‘How to set up a company?’ does not need to be a complicated question. Forming a company with MachFast is easy. Usually, starting a company is a big pain – you need it but really don’t want the hassle. We agree.
So here is a simple guide to starting a company – before, during and after. We always recommend that you speak to your accountant or lawyer if you want professional advice.
Make sure you have all the basic information at hand to start your business.
What are you going to call your business? Company names are funny things- someone may have taken your company name already. So be prepared with a few alternatives. Don’t worry, our handy app helps you check for the names quickly. We will also check if a domain name is available with your company name.
Where do you want your company mail to go to? (this is called the registered office address). Basically, once you start a company everybody wants a piece of you- insurance salesmen, the tax people, etc… You need to be able to receive post, particularly of an official kind, otherwise, you may be in trouble with the authorities…. Many choose their home address.
What business will your company be doing…The funny thing is that there are 700+ government-defined businesses and you must fit into one of them. Don’t worry, our handy app helps you with that as well. Just be ready that jugglers, magicians and futurists are not considered a business sector. Don’t worry, the MachFast app makes life very easy for you. You just need to click on the right sector that fits your company.
You need to pick the number of shares that you will own in your company (and other shareholders if you have more than one). MachFast starts you with 100 ordinary shares per shareholder. You can adjust it if you must. Each share must have a nominal value (a relic of the past). For most companies, a nominal value of 1 penny is good enough. Again, change it if you must.
You have to agree to the Memorandum of Association – basically that you are happy to be a shareholder and director in your company (and other shareholders are happy if you have more than one). Each company must have at least one director. For most single shareholder companies; the shareholder is also a director. If you want to learn more about being a director of a company you can learn about it here.
You need to adopt Articles of Association. These are the basic rules that describe how you will run your company. The good news is that Companies House (the body that is in charge of company formations) has a very handy standard set of Articles that most people use to form their single shareholder companies. Our App makes these articles available to you. You can also download model Articles of Association if you would like to read them now.
Finally, you will need to provide some authentication details (like the last 3 digits of your mobile) and you are on your way to forming a company.
Typically you will then have to wait for the company to form, then worry about opening your business current account and registering your company with HMRC.
With MachFast, all it takes is a few clicks and you can apply for a business current account during company formation. We will also help you register a domain very quickly. You can read more about your business current account choices. Your company will also be automatically registered with HMRC.
Once your company is registered, you will need to make sure to file your documents on time with Companies House and file well-prepared company tax returns with HMRC. Please feel free to read more about company taxes.