How Can I Start a Limited Company – What Are the Steps?
Setting up a limited company can be a smart step for aesthetics practitioners aiming to build a reputable, sustainable practice.
Running your business as a limited company offers unique benefits, particularly in terms of credibility, liability protection, and tax efficiency.
With a limited company, you’ll often be seen as a more established, trustworthy business—important in an industry where client trust is everything. Plus, you’ll gain limited liability, which keeps your personal assets separate from business risks, and you may even unlock potential tax savings.
However, many new business owners face some confusion when understanding what the set-up process involves, so let’s clarify that here to help you get your practice up running asap
Ltd Company Benefits summarised:
Tax efficiency: Flexibility in taking a salary and dividends can reduce tax bills.
Professional credibility: Being Limited often adds a level of trust with clients and partners.
Growth potential: Easier to attract investors or apply for funding.
Financial separation: Clear distinction between personal and business finances, simplifying accounting and compliance.
Limited liability: Personal assets are protected if the business faces debts or legal claims.
Issuing shares to employees: Employees may be able to own part of the business and participate in the profits, which can improve loyalty.
1. Preparing to Set Up Your Limited Company
Before approaching the matter of registration, take a moment to get the basics right—starting with the perfect name.
Define Your Business Purpose and Name
Choosing a name is your first branding step. Go for something that feels professional and trustworthy, but that still reflects your unique touch. A quick search on Companies House can confirm if it’s available.
Understand Your Responsibilities
As a director, you’ll have official duties (keeping records, filing accounts) even if you’re a one-person show. Think of it as being both the “boss” and the “owner,” managing day-to-day and long-term growth.
2. Registering Your Limited Company
So you’ve decided to go the Limited route, here’s how to make it official:
Choose a Registered Address - pick an address to serve as your business’s official “home base.”
Register with Companies House - You’ll need a Memorandum of Association (a fancy way to confirm your company’s structure) and Articles of Association (your company’s internal “rulebook”).
Set Up a Standard Industrial Classification (SIC) Code - this describes what your business does. Use this list to find a code for beauty and aesthetic services.
Starting a limited company is a big step, and the setup process involves important decisions that shape your business’s future.
At Sadler Advisory, we guide you through key choices like ownership structure, selecting the right name, and assigning the appropriate SIC code that fits your business activities.
The best part? We handle the registration process for you, ensuring everything is set up smoothly and professionally. Get in touch with us to start your journey and make sure your business is built on a solid foundation.
3. Setting Up Finances
Getting your finances sorted early on will save you time and headaches down the road—plus, it’s crucial for keeping everything above board.
Open a Business Bank Account
A dedicated business account for the Limited Company is essential to keep personal and business expenses separate. It makes your accounting easier and keeps everything neat when it’s time to tackle taxes.
Register for Corporation Tax
Once your company’s up and running HMRC will automatically send you your tax number within three months.
Understand VAT Requirements
VAT can be tricky in aesthetics, where some services are exempt (like medical treatments) but others aren’t (cosmetic procedures). Sadler Advisory has a good understanding of the applicable tax law when it comes to VAT in aesthetics, so please reach out to us if you want to discuss VAT
4. Ongoing Responsibilities
Once your limited company is up and running, there are a few regular tasks to keep on top of. Think of it as maintaining a well-oiled machine.
Annual Accounts and Filing Requirements
Every year, you’ll need to file annual accounts with Companies House and a corporation tax return with HMRC. Good record-keeping makes this smoother, so track income, expenses, and receipts as you go.
Paying Yourself
As a company director, you have options! You can pay yourself a mix of salary and dividends, which can be more tax efficient. We at Sadler Advisory advise our clients about the optimum mix of salary and dividends for each client’s individual circumstances.
Starting a Ltd Company with Our Help
Starting a limited company for your aesthetics practice is a smart move with plenty of benefits. It’s not too difficult, if you stay organised and follow the steps carefully.
Get in touch with us at Sadler Advisory and we will help you with all the essential tasks like:
choosing a professional name and set up your registered address
registering with Companies House and get your SIC code sorted
opening a business bank account to keep finances separate and organised
registering for corporation tax and consider VAT if needed
staying on top of annual filings to keep your business compliant.
An experienced accountant can be invaluable, offering guidance on tax efficiencies, managing filings, and keeping your finances optimised as you grow. With these steps in place—and a bit of professional support—you’ll be ready to grow your practice confidently and professionally!
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