For most people, starting a new business is a very big deal and requires careful consideration. So, why, if you are taking this big step and you require a private limited company, would you take the cheapest possible route and use the first place you find online promising you a company in 2 hours for less than £20… some less than £15?
What do you actually receive for just a few quid? Not much, in my opinion.
A certificate of incorporation is the primary document issued to new companies. Although, if that is all you get, there is certainly no guarantee it will be a fully compliant company and fit for purpose. You must do the rest yourself, whether you know what that is or not.
What should you expect from a reputable company formation provider?
A top quality company formation service with uncompromised quality will offer you:
- Certificate of Incorporation
- Articles of Association
- Completed statutory registers – a legal requirement for all UK companies:
- Register of Directors
- Register of Shareholders/Members
- Register of People with Significant Control
- Share certificates completed and in place (proof that you own shares)
- Physical register to hold the aforementioned
- Guidance notes on maintaining your Statutory registers
You should also be offered the option of completing your first board meeting minutes to record the appointments of your directors and other parties associated with your company. These must be in place within the first 12 months of the company’s existence. It can save you a lot of time and future stress to have this all sorted from day one and is something the banks like to see.
An unexpected and often forgotten benefit
There are numerous other benefits to using a reputable company formation service provider. You can rest assured they are regulated by HMRC and fully compliant under the UK anti-money laundering regulations
Many of the lowest-cost online service providers (including Companies House!) do not provide or at best, discourage direct contact. If you do need assistance via phone or email, is the individual on the other end knowledgeable and experienced in the areas most important to business owners? When you’re paying £12.00 that isn’t likely to be the case.
Should I use any of the additional services offered?
Additional compliance services offered by a reputable provider can help your new company reduce hassle, stress and the legal risk.
Particularly if you do not have or do not need onsite business premises, a professional registered office address can be a first step to ensuring your personal home address stays off the public record. When combined with a Companies House service address your personal home address will not be available for viewing on the public registers.
Would you like someone to look after your annual compliance duties for you so you can focus on everything else? It is unlikely you’ll find these services from the cheapest service providers, or if you do, there is no guarantee the compliance work is done by a qualified professional.
With a new company likely to be one of the biggest investments of your professional life, especially if you have investors in your business, would you put it at risk with the cheapest possible service?
If you would like more information about company formations in Scotland and what to expect from a reputable service provider, give us a call. We’re happy to discuss the options available for your new company.