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FAQ's

Answers to the most common questions

The Fundamentals

What is Companies House?

The United Kingdom’s registrar of companies is known as Companies House. It is the Department for Business under which all limited companies, subsidiaries and inactive companies must be filed. They manage all public records including director details and confirmation statements.

What is a Limited Company?

A limited company is a legal business entity, whose owners are legally responsible for its debts only to the extent of the capital they invested. In other words, setting up a limited company creates a legal body with which to do business while shielding you personally from financial and legal risk. This is the most common type of company incorporated in the UK.

Do I need to put ‘Limited’ at the end of my company’s name?

Yes, or you can use the abbreviated LTD.

What if my application is rejected?

This might happen for a variety of reasons such as insufficient information about the director(s) or company name issues. These issues can be fixed very quickly. Our customer service team has access to your application and can help you identify the issue and resubmit.

What should I know about choosing my company’s name?

Sensitive Words are defined by Companies House as words or phrases with the potential to confuse or mislead the public. Such as the use of the words Government, Crown or British in your company name will imply a connection with the UK Government. Words like Police, Bank, Financial fall under the same category. Adjectives like Chartered or Accredited will also need to be reviewed by the Sensitive Business Names Team to make sure that what is being claimed in the company name is true or certifiable. If you have questions about the name you want to use, please contact us in advance at info@zdkformations.co.uk.

What if my name is similar to a competitor?

Your name must be unique. Companies House will review whether your proposed company name too closely resembles another company name on the Registry. For instance, if you like the name Boardwalk Repairs Limited but it’s taken, so you select Boardwalk Repairs UK Limited, it will be flagged by Companies House and rejected.

What is the significance of a Certificate of Incorporation?

This will be the most important formation document which shows that your company is officially registered with Companies House. It will show your company’s date of formation and company registration number. This document is necessary for major transactions like opening a bank account, being set up as a supplier for your customers, and selling your company.

Directors and Shares

What is the importance of assigning a Director?

Every business must have at least one Director. Another company can act as a Director but there must be at least one human Director which is not another company. This is who Companies House will publicly list as the person(s) in charge of the company. Directors are held responsible for running the business legally and complying with regulations, keeping records of the company’s accounts and filing confirmation statements in a timely manner.

Who can and cannot be a director?

Anybody over the age of 16 and without a history of bankruptcy can be a director. Even if the person is not a shareholder or owner.

Can I add/remove directors?

Yes, you can add and remove directors through our administrator portal and the data will be updated with Companies House automatically.

Can I be a director if I am not a UK resident?

Yes, there is no requirement for the directors to live in the UK or have UK citizenship.

What is a Secretary?

The secretary is no longer a legal requirement but essentially this is the person you elect to administer the books of the company, maintain the share register, document minutes, and HMRC/Companies House filings. These responsibilities can technically be handled by a director. However, it is a good idea to designate someone as a secretary to handle these duties so directors can focus on driving business growth and strategic objectives.

Registered Addresses & Shares

What is the importance of a registered address?

All companies are legally required to have a registered address in the UK. This is a place where official mail will be posted by Companies House and HMRC.

Can my registered office be my house or flat?

Yes, it’s common for startups to use their residence as their registered address.

How easily can I change my registered address after my company formation?

It’s very easy to update your registered address at any time, please contact us at info@zdkformations.co.uk to update your records.

If I use ZDK’s registered address service how will I receive official mail?

Official mail will be posted to your residence or an address of your choosing upon receipt at our office.

What are Shares?

Shares are tokens of ownership in a company. Each share is worth one vote in company decisions. Upon formation of a company the owner(s) can decide how many shares to allocate and how many each investor/director should receive.

What are they worth?

Shares have a nominal value, which is typically £1 each, but that does not have anything to do with the company’s value. If a company is formed with 100 shares with a value of £1 each, and then the company sells for £200,000 a year later, the real value of those shares is £200 each.

Should the shareholders pay for the shares they receive?

It’s not necessary for directors or shareholders to pay for the shares they own.

Can shares be moved or increased after the formation is complete?

Yes, you can move shares and add additional shares at any time. Please contact us at info@zdkformations.co.uk

Company Formation Process & Taxes

When will I receive my company formation confirmation and documents?

Typically within 3-6 hours you will receive an email with confirmation that the company has been formed along with digital copies of supporting documents. During busy seasons Companies House may take longer. If the formation must happen urgently we offer a same-day option at a premium which guarantees same-day formation if the order is placed before 15:00.

What if I want to change details about my business after the formation is complete?

Please log into the admin portal on our website.

What is corporation tax?

Corporation tax is the standard tax on earnings the company produces. The tax rate is 20%.

Will my company be subject to corporation tax?

Yes, any earnings will be taxable. When you form your company HMRC will send you a UTR (Unique Taxpayer Reference) to your registered address along with instructions for doing your taxes online.

What is the deadline for paying my corporation tax?

You have 9 months and 1 day after the end of your company’s accounting period to pay your Corporation Tax bill.

VAT & Confirmation Statements

What is VAT?

VAT is essentially sales tax, which customers pay for goods and services. This applies to online sales of goods and services.

Do I need to register for VAT?

Not necessarily. For startups it is not required until they reach £81,000 in turnover. At that point you must register your business for VAT and essentially become a tax collector.

Is there any benefit to registering for VAT while my business is under £81,000 in turnover?

Yes. This is good practice for when your business is trading successfully. Not to mention for startups trying to present themselves as well-established and trustworthy companies, not being registered for VAT is a dead giveaway that your business is brand new and turning over less than £81,000 per year. You can also claim back VAT paid on purchases for your business. We always recommend registering for VAT voluntarily. This can be done through ZDK Formations, please contact us info@zdkformations.co.uk to learn more about our service.

When are VAT returns due?

VAT returns are due quarterly.

Do I need an accountant?

You should seriously consider hiring an accounting firm to help with your books and make sure you file your returns correctly and do not miss deadlines. A professional accountant will keep you out of trouble and save a lot of headache if you are inexperienced with bookkeeping and regulations. Please contact us if you need help finding an accountant for your business.

What is a confirmation statement?

On 30 June 2016 the Confirmation Statement replaced the Annual Return. It is an annual requirement to submit a statement to Companies House confirming all of the records on file are still valid, such as directors’ information and registered address. This can be done through our admin portal.

What information is required on an Annual Return / Confirmation Statement?

  • Company Name
  • Company registration number
  • Company type
  • Company registered address
  • Principal business activities
  • Company Secretary details
  • Company director details
  • Persons with Significant Control details
  • Confirmation date (date which the details on the issued share capital)
  • Shareholder details
  • Whether or not the company has traded during the past year

Is it possible to file a confirmation statement more than once per year?

Yes, you can file a confirmation statement any time you want the public record updated, especially if your company experiences significant movement of directors and share transactions. Though not legally required, some companies choose to file more than once per year.

What if I forget to file a confirmation statement?

You can be fined for not filing once per year. Your company can also be struck off the record, or dissolved, by Companies House. It’s an important annual requirement.

Why Use ZDK Formations

We are quick reliable and provide great value for money
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Quick Set Up
On average it only takes 3hrs to set up your new company
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Simple
Our registration process is simple and easy to use
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Authorised Agents
We are authorised by Companies House and HMRC
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256bit Encryption
We use the best online 256bit protection platform
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