Every business is unique, with different industry norms, trading standards, and commercial objectives. With this in focus, we provide tailored legal advice specific to your commercial circumstances, helping you navigate the complexities of business formation and ensuring a smooth start towards achieving your goals.

We take the time to understand your business and its specific needs, offering expert guidance on the most suitable structure to align with your objectives while ensuring full legal compliance. This collaborative approach allows us to develop informed strategies and solutions that support both your immediate needs and long-term success.

Setting up a Company

Below is a guide on how we will work with you, to create a limited company in this example.

Step 1: Choose a Company Name

• This must be unique and not similar to existing businesses.
• The name cannot contain sensitive or restricted words.
• We can assist you on what is allowed.

Step 2: Appoint Directors & a Company Secretary (Optional)

• A Ltd company must have at least one director.
• A secretary is optional but can assist with compliance.
• We will assist you on determining if this is necessary.

Step 3: You Decide on Share Structure

• You need at least one shareholder (which can be the same person as the director).
• It is important to define the type and value of shares (e.g., ordinary shares at £1 each).

Step 4: We Prepare Legal Documents

• Memorandum of Association – Statement of intent to form a company.
• Articles of Association – Rules for running the company.

Step 5: We Register the Company with Companies House

• Online registration fee: £12 (processed within 24 hours).
• Paper registration: £40 (can take up to 10 days).

Failing to Set Up the Right Company: A Practical Example

In this example, we find John: A Sole Trader.

John is a sole trader operating a plastering business in Manchester.

He signs a contract with Manchester FC to renovate a function room at New Trafford Stadium, but he underestimates his costs to secure it. Halfway through, he runs out of funds and cannot complete the job. He is now in debt and is being sued by the football team.

Consequences as a Sole Trader:

• Personal Liability: The plastering business debts are John’s personal debts. Since he signed contracts in his own name, he is legally responsible for paying suppliers and subcontractors.
• Risk to Personal Assets: John’s creditors can pursue John’s personal assets, including his home, savings, and car, to recover outstanding payments.
• Legal Action & Bankruptcy: If John cannot complete the job, Manchester FC may begin legal action against him personally, affecting his credit rating and future business prospects.

How This Would Be Different if John Had a Limited Company

Had John chosen to operate as John’s Plastering Limited, the situation would be different:

✔️ Limited Liability: The company, not John personally, would be responsible for debts. His personal assets would remain protected.

✔️ Company Insolvency, Not Personal Bankruptcy: If the company became insolvent, only company assets—not John’s home or savings—would be at risk (unless he provided a personal guarantee).

✔️ More Professionalism & Growth Opportunities: Larger businesses, like ‘Manchester FC,’ prefer working with incorporated companies. Limited companies improve your credibility and create new opportunities.

✔️ Tax Benefits & Business Protection: A limited company structure offers tax efficiencies and allows John to separate personal finances from business operations.