This post is from The Made Simple Group, home to a range of business entities dedicated to providing online business solutions to the start-up and small business communities
There are various business models available to artists and designers who wish to start selling their work. One of the most popular in the UK is the limited company, which has the advantage of limited liability and can be more tax efficient. It does, however, require more administration than being a sole trader. If you are unsure of what business model to choose, talk to an accountant or solicitor. And if you do decide to form a company limited by shares, you will need to provide the following information to Companies House (the registrar of limited companies)
• A company name
• Registered office address
• Memorandum of association
• Articles of association
The company name must be unique (availability can be checked here). There are some “words and expressions” that if included in your proposed company name, require criteria to be met. Examples include words such as international, group and holdings. For a full list of these words take a look here.
Registered office address
This is the official address for the company. The company does not have to be based here, just as long as any mail from HMRC and Companies House is forwarded on to the company director/s. It must be a UK address. Some accountancy firms and formation agents will allow the use of their own address for a fee.
A limited company must have at least one person acting as a director. This person can be of any nationality and be based anywhere in the world. Information required to appoint a director includes; name, date of birth, nationality, occupation, service address (official address) and residential address. The minimum age for a director is 16.
A limited company must have at least one person or company acting as a shareholder. The shareholder/s own/s the company. This can be the same person as the director (so you can form a limited company with just one person). Information required to appoint a shareholder includes; name, address, number of shares held, value of shares held and currency of shares held. There is no minimum age for a shareholder.
Memorandum of association
This is a basic document that names the shareholders at incorporation and states that these shareholders wish to form a company. If you are forming your company with a formation agent, this document will be provided.
Articles of association
This is a document that outlines the rules by which the company will operate. If you are forming your company with a company formation agent, this document will be provided. Companies House can also provide “Model Articles”.