How to set up a Ltd Company?

faringdon

Hi,
Just today been offered a 6 month contract for electronics engineering. They want to know the name of my Ltd Company. I dont have one. How do  i get one?
I am doing research  whilst posting this but still not found out yet.

Maybe i could register as a Sole Trader instead?....is that easier /quicker.?...i think they may withdraw their offer if i am not registered as a Sole Trader or if i dont have a Limited Company.

To have a Ltd Company it looks like you need a gaurantor (?) and i dont have one.

If i tell them i want to work as a Sole Trader then do i have to have an "official Sole Trader Name" (presumably which i get from HMRC?) which i can give to the hiring company?

I have now watched multiple youtube vids on Sole trader vs Ltd Company but still not sure how to actually do it? 

Also, if going "sole trader", do i need to set up a business bank account?..and how much does this cost?

After having watched this...
https://www.youtube.com/watch?v=LKMXSANgCR4
....i think i want to start off being a  Sole Trader....as such, what do i tell the hiring company my "Sole Trader name" is?

I must give them some name ...otherwise they won't hire me because they want the freedom of hiring a "Sole Trader" or "Ltd Company"...because they don't have to offer me a  Regulation Filled PAYE type employment etc........Presumably if i want  them to consider me as a Sole Trader then i just give them my name as the "Sole Trader" Name?

El_Torro

I set up a Limited Company a few months ago. I did it with Companies House and also needed to open an account for my Limited Company with HMRC (www.gov.uk) If you Google this it will tell you what you need to do. Just make sure you avoid companies that charge you a fee to do it for you. It won't be any simpler than doing it yourself. 

I didn't need a guarantor. If you set up a private limited companies with shares (it can be just one share, 100% owned by you) there's no need for a guarantor. This is probably more relevant if you're setting up a business that buys and sells goods. I assume you just want the employer  to pay your wages into the Limited Company.


Before you go through the process it's worth checking that you actually need to do this. Going through an Umbrella Company will be simpler, especially if you are only planning to take this 6 month contract as a one off and you are looking for a permanent role. The Umbrella Company will essentially employ you and the company you have a contract with will pay them. The Umbrella Company will take a cut, though not a big one. The last time I used an Umbrella Company their fee was £20 a week. That was 10 years ago though.

I'd be surprised if the company who has offered you a 6 month contract would refuse to give you this contract if you don't have a Limited Company. 

EDIT: Great, I typed all that and posted it before realising who is asking the question.... Oh well, I hope my post is useful to someone. 

Marcon

faringdon said:

Hi,
Juts today been offered a 6 month contract. They want to know the name of my Ltd Company. I dont have one. How do  i get one?
I am doing research  whilst posting this but still not found out yet.

Maybe i could register as a Sole Trader instead?....is that easier /quicker.?...i think they may withdraw their offer if i am not registered as a Sole Trader or if i dont have a Limited Company.

To have a Ltd Company it looks like you need a gaurantor (?) and i dont have one.

Look at the answers to your previous posts and the relevant information and links have already been given - or google on 'setting up a limited company'.

dannydav07

You don’t need a guarantor to set up a standard limited company. That only applies to companies limited by guarantee, which isn’t what you need for contract work.

For most contractors, setting up a private limited company (Ltd) is simple and can be done online through Companies House. It usually takes a few hours once you’ve submitted everything. You just need a company name, a director (you can be the only one), a registered address, and some basic details.

Registering as a sole trader is even quicker, but some agencies or clients prefer dealing with a limited company because of invoicing and tax setup. It’s worth asking your new client if they’re happy with sole trader status, as some are fine with it.

If you want to move fast, you can:

• Set up an Ltd company via Companies House today.

• Or register as a sole trader through HMRC online.

Either option doesn’t take long, so you shouldn’t lose the contract over this.

singhini

El_Torro said:

Before you go through the process it's worth checking that you actually need to do this. Going through an Umbrella Company will be simpler, especially if you are only planning to take this 6 month contract as a one off and you are looking for a permanent role. The Umbrella Company will essentially employ you and the company you have a contract with will pay them. The Umbrella Company will take a cut, though not a big one. The last time I used an Umbrella Company their fee was £20 a week. That was 10 years ago though.

I'd be surprised if the company who has offered you a 6 month contract would refuse to give you this contract if you don't have a Limited Company. 

EDIT: Great, I typed all that and posted it before realising who is asking the question.... Oh well, I hope my post is useful to someone. 

Yes me -----> i've never heard of the term Umbrella Company ------> just spent 10 mins looking it up 
Thanks 👍

NorthYorkie

Why don't you read the comments to your post earlier this year? *Doing consultancy work and the tax situation? — MoneySavingExpert Forum). What is the point of people responding to your posts if you don't take any notice of them?

GardenBirdWatcher

Based on the OP's previous topics, I'd say he only really has 2 options:
1. Find an umbrella company so that he can be PAYE and not have to worry about all of the tax/NI side of things.
2. Find an accountant who can register a Ltd company for him and also take care of all of his accounts and advise him on things like salary, NI contributions, dividends and possible VAT registration.