Who can form a UK limited company?
The limited company is one of the most popular business structures in the UK due to several factors. It offers financial protection, or limited liability, to its owners, is easy to set up, and provides various tax benefits. But who can take advantage of these benefits and form a company, and who can’t? Let’s take a look.
Anyone can form a company but not everyone can be a company director
To form a limited company, you must provide specific information about the company and the people involved. This includes:
- The company’s official address, known as the registered office
- The company’s name
- The industry or industries the company will operate in, provided via SIC codes
- Director details (the person who runs the company)
- Shareholder details, including the number of shares they will hold (the owners of the company)
- Details of the person with significant control (PSC), who ultimately controls the company
You only need one person to form a company. This individual can serve as the director, shareholder, and PSC. Alternatively, multiple people or companies (known as corporate appointments) can take on different roles.
- UK company formation guide: Steps and legal requirements
- An Overview of Directors, Shareholders, PSCs, and Company Secretaries in the UK
As long as they have permission, anyone can form a limited company on behalf of someone else.
When asking, “Who can form a company?” the more relevant question is, “Who can be a limited company director?” This is because, interestingly, there are few restrictions on who can be a company’s shareholder or Person with Significant Control (PSC). However, there are specific rules governing who can be a company director.
Who can be a company director?
Anyone can be a director, provided they are at least 16 years old and are not:
- Disqualified from being a director by a court order
- Disqualified by the company’s memorandum and articles of association (which outline how a company is to be run)
- An undischarged bankrupt (someone who has been declared bankrupt and is currently adhering to the terms of their bankruptcy)
- The company’s auditor
To confirm, the director’s residence or nationality does not matter.
To put it simply, anyone can form a company.
However, the more pertinent question is, “Who can be a limited company director?” The answer is that anyone can be a director, as long as they are at least 16 years old, have not been disqualified by a court order or the company’s own memorandum and articles of association, are not bankrupt, and are not the company’s auditor.
Startxpress can help you form a limited company
We offer company formation packages for customers living outside the UK, all designed to get your company up and running as quickly and easily as possible.
To start your limited company, simply follow these steps:
- Choose your company name
- Pick your package
- Make payment
- Complete the company formation process
We will then digitally send your company formation application to Companies House, where it is usually accepted within 24 hours. You will receive an email confirmation as soon as your company is incorporated.
Do you have any other questions?
Anyone can form a UK limited company, but there are specific rules for who can be a director. To serve as a director, you must be at least 16 years old, not disqualified by a court order, not bankrupt, and not the company’s auditor. Meanwhile, shareholders and Persons with Significant Control (PSC) have fewer restrictions.
For more detailed guidance, check out the Startxpress Help Center and Blog. If you need further assistance, don’t hesitate to contact us at support@startxpress.io!
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