Question 1

What is company formation?

Accepted Answer

Company formation is the legal process of creating a new business entity, distinct from its owners or shareholders. It is also known as company registration or incorporation. In the UK, it typically involves registration with Companies House or a company formation agent. It includes choosing a unique company name, defining the company's legal structure, and submitting the required documents.

Question 2

What is a company formation agent?

Accepted Answer

A company formation agent is a professional service that helps individuals and businesses set up a new company. They handle the registration process with the relevant authorities - usually online -making it faster, easier, and more cost-effective.

Question 3

Why use a company formation agent?

Accepted Answer

Using a company formation agent simplifies the process of setting up your business. They ensure your company is accurately and efficiently registered with Companies House, helping to reduce mistakes and delays. Formation agents also provide expert advice on choosing the right company structure, offer registered office services, and can support you with ongoing administrative tasks—making them a smart, time-saving option for new business owners.

Question 4

What type of company structure is most commonly chosen by UK businesses?

Accepted Answer

Private limited companies account for over 95% of all companies registered in the UK. An overwhelming majority of these are private companies limited by shares, making this structure the most commonly used company type.

Question 5

Why should I form a limited company?

Accepted Answer

The main benefit of forming a limited company is the protection provided by limited liability. This means if your business runs into financial trouble, your personal assets will not be at risk. Other benefits include enhanced credibility and tax efficiency. Overall, choosing a limited company structure can offer greater security and growth opportunities for your business.

Question 6

What is meant by a company limited by shares?

Accepted Answer

A company limited by shares is the most common type of limited company in the UK. 'Limited by shares' simply means the liability of the owners is limited to the nominal value of the shares issued by the company. Shareholders are only liable for the company's debts up to the amount they have invested, which helps protect their personal finances during company operation.

Question 7

Do I need to appoint a director when forming my company?

Accepted Answer

By law, all private companies registered in the UK are required to appoint at least one director. The director must be a natural person (a human) who is at least 16 years old. There is no need for the director to be based in the UK.

Question 8

What methods of payment do 1st Fornations accept?

Accepted Answer

We accept all major credit and debit cards, including Mastercard, Visa, Maestro, and American Express. We also accept digital wallet payments via Google Pay and Apple Pay. All transactions are processed securely, giving you peace of mind when setting up your company.

Question 9

How many shares do I need to issue?

Accepted Answer

A limited company must issue at least one share. If there is more than one shareholder, it is required to issue at least one share per shareholder. It is often recommended to issue more than the minimum number of shares to avoid the need to issue more in the future.

Question 10

Do I have to be in the UK to form a company?

Accepted Answer

No. You can form a company as a non UK resident from most locations in the world. However, you will require to have a UK registered office address, which 1st Fornations provides in most our company formation packages. Have a look at our Non-Residents Package for more details on how to register your company from abroad.

Question 11

Do I need a business bank account?

Accepted Answer

There is no legal obligation for a limited company to open a business bank account; however, in practice it is almost impossible to operate without one. A limited company is a separate legal entity from its owners; therefore you should keep your personal and business finances separate.

Question 12

What are the annual filings?

Accepted Answer

The annual filing requirements for a limited company in the UK include submitting a confirmation statement, annual accounts and Corporation Tax Return. Staying compliant with these filing requirements is essential for avoiding penalties and maintaining your company's good standing.

Question 13

Will the director's address be publicly available?

Accepted Answer

All UK company directors must report their home address to Companies House. The home address does not appear on the public record. The only reason a director's home address would appear publicly is if the director chooses to use it as their service address.

1st Fornations offers a Service Address Service which allows directors to use our prestigious Covent Garden address as their service address, helping to protect their privacy.

Question 14

Do 1st Fornations provide support after I form my company?

Accepted Answer

Yes, 1st Fornations provide full telephone, email and online chat support for all customers during the lifetime of their companies. We also provide an Online Company Manager and a full range of company services including London company address services to help maintain and develop your company.

Question 15

What is a limited company?

Accepted Answer

A limited company is a business structure that separates the owner(s) from the business. This separation protects the owner's personal assets from the business's debts and financial obligations.

