Setting up a limited company for contracting

More and more people are choosing to go it alone and set up as a contractor. And why not? Contracting has considerable benefits: greater flexibility, higher pay and the ability to work with new clients, for starters.

With many companies still reluctant to hire full-time employees, many people see setting up a limited company for contracting as a way of increasing their revenue and their job satisfaction at the same time.

CO-WORKING SPACES

We’re seeing it in all sorts of different industries, from construction to web design, and everything in between. But making the decision to become a contractor is just the beginning. Once you’ve made that decision, it’s time to ask yourself if it’s worth setting up a limited company to work under.

Why do it?
There are many benefits to setting up a limited company when contracting. Here are a few:

Flexibility: You can manage your business however – and from wherever – you want.
Tax: If your income goes up, you may find yourself pushed into a higher tax bracket. Forming a limited company allows you to pay yourself a salary at a lower tax bracket and make up the rest of your income through dividends. These are charged at a lower tax rate than personal income.

Limited liability: The good thing about being a limited company is that it limits the extent of your liability. You will be protected personally in case the company runs up debts or slips into liquidation. Equally, if there are any legal claims brought against you these will be levied against the company rather than you yourself.

A professional image: Being a limited company presents a more professional image to potential clients. Whether suppliers, customers or potential investors, we instinctively trust a company rather than an individual.
Getting started

So, how do you go about setting up a limited company for contracting? The good news is it’s much easier than you might think. Indeed, you can have the application sorted in as little as ten minutes.

To do this you will need to choose a name. In an ideal world, you may want to operate under your own name, especially if you have built up a good reputation as a contractor. However, if another company has already taken this name, it might not always be possible. Try searching for the name you’d like to operate under to see if it’s available before you get started.

You’ll also need a company director and at least one shareholder. If you’re moving from contracting you can perform both roles.

Setting up a limited company as a contractor couldn’t be simpler or more affordable. We can advise on the best time to make the change and everything that’s required of you for legal purposes. Just check out our special contractors’ package, or continue browsing the help centre.

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Formation bundles to suit all businesses

E-Formation

£9.99

INCL. VAT | ONE OFF

Essentials

£19.99

+VAT | ONE OFF

Entrepreneur

£59.99

+VAT | ONE OFF

Super

£99.99

+VAT | ONE OFF

Pro

Was £149.99

Now £114.99

+VAT | PER YEAR

Ltd Company docs

Digital


Must haves

Up to £100 cashback

Business bank account

Bookkeeping software

Business phone number


Guides and support

Lifetime support

Business hub manager

Ltd company e-book


Free expert advice

Accountant consultation

Trademark consultation
















See all add-ons

Ltd Company docs

Digital & Printed


Must haves

Up to £100 cashback

Business bank account

Bookkeeping software

Business phone number


Guides and support

Lifetime support

Business hub manager

Ltd company e-book


Free expert advice

Accountant consultation

Trademark consultation
















See all add-ons

Ltd Company docs

Digital, Printed & Bound


Must haves

Up to £100 cashback

Business bank account

Bookkeeping software

Business phone number


Guides and support

Lifetime support

Business hub manager

Ltd company e-book


Free expert advice

Accountant consultation

Trademark consultation


Registered agent

3/MOS. free

Registered office address

Service address












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Ltd Company docs

Digital, Printed & Bound


Must haves

Up to £100 cashback

Business bank account

Bookkeeping software

Business phone number


Guides and support

Lifetime support

Business hub manager

Ltd company e-book


Free expert advice

Accountant consultation

Trademark consultation


Registered agent

12/MOS. free

Registered office address

Service address


Company admin

1st Confirmation statement










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Ltd Company docs

Digital, Printed & Bound


Must haves

Up to £100 cashback

Business bank account

Bookkeeping software

Business phone number


Guides and support

Lifetime support

Business hub manager

Ltd company e-book


Free expert advice

Accountant consultation

Trademark consultation


Registered agent

+ Digital scan & send

Registered office address

Service address


Company admin

Confirmation statements

Dissolution service


Legal and cashflow
management

Co. Legal health-check

Contract & docs creator




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Get up and running with everything you need to start and run your business. Subscribe and let us take care of your on-going filing requirements.

Starter

£29.99

+VAT

PER YEAR

RRP £220, SAVE 86%

Limited company

TFC support agent

TFC hub access

Business phone number

Business bank account

Tax and accounting

Digital docs

Confirmation statement

Dissolution Service

Company Filling Edits

Dormant Returns

Continue with one-time purchase

Upgrade for support and peace of mind

Get up and running with everything you need to start and run your business. Subscribe and let us take care of your on-going filing requirements.

