Cheap company registrations for SMEs by Darren Fell, MD Crunch Accounting on 24-Jan-2012

Small businesses, freelancers and contractors can now quickly, easily - and for only £4.50 - set up a limited company with GoLimited which is owned and operated by Crunch, the online accountancy service.

"We’re always looking to find new and efficient ways of helping entrepreneurs and start-ups get their business up and running," said Darren Fell, MD of Crunch. "We have developed a novel (and fun) Twitter-based tool that we call Betty which saves people time on traditional internet searches for potential business names."

"Betty checks a name request with records at Companies House and if the name is not available, offers alternative related suggestions. To use the service and check the name ‘Crunch’ (for example), login to your Twitter account and type into the ‘What’s happening’ box: 'search @GoLtd Crunch'. Betty will respond within two minutes if the name is available. Users can then officially register the company name and incorporate it with GoLimited for just £4.50."

The service enables individuals and small businesses (up to two directors for now, four later), to register a limited company at Companies House and fulfill the legal administration duties using the online automated service. The service helps business owners minimise set-up costs and start operating more tax efficiently. The £4.50 fee covers delivery of all required legal documents, including Articles of Association and Certificate of Incorporation. Users can also do the company name search directly on the GoLimited site without using Twitter. The approval of the new company name does, of course, ultimately rest with Companies House.

"For too long, and despite a tough economy, it has cost way too much for small businesses and freelancers to become incorporated and operate more tax efficiently. With modern technology, we’ve automated the process to support Britain’s entrepreneurs and encourage the creation of more small businesses with a fast online service," said Darren.

"The software behind GoLimited was originally created for internal use at Crunch, where we incorporate a large volume of new companies. We decided to make it available to everyone, whether or not they’re a Crunch customer, to help more British businesses," added Darren.

Advantages of going limited, rather than operating as a sole trader, include:

• Liability: Limited liability means if your company goes bust, your personal property can’t be touched. Your maximum losses can only be up to what you put into the company in the first place – meaning you only stand to lose what you invested;
• Employability: many clients, especially big corporates, will be more inclined to do business with limited companies. In fact, many large companies (usually financial institutions) refuse to do business with sole traders;
• Profitability: as a sole trader, you’re taxed on your income. This means you pay income tax and national insurance contributions on everything you earn, which means a higher tax contribution as your earnings increase. By operating through a limited company you pay corporation tax of 20% (assuming your profits are less than £300,000), and pay yourself through a combination of low wage (to minimise PAYE and NIC outgoings) and dividends. This will result in more of your earnings in your pocket.

Forming a limited company also brings certain additional duties to the company owners and directors. It is highly advisable to read more about the Director’s Fiduciary Responsibilities before going limited. You can find more information here.

More advice and information is available at: www.golimited.co and Crunch accounting at: www.crunch.co.uk

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