So you want to start a business hey?

As a trainee city lawyer I often find myself acting for new start up businesses and assisting with the incorporation of a ‘newco’, or for all you non-shelf lawyer using people, a limited liability company. I thought that instead of my usual post this week, I would write something remotely useful and help all you would be start up entrepreneurs and tell you how to incorporate a company. The lawyer in me at this point is barking out to say that I literally make no representation as to the accuracy of this information and I accept no liability whatsoever for any reliance placed on this information. If you act in accordance with what I say below and it goes at all wrong then that is your fault. PLEASE DO NOT THINK THAT THIS IS ADVICE. IT IS NOT. IT IS AN EXCEPTIONALLY ROUGH SUGGESTION AS TO THE STEPS WHICH OTHERS MAY HAVE TAKEN WHEN FORMING A COMPANY. Now that I have that out of the way, I feel like I can write at will and without the ever looming fright of some crazy entrepreneur suing me…

So what does it take to incorporate company?

Well not a whole lot. How about I write a ‘limited company recipe’ for you?

So to make this potentially tasty and lucrative dish what you will need is:

  1. 1x an IN01 form (Also known as the Incorporation form). This form is available on the companies house website (http://www.companieshouse.gov.uk/forms/generalForms/IN01_application_to_register_a_company.pdf)
  2. A Pen
  3. A cheque for £40.00 addressed to Companies House
  4. One Envelope
  5. One First Class Stamp

How to prepare:

  1. Print your IN01 form.
  2. Take out your pen and enter your proposed company name where it says to do so. (perhaps it is worth at this point checking online that your company doesn’t already exist)
  3. Read through the form and fill in all the details where prompted to do so.
  4. If you wish to incorporate a limited company with Companies Act 2006 model articles (google what this means if you are unsure but it is the norm) then tick this box in section A7.
  5. If you wish to be the director of the new company enter your details in box D1
  6. In part 3 (statement of capital) explain how many shares you wish your company to have and the value of each share on incorporation. Also explain if these are ordinary shares with ordinary rights (google this term also).
  7. Part 4 is only relevant if you want a company limited by guarantee (which to incorporate a limited company you don’t)
  8. Sign Part 5.
  9. Enter your details in the presenter information section
  10. Tick all of the boxes in the checklist box that apply.
  11. Attach the £40.00 cheque to the IN01 form.
  12. Put the companies house address on the Envelope (Cardiff address for England incorporations)
  13. Put the IN01 form in the envelope and attach the stamp thereto.
  14. Place the envelope in the post and wait 4-7 days.
  15. You should at this point have a Limited company.

Serve and Enjoy!

Preparation time: 30-90 mins approx depending upon amount of googling

To reiterate: THIS IS NOT LEGAL ADVICE AND ALL VIEWS ARE ENTIRELY MY OWN


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One thought on “So you want to start a business hey?

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