Why pay agents for company formation?

[SunnyInHades]

I formed my plan B Ltd through a leading online formation agent (no paper form filling); I also ordered a director's service address at the same time (a tick box selection on the credit card payment page).

I wanted a 'clean' company; no initial agent/solicitor/accountant 'nominees' who appoint themselves as directors at formation then soon after resign - this process leaves a trace on the company's records. I made sure (research/emails/phone calls) that the formation agent I used only created clean companies before I placed my order. After the order was placed, the company was formed electronically in a few hours.

"(Nominees) can cause confusion when you want to open a bank account, make a credit application or try to enter an important contract. You may be asked for extra proof that you own and run the company, and that can slow you down.
"

My formed Ltd is clean with a useful (not my home) service address.


Using the free Company Check | Free Companies House search and download...

Example clean company: RISK PRODUCTIONS LIMITED

Current Directors and Secretaries
Mr Karl Pilkington 09-11-2010
Mr Ricky Dene Gervais 09-11-2010
Mr Stephen James Merchant 09-11-2010
Current Secretary
Mr Andrew Antonio 09-11-2010
Previous Directors and Secretaries
There is no previous director information for this company.
There is no previous secretary information for this company.

£1,959,657 Net Worth


Example 'nominee at formation' company: LONDON BLACK CAB ACCOUNTS LTD

Current Directors and Secretaries
Mr John Anthony Peter Davern 24-09-2012
Previous Directors and Secretaries
Name Appointed Resigned Current Historical Total
Mr Yomtov Eliezer Jacobs 24-09-2012 24-09-2012 48 27041 27089

£0 Net Worth

Notice "Mr Yomtov Eliezer Jacobs" on the record who was appointed then resigned on the day of formation .. looks like he's been a nominee quite a few times.

N.B. wonderful site Company Check | Free Companies House search and download. .. very useful if you want to check out the financial status/history/address/director details (including year of birth !) of any umbrella company/recruitment agency/accountant/any other company !

[Boney M]

Last time I looked it was pretty easy to DIY it, but I still had my accountants do it, it was less effort

There's absolutely nothing stopping you filling the forms in yourself, or paying one of the specialist formation agents or your accountant, it's up to you how much effort you can be bothered with.

It takes no more than 5 minutes to do.

I use 1st formations, only costs £13

[BigRed]

I think the only valid point is not having your address on it. Did mine online in about 10mins and got all the paperwork as PDFs within 12 hrs.

[Bellona]

You can also use your accountant's address as your service address from day 1, meaning your home address is never public record.

This, plus the time and effort to do it was why I had an accountant do it.

The cost was included in the initial set up of the company, payroll, vat stuff etc., so was money well spent for me

[Clare@InTouch]

With at least some accountants, the cost includes additional stuff like registering for VAT and PAYE - again, all things you can do for yourself, with a reasonable chance of not cocking things up. But it will take you a bit of time to make sure you get it all done correctly. How much is your time worth?

Exactly that. We do them free these days too, but we used to charge as it also covered the time spent in setting up VAT, PAYE and a bank account too.

Using an accountant means you're less likely to make mistakes such as incorporating a company limited by guarantee or having 1,000,000 shares of £1 each. You can also use your accountant's address as your service address from day 1, meaning your home address is never public record.

[NickFitz]

With at least some accountants, the cost includes additional stuff like registering for VAT and PAYE - again, all things you can do for yourself, with a reasonable chance of not cocking things up. But it will take you a bit of time to make sure you get it all done correctly. How much is your time worth?

[Craig at Nixon Williams]

We do it for free when you become a client - the cost to us is much less than the first month's fee and the amount of work involved is minimal. If an accountant is charging you more than £15 to form a company then go to a formation agent.

Craig

[Old Greg]

All requiring a bit of skill and effort. Forming a company is a doddle, requiring far less effort. I can't see the point in using an accountant who charges you +£100 - unless you need an off-the-shelf today. I can see the point in using one of the formation agents who get all the paperwork done for about half that.

I got my accountant to do it. I had an offer of contract work on the Friday to start on the Monday and was sat in the car at my permie job with a company to set up, contract to sort out and 3 months' notice to negotiate down to day. Seemed like money well spent to me.

[BigTime]

The last time I used companies made simple, it was £35 which Barclays would give you as cashback for opening an account with them.

[NotAllThere]

My decorator charges significantly more for painting my house than the cost of the paint. My garage charges significantly more for servicing my car than the cost of the parts. My pub charges significantly more for a meal than the cost of the ingredients.

Capisce ?

All requiring a bit of skill and effort. Forming a company is a doddle, requiring far less effort. I can't see the point in using an accountant who charges you +£100 - unless you need an off-the-shelf today. I can see the point in using one of the formation agents who get all the paperwork done for about half that.

[Platypus]

Hi all, many accountants charge significantly more than £15 @ Companies House.

What's the reason of using accountants to form an ltd?

My decorator charges significantly more for painting my house than the cost of the paint. My garage charges significantly more for servicing my car than the cost of the parts. My pub charges significantly more for a meal than the cost of the ingredients.

Capisce ?

[kal]

Hi all, many accountants charge significantly more than £15 @ Companies House.

What's the reason of using accountants to form an ltd?

Most of them throw it in as a freebee if you sign up with them.

[TykeMerc]

Last time I looked it was pretty easy to DIY it, but I still had my accountants do it, it was less effort

There's absolutely nothing stopping you filling the forms in yourself, or paying one of the specialist formation agents or your accountant, it's up to you how much effort you can be bothered with.

[d000hg]

Because they do it for you.

[mickey]

Hi all, many accountants charge significantly more than £15 @ Companies House.

What's the reason of using accountants to form an ltd?