b0lty started this topic @ 17:54 on 08/08/2009
Hi,
I'm looking for some answers to a couple of questions regarding starting a company using an online formation site:
1) Sites seem to offer increasingly expensive packages consisting of:
cheapest: Only email relevant formation documentation on completion
mid: Print & Post Certificate of incorporation + hard copies of Memorandum and AoA
most expensive: Above plus minutes, share certificates, bound AoA etc.
We are looking at the mid-priced option yet on one site we looked at they suggest you go with the highest priced one stating, "This is our most popular package, as it provides you with all the legal documentation you are required to have on the incorporation of your company". The site is: www.incorporateonline.co.uk for the record.
So what does that mean? If we don't go with that option our company isn't technically legal? Will we run in to some unforeseen hurdle later down the line?
We're only looking to start a small home-based company as quickly as possible with minimum fuss and expense, but such that we can start trading without finding we've missed some fundamental aspect required for the business.
2) When filling out the form it asked for "occupation" should that be the occupation you'll have once the company is started or prior to starting the company? Why does companies house require your occupation? For example I'm unemployed right now which is why I'm starting the company. So should I put my occupation as unemployed?
3) Do I need things like "Company Seal", "Combined Company Register (Statutory Books)" and First Minutes? Or are these all just added gumpf to make solicitors more money?
4) Any suggestions for a reasonably priced reputable online formation company? Or who not to go for?
Many thanks
RE: Confusion with online company formation
jamescartwright | 12/08/2009 12:33 PM
I work for a company formation agent called Wisteria Formations, we often help people who have these questions. So here goes...
1. You do not need to buy a 'package' and you do not need to go with a high priced option, as many of the things included may not be necessary for you.
If you use our service at Wisteria Formations, you can set up a completely legal and ready to trade company for £24.99. The documents will be emailed to you, but you can have them printed (for a small extra fee) if required.
We do not bundle everything into a package - you only buy the services you want. This is easier and often much cheaper.
To set up a limited company with us online now click here.
2. You could put your occupation as "Director", if you are to become a director of the company. Or you could put your profession (e.g. Accountant or Doctor), even if you have not been working recently.
3. You do not need a company seal, it just looks more professional if you use one. You do need to keep a company register, but for £24.99 it will be included (along with all the other legally necessary company documents).
4. We would love to set up a limited company for you. Click here to start now.
If you have any more questions, I will be happy to help. Just email formations@wisteria.co.uk.
We are also part of an established firm or Chartered Accountants, and can offer other business services if required.
Hope this helps.
James.
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UK Limited Company Formation - £24.99
RE: Confusion with online company formation
Sunset101 | 12/08/2009 02:06 PM
Hi b0lty,
If I may quote from your original post.
"We're only looking to start a small home-based company as quickly as possible with minimum fuss and expense"
If you are only going to be a home based small business, and want "minimal fuss and expense". Why not go self employed??
RE: Confusion with online company formation
b0lty | 12/08/2009 02:19 PM
Good question Sunset. I'd say mostly for prestige. To make ourselves sound bigger than we are. But also due to the limited liability.
To James, thanks for the info. I've considered Wisteria but I'm put off that they don't seem to show additional costs up front. Do I have to fill out all the company formation forms before I can see all the extras? I find this somewhat annoying. It doesn't allow me to make a comparison with other sites.
RE: Confusion with online company formation
jamescartwright | 13/08/2009 03:23 PM
b0lty,
Thank you for the feedback, we are always trying to improve our website and customer service! I have mentioned your comments in a meeting with the directors today and we are planning to improve the site taking into account what you said.
Yes, usually you would need to fill out all the information before our website tells you how much it costs to print the documents (although you don't need to order any printed stuff, you can do it yourself and only pay £24.99). However, I can tell you the prices of everything here:
Company formation (including all filing fees and legal documents by email) - £24.99 (no VAT). If you just want a limited company ready to trade, with no extras, this is the best to go for.
In addition to this you can also buy:
A printed company certificate - £8 + VAT
A printed and bound memorandum and articles of association - £15 + VAT
A printed company register - £35 + VAT
All of the above are included (as electronic docuemts by email) for £24.99. You can print them yourself if you like, but some people prefer to have us do it as it looks more professional.
You can also buy...
A company seal - £35 + VAT
If you require us to act as your company secretary or would like to use our office as your registered address (we will forward your mail) these services cost £100 + VAT (each). Neither are necessary for everyone, but some clients do need them.
The reason we separate everything is so that our customers can tailor our service to their needs. Many people just want a company set up and ready to trade with no printed documents or extras, and they only pay £24.99.
Also, right at the end is a rather nice surprise - you get a consultation with a Chartered Accountant (if you want it) for free, which usually costs over £150.
If you change your mind and do want to set up a limited company with us, please click here to go to our site.
Thanks again for the feedback, and I wish you the best of success with your business!
James.
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UK Limited Company Formation - £24.99