Company Formation
Commercial contracts solicitors in Cheltenham
At Pembridge Solicitors, we advise individuals and businesses on company formation, helping ensure new companies are set up properly from the outset. Based in Cheltenham, we work with startups, sole traders, and growing businesses who want clear guidance when forming a limited company.
Setting up a company is more than just registering a name. The decisions made at the start can affect tax, ownership, control, and future growth. Our role is to help you understand the options available and put the right structure in place from day one.
We focus on setting companies up in a way that works in practice, not just on paper.
What is company formation?
Company formation is the process of creating a limited company and registering it with Companies House. This involves choosing the company structure, preparing the required documents, and setting out how the company will be owned and run.
While forming a company can appear straightforward, many issues only become apparent later. Share ownership, director responsibilities, and decision-making powers should be considered carefully at the outset to avoid disputes or complications in the future.
When company formation advice is useful
People often seek company formation advice when starting a new business, moving from sole trader status to a limited company, or setting up a company with business partners.
Advice is particularly important where more than one person is involved, external investment is planned, or the business is expected to grow. Early guidance helps avoid problems that may be difficult or costly to fix later.
Understanding the company formation process
Company formation usually begins with discussing how the business will operate and who will be involved. This includes considering ownership, management roles, and how decisions will be made.
Your solicitor will then prepare the required documents, such as articles of association and shareholder arrangements, and ensure the company is registered correctly. The aim is to create a clear structure that reflects how the business will actually run.
How we handle company formation matters
When you instruct Pembridge Solicitors, we start by understanding your business plans and how you intend to operate. We discuss who will own the company, who will manage it, and how responsibilities will be shared.
We prepare or review the necessary documents to ensure ownership and decision-making arrangements are clear. This includes setting out the rights of shareholders, the roles of directors, and what happens if someone leaves the business or new investors join.
Where appropriate, we also advise on related agreements that can help protect the business, such as shareholder agreements or service contracts. Throughout the process, we explain each step clearly so you understand what is being put in place and why.
A well-structured company provides clarity and stability as the business grows. Clear documentation helps reduce the risk of disputes, supports investment, and makes future changes easier to manage.
Legal advice at the formation stage helps ensure the company is set up with flexibility and protection in mind, rather than relying on generic templates that may not suit your business.
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0330 900 0377
Clear, confidential advice on company formation. Speak to an experienced solicitor to understand your options and next steps.
Company formation FAQs
Do I need a solicitor to form a company?
You are not legally required to use a solicitor to form a company, but legal advice can help ensure the company is structured correctly. Many issues arise because ownership and control were not properly addressed at the start.
A solicitor helps ensure the company reflects how you intend to run the business.
What is the difference between shareholders and directors?
Shareholders own the company, while directors are responsible for managing it. In many small companies, the same people act as both shareholders and directors, but their roles are legally different.
Understanding this distinction is important, particularly where there is more than one owner.
Do I need a shareholder agreement?
A shareholder agreement is not legally required, but it is strongly recommended where there is more than one shareholder. It sets out how decisions are made, what happens if someone wants to leave, and how disputes are handled.
Having this agreement in place can prevent serious problems later.
Can I change the structure after the company is formed?
Yes. Company structures can be changed as the business evolves. However, changes can be more complex once the company is trading.
What happens if a business partner leaves?
This depends on the documents in place. Without clear agreements, disputes can arise. Proper documentation at formation stage helps manage exits and protect the business.
Can you help if the company has already been formed?
Yes. We regularly advise businesses that were formed without legal advice and now need documents reviewed, updated, or corrected.
Where we also assist clients
While our company formation solicitors are based in Cheltenham, we also advise clients in Tewkesbury, Gloucester, and across England and Wales, with support provided in person or remotely where appropriate.
Speak to company formation solicitors
If you are starting a new business or need advice on forming a limited company, our solicitors are here to help. We provide clear, practical guidance to help you set up your company with confidence.
To speak to one of our company formation solicitors, call 0330 900 0377 or contact us online to arrange a consultation.
How to Find Us
Pembridge Solicitors
Calderwood House
Montpellier Parade
Cheltenham
GL50 1UA