This is the most popular business structure in the UK, and it provides additional benefits such as tax efficiency and enhanced credibility.

Question 16

How long does it take to register a new company?

Accepted Answer

Our simple online application form takes no more than 20 minutes to complete.

Once the application has been submitted to Companies House, it will usually be processed in one working day; however, this is subject to Companies House workload and may take longer.

If it is important that your company is formed on the same day, you can purchase our Same-Day Incorporation Service at the checkout with any of our packages. This service is available before 12pm GMT, Monday-Friday.

Question 17

Are there any hidden costs of registering a company?

Accepted Answer

No, there are no hidden costs when registering a company with 1st Fornations. The total cost is the package price shown, plus the £100 Companies House Fee (not subject to VAT). For more information, visit our compare packages page.

Question 18

Can I register a company on my own?

Accepted Answer

Yes. One person can form a limited company in the UK. You will need a director and a shareholder, and one individual can hold both positions.

Question 19

What is required to form a UK limited company?

Accepted Answer

To register a UK limited company, you will need:

A unique company name available to register with Companies House
The address to be used as the company's registered office address.
Details of your company directors and shareholders, including:
- Full names
- Addresses
- Dates of birth
Your company's business activities, described using SIC codes

Having these details ready will make the formation process quicker and easier.

Question 20

Can I appoint more than one director or shareholder when forming my company?

Accepted Answer

Yes. You can add multiple directors, shareholders, or guarantors during the company formation process.

Our online application lets you include as many people as required, allocate shares in different proportions, and assign specific roles (such as director or company secretary).

If you're unsure how to structure your shareholdings, you can start with a simple setup and make changes later through Companies House filings.

Question 21

How do I choose and register a company name?

Accepted Answer

Your company name must be unique and comply with Companies House rules.

During the company formation process, you can instantly check if a name is available using our company name checker. If it's already taken, you can select an appropriate alternative.

Question 22

Do you verify my ID with Companies House when I form a company?

Accepted Answer

Yes. We are an Authorised Corporate Service Provider (ACSP) and can verify the identity of officers and persons with significant control (PSCs) on behalf of Companies House.

When we submit your company formation application to Companies House, once your company has been formed, you will appear as 'verified' for ID purposes on the Companies House public register.

We will also carry out additional checks to comply with our anti-money laundering responsibilities, as we are supervised by HMRC for anti-money laundering purposes.

The ID verification process is quick, simple, and free of charge. Typically it is completed within just a few minutes. You can read more about our ID Requirements here.

Question 23

Should I use Limited or Ltd in my company name?

Accepted Answer

When completing your company registration, you can choose to use either 'Limited' or the abbreviated 'Ltd' in your company name - both are legally acceptable and indicate that your business is a private limited company.

The choice comes down to style: 'Limited' offers a more formal look, while 'Ltd' provides a modern, streamlined alternative.

Question 24

What documents will I get after forming my company?

Accepted Answer

Once your company has been incorporated, you will receive digital copies of the following documents:

Certificate of Incorporation
Memorandum and Articles of Association
Share Certificates
Minutes of the First Board Meeting
WebFiling Authentication Code

Question 25

How do I get a business bank account?

Accepted Answer

During the application process, we will provide a list of banks we can refer you to. Once your company is formed, we will share your details with the chosen bank who will contact you directly.

Question 26

When can I start trading?

Accepted Answer

You can begin trading as soon as your company is registered by Companies House. Usually within one working day.

Question 27

Will my residential address be publicly available?

Accepted Answer

Although you must report your residential address to Companies House, you can keep it private and off the public record by using our registered office and service address services.

Question 28

Is 1st Fornations an ACSP?

Accepted Answer

Yes, 1st Fornations is an Authorised Corporate Service Provider (ACSP), approved to carry out identity verification and submit filings for company formations on behalf of clients, in compliance with Companies House regulations.

This status ensures we meet strict anti-money laundering and due diligence requirements, offering you a trusted and secure company formation service, whilst also ensuring that when forming a company with us, you automatically have your ID verified with Companies House at the same time.

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