How do I set up a limited company in 2025?
It's 2025! A fresh start, and a chance to pursue your dreams.
Now is the perfect time to become self-employed and start your own business if you've been thinking about doing so.
With every New Year's arrival, we make resolutions to better ourselves. It's usually January when the spark kicks in when it comes to improving our health, relationships, saving money, taking more holidays, or changing our careers.
To start your entrepreneurial journey by forming a limited company is one resolution you can accomplish with determination and ambition.
January to March 2024 saw an increase of 83,572 companies in the total register. There is a chance that you could be one of these people this year.
Company formation
Limited companies offer a number of advantages over sole traders, including tax efficiency and greater credibility. In spite of this, forming a company can be a daunting process for a first-time entrepreneur.
Zyla Accountants can help you start and manage a limited company, providing the expertise and support you need to make the process smooth and stress-free. With excellent feedback from our clients, your new businss will be in safe hands!
In the New Year, why start a limited company?
New year's day is symbolic of change, so it is the perfect time to start a business.
1. New opportunities and growth
The new year brings new opportunities. It's never too late to jump into emerging trends and hit the ground running from the very beginning of the new year, whether you're starting a tech startup, launching a consultancy, or offering creative services.
Budgets are renewed in Q1, and companies start looking for new suppliers or freelancers to deliver a service. In January, you can put yourself in great shape for the rest of the year by forming your company and getting your marketing right.
2. Developing a tax plan
The earlier you form your limited company, the more time you have to plan your finances effectively. It is possible to maximize income, manage expenses, and take full advantage of tax allowances and reliefs with the right strategies.
3. Innovative ideas and a drive to succeed
As a self-employed person, you can take control of your career and build something that aligns with your goals and passions. Taking action in the new year gives you momentum and motivation to achieve your goals.
Choosing a Limited Company
In order to ensure that a limited company is the right structure for your business, Zyla Accountants can guide you through the setup process. Even though sole traders may seem simpler, limited companies offer several advantages, such as:
Protection of personal assets from liability.
Dividends and lower corporation tax rates increase tax efficiency.
Improved credibility with clients, suppliers, and investors.
A limited company may be a better option if you plan to expand your team and scale your business.
Decide on a company name
A company's name is the first thing clients and customers notice about it. There should be something unique, professional, and very memorable about it. Check if your desired name is available at Companies House by using the name availability checker.
Don't use anything that could be construed as offensive, or a joke people won't understand, and something that represents your company well. You should also search on social media and Google for similar names, as that can cause confusion down the road if someone else offers a similar service.
Companies House - Register your company
Business registration is a straightforward process, and it can be done online for a small fee. Registration requires the following information:
Name of your company.
You can use our address if you need to, and it will appear on public records).
Directors and shareholders of the company.
The company's Memorandum and Articles of Association.
Standard Industry Classification (SIC) codes to identify your business activities.
Please let us know if you need any assistance in gathering this information.
Get a business bank account set up
It's essential to open a business bank account as soon as your company is registered. The separation of your personal and business finances makes managing cash flow, tracking expenses, and complying with tax regulations easier.
You will be able to transact in both directions through your business bank account, including:
Client payments are received
The payment of your salary
Limited companies pay dividends to shareholders and to themselves
A company's responsibility to pay PAYE tax and National Insurance to its employees
Taxes due on a corporation's annual income
Claim your personal expenses
Paying business expenses
Payment of VAT quarterly
Understanding your obligations when it comes to taxes
Upon forming a limited company, you can register with Companies House and HMRC for corporation tax, VAT, PAYE, and all other taxes. We can help you to ensure compliance across the board as part of our company formation and accountancy packages.
The Role of Zyla Accountants
It might seem straightforward on the surface, but if you're new to business ownership, the details can quickly become overwhelming. In this critical stage and beyond, your dedicated expert accountant can be of invaluable assistance
We include the following in your fixed-fee package:
A professional's perspective
A dedicated accountant can provide you with advice on how to organize your finances and assess your individual circumstances. Their expertise will help you understand the differences between sole traders, partnerships, and limited companies so that you can make an informed choice.
Planning and compliance with taxes
We will guide you through the complexities of tax law and advise you on how to make the most of your income while remaining fully tax compliant.
Setting Up Xero
As part of your package, you'll gain access to Xero, a powerful bookkeeping and accounting system you can access from anywhere. The system will simplify the management of your finances.
Guidance and support on a continuous basis
A company's formation and the first few months in business are only the beginning of the journey. With your accountant by your side, you can manage payroll, file tax returns, and prepare annual accounts as you learn more about your business. As well as offering financial advice, they provide strategic advice to help you grow your business.
Challenges that Zyla helps you overcome
Our services go beyond company formation when we appoint Zyla Accountants. Our services include:
Reduced time spent on tasks
Your business can grow and your clients can be served by outsourcing financial tasks to professionals.
A feeling of tranquility
Without having to worry about compliance or tax deadlines, you can focus on your business.
Increased earnings
Your accountant will make sure you benefit from all tax reliefs and allowances, maximising your take-home pay.
There are a number of challenges that many people face without the assistance of an accountant, including:
Compliance with Legal Requirements:
An accountant ensures compliance with all regulations, avoiding fines and penalties.
You can maintain a healthy cash flow:
By working with your accountant to create accurate financial forecasts.
When you're ready to expand:
Our accountants provide insights into profitability.
Making your dream of being self-employed a reality by forming a limited company is an exciting endeavour. Now is the time to take the leap and prepare yourself for success in an ever-changing business environment.
With a fixed-fee accountancy package, you can get off to a strong start for your business. Your Zyla Accountant will handle the paperwork and provide ongoing financial guidance to ensure your business is successful and sustainable.
Contact us today for an instant quote and to learn more about setting up a limited company and achieving your entrepreneurial goals.