Starter

£29.99

+VAT

PER YEAR

RRP £220, SAVE 86%

Limited company

TFC support agent

TFC hub access

Business phone number

Business bank account

Tax and accounting

Digital docs

Confirmation statement

Dissolution Service

Company Filling Edits

Dormant Returns

Continue with one-time purchase

One off payment

A one time payment that's required in full at time of purchase.

Per year payment

A recuring yearly payment that includes access all the services contained in the Pro bundle. Payment will automtically be taken on the day of initial purchase every year.

Limited Company documents

Certificate of Incorporation:

The certificate provides confirmation that your company has been incorporated under the Companies Act 2006.

Memorandum and Articles of Association:

The Memorandum of Association is a written legal agreement signed by all initial shareholders of a company, agreeing to form the company. Articles of Association are the written rules which define how the company will be run. These rules are agreed on and signed by the company director, shareholders and secretary.

Share certificates:

If a company is limited by shares, a Shareholder Certificate is sent out at the time of incorporation or just after incorporation. The certificate includes information such as the company’s registered address, plus the names and addresses of the shareholders.

Company must haves

Business Bank Account:

It’s a legal requirement to have a business bank account as a limited company. We’ve handpicked a range of different types of business bank accounts to suit all types of business. You can even get up to £100 cashback with some of our business bank accounts!

Bookkeeping software:

Bookkeeping software is essential for a new limited company as it's a legal requirement to keep financial records of the company. It can also save you a lot of time and money, even if you’re not ready to trade yet!

Business phone number:

Every business needs a new phone number and bOnline is here to make it clear and simple. You’ll get a new phone number with unlimited calls free for 90-days and only £9 per month, thereafter, so you can keep your business and personal numbers separate.Every business needs a new phone number and bOnline is here to make it clear and simple. You’ll get a new phone number with unlimited calls free for 90-days and only £9 per month, thereafter, so you can keep your business and personal numbers separate.

First board meeting minutes:

Even if you’re both a shareholder and director of your company, you’ll still need to hold an initial board meeting. It’s a legal requirement that if requested, you can provide the first board meeting minutes, as it is proof that a company director was formally appointed. At The Formations Company, we’ll provide you with a template to easily fill out your minutes.

Company must haves

Business Bank Account:

It’s a legal requirement to have a business bank account as a limited company. We’ve handpicked a range of different types of business bank accounts to suit all types of business. You can even get up to £100 cashback with some of our business bank accounts!

Bookkeeping software:

Bookkeeping software is essential for a new limited company as it's a legal requirement to keep financial records of the company. It can also save you a lot of time and money, even if you’re not ready to trade yet!

Business phone number:

Every business needs a new phone number and bOnline is here to make it clear and simple. You’ll get a new phone number with unlimited calls free for 90-days and only £9 per month, thereafter, so you can keep your business and personal numbers separate.Every business needs a new phone number and bOnline is here to make it clear and simple. You’ll get a new phone number with unlimited calls free for 90-days and only £9 per month, thereafter, so you can keep your business and personal numbers separate.

Guides and support

Hub business manager:

You can manage your business from your Hub business manager. Access invoices, company details and any additional services you might need, including bank accounts, insurance, websites and much more!You can manage your business from your Hub business manager. Access invoices, company details and any additional services you might need, including bank accounts, insurance, websites and much more!

Lifetime customer support:

When you form your limited company with us, you'll get lifetime support from your very own TFC Support Agent, who will be on hand to help and support your limited company.

Ltd company e-book:


Everything you need to know about owning a limited company and being a director is included in this eBook.

Free expert advice

Book a free, no-commitment consultation with an accountant and a trade mark attorney at a time and date that suits you.

Registered agent

Included with this bundle

A 3 in 1 service that protects your privacy, all other directors privacy and includes our mail forwarding service.

Registered office address:

On the public register, use our address as the business’s registered office address

Service address:

On the public register, use our address as all the directors service address

Mail forwarding:

Quick and efficient mail forwarding and junk mail filtering. No additional handling or postage fees.

Registered agent

Free for 3 months with this bundle

A 3 in 1 service that protects your privacy, all other directors privacy and includes our mail forwarding service.

Registered office address:

On the public register, use our address as the business’s registered office address

Service address:

On the public register, use our address as all the directors service address

Mail forwarding:

Quick and efficient mail forwarding and junk mail filtering. No additional handling or postage fees.

Registered agent

Free for 12 months with this bundle

A 3 in 1 service that protects your privacy, all other directors privacy and includes our mail forwarding service.

Registered office address:

On the public register, use our address as the business’s registered office address

Service address:

On the public register, use our address as all the directors service address

Mail forwarding:

Quick and efficient mail forwarding and junk mail filtering. No additional handling or postage fees.

