Incorporating a Company
Submit Articles Back to Articles
3 August 2009
The first consideration when forming a company is what type of company you
The CA 2006 provides for three types of company (s3):
- Company limited by shares;
- Company limited by guarantee;
- Unlimited company.
More often than not you will be looking at a company limited by shares, they
can be either private or public companies whereas a company limited by guarantee
or an unlimited company can only be incorporated as private companies.
A company is registered by filing the required documents and paying the fee
to Companies House. When this is done the Registrar of Companies will issue a
certificate of incorporation.
When starting a company you have two options: 1) create a tailor made company
or 2) buy a shelf company, that is a company that has been incorporate but has
Under the CA 2006 the role of the memorandum of association has diminished,
all this document now sets out is that the subscribers have agreed to become
members, that it is to have a share capital and that they take at least one
share each (s8). The memorandum must be in the prescribed form and must be
executed by each subscriber.
The articles of association will now become even more important. There are
still model articles which will depend upon the type of company formed however
many companies will still opt for bespoke articles. The articles themselves are
the company's internal rules.
Ben Evans is a trainee solicitor at Lawdit.
About the Author
Lawdit Solicitors offer services and
advice for litigation, commercial contracts, Intellectual Property and IT legal
agreements. We are experts in commercial law with a heavy emphasis on
Intellectual Property, Internet and e-commerce law. Lawdit is a member of the
International Trademark Association, the Solicitors' Association of Higher Court
Advocates and we are the appointed Solicitors to the largest webdesign
association in the world, the United Kingdom Website Designers Association.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2009-08-13 00:33:47 in Legal Articles