Post incorporation: Get the details right

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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. However, certain matters need to be dealt with. This article lists what needs to be done in order of priority.
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About Jennifer Adams

Jennifer Adams is Consulting Editor of AccountingWEB and is a professional business author specialising in corporate governance and taxation. She runs her own accounting and consultancy business with offices based in Surrey and Dorset.


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12th Jul 2011 14:27

You've already made your first mistake

... by forming a company yourself, instead of asking an accountant to do it.  Do not compound your mistakes by attempting to notify Companies House of anything or to register for PAYE, corporation tax or particularly, VAT.  Do you even know what statutory books are?

Your urgent task is to appoint accountants.  Leave it to them to deal with the above matters and to advise you on the other issues.  The only thing that you need to do apart from that is to open a company bank account.

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12th Jul 2011 15:43

whilst the checklist is useful....

i would agree with Euan....leave it to the client and inevitably something will get missed....and/or worse still they continue to treat the bank account as they did with their sole trade.....only for the accountant to have to pick up the yes (1) seek professional advice....and this may also give rise to the question should you incorporate in the first place.....

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12th Jul 2011 22:46


 I agree with the responses - accountant preferable.  For example I encourage the use of LLP structures along side Ltds, or even keeping sole trader running re losses whilst newco beds down and clients get used to the issues that surround running corporates.  payroll...not always a good idea in year one - P45 income, dividends in first year again to mitigate payroll tax.  

Formation - so many times the DIY method on the internet results in very scant documentation..I use a formation company in Brighton, professional and full proof - good documents - enough for all parties, HMRC and bank included, plus on line for email and minutes all done and dusted, seal and registers.

When clients first disucss with me about incorporation - it can sometimes be a 2-3hour meeting becuase it isnt as simple as just setting up a company and off you go...its not always what the client really needs and can get them into a lot of financial difficulties.

Nevertheless - all points relevant and useful prompter.



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13th Jul 2011 12:43

Not a Mistake

In an ideal world we would all want an accountant be appointed - preferably before the company is purchased from the previously used formation agent.

But the text was specifically written to follow on from the previous article ‘Company formations - what’s best for you?’ ie the director has already purchased/ created the company him/herself.   Under the ‘comments’ section of that article ‘matMSG’ asked for ‘a section on post Company Formation’ - so I obliged.I wanted to list the extra that needs to be done - the director of the newly formed company might not be aware even if they use an accountant (as they would do almost everything for him/her!) I agonised as to whether to make appointing an accountant a ‘priority’ but when writing the main points were to see what needed to be done should one not be appointed immediately.

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14th Jul 2011 10:17

Mmm ...

I think you would have done better to identify just two priorities (appoint an accountant and open a bank account in the company's name) and then go on to list all the matters that the accountant would need to deal with, before finally listing your other worthwhile, but not necessarily essential, points (service contracts, insurance, will, company seal, etc.).

I am also distinctly unsure about your advice for the company to reimburse the formation costs.  Your DIY OMB might think that means that the formation costs would be a tax-deductible expense against the company's profits.

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