There are a range of considerations involved in creating a limited company, from calculating tax obligations to attracting investor capital. You will also need to submit certain information to Companies House to set up your firm, but these requirements have recently changed. Turner Little asks: what are the new requirements of creating a limited company?
Name People with Significant Control
You are now required to maintain and make publicly available, a register naming the ‘People with Significant Control’ (PSC) of your firm. These are the people who have the right to exercise control or influence over the business and management of your firm. When incorporating your company, you must supply the following information concerning each PSC:
- Name, service address, date of birth and residential address. The first two pieces of information will be made publicly available, but the latter two will not.
- How much control they have of the company and the nature of said control. The latter includes ownership of shares and voting rights, the right to appoint/remove the majority of your firm’s directors and other rights to exert influence or control of your business.
It is important to note that PSCs can be individuals acting on their own behalf or parties serving as a representative of a company or a trust that they control, but which is not a legal entity. If a company or trust that exerts significant control over your business is a legal entity, they are classed as a Relevant Legal Entity (RLE) rather than a PSC. You are required to disclose the name, address, legal form and governing law of RLEs that hold significant control of your firm and detail the nature of this influence.
Finally, in some cases another Registrable Person (ORP), for example a government department, may exercise significant control over your company’s affairs. If this is the case, you will need to detail certain information concerning the ORP when creating your firm. This includes their name, address, legal form and governing law, as well as the nature of the control they hold over your firm.
State your business activity
You are now also required to inform Companies House what kind of business activity your firm will be carrying out. In order to fulfil this requirement, you will have to supply a minimum of one Standard Industry Classification (SIC) code when setting up your firm. If your enterprise will engage in multiple activities, you must submit an SIC code for each one (up to a maximum of four).
If there is no appropriate SIC code, you are required to provide a written description of each activity. Previously, you did not have to detail which business activities your firm would engage in via an SIC code, until you filed your firm’s first annual return. It is important to note that annual returns have now been replaced by a new document known as a ‘confirmation statement.’
Forming a limited company
It is essential that you familiarise yourself with these new requirements, so you can submit the correct information to Companies House. To ensure that you can conduct this process seamlessly, utilise Turner Little’s limited company formation services. As a well-established Company Registration Agent, we possess the knowledge and experience you need to set up a successful enterprise.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
