How to set up a Welsh limited company

Setting up a Welsh limited company is a simple process that can be completed in just a matter of hours, with the actual application taking approximately 10 minutes.

In this post, we’re going to look at how you can set up a Welsh limited company (a private company limited by shares, to be exact) using our company formation service. Let’s get started.

Here’s what you’ll need to set up a limited company

Companies House – the UK’s registrar of companies – requires certain information to process and incorporate a limited company. Here’s what you’ll need to do to be adequately prepared.

A unique company name

Don’t worry, our name search tool will help you ascertain if it’s unique or not.

An address to use as your company’s registered office

This is the company’s official address. Whilst it must be based in the UK, a company need not conduct any trading from the registered office. Our Privacy, Professional, Prestige, All Inclusive and eSeller company formation packages all allow you to use our London address as your company’s registered office.

However, as we’ll touch on in more detail shortly if you want your company to use the suffixes Cyfyngedig, Cyf, or Cyf. (instead of Limited, Ltd, or Ltd.) your registered office must be based in Wales.

Details for your director(s)

This is the person (or people) who takes care of running the company. A private company limited by shares must have at least one director. For each director in the company you will need to provide:

• Title and full name
• Date of birth
• Nationality
• Occupation
• Residential address
• Service address (also known as correspondence address) – this is the official address for the officer (like the registered office, a number of our packages allow you to use our address as the service address)

Details for the shareholder(s)

This is the person (or people) who own the company. A private company limited by shares must have at least one shareholder. For each shareholder in the company you will need to provide:

• Title and full name
• Date of birth
• Nationality
• Occupation
• Residential address
• Service address
• 3 of the following pieces of information: Mother’s maiden name, father’s forename, town of birth, telephone number, National Insurance number, passport number
• Share information including the quantity, currency, and value of the shares held by the shareholder, as well as any particulars associated with these shares

Shares define ownership of the company. For example, if the company has more than one shareholder, the number of shares represents how much of the company they own. For example, if a company has two shareholders and both hold one share worth £1, they own 50% each. Alternatively, if one shareholder holds 15 shares worth £1 and the other owns 5 shares worth £1, the share split is 75% / 25%.

At the company formation stage, we recommend keeping things simple by allotting a low number of shares (such as one or 10) at a nominal value of £1 each. The total value of shares held by a shareholder confirms the liability of the shareholder. This means that if the company encounters financial difficulties, the shareholder should pay out the nominal value of their shares.

This is why we suggest allotting a low number of shares with a low value.

Details for the person/people with significant control (PSC)

This is the person (or people) who controls the company. In most cases, this will also be a shareholder. For each PSC in the company you will need to provide:

• Title and full name
• Date of birth
• Nationality
• Occupation
• Residential address
• Service address
• The nature of their control (we’ll provide you with the different options, you simply need to select the option that applies to your PSC)

To be clear, a Welsh limited company can be formed with just one person acting as the director and shareholder, and also being the PSC.

A means to make payment

Our company formation packages start at just £12.99. You can pay via Visa Credit, Visa Electron, Visa Debit, Visa Purchasing, V Pay, Mastercard, Mastercard Maestro, Mastercard Debit, and American Express.

Ok, that’s the information that you need at hand…

Here’s how to set up a Welsh limited company

The company formation application process is entirely online and as mentioned, should take no longer than 10 minutes. Here’s what you need to do:

1. Visit www.1stformations.co.uk and check if your proposed company name is available

You will find our company name check tool on the hero image of our homepage. Simply enter your proposed company name to find out if it is available to use as your new limited company name. This needs to be unique and can’t even be similar to another company name on the register. If it’s available, great, let’s proceed. If not, try again with a new name. Read ‘Guidelines on limited company names’.

2. Choose your company formation package

We offer 6 packages dedicated to forming a private company limited by shares (plus a package for non-UK residents). Choose the package that’s right for you and pick up any associated extras that you think might come in handy. For example, if you’re in a rush, you can add our Guaranteed Same-Day Service (£39.99) to ensure your company gets formed on the same day.

3. Create your account and make payment

The information that you provide when creating your account is not associated with the company that you are forming (whilst the account holder will generally also be a director and/or shareholder, this isn’t compulsory).

4. Provide the company particulars

Now it’s time to provide the basic company information:

• Add the appropriate suffix to your company name – You can choose from ‘Limited’, ‘Ltd’, ‘Ltd’, ‘Cyfyngedig’, ‘Cyf’, or ‘Cyf.’.
• Set your jurisdiction as ‘England & Wales’ or ‘Wales’ – This is the key step to forming a Welsh limited company. By selecting one of the above you are choosing to form a Welsh company. If you were to select ‘Scotland’, you would be forming a Scottish company. If you wish to use one of the Welsh suffixes ( ‘Cyfyngedig’, ‘Cyf’, or ‘Cyf.’) you must select ‘Wales’ as the jurisdiction, not ‘England & Wales’.
• Choose your SIC code(s) – These set out the industry in which your company will be operating. Tick the drop-down and select 1 to 4 codes that apply to your business.

5. Enter your registered office address

If the company’s jurisdiction is set as ‘England & Wales’, this can be based in England or Wales. If it’s set as ‘Wales’, it must be based in Wales. The registered office address is on the public register so many business owners choose not to use a residential address, as it opens them up to unwanted visitors and the possibility of fraud.

6. Add your director(s)

Your company must always have at least one director appointment in place. Read ‘10 duties of a company director’.

7. Add your shareholders and allocate their shares

Remember, this is where you set out the ownership of the company. Shareholders in place at the time of a company’s incorporation are also known as subscribers. Read ‘A guide to company shares’.

8. Provide your PSC information

A PSC’s nature of control is generally informed by their shares. Simply choose the appropriate nature of control from the drop-down menus that we present. Read ‘A guide to the Register of People with Significant Control (PSC)’.

If a person is taking on more than one role in the company, they can be appointed to all of these roles at the same time, so you will not need to enter the same person’s information more than once.

9. Confirm your company’s articles of association

These are the documents that outline how a company will be run. By default, we provide the Model articles of association that suit the majority of companies in the UK. Read ‘Company memorandum and articles of association’.

10. Select your business bank account

You will need a business bank account to separate your personal finances from your business finances. We’ve partnered with the UK’s best banking providers (Anna, Barclays, Cashplus, Mettle, Monzo, NatWest, Tide, and WorldFirst) to get you off to the best start. Pick the bank that’s right for you and we’ll send you instructions on how to open your account as soon as your company has been formed.

11. Take advantage of our other partner offers

We have a number of relationships in place designed to give you a head start. Take your pick from our accounting software, card acquiring, and business forum partners. We’ll send application information to you as soon as your company has been formed.

12. Review your company formation application

Now’s the time to check over all the information you have provided. If you spot any errors, amend them. If everything is correct, you can send your application to Companies House.

That’s it. Companies House typically takes up to 24 hours to process your application. We’ll email you as soon as your company has been incorporated, and this email will include your company number and certificate of incorporation.

In the rare instance of an application being rejected, we’ll work with you to fix any problems.

There you have it…

You should now have all the information you need to set up a Welsh limited company. Click the below link to get started!

Form your Welsh limited company now

We hope you have found this post helpful. If you have any questions about limited company formations, please leave a comment and we’ll be happy to help.