While some of the current limited companies are the consequence of the expansion of small-scale enterprises, mergers, and sole proprietorships, people with the financial muscle to support the establishment and operation of limited companies choose to establish the sectors once and for all.
A business with no history, it appears, must go through a series of registration and licence procedures before it can begin operations legally. It therefore brings up the issue of business registration for people who are unfamiliar with it.
Ways of company registration
In the process of registering a business in the United Kingdom, an investor has many options. These are their names:
- Direct registration through the Companies House
- Formation of a company through an agent
- Getting an accountant to help you set up your business
Each of the following business models provides an answer to the question, “How much does it cost to start up a limited company?” Before we get into that, we all know that engaging middlemen in any business inflates expenses, and the more middlemen there are, the more the costs are overstated! It is the exact opposite of what most people assume and perceive about intermediaries, and so removing the presence of intermediaries greatly reduces the expenses of establishing a limited business.
The true costs
After observing that removing middlemen lowers the initial capital, consider the benefits of each method of forming a corporation. It is important to remember, however, that each of the methods has different prices based on their features.
Let’s get started!
Direct registration through the Companies House
As the name implies, limited corporations are formed directly at the Companies House without the involvement of any middlemen. The procedure is available online and takes around 24 hours, with a typical price of £12.
In addition, applicants who want a 24-hour paper return turnaround must pay £100. Paper returns that arrive after roughly 8 – 10 days pay £40.
Incorporating a business online necessitates the applicant filling out plenty of paperwork, the most important of which is form IN01. The following information is required for a successful application:
- The official address of the firm
- Stakeholders’ perspectives
- The proposed share capital of the firm
All applicants are eligible to obtain the “The Companies’ Rule Book” and the Articles of Association of Companies House. Concurrently, a Memorandum of Association is drafted, declaring that the persons in issue wish to form businesses.
Formation of a company through an agent
Agents connect an investment with the appropriate authorities. They mostly develop templates for the many paperwork necessary to start certain firms, so that when an investor approaches them, they only need to fill in various data such as bank accounts and other personal information. For such services, they subsequently demand a fee.
Although agents make the business registration procedure simple, they greatly inflate the expenses at their rates due to the lack of price control. The investor ends up paying extra on top of the initial payment! However, these people are abundant online; all you have to do is use the search function, and a multitude of options will be shown to you.
Getting an accountant to help you set up your business
Accountants are useful in the workplace for the following people because of their professional knowledge:
- Contractors and individuals who are unfamiliar with the formation and operation of enterprises
- Individuals who are poor in business direction and management
Accountants often have the required abilities to operate corporate enterprises on behalf of their owner. The investor benefits from professionalism at a very high fee paid to market accountants.
In this situation, accountants will want an off-set-up fee that is separate from their normal salary. As a result, while engaging an accountant to set up a business, one should be prepared to part with a substantial sum of money.
For more information about how FBS Chartered Accountants can help your business, get in contact with us today call: 0204 526 5195 or drop us a line hello@finchleybusiness.co.uk
