FAQ

Who is able to set up a limited company?
How many types of companies are there?
What are the advantages of a limited company?
What do I need to set up a limited company?
What is a registered office?
How does a shareholder differ from a director?
How does a dormant company differ from a non-trading one?
What are the benefits of registering my company online?
Who else do I register my company with?
How quick is a company formation?
Can I change my company name once it is incorporated?
Can I add or remove directors, shareholders or secretaries after my company is incorporated?
How do I change my company’s registered office address?
What is a Company Seal?
What is a Nominee Director?

 

Who is able to set up a limited company?

Anyone can register a limited company, as long as they have not had a court order restraining them, they are not subject to government restrictions in the UK and are not an undischarged bankrupt. For more info on company formation click here

 

How many types of companies are there?

There are four types of companies:

Private companies limited by shares (members’ liability is limited to their share amount)

Private companies limited by guarantee (members’ liability depends on the amount they agree to pay to the assets if the company fails)

Private unlimited company (no limit to members’ liability)

Public limited company (members’ liability limited to unpaid amount on the shares they hold).

For a more in depth read see types of limited companies here.

 

What are the advantages of a limited company?

There is less risk involved in a limited company because the personal assets of the shareholders are protected through limited liability. The costs of running this type of company are lower than partnerships or sole traders, and creditors prefer this.

 

What do I need to set up a limited company?

  • You need a name that is unique
  • You need a registered office address
  • You need a shareholder (or several) and a director
  • You need information about these appointees
  • You need your credit card details handy

For a guide to legal documents required to setup a company click here.

 

What is a registered office?

This is the official address for Companies House documents to be sent to. The address appears on public records, on office stationary and on your website. Read more info here.

 

How does a shareholder differ from a director?

A shareholder owns the company, along with others, and has a right to vote on company issues. A director runs the company on a day to day basis and is the ‘face’ of the company. For a more detailed explanation of shareholders/directors, please read our shareholder information page.

 

How does a dormant company differ from a non-trading one?

A dormant company has no transactions to be recorded, whereas a non-trading one might not be in business at the moment but transactions may still be going through their books.

 

What are the benefits of registering my company online?

Registering online gives speedier results and can make you substantial savings. You will pass on information securely to companies house – to get started click here.

 

Who else do I register my company with?

You need to consider whether you should register with HM Revenue & Customs (HMRC). An accountant can advise you about this in detail.

 

How quick is a company formation?

When forming your company online through DolphinFormations.co.uk, it can take as little as 3-4 hours if done before 3pm, as long as it complies with Companies House’s registration rules.

 

Can I change my company name once it is incorporated?

Yes this is possible. If you visit the Companies House website, you can ask for a company name change by completing form NM01.

 

Can I add or remove directors, shareholders or secretaries after my company is incorporated?

Yes. Visit Companies House website (www.companieshouse.gov.uk) to fill in the change request form.

 

How do I change my company’s registered office address?

Once you have registered, you can still change this detail by completing an AD04 form on their website. (www.companieshouse.gov.uk)

 

What is a company seal?

The company seal is used to emboss important documents such as share certificates or charges. The seal certifies these documents and makes them appear official.

Nowadays, company seals are not mandatory, but many businesses prefer to use them as they bring a sense of genuine authority to the process of signifying documents. Once the seal has been applied, the directors and secretaries will sign the paper as witnesses.

 

What is a Nominee Director?

A company director is someone acting as such to fulfil the company’s legal requirements, and occasionally does so to protect the identity of whomever has the real power over the business.

A nominee director does not play an active role in running the business because the risks of making decisions for another person are too high. Dormant companies may have a nominee director because within a ‘sleeping’ company the director is not as exposed as they are within a trading one.

A director charges for attaching his name to a company, and nominee directors share the same responsibilities.