Post incorporation: Get the details right
So you’ve formed a new company - but what happens next? Jennifer Adams presents a checklist for ensuring that your new enterprise gets off on the right foot.
Once a company has been created (whichever method is used - see Company formations: What's best for you?) many directors of newly formed private limited companies make the mistake of thinking that that’s all there is to it.
Unlike a public limited company which needs to obtain a trading certificate, a private limited company can commence business immediately. However, certain matters do still need to be dealt with. This article lists the key points based on the assumption that the company has more than one director/shareholder and intends to become an employer. If you are aware of additional issues, please feel free to add your comments and suggestions below.
- Open a bank account
- As required forms need to be submitted online or sent to Companies House
- Some or all of the directors may need service contracts
- Consider insurance arrangements
- Apply for registration - PAYE, VAT etc
- Record initial information in the statutory book.
Not so urgent
- Appoint accountants
- Register for VAT when the annual limit has been exceeded.
- Monitor company and business names.
- Minute decisions taken at “board meetings” - especially for single or dual member firms
- Attend a solicitor to create or amend a will to ensure that “personal representatives...have the right... to appoint a person to be a director”so the company can continue should the company have a sole director who dies.
About the author
Jennifer Adams FCIS TEP ATT is a freelance writer and author specialising in tax and company secretarial issues; she can be contacted at Abacus Business Solutions. The information contained in this article is intended to provide for general educational use and information only. It is not intended to advise or recommend any particular course of action or opinion. The reader should not act or rely on any information contained therein without seeking independent legal advice.