The decision to contract through your own limited  company could be the best one you ever make, but many new contractors are afraid it will be a lot of work to set up and run their limited company. In general, this is a misconception, and with Orange Genie Accountancy in your corner there is nothing whatever to fear.

There is slightly more administration to do than if you worked through an Umbrella Company but then you wouldn't’t have access to the same tax planning opportunities, and managing your limited company is fairly simple. 

Before setting up your limited company, it is worth speaking to Orange Genie, so we can make sure it's the best option for you and give you a rough illustration of your take home pay. We can also help you with company formation, so it's well worth getting in touch. 

Forming your limited company

Now you have decided to form your limited company, the next stage is to incorporate your company at Companies House.  The most challenging part is actually choosing a company name, this could simply be your name, your child's name or a road name. It is worth using Companies House Name Checker to check if the name is available.

You will also need to know the following details:

• Company directors – Legally a company must have at least one director, which is likely to be you, you will need your name, address, date of birth.

• Company secretary - Small companies no longer need to appoint a Company Secretary, although you can if you wish.

• Registered Office – This is the legal address for your company. Check that the company has been set up with the address you want and that the address you are using allows you to run a business from it. Some accounting firms like Orange Genie Accountancy allow you to register your company under their office address, so you don’t have to use your own.

• Shares - The allocation of shares is normally done when the company is formed, check that the shareholder(s) are as you want and that the company is owned in the proportion you requested. Remember, dividends are paid to shareholders in proportion to their share holdings. Further shares can be issued and allocated at future dates if your circumstances change.

Here at Orange Genie Accountancy, your company will be formed on the same working day and once Companies House has confirmed your company is formed, Orange Genie Accountancy will send you the following:

• Certificate of Incorporation

• Memorandum and Article of association - these documents govern the running of the company and the company's relationship with its directors and shareholders

• Share Certificates

With these documents, you can open your Business Bank Account and commence trading. Orange Genie Accountancy only charge £50+ VAT to form your company, or if you choose our Genie Professional+ service, it would be included in the package.

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