Setting up a company

The company is a very commonly used business vehicle; there are over 5 million registered companies in the UK.

A company is a business vehicle which is a separate legal entity, distinct from its members. It is owned by its members and it is managed by its directors. It is regulated by the Companies Act 2006 (CA 2006).

The types of company that can be incorporated under the CA 2006 are:

•
a public company limited by shares
•
a private company limited by shares
•
a private company limited by guarantee, and
•
an unlimited company

A public company must have shares and cannot be limited by guarantee or unlimited.

Preparing to incorporate a company

Incorporating a company in the UK is quick and simple (it can be carried out on a same-day basis) and the costs of incorporation are low. The incorporation process will be even easier if the persons incorporating the company are fully prepared and have made the various decisions in relation to the initial incorporation requirements, as outlined below.

Incorporating or tailoring a company

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