How does an IT contractor get around having >1 person in their ltd company?

[odm]

I've been reading about setting up a ltd company for when I begin contracting; it's the first time I'm doing such a think and I've just read on the this link that you need at least two shareholders in your ltd company.

As someone looking to go contracting solo, I only have myself to put down as a shareholder; what is the common approach for circumventing this problem?

[Wanderer]

I've just read that you need at least two shareholders in your ltd company.

You are looking at a PLC which is almost certainly not what you want. You just want a plain Limited Company which only needs 1 shareholder and 1 director.

I suggest you join the PCG and take out one of the packages which includes an accountant (yes, you DO need one), company formation and advice on running the company etc.

It sounds like you are going to have a few questions so if you haven't already, have a read of the "First Timers" guide and the links on the right side of the page. IR35 is very important so make sure you understand that. Also read the sticky about opting out of the agency regs.

[odm]

You are looking at a PLC which is almost certainly not what you want. You just want a plain Limited Company which only needs 1 shareholder and 1 director.

Thanks for the links; I've been reading the first timers guide on both this website and the equivalent on businesslink. A question regarding the above; can the shareholder and director be the same person (i.e, myself)?

Also, is this a good place to start, is it the same as PCG? I was just having a look on PCG and noticed that you can buy the standard package for £120+VAT; it states that it's 'for one company with only one fee earner', does 'fee earner' mean contractor / employee?

[Wanderer]

A question regarding the above; can the shareholder and director be the same person (i.e, myself)? does 'fee earner' mean contractor / employee?

Yes, it's fine to have a "one man" limited company. The fee earner is the director/employee/shareholder.

Also, is this a good place to start, is it the same as PCG?

Sure, if it's recommended by this website the it's an OK way to get your company up and running. You also need an accountant and insurance. Do a search on the forums for accountant and insurance and you will find the same names pop up for these things. The amount of insurance will be decided by the agency or client you work for so wait till you have a contract before you set that up.

[v8gaz]

Also, is this a good place to start, is it the same as PCG?

Not really. Yes, you can get your company formed for a few pounds by a company formation service, but PCG is much much more than that.

[d000hg]

Insurance is not quite such a given as needing to form your company and get an accountant. You might not need liability insurance, depending on your contract, and most get it purely since the contract requires it, never expecting to use it. IR35 insurance - no idea if that's worth it or not.

Many contract-focused accountants can set the business up for you too, saving you the hassle. My accountancy recommendation is Personal Online Accounting | Intouch Contractor Accounting, no idea if they offer this service but Clare is often on this forum so might jump in.

If you don't want IR35 insurance I'm not sure PCG is so much use. Their contract templates are nice.

[odm]

Just wondered, is using this link the same as registering your company through Companies House directly? What's the main difference, as one quotes payment for £18, whilst the other quotes payment for £75!

[VectraMan]

Just wondered, is using this link the same as registering your company through Companies House directly? What's the main difference, as one quotes payment for £18, whilst the other quotes payment for £75!

£75 is kind of expensive. The last time I did it I paid about £30. Do a search, you'll find loads of people who do company formations. However if you're going to look for an accountant it might make the whole process easier to let them create the company for you.

[odm]

£75 is kind of expensive. The last time I did it I paid about £30. Do a search, you'll find loads of people who do company formations. However if you're going to look for an accountant it might make the whole process easier to let them create the company for you.

Can you recommend any?, as this is the one recommended by ContractorUK (which I thought would be good). What's the difference between a company formation agent and completing the process via CompaniesHouse?

[VectraMan]

Can you recommend any?, as this is the one recommended by ContractorUK (which I thought would be good). What's the difference between a company formation agent and completing the process via CompaniesHouse?

I used UKPLC last time: Company Registration - Company Formation Agent - Limited Company Registration - Setting up - Incorporation 

Looks like Companies House have now set up a similar service of their own. None of it makes a lot of difference: a Ltd company is a Ltd company.