How To Form A Limited Company In UK
Many new companies are being opened in UK due to the ease in the prevailing conditions. Limited Companies are of the available option to choose from the several available.
There are several types of registrations being available for a company. Limited Company is one of them. Now a days many people are turning towards limited company formation. Basically, a limited company is the one that is limited by the shares. This can also be seen as than most common form of companies being preferred. A limited company do possess all the available legal rights and is completely responsible for the debts owned by them. Like all other companies it had to file tax returns and pay taxes on income that are being extracted from its performances. The widely seen advantage of this type of registration is that they are protected from the liabilities of the business. As every individual possess some or the other personal assets, they are kept secured. When the company faces certain losses then its personal assets are kept different from the companies assets. Thus they remain protected.
While starting on a limited company, it must decide a suitable name for its company and submit it to the Companies House. For this it should check the names available in the official website. As they are the one that are already registered with the companies house. Those names along with certain sensitive names can not be used. This must be taken into account. The trademarks index is also being checked out.
One needs to submit the Memorandum to the Companies House for the limited company formation. This must include the objectives, its name and the nominal capital. Such a company as already told is a limited liability company. In the limited company formation, only two shareholders are included along with their names, contact details and the shares of the companies. These shareholders are allowed to share a single share and automatically become a legal member of this company as soon as it gets registered. This memorandum must also highlight the policy of the company regarding the voting matters. This must be duly signed by the shareholders, along with the date and the signatures of the witness and at last printed. This includes filling of two forms i.e. form 10 and 12. Form 10 includes all the details of the director and the secretary including the names and their personal details, which are required for the legal purposes and documentation. Form 12 is a statutory declaration that requires the presence of notary or solicitor and justice of peace before it could be signed. It contains the list of the address and name of the company along with the company’s assets and liabilities.
These days while starting a business, many people are opting the formation of the limited companies, which includes the advantage of limited liability. But starting on as a sole trader consist of less formal paperwork. But a limited company offers more number of benefits. The biggest benefit out of several of them is of reduced amount of tax payment and increased security for the personal assets when business runs under problems.
When forming a UK limited company, the very first thing to be done is, choose a name of your own choice, taking into consideration that it is not being used by any other firm. For the ease of newcomers, Companies House has got a list of registered companies in UK, so that anyone can easily check the availability of the name, and also that the name you choose is not possessed by any other company. The name of your choice must contain the word “limited” at the end as you are going on for a Limited Company.
UK Limited company requires a minimum number of two members considered to be as the officers. First one is said to be the Company Secretary and the second one is the Director. The main responsibility of the Secretary is to make sure of the fact that the company submits all its annual return to the Companies house timely and everything is going on under the law.
Then decide, how to divide the shares in the company. Specify the number of shares and their value. At last the shares are issued to the shareholders and in exchange to it gets some particular amount.
Then think about the registered office because it is mandatory for each company to have its registered office. It is considered as the place where all the official work is being done and the official documents are being kept. Normally people may use either the home address or the company accountants’