Starting a Private Limited Company (Ltd) is a great way to protect yourself legally and run a professional business. Here’s a simple step-by-step guide for beginners:
1. Pick a Unique Company Name
- Must be different from existing company names
- Should end in “Limited” or “Ltd”
- Avoid offensive or restricted words
👉 Use a name checker tool (like Companies House if in the UK) to confirm it’s available.
2. Choose Directors and Shareholders
- You need at least one director (18+)
- You need at least one shareholder (can be the same person as the director)
- Decide how many shares each person owns
3. Set a Registered Office Address
- This is the official address for your company
- It must be a real physical address in your country (e.g., UK address if registering in the UK)
4. Prepare Legal Documents
- Memorandum of Association: A document saying you want to start a company
- Articles of Association: The rules for running your company (you can use standard templates)
5. Register Your Company
- Register online with your country’s company registrar (e.g., Companies House in the UK)
- Cost: Usually low (e.g., £12 in the UK)
- You’ll get a Certificate of Incorporation once approved
6. Register for Taxes
- Sign up for Corporation Tax (within 3 months in the UK)
- Register for VAT if your turnover is high (e.g., over £90,000/year in the UK)
7. Open a Business Bank Account
- Keep your personal and business money separate
- Use your company documents to open the account
8. Maintain Company Records
- File annual accounts and confirmation statements
- Pay taxes on time
- Keep track of income, expenses, and employees (if any)
