What is involved in having my own limited company?

Setting up your limited company

This would involve incorporating and becoming a director of your own company, setting up a business bank account and arranging for business insurance.

Incorporating

We can usually incorporate your company within 24 hours all you need to do is

1. Choose a name for your company.
Within reason, this can be whatever you like, although, it shouldn’t contain any offensive or sensitive words. You can check on Companies House Web Check service to see if your chosen name already exists and whether it’s too similar to another name and falls into the ‘same as’ category.

2. Appoint your directors.
There should be at least one and it can be you. Legally, a director should be 16 or over, not an undischarged bankrupt or disqualified from acting as a director.

3. Make sure you have a registered office.
This is somewhere important documents can be delivered. It can be your home address or Danbro’s, if you like.

Becoming a director

Basically you must use your skills, experience and judgement to make the company a success. You are responsible for filing returns to Companies House and checking that your tax, VAT and national insurance contributions are recorded, prepared and paid to HMRC on time. Don’t worry, your Danbro personal accountant will help with all these things.

Business Bank Account

Whilst you are the director of your own limited company, any money you make belongs to the company not you, so it’s essential that you open a business current account in the name of your company.

Business Insurance

Operating your own business you will need to consider whether you need, or are indeed required, to take out any business insurance. You should review your new contract as many agencies/direct clients have a mandatory requirement for professional indemnity insurance and most will insist on cover for employers’ liability insurance and public liability insurance.

As a client of Danbro, business insurance can be included as part of your accounting service; please contact us for further details.