Deciding on whether to incorporate your business or not is one of the most important decisions that entrepreneurs and business owners will face.

Incorporation is the process by which a new or existing business registers as a limited company. The company becomes a legal entity with a separate identity from those who own or run it.

Businesses can choose to incorporate at any stage by applying to Companies House, and businesses that choose to follow this path will be issued with a certificate of incorporation, which confirms that the business is now a legal entity with its own identity under the Companies Act 2006.

Incorporation can be beneficial for the business and its owners for a number of reasons, but it is vital that you seek specialist advice because incorporation will not be suitable for every business and the transition to a limited company requires careful planning.

What are the benefits of incorporation?

There are a number of key advantages to being an incorporated business compared to being a sole trader or partnership. These include:

  • Improved credibility
  • Preferential tax treatment on the owner’s income
  • The ability to raise capital via shares
  • Creation of a separate legal entity


How can I add new shareholders following incorporation?

Once a business is incorporated you can add a new company shareholder at any time. There are two ways to do this, either existing shares must be transferred or sold by a current shareholder to the new individual. Alternatively, you can increase your businesses share capital by issuing new shares to an individual.


How can Rotherham Taylor help?

Our expert team here at Rotherham Taylor have a wealth of experience when it comes to assisting businesses who want to incorporate, and help firms to follow the existing rules which require them to report their information annually to Companies House.

If you are considering incorporation or are looking to bring in new shareholders, we strongly suggest that you seek professional advice from someone with the knowledge and experience to guide you through the process.

To find out how our expert team can help, please contact us today.

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