# Business formation agents



## EastUpperGooner (May 31, 2009)

Hi guys, I'm in the midst of setting up a company at the moment(offically), I can't get the grips with some of the paperwork it just looks like a jumble of words to me.

Would it be reccomended that I use a formation agent? if so who is good cheap and reliable/fast?

I've been sent a link by a mate to the national business register, any good?

Thanks in advance.

Jon


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## organgrinder (Jan 20, 2008)

If you are not sure what you are doing then a company formation agent is a quick and relatively cheap way around the problem. They will cost anything from £50 to £150 depending on what you want. The more expensive ones will give you a whole company pack with several copies of the Memorandum and Articles together with a folder containing a shareholder register, register of directors minutes etc etc. The cheaper ones don't bother with the pack and may only give you one or two copies of the Memo and Arts.

To be honest, most small one man companies can get away with the cheaper end of the scale.

Before you set up a company make sure you have considerd the alternative of being self employed - there might be some tax savings with a company but there is extra hassle, paperwork and legislation to deal with - and you have to register as an employer and pay yourself a salary, paying the tax over each month. If you are late paying, you get one warning and then you will get a fine at the end of the year depending on how many more times you are late. Companies aren't the best for everyone.


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## EastUpperGooner (May 31, 2009)

Hmmm ok,

How would I register a business and be self employed then?

I should have taken business studies at school. lol


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## Waxamomo (Jun 18, 2008)

Take a look at quickformations :thumb:


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## organgrinder (Jan 20, 2008)

EastUpperGooner said:


> Hmmm ok,
> 
> How would I register a business and be self employed then?
> 
> I should have taken business studies at school. lol


You can be in business as self employed, in a partnership or through a limited company.

As a self employed individual, you register yourself with HMRC, get a bank account in your business name and away you go. If you have a business name you want to protect in some way, you can register the name.

If you want to trade through a limited company, then you get one set up at Companies House. The company does the trading and you are an employee of the company. The company's name is registered at Companies House which is a different process than registering a business name.

There are marked differences between limited companies and sole traders in the way they are taxed and the documents that need to be produced each year to be submitted to the authorities. Before you decide which one you are going to use you should talk to an accountant or other business adviser.


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## EastUpperGooner (May 31, 2009)

organgrinder said:


> You can be in business as self employed, in a partnership or through a limited company.
> 
> As a self employed individual, you register yourself with HMRC, get a bank account in your business name and away you go. If you have a business name you want to protect in some way, you can register the name.
> 
> ...


Thanks very much for your help, I will seek advice from an accountant as to which route I should take, I will most likey go down the ltd company avenue though.

Thanks again.

Jon


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## Steve Burnett (Apr 21, 2009)

A ltd company can be set up by your accountant. They will fill in the forms etc and send them off to companies house. You will need a business account at your bank.
To be honest it is no hastle at all to set up, cost me about £150ish I think.
You need to fill in more forms if you want to register for VAT. This is something you can actually now make money from if you have very little costs.
Your accountant will keep you right (Important to have a good accountant who knows right from wrong and also what can and can't be done).


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## EastUpperGooner (May 31, 2009)

No risk of VAT mate, the turnover will not be massive but it will be enough for me at 22.


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