Title: 4 Useful Points to Know When Setting Up Your First Company:
Subtitle: Setting up a Private Limited Company (PLC)
- Name – Choose the name of your company wisely. It is useful to have a vast understanding of what your company is going to offer. For example my company is called Culture Greens and specialises in coffee and health supplements that are ec friendly or beneficial to the environment. Choose a name that is representative of what it is your selling. The name you have in your head is not always available so make sure you have a back-up name. Your process will come to a grinding halt if you don’ have a backup name. You can check your companies name here at Company Check.
- Type of Company – If you know you want to be a limited company(which is most people, it means the legal liability lies with the company and not with the company owner directly) you need to know whether you are limited by SHARES or limited by GUARANTEE. This is something that only you can figure out. There are a lot of websites that will provide you with your answer. However most of PLC’s are limited by SHARES. This is one of the first stages of the online application of incorporation of your company so if you dont know the answer this will delay your application.
- Title – You need to decide whether if there is more than one person setting up the company you are a director or a shareholder or both. Your TITLE needs to be established. I set up my company alone and therefore i am both shareholder and director however if there is two or more of you then you need to figure out the percentages of shares and allocate titles. You can only do that between yourselves or seek legal advice to assist you.
- Shares – If more than one director/shareholder you need to asses the amount of shares each of you will get. Like I said, if there is only one of you then 1 share is adequate. I would research this BEFORE you come to set up as this definitely delayed mine! This applies if your company is limited by shares.
- Category – You need to asses which category your company will fall under. E.g Retail, online retail, antiques, motors etc. Your categorisation of your company is fundamental. It sounds obvious but there are a lot of variations to choose from!
There we have it – basics of company set up – Honest and Transparent. If you want to find out more about the journey of company set up then check out my posts – My Amazon Journey.