companies Act 2006. Which govern many aspects of how a limited company operates including the duties and responsibilities of the director(s) of the company. The other areas covered include (but are not limited to) how a company formation is carried out. There are specific requirements for the creation of a new limited company and rules on how the important company articles should be drawn up.
This refers to the memorandum and articles of association, which are an essential part of limited company formation. They must be written in a specific way, laid down by the law and include a number of essential pieces of information.
Unless you are a dab hand at understanding the law, trying to draft these documents on your own can be quite difficult and mistakes will lead to your company formation request being rejected by Companies House. The form for filing a limited company registration (IN01) is also lengthy and quite taxing. As I previously demonstrated, it is actually cheaper to use a company formation agent, than trying to do it yourself.
Using a company formation agent, you can carry out an online company formation usually within a few hours and will far less hassle than trying to do it yourself. Legal experience and knowledge of the procedures also mean that you can get free advice and support if you get stuck at any point or are looking for a more specialist company formation.