Registered agent

A 3 in 1 service that protects your privacy, all other directors privacy and includes our mail forwarding service.

Registered office address:

On the public register, use our address as the business’s registered office address

Service address:

On the public register, use our address as all the directors service address

Mail forwarding:

Quick and efficient mail forwarding and junk mail filtering. No additional handling or postage fees.

Digital scan and send

We'll digitally scan all your mail, then email you a copy, making sure you get it ASAP.

Company admin

Our experts will take care of all the complicated companies house fillings you might need:

Confirmation Statement:

A confirmation statement is a snapshot of all the information about the company directors to make sure that Companies House's records are up to date. It's a legal requirement for limited companies to file a confirmation statement at least once every 12 months.

Dissolution service:

If you decide to close your limited company, you'll have to let Companies House know. There are several different ways of doing this depending on the circumstances of why you're closing your limited company.

Our experts will take care and take the necessary course of action with Companies House, should you need it.

Dormant returns

If you’re company has no ‘significant’ transactions in the financial year, it’s classed as dormant. In this case, we’ll file a Company Tax Return to show HMRC that your company is dormant so you don’t have to.

Company filling edits

At some point in your business's lifetime you'll need to make changes, be it changing a directors details, removing/adding a shareholder, a change of address or even changing the company name.

Company admin

Our experts will take care of all the complicated companies house fillings you might need:

Confirmation Statement:

A confirmation statement is a snapshot of all the information about the company directors to make sure that Companies House's records are up to date. It's a legal requirement for limited companies to file a confirmation statement at least once every 12 months.

All bundle add-ons

Crunch - Limited Company Pro

Crunch combine market-leading online accounting software with a team of expert accountants and client managers to create the UK’s greatest self-employed accounting solution.

PAYE Registration

Many business owners decide to pay themselves a wage below the tax threshold via PAYE. Make sure you are registered correctly by letting us handle this for you.

VAT, PAYE & MTD Registration

We'll take care of registering your business for VAT, PAYE and MTD. leave the complicated admin work to us and focus on your getting your limited company up and running.

VAT Registration

Crunch combine market-leading online accounting software with a team of expert accountants and client managers to create the UK’s greatest self-employed accounting solution.

Check & Send Service

Before your application is submitted to Companies House, be sure it is 100% complete and correct. One in ten applications are rejected the first time around, resulting in longer wait times.

International ID Check

If your residential address is not in the UK, we will need to run an international ID check to verify your details.

Fraud Protection Service

Protect your company from fraud by preventing changes being submitted via paper forms and secure your account with added notifications if anything changes.

PSC Online Register

By law all UK Ltd companies must have a 'Persons of significant control' register. Our online register is a simple and cost effective way to safeguard you and your business.

PSC Online & Printed Register and Minutes

By law all UK Ltd companies must have a 'Persons of significant control' register. Not only will you get an online register, but you£ll also get a printed version of it and minutes.

All bundle add-ons

Crunch - Limited Company Pro

Crunch combine market-leading online accounting software with a team of expert accountants and client managers to create the UK’s greatest self-employed accounting solution.

Registered Agent Monthly and Yearly

3 in 1 service that protects all directors, shareholders, PSC's and your personal address details. All your mail will be sent our London office address where we will filter out the junk and swiftly forward all important correspondence.

PAYE Registration

Many business owners decide to pay themselves a wage below the tax threshold via PAYE. Make sure you are registered correctly by letting us handle this for you.

VAT, PAYE & MTD Registration

We'll take care of registering your business for VAT, PAYE and MTD. leave the complicated admin work to us and focus on your getting your limited company up and running.

VAT Registration

Crunch combine market-leading online accounting software with a team of expert accountants and client managers to create the UK’s greatest self-employed accounting solution.

Check & Send Service

Before your application is submitted to Companies House, be sure it is 100% complete and correct. One in ten applications are rejected the first time around, resulting in longer wait times.

International ID Check

If your residential address is not in the UK, we will need to run an international ID check to verify your details.

Fraud Protection Service

Protect your company from fraud by preventing changes being submitted via paper forms and secure your account with added notifications if anything changes.

PSC Online Register

By law all UK Ltd companies must have a 'Persons of significant control' register. Our online register is a simple and cost effective way to safeguard you and your business.

PSC Online & Printed Register and Minutes

By law all UK Ltd companies must have a 'Persons of significant control' register. Not only will you get an online register, but you£ll also get a printed version of it and minutes.

Knowledge hub

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The Formations Company and Companies House

Learn more

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What is a Private Limited Company?

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How long does it take to register a new company?

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When should I change from sole trader to limited company?

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Limited Company Vs Sole Trader: Advantages and Disadvantages

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Setting up a limited company for contracting

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