company formation question

jennimoo

I'm looking at using one of these company formation companies, as need to have a LTD company quickly and easily so I can bid for some funding. I don't plan to start trading for 6 months, if at all (it's dependant on a successful bid!)
Is the lowest price option OK? Do I need any of the other stuff in the future, if so does it cost much to get it after the fact?
I was looking at www.companiesmadesimple.com
as the above posters mentioned.

Any advice gratefully received!
Jenni x

DCodd

Hi, It may be different within the IT sector but my experience within the Construction Industry is that HMRC are clamping down hard on these umbrella style companies.

Under the New Construction Industry Taxation Scheme (CIS) they have been successfull, in court, "proving" that self-employed people within an umbrella company are in fact employees of that umbrella company and not SE at all.

The Construction Industry is very highly regulated these days I agree but I wonder how long it will take HMRC to apply this type of scrutiny on other traditionally SE professions.

olly300

DCodd wrote: »

Hi, It may be different within the IT sector but my experience within the Construction Industry is that HMRC are clamping down hard on these umbrella style companies.

It isn't.

HMRC don't like umbrella companies in any industry due to their dodgy goings on with expense dispensations.

They have been drafting a law which they may push through parliament and enforce any time soon to state that those working under umbrella companies, like directly employed agency staff, are not allowed to claim any expenses.

olly300

jennimoo wrote: »

I'm looking at using one of these company formation companies, as need to have a LTD company quickly and easily so I can bid for some funding. I don't plan to start trading for 6 months, if at all (it's dependant on a successful bid!)
Is the lowest price option OK? Do I need any of the other stuff in the future, if so does it cost much to get it after the fact?
I was looking at www.companiesmadesimple.com
as the above posters mentioned.

Any advice gratefully received!
Jenni x

I was informed that if you used one of those quick formation things you and they could end up getting things wrong, meaning it could cost you more in the long run.

In fact I know someone who did that. In the end the quickest and cheapest option for them was to close their old company down and open a new one up with a similar name.

jennimoo

Thanks Olly300.

So if I go for company formation the DIY way how do I get hold of the documents I need to send to companies house then? And how long will this take? On the Companies House site it all seemed a little vague and confusing, but surely it will take much longer than the 3h the company formation websites do it it.

Anyone give me the simple steps?

di3004

jennimoo wrote: »

Thanks Olly300.

So if I go for company formation the DIY way how do I get hold of the documents I need to send to companies house then? And how long will this take? On the Companies House site it all seemed a little vague and confusing, but surely it will take much longer than the 3h the company formation websites do it it.

Anyone give me the simple steps?

Hi there

If you email or ring companies house they can send what you require through email attachment, the last info I received from them only taken an hour if that.;)
I did not need a great deal but enough to help my case, you can ring them and pay by debit card of credit card if you have one of these.

http://www.companieshouse.gov.uk/toolsToHelp/findCompanyInfo.shtml

http://www.companieshouse.gov.uk/

Because at first I was confused, I decided to ring them, and they were very helpful indeed.
Think it was something like £3 I paid, but like I said it was more than enough info, even though I did not ask for it all, some requests are a £1, if you explain on the phone what you require all together they will go through this with you.

Good luck.

Di
X

jennimoo

I think I have got my head around all the details about how to set up the company, and how much this will cost if it remains dormant, but now am a little confused about shares...

I guess that what I need (a normal company...) is a "Private company limited by shares". In this case how do shares work? I gather that shares have to be allocated when the company is set up, but I am still a little confused. If I set up the company with one other person do we just allocate ourselves half the shares each? I am hoping we won't need to put much money in before we start, and none at this stage, so I am not sure how this works...

Thanks to all those who have answered my daft questions so far, it has really helped!

Jenni x

olly300

You can allocate shares anyway you want.

You can split them equally or unequally. You can have shareholders who have nothing to do with the business.

It's up to you. Just make sure the amount adds up to 100%.

You don't pay dividends on the shares until you have profit. Once your company isn't dormant I strongly suggest you get an accountant.