Company Formation Quick Quiz Questions and Answers

The following text comprise both the questions and answers from the company formation quick quiz which is available on the right hand panel of the Faqs section of this website.

As well as allowing participants to view specific answers to the questions they were asked, the page can also serve as useful information on the current laws, regulations and practices involved in registering a company in the UK.

As additional questions are added to the company formation quick quiz this page will be updated and the answers provided here.

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1. A company can not use nominees for director, secretary and shareholder at the same time.
2. Companies House can incorporate businesses with registered offices in which countries?
3. Companies limited by guarantee are normally profit making businesses.
4. Companies limited by shares are normally non profit making organisations.
5. For a director to also act as the secretary, how many other directors must that company have?
6. Form SH01, used for allotting additional company shares is typically sent to Companies House at the same time as.
7. What is the minimum age permitted for a person to be appointed as director?
8. How long can a company remain dormant for?
9. How many persons are needed to form a UK company?
10. In an electronic company formation, the original certificate of incorporation is:
11. In the current tax year 2014/15 a business must register with Revenue and Customs for VAT where its taxable turnover exceeds:
12. Once a company is incorporated as a Scottish company, it can become an English entity by moving its registered office address to a location in England.
13. Private companies with shares can opt to remove the word “limited” from their company name.
14. Public limited companies are no longer required to have a company secretary.
15. Ready made companies are generally cheaper than the cost setting up a new one.
16. Sole Trader businesses are registered by Companies House.
17. The official time for a standard electronic company formation is 3 working days.
18. To act as a secretary of a private limited company a person must be knowledgeable on matters pertaining to company secretarial work.
19. To be a director of a UK Company where must a person be resident?
20. To change your company’s accounting reference date from 28 February to 31 December you would use Companies House Form.
21. To change your company’s registered office address you would use Companies House Form.
22. To form a dormant company you must.
23. To register a dormant company a special declaration is required stating that there will be no trading activities conducted.
24. To use the word Holding in a company name.
25. VAT registration is mandatory for all companies within a year of their incorporation.
26. What is the maximum number of companies which a person can be secretary of?
27. What is the minimum age for a subscriber of a limited company?
28. What is the minimum number of officers that a company can be formed with?
29. What is the minimum number of shares which a UK company must issue on incorporation?
30. What is the name given to the person who takes responsibility for ensuring that all information on a company incorporation application is correct?
31. When forming a company and using a nominee director, you can use.
32. When forming a company, it is essential that the name is entered in the correct case as Companies House will register it exactly as it is presented.
33. Which Companies House Form would be used to appoint a new company director or secretary?
34. Which Companies House Form would be used to change the address of a company director or secretary?
35. Which Companies House Form would be used to resign a company director or secretary?
36. Which of the following Companies House Forms can NOT be filed online?
37. Which of the following is NOT a Companies House Form?
38. Which of these is NOT required to in order to register a UK limited company?
39. Which one the following does Companies House not class as a sensitive word?
40. Whose name normally appears on the on the original memorandum and articles of association of a limited company?

