I've been working on setting up a Community Interest Company for ages, but can't find the people I need to do it with, so I'm thinking of starting off on a small scale, by setting up a bog standard Limited Company, that can be converted to a CIC later if necessary. Last time I was involved in setting up a Limited Company (in 2003) it was done by my tame chartered accountant, who did all the registration stuff, and provided a company seal, share register, minutes book etc. Reading up on what needs to be done, it doesn't seem like all that is necessary any more.
What's the best way to go about setting it up?
It looks fairly straightforward to do it myself, but I might miss something
There are services like http://www.informdirect.co.uk/ that are cheap and seem to handle everything
Or pay a real live human (a member on here?) to do it, so I have a real person to discuss it with
What about the annual accounts and corporation tax? There will be a brilliant set of books, with everything reconciled, and accurate management accounts, probably produced using VT, but other people have always done the statutory accounts (or at least most of it) and the corporation tax for companies I've been involved with. I could:
Pay someone to deal with it
Or use software like Taxcalc Accounts Production and Tax Return
If I was to pay someone, what would it cost for a straightforward business with modest turnover?
Is there anything else I need to consider?
And just to give me a complete picture, what would it cost to close down the company after a couple of years if it doesn't work out?
Setting up a Limited Company is fairly easy, and you could do that yourself for around £17-20. I use Company Formations 247 if I'm asked to set one up. You get pdf of Certificate of Incorporation, Share Certificates(s) and Memorandum/Articles of Association
Tax return is done by CT600 within 1 year of business starting trading, although if there's any corporation tax due this needs to be advised and paid within 9 months, so it makes sense to do both within the 9 months. Not for the faint hearted so best left to someone who can (I can't) Also there is are the Companies House Abbreviated Accounts to file, which has to be 9 months from anniversary of incorporation. (Non trading companies will file dormant accounts to Companies House) and also at every anniversary there is the Annual Return, which is merely updating Companies House of current shareholders, Directors, etc. Costs £13 with CH and is a doddle to complete.
The inform direct website looks good, especially as it will keep track of when stuff needs to be done.
Shutting Company down without any creditors is as simple as completing a DS01 form at Companies House, costing £10, and then waiting for Company to be struck off register. Same for creditors with insufficient assets but you have to advise creditors, giving them the option of winding up the Company for you, then waiting 3 months before doing DS01. Any creditor can object to striking off, and HMRC usually do if there are outstanding issues. If you have creditors and sufficient assets you have to appoint a liquidator who will shut down the Company on your behalf.
I've been working on setting up a Community Interest Company for ages, but can't find the people I need to do it with, so I'm thinking of starting off on a small scale, by setting up a bog standard Limited Company, that can be converted to a CIC later if necessary. Last time I was involved in setting up a Limited Company (in 2003) it was done by my tame chartered accountant, who did all the registration stuff, and provided a company seal, share register, minutes book etc. Reading up on what needs to be done, it doesn't seem like all that is necessary any more.
What's the best way to go about setting it up?
It looks fairly straightforward to do it myself, but I might miss something Just use Companies House website. Costs £15 and takes 10 minutes to set up company. Need the following; name of Ltd company, registered office, directors, shareholders and shareholding.
There are services like http://www.informdirect.co.uk/ that are cheap and seem to handle everything
Or pay a real live human (a member on here?) to do it, so I have a real person to discuss it with We normally charge £50 to set up company but do it free of charge if you request our accounting and tax services.
What about the annual accounts and corporation tax? There will be a brilliant set of books, with everything reconciled, and accurate management accounts, probably produced using VT, but other people have always done the statutory accounts (or at least most of it) and the corporation tax for companies I've been involved with. I could:
Pay someone to deal with it
Or use software like Taxcalc Accounts Production and Tax Return
And just to give me a complete picture, what would it cost to close down the company after a couple of years if it doesn't work out? If no creditors just complete DS01 form and send to Companies House after have ceased trading for 3 months. If creditors then need to notify them when cease trading and they may close company if there are assets to make it worth their while. If no assets Companies House will close down after a year or so if accounts and annual return not submitted. If have assets more than £25k will need to appoint a liquidator which will cost upwards of £3000.
