Frequently Asked Questions
Choosing a company name
You will, of course, need to choose a name for your new company. The name you choose must not be identical or the ‘same as’ an existing limited company, even if you are already using the name as a sole trader or partnership.
The ‘same as’ rule means that Companies House will disregard certain words, and any spacing or punctuation when deciding if your name is the ‘same as’ an existing company. For example, if there is an existing company called Hands Limited you would not be able to register:
- Hands Ltd
- Hands Plc or public limited company
- Hand-s Limited
- Hands UK Limited
- Hands Company Limited
- The Hands Limited
- H & S Limited
- H and S Limited
- H & S Services Limited
- Hands.com limited (or .co.uk, .net etc)
Other words disregarded include: Services, International, Group, Holdings, Import, Export, Company, GB, Great Britain, UK, and United Kingdom.
The only exception to this is if the company will be part of the same group as the existing company, then it may be allowed.
Just to complicate things further there are also ‘Sensitive words’. These are usually words that need special authorisation to use. For example, if you want to use Nurse, Solicitor, or Architect in your name, you will need to prove that one of the directors is registered as such.
If you are not sure about your company name, please get in touch and we will be able to advise you.
By law every company must have a registered office. It must be a real address, i.e. a physical location where it is possible to accept service of documents. However, the registered office does not have to be the place of business. Some companies will for example, use their accountants address.
Every director must give details of their residential address, but may also register a service address. This can be the registered office, residential address, or another address where it is possible to accept service of documents. This address will be shown on the public record, and if it is the same as the residential address it will not be apparent on the public record.
Mostly, but there are some exceptions. The only restrictions are that they must not have been disqualified from acting as a company director, they must not be an undischarged bankrupt, and they must be aged 16 yrs or over.
ID Requirements for Company Formation
Why do we require proof of ID and address?
We are regulated by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, London Local Authorities Act 2007, and Know Your Customer (KYC) guidelines, which means we must verify the ID and address of customers and certain shareholders.
Don’t worry 90% of our customers do not need to do anything
We will perform a digital check of your ID and address using the information you have already provided in your company order form.
If we ask you to supply ID it will take you 5 minutes using your smartphone
For the remaining 10% of our customers who are not eligible for our digital ID check, or where their digital ID check fails, we have teamed up with Tiller Verify to provide you with a state-of-the-art mobile App to digitally certify and send us your proof of ID and address in just 5 minutes, for no additional cost.
Our ID Team will send you an invitation by email with simple instructions on how to use the App. We recommend you use your passport and a proof of address document dated within the past 3 months when using the App.
If we need to ask you for ID, we will let you know the names of the people we require it from, so you do not have work this out for yourself. However, for information purposes only, please see who we are legally required to obtain ID from:
- Anyone who purchases a company formation package, an address service, and certain company secretarial services, e.g. transfer or issue of shares, etc.
- All shareholders who own over 25% of a company or LLP.
- Anyone using our Business Address Service, who wishes to have mail forwarded to them.
This is not an exhaustive list and we may require proof of address or ID from other individuals depending on the circumstances.
Upcoming changes
Companies House will shortly be introducing additional ID verification requirements. The current intention is to introduce these requirements for all directors of a company, as well as People with Significant Control.
It is not yet clear when this will be introduced; however, once it has been introduced, we will also require proof of ID and address for directors before we are able to incorporate a company or appoint a director at Companies House.
For all types expect PLC’s and LLP’s you only need one director. You can also have a secretary but this is optional. For PLC’s you will need at least 2 directors, and a qualified secretary. LLP’s must have at least 2 directors.
The Memorandum is a statement of intent by the subscribers (or shareholders) to form a limited company and become members of that company on incorporation.
Before the new Companies Act came into force on 1st October 2009 the Memorandum used to show the objects, and authorised share capital of the company, but these have both been removed by the new Act.
The Articles are the company’s rulebook. They are chosen by the members and form a contract between the company and its members. They help to ensure the company’s business runs as smoothly as possible and will set out how the company will make decisions and will include various matters connected with shares. Every company is required to have articles by law, and the articles are legally binding on the company and all of its members.