Limited Companies in the UK – What You Should Know!

All limited companies in the UK must be registered with Companies House, the apex body for registering a limited company in UK. Companyformations247.co.uk is a professional company registration agency that can guide you through the process. Its services are available 24 hours a day, 7 days a week.

There are three main types of companies. A company limited by shares is a UK limited company that is treated as a distinct legal entity, formed through the process of submission and acceptance of an application for registration to Companies House. On approval the company is incorporated and the Companies House provides the Certificate of Incorporation as well as a Company Registration Number indicating that the company is formed according to the UK laws and regulations.

Limited companies UK, limited by guarantee, are usually registered for non-profit purpose. They have members instead of shareholders and no share capital. The Memorandum of Association generally includes a non-profit distribution section.

Non profit making organizations such as clubs, charities and societies often register companies limited by guarantee. Members enjoy limited liability and their absolute exposure to the company’s creditors is stipulated in the constitution.

Public limited companies in UK are larger companies which can offer shares to the public for raising capital. A public limited company in UK must satisfactorily convince the Companies House that at least GBP 50000 worth shares have been issued to the public and that each share has been paid up to at least a quarter of its face value, before starting business.

A public limited company in UK is required to have a minimum of two shareholders and a minimum of two directors. The company secretary must be capable of demonstrating the necessary skills and experience to execute duties sufficiently.

Advantages of UK limited company registration are many. The status of a business is enhanced through incorporation. Remuneration can be calculated to significantly reduce one’s liabilities on tax and insurance. All expenses incurred during the conduct of business can be offset against the limited company liability. The shareholders’ personal assets are segregated from the business and protected from creditors.

Registration protects the company name legally and restricts others from trading with it, unlike sole trader or partnership firms. The death or resignation of any company director does not affect the structure of the company, ensuring continuity of business

However, there are disadvantages of UK limited company registration as well. Accounts and tax calculations have to meet statutory requirements and must be submitted to Inland Revenue and Companies House. The Directors of limited companies in UK are required by law to file self-assessment tax returns every year. Companies exceeding turnover of GBP 60000 in any twelve month period are required to register for VAT and charge VAT on every invoice and submit VAT returns every quarter.

For registering limited companies in the UK, Companyformations24.7 is the preferred destination for many. They can advise clients and help in creating a limited company in a matter of hours.