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 and All Inclusive company formation packages all allow you to use our London address as your company’s registered office.

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 oversees the day-to-day operations of 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, each owns 50%. 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 shareholder’s liability. 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 £2.99 (excluding the £100 Companies House filing fee). You can pay via Visa Credit, Visa Electron, Visa Debit, Visa Purchasing, V Pay, Mastercard, Mastercard Maestro, Mastercard Debit, and American Express.

Here’s how to set up a Welsh limited company

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

1. 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 select any associated extras that you think might be useful. 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 a 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 listed on the public register, so many business owners choose not to use a residential address, as it exposes them to unwanted visitors and the risk 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)’.

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, including Anna, Barclays, Monzo, NatWest, and Tide, 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 established several key relationships to help you get started on the right foot. 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 that an application is rejected, we’ll work with you to resolve any issues.

Start your business today

Setting up a Welsh limited company is a straightforward and efficient process that can be completed in just a few hours, provided you have all the necessary information readily available. By preparing essential details, such as your company name, director information, and share structure, you can streamline the formation process and ensure a smooth incorporation experience.

Remember to select an appropriate registered office in Wales if you wish to use Welsh suffixes for your company name, and double-check your application before submission to avoid any potential delays.

If you’re ready to get started on forming your Welsh limited company, visit 1st Formations today and check if your proposed company name is available.