I would like to set up a Ltd company for a new business venture, and wondered if there was anything I should know. I’m aware that you can pay someone to do it for you, but unless I’m missing something, I don’t see the point?
The only thing I’m unsure about (I think) is how many shares to allocate, and whether to allocate them all to myself or not? ..and wether this even matters?

The online setup looks quite simple, am I missing anything?

The online setup looks quite simple, am I missing anything?

I’d at least read a book about running one first.

The only thing I’m unsure about (I think) is how many shares to allocate, and whether to allocate them all to myself or not? ..and wether this even matters?

Issue 100, then it’s easier to work out percentages later.

I don’t think it matters how many you allocate, but you need to be clear when you have your board meetings who is getting the dividends (and whether unallocated shares are being paid).

I’d at least read a book about running one first.

Good plan.

Issue 100, then it’s easier to work out percentages later.

This is what I’d thought.

The actual incorporating the company bit is easily done on Companies House website.
The ongoing admin is slightly more complicated. It may well be worth having a professional adviser to keep you right with annual returns/accounts/CT returns.
As above 100 £1 shares is a good plan. Whoever you want to be beneficial owners of the company should get these e.g. all yours if you want all the income to go on your tax return or 50/50 with your spouse if you want to maximise use of basic rate income tax bands and your spouse doesn’t work.
The money from whoever is taking up the shares should be paid into the company bank account (which you can set up once you have the incorporation certificate).

Pick a name that isn’t a trademark.

Create Memorandum of Association document (Company name, what’s the purpose of the business, how it will be run, shares issued, legal guff basically)

Create Articles of Association document (Legal stuff about shareholding).

Register company.

The actual shares don’t need to be paid for. Just declare the issue. Payment comes if you ever want to sell them.

If you have more than one shareholder, then you legally must pay the share of dividends to each based on the shareholding.

Templates for the documents are easily available, but make sure the wording is legally correct and up to date with current regulations and laws.

Alternatively just pay an accountant to set it all up. Price will vary wildly, though think mine was a peanuts amount, but on the basis I’d be using them as accountants. Was a package with company set up and bank account.

Thanks.

Spouse works and does well, so I don’t see a benefit in allocating shares to her, unless there’s another possible scenario down the line that may make doing this beneficial.

Yes, ideally if you are married you should perhaps do a 51/49 share allocation allowing your wife to act as Company Sec and be paid a salary. Also would be eligible for dividends, thus spreading the tax burden across both of you….which is, shall we say, (on this forum) tax efficient! 🙂

edit…just seen your wife works which does change the above info, so suggest a chat with an Acct to assess your situation and advise accordingly.

I used companiesmadesimple.com a few years ago. Cheap enough and effortless.

New dividend rule came in this tax year where the first £5k of dividend income is tax free so having a spouse as a shareholder could be useful!

I used a local accountant who looked after everything. It wasn’t expensive and avoided any issues. Depends who your wife works for she may need to check with her employer if she can be a director/sec of another company. It can be financially beneficial to be able to pay another director (your wife) in shares as it is taxed differently (although this has changed in the last budget).

Some great info here, thank you.

“… I don’t see a benefit in allocating shares to her, unless there’s another possible scenario down the line that may make doing this beneficial.“

If she’s planning on taking time off in the foreseeable, e.g. maternity leave.

Also the £5k/year thing as already mentioned.

Always found these people to be good – https://www.theformationscompany.com/

Have a read of this: https://www.theguardian.com/business/2016/apr/19/offshore-central-london-curious-case-29-harley-street

Quite enlightening…

As soon as companies were involved in owning other companies, as well as being their directors and secretaries, it became extremely difficult to discover who really controlled them (ie who was the “beneficial owner”, the person who received any benefit from the company). In February 2004, for example, Formations House created three companies: Corporate Nominees, Legal Nominees, and Professional Nominees. The second company owns the other two, while itself being owned by the first company. The third company is secretary for the other two, while its own secretary is the first company. The second company is director of the other two, while its own director is the first company. These three companies then became directors, secretaries and shareholders of other structures, in an increasingly baffling multidimensional web of crisscrossing lines of control. If you looked for the companies’ real owners, the most you could eventually discover was that the original three all owned, controlled and managed each other.

New dividend rule came in this tax year where the first £5k of dividend income is tax free so having a spouse as a shareholder could be useful!

And basic rate taxpayers only pay 7.5% tax on divis.
Higher rate pay 32.5%.
So even if she works you could save money.