Use our Company Start-Up Service to get a tax-smart limited company tailored to your property investment goals from just £59. 

When establishing a share structure, you’ll agree the rules that determine how the company will run, the shareholders, directors and a company secretary. You'll also detail the different types of shares you have, and the rights associated with them. It’s really important to document this agreement and know how you and the co-owners are protected. It’s known as the ‘articles of association’. 

The model articles are perfectly fine for solo investors with a single share class, but if a spouse or other people are involved, having the right articles in place from day one is critical. Doing so ensures your shareholdings are legal, and can help to avoid awkward conversations with your fellow shareholders about an exit. 

Tax trap: using model articles of association

A common mistake we see in DIY incorporations is using model articles for advanced and complex share classes, such as alphabet and growth shares. 

For more complex share structures, it’s best to use a specialist (

such as Provestor and our start up service

) to prepare your articles. Advanced company structures are becoming more common and unfortunately, so are problems that arise from poorly structured shares and lack of paperwork. 

None of this can be done through Companies House when filing yourself online

, so working with an expert will help you think long term, and consider things like pre-emption rights on transfers and make provisions for what to do when someone leaves the company.

“When you’re working with non-connected parties you want to have an exit strategy in place to understand what your shareholding can do and what it can’t do. Having the right model articles - essentially your protections - in place from day one is critical. It could be that in 12 months time, you’re having an awkward conversation with your fellow shareholders!

“Also, consider the value of your portfolio in the future - you could be looking at a seven-figure sum for your portfolio value. That’s when you don’t want to discover a mistake was made back at the start of the company.”

Which Provestor service is right for you?

Case study - John's share transfer

John came to Provestor when he started to think he didn’t own the company he set up with a business partner. The issue only came to light following a bereavement, which had prompted him to look into an exit.  

If we hadn’t done this, and HMRC had launched an investigation, it could have cost 

 in unpaid dividends, and a director’s loan / benefit in kind tax as well. 

Get advice on articles of association when investing with a third party. 'Off the shelf' ones get you up and running quickly, but often don't have the flexibility or legal structure you'll need to have a clear cut way of exiting your business.

💡 PRO TIP

Chapter 4 summary

Get bespoke articles of association in place early

Bespoke articles, written by expert property lawyers, give all parties the protections they need should they want to exit, transfer shares or sell the company. They also provide clarity on voting rights and dividends and are paramount for securing lending.

 includes preparing your articles of association.

Get professional advice prior to setting up a company

Nadeem says: “My advice is always the same. A company is formed once, so make sure you get it done right by allowing 

If you need tax advice, our impartial chartered property tax advisors are here to help.

They can help you decide if a limited company is right for you, and provide advice on structuring your company to meet your investment goals.

Get more from your investment with expert tax advice

Whenever you’re ready, here are 4 ways we can help you start and manage your buy-to-let limited company:

Are your company documents fit for purpose?

Are you maximising your tax allowances?

Are you making the most of your tax allowances?

Does your share structure fit your strategy?

Are you aware of the risks of incorporation?

Are you fully aware of the risks of portfolio incorporation?

Checklist and next steps

Limited company setup checklist and next steps for investors

The ‘DIY' tax trap

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