This month, our case study comes from Emma-Louise who has helped a client who incorporated their own Company.
It may seem simple to incorporate yourself, but a little error can cause you a rather large headache and be costly, if it is not picked up on.
Client X incorporated using an online filing company, and unfortunately didn’t account for the system to autofill ‘Ltd’ meaning that the Company name was incorrect.
It was the diligence of Emma-Louise that brought the error to the client’s attention. Not only was the name incorrect, the Registered Office of the Company had automatically been registered as the online filings address, and not his choice – our office address.
Emma-Louise was quick to contact the client and check her suspicions, helping them out of hours, so that she could work on the case the next working day.
It was important that our client felt supported, and was made aware of solutions rather than problems. So Emma-Louise advised him of his options, the forms that needed to be filed to correct the errors, assured him that we could help and advised of the applicable fees.
At what cost?
To file through the online filings company the incorporation itself cost the client £150.00 + vat, and each amendment required would cost £49 + vat. Avanti were able to offer a competitive fee to fix the errors, and ensure that the client was moving forward as he intended. We also completed the change of Registered Office at the same time, streamlining the fix and making it as cost efficient as possible for the client.
What were the potential effects?
The client was waiting to register for PAYE and VAT with HMRC, so delays confirming correct details would have a clear knock on effect for other areas of his day to day business. This on top of logo designs, and stationery all being put together for business launch – with a company name that was incorrect and the new name to be confirmed.
Incorrect set up of a company can have long term implications when you are wanting to make changes to eg. share structure. So although buying a company ‘off the shelf’ may seem initially attractive as it is a ‘cheaper’ option – it could end up costing more in time and money, than having a professional experienced firm like Avanti do it correctly in the first place.
With a responsive approach we were able to make the changes the same day, putting the client back in the driving seat of his company.
We understand that business moves quickly, and business owners need an accountant who doesn’t just keep up, but also looks ahead and considers the bigger picture for you. At Avanti, the team all provide a proactive service that enables you to make the decisions that drive your business forward.
The next time you consider completing your own incorporation, consider the value that having a second set of eyes to look over the information provided can bring. We can assist you with an array of company secretarial duties including new incorporation, maintaining the company registers, and filing confirmation statements . As with all our services, just pick ‘n’ mix the service you require to give you the support that you need. Give us a call today (08000) 388 799 to see how we can help move you and your business forward.