Answers

1. A company can not use nominees for director, secretary and shareholder at the same time, True or False?
   False, UK limited companies are free to use nominees for any or all of the positions of director, secretary and shareholder and are able to change these at any time they choose.
2. Companies House can incorporate businesses with registered offices in which of these countries: England, Wales and Northern Ireland; Scotland, Southern Ireland and Wales; England, Northern Ireland, Scotland and Wales; Wales, England, Scotland and Northern Ireland.
3. Companies limited by guarantee are normally profit making businesses, True or False?
   False, this type of company is typically a club, association or charity which exists primarily to provide a service to the whole community or a section of it. They have non profit orientated memorandum and articles of association which prevent them existing solely to make commercial gains. Back to Top
4. Companies limited by shares are normally non profit making organisations, True or False?
   False, standard profit making companies are usually limited by shares and are normally incorporated to forward one more business activities.
5. For a director to also act as the secretary, how many other directors must that company have: None, One, Two or Three?
   None, for a single person to occupy the position of both director and secretary of a private limited company. In order for this person to also be company secretary, there is no longer a requirement to have at least one other director for this to be allowable.
6. Form SH01 (formerly Form 88(2)), used for allotting additional company shares is typically sent to Companies House at the same time as: the company’s annual accounts, Form AD01 - changing the registered office address, Form AR01 - the annual return or within fourteen days of the new shares being allotted?
   Unless completed online, Form SH01 should be sent to Companies House within fourteen days of the resolution being passed authorising the issue of the new shares being allotted. Back to Top
7. What is the minimum age permitted for a person to be appointed as director: 18, 21 or 16?
   16, the Companies Act 2006 brought England and Wales inline with the regulations that already existed in Scotland. Prior to this, a person could be a director of an English or Welsh company below the age of 16 provided the shareholders were of the opinion that they would be able to cope with their required duties.
8. How long can a company remain dormant for: 1 year, 18 months, 5 years, indefinitely?
   A dormant company can remain so indefinitely. There are no requirements for it to renew its status (unless it starts a trade which it then ceases) and the company formation procedures are the same as for registrations which will have commercial activities.
9. How many persons are needed to form a UK company: four, one, two or three?
   One, since the Companies Act 2006 regulations made having a secretary optional when incorporating a company, a single person can now hold the positions of both sole director and shareholder. Back to Top
10. In an electronic company formation, the original certificate of incorporation is: the emailed version, the printed version or none of the above?
    A popular misconception is that the printed certificate is the official document produced by Companies House. It is actually the PDF which is produced by them and this therefore represents the original.
11. In the current tax year 2014/15 a business must register with Revenue and Customs for VAT where its taxable turnover exceeds: £81,000, £64,000, £77,000 or £67,000?
    The amount for the 2014/15 tax year is £81,000, up from £79,000 in the previous period. All businesses, not just companies must apply for VAT registration where they exceed this figure. 
12. Once a company is incorporated as a Scottish company, it can become an English entity by moving its registered office address to a location in England, true or false?
    False, once a company is set-up in a particular country it can not change its residence simple by changing the location of its registered office. Back to Top
13. Private companies with shares can opt to remove the word “limited” from their company name, true or false?
    False, companies limited by guarantee are the only type which can omit the word “limited” by filing claim under the Companies Act. Those limited by shares do not under any circumstances have this option.
14. Public limited companies are no longer required to have a company secretary, true or false?
    False, the Companies Act 2006 making secretaries optional only apply to private limited companies. The rules affecting public entities remained unchanged by the legislation.
15. Ready made companies are generally cheaper than the cost setting up a new one, true or false?
    False, Ready made companies are often more expensive than new ones because the owners may have had incurred costs of maintaining it. Also off-the-shelf companies are seen as more valuable because of the age. Back to Top
16. Sole Trader businesses are registered by Companies House, true or false?
    Revenue and customs regulates sole trader businesses, in so far as it assessing them and collects their taxes. Companies House is responsible only for the formation and regulation of companies and limited liability partnerships.
17. The official time for a standard electronic company formation is 3 working days, true or false?
    False, the actual official Companies House time for online incorporations is five days, however due to the efficiency of the systems used, most formations take only three hours. 
18. To act as a secretary of a private limited company a person must be knowledgeable on matters pertaining to company secretarial work, true or false? False, there is no requirement for a secretary of a standard company to have any experience of the duties they are officially supposed to undertake. One of the reasons why the Companies Act 2006 removed the obligation to have a secretary from private limited companies was because the practice of having a secretary who did not actually undertake of the secretarial tasks was widespread. Back to Top
19. To be a Director of a UK Company where must a person be resident: in the UK, in the EU or anywhere in the world?
    A UK company director can live anywhere in the world and have had no previous connection with the UK.
20. To change your company’s accounting reference date from 28 February to 31 December you would use Companies House: Form AP01, Form AD02, Form AA01 or Form AD01?
    Accounting reference date changes must be made on Form AA01 and submitted to Companies House before the accounts (under the previous date) are due.
21. To change your company’s registered office address you would use Companies House Form: AP01, AD02, AA1 or AD01?
    Form AD01 (previously Form 287) provides the facilities to change a UK company’s registered office location. Back to Top
22. To form a dormant company you must: specific that the company will be dormant at the time of its formation, inform Companies House within 28 days of registration or form a company in the usual way and do nothing else?
    The formation of a dormant company requires no special notification or initial procedures other than those involved in registering a trading company.
23. To register a dormant company a special declaration is required stating that there will be no trading activities conducted, true or false?
    False, no such declaration exists or is required. 
24. To use the word Holding in a company name: the company must own at least 51% of another UK business, the company must own at least 75% of another UK company or the company must own at least 51% of another company?
    The Companies Act defines a holding company as one which owns more than 51% of another company and therefore, this criteria must be met in order to use that word in a name. Back to Top
25. VAT registration is mandatory for all companies within a year of their incorporation, true or false?
    False, companies are only required to register for VAT if their taxable turnover exceeds £77,000. They can voluntarily register before they achieve this limit if they choose. 
26. What is the maximum number of companies which a person can be secretary of: 1, 2, 3, 5, 10 or any number?
    The answer is any number. There are no legal limitations on how many positions of company secretary a person can hold. The same nominee is sometimes used as a corporate officer for hundreds of companies.
27. What is the minimum age for a subscriber of a limited company: any age, 16, 18 or 21?
    There is no minimum age for a person to be a subscriber. Occasionally, companies are formed and the shares are given to infants at the time of registration. Back to Top
28. What is the minimum number of officers that a company can be formed with 1, 2 or 3?
    Only one officer is required to register a company since 6 April 2008, a single person can serve as sole director and shareholder. Prior to this date, the answer would have been a minimum of two.
29. What is the minimum number of shares which a UK company must issue on incorporation: one share, ten shares, one hundred shares, one thousand shares?
    A UK limited company need only issue one share at the time of its registration.
30. What is the name given to the person who takes responsibility for ensuring that all information on a company incorporation application is correct: declarant, company director, company secretary? Back to Top
    Every company formation, whether or not it is filed electronically requires a declarant to certify that the information provided on the application is correct. For online incorporations, the declarant is usually the first named director on the submission.
31. When forming a company and using a nominee director, you can use: a nominee secretary but not a nominee shareholder, a nominee shareholder but not a nominee secretary, both a nominee secretary and a nominee shareholder or neither a nominee secretary nor shareholder?
    Registering a company with a nominee director does not then place any restriction on other types of nominees that can be used in the incorporation. It possible to have all company officer positions held by nominees.
32. When forming a company, it is essential that the name is entered in the correct case as Companies House will register it exactly as it is presented, true or false?
    The case used in a company name is insignificant because all titles are registered in uppercase. A company is free to then display the name however it chooses.
33. Which Companies House Form would be used to appoint a new individual company director: AP02, AP01, AA01 or AR01?
    Form 288a is used for a new appointment. There are both online versions of this document as well as the traditional paper form. Both essentially capture the same information so that Companies House can then assess the details and confirm the change. Back to Top
34. Which Companies House Form would be used to change the address of a company director or secretary: AD01, AP01, CH01 or TM01?
    Changes to existing company officers are executed using the Form CH01. Events such as a change of residential address, name (provided it relates to the same person) and other alterations to incumbent directors and secretaries can be made using this form.
35. Which Companies House Form would be used to resign a company secretary: TM01, TM02, AP02 or AP01?
    Form TM02 is used for the resignation of a company director or secretary. The form must be signed by an existing officer as at the date of the form of the resignation.
36. Which of the following Companies House Forms can not be filed online: Form AP02, Form DS01, DCA Form or Form CH01?
    The only one of the above which can not be filed electronically is the Form DS01 which is required in paper format to dissolve an existing registered company. Back to Top
37. Which of the following is not a Companies House form: AP01, TM02, AR01 or 140?
    Form AR01, TM02, AR01 are frequently used  Companies House forms, whilst  Form 140 does not exist.
38. Which of these are not required to in order to register a UK limited company: a director, a secretary, a subscriber or a shareholder?
    A director is essential in an incorporation application, as is a subscriber. A secretary (since 6 April 2008) and a shareholder are not required. The technical name for a shareholder at the time of a company registration is a subscriber.
39. Which one the following does Companies House not class as a sensitive word: Group, Architecture, Olympic or International?
    Olympic has recently become a sensitive word since the 2012 games were awarded to London, whereas group and international both have connotations which must be justified before they can be used. Architect is a sensitive word, whereas architecture is not judged to be in the same banding and therefore can be used freely.
40. Whose name normally appears on the on the original memorandum and articles of association of a limited company: the directors, the secretary, the subscribers or the directors and secretary?
    The memorandum and articles of association bears only the name of the subscribers to the company’s shares. This is an event which will never change as it is only possible for there to be a subscriber at the time the company is registered. The positions of directors and secretaries can change at some stage in the future. Back to Top

