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Thinking about starting a business? Have an idea to explore – or ready to launch? The MEC Resource Centre is here to support you

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For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

A social enterprise is a business that trades to tackle social problems, improve communities, people’s life chances, or the environment.  A social enterprise is a business, not a charity, that makes money and profit. 

Why set up a private limited company? After all, setting up a limited company is likely to involve more administration and higher costs than if you were working as a sole trader.

Essentially, the decision as to whether you set up a private limited company depends on whether you are happy to accept personal financial liability for your business's debts. If you're a sole trader and your business fails, you're personally liable for its debts. Potentially, you risk personal bankruptcy if the debt is considerable and you can't pay it back. Setting up a limited company offers protection against this.

Should I set up a limited company?

A limited company is a separate legal entity and as such, legally, it's responsible for its own actions. The finances of private limited companies are entirely separate from those of its owner(s). Private limited companies can have one or more shareholders, but shares cannot be sold publicly (ie on the stock market). Public limited companies, of course, can do this.

Providing you don't trade recklessly or fraudulently, as a director of a limited company your risk of loss is restricted to money you've invested in the company. However, you're liable for bank loans if you provide personal guarantees for that limited company.

To an extent, being a private limited company might make you more credible to potential customers, partners or investors.

How do I set up a limited company?

To become a limited company, you register ('incorporate') online at Companies House. Alternatively, for a small fee, an accountant, solicitor or agent can register the business for you. All you need do to set up a limited company is provide some basic information and a few signatures.

Ready-made limited company names are available to buy, should you wish. Alternatively, if you want to form a brand new limited company, you must send a memorandum of association, articles of association and a completed IN01 form to Companies House.

A memorandum of association details the limited company's name, registered office and nature of business. It must be signed by the director(s) in front of a witness. A registered office is the official limited company address, which is where Companies House will send notices, letters and reminders. The articles of association set out the rules for the running and regulation of the company.

Companies House cannot supply memorandum and articles, but these can be bought from a legal stationer or company-formation agent.

What responsibilities do limited company directors have?

Private limited companies must appoint at least one director, who can also be a shareholder in the limited company. Someone cannot assume this role if they've been disqualified from acting as a limited company director; if they're an undischarged bankrupt; or are younger than 16-years-old.

Private limited companies no longer have to appoint a company secretary. Directors of private limited companies are responsible for notifying Companies House of changes in the structure and management of the company.

Accounts must be filed with Companies House each year ahead of the requested date, otherwise a fine is payable. Unless the company is exempt, accounts must also be audited annually. The company (or its accountants) must inform HM Revenue & Customs, by means of an annual return, of any taxable income or profits. Corporation Tax is then payable.

Company directors are employees of the company and must therefore pay income tax and Class 1 National Insurance contributions. Profit from limited companies is usually distributed to shareholders as dividends.

NOTE: If you are generating an income from your business, you may need to register for self-assessment with HM Revenue & Customs, complete a self-assessment tax return and pay tax on your earnings.