Setting up a company only takes a few simple
steps and as a contractor it can often be harder finding freelance work that it
is setting up a limited company.
You will firstly need to fill out a couple of
forms which are both available from Companies House. These forms are Form 10 which will identify
the limited company as well as the directors and officers, and Form 12 which
declares your intention to file the company. Once you have completed these
forms you will need a Memorandum and Articles of Association
Once preparation of all these documents is
complete then will then need to be filed with Companies House and the relevant
fees paid. While these documents are being filed a contractor can still carry
on working as a freelancer and can do so up until the company is registered and
a certificate issued. You should receive your certificate after about 10 days
and this will then enable you to open a business bank account that will be in
the name of your newly registered company. You may need to register your
company for VAT with the HMRC is you are going to provide services covered
under VAT.
The main benefit of setting
up a company is the credibility it adds
to a contractor as it shows they are no longer freelance, but instead owning
and running their own business and this added credibility is priceless.