Additional Q & A's

1. The type of UK company most like to require Form SH50 an: unlimited company, a private company limited by shares, a private company limited by guarantee or a public limited company?
   Form SH50 applied solely to a public limited company and serves to notify Companies House that the required £50,000 authorised share capital requirements are in place. Since 6 April 2008, Form SH50 no longer represents a statutory declaration and also now permits share denominations to be in an equivalent Euros value (65,000).
2. A deed of Indemnity is typically used in which of the following scenarios: when setting up a company, when dissolving a company, when using a nominee director or when appointing a subscriber?
   A deed of indemnity is commonly used when nominees are to occupy a company director position. They purpose is to clarify the relationship between the parties and to protect the nominee against the potential unlawful acts of the shadow director.
3. To register a public limited company what is the minimum authorised and fully paid up share capital which must be in issue before a trading certificate will be issued by Companies House?
   There must be at least £50,000 authorised and £12,500 worth of issued share capital before approval will be given to commerce commercial activities.
4. In order to be valid, all ordinary share certificates must be stamped with the company’s seal, true or false?
   Having a company seal is no longer a statutory requirement although they are still commonly used as an official company stamp.
5. The earliest that the first annual return for a newly incorporated company can be submitted is thirteen months from the date of its registration, true or false?
   False, an annual return can be delivered to Companies House at any time. There is not normally a reason to submit an AR01 document early but in cases where a company wishes new share issue to be recorded on an annual return for example, it may choose to file early.Back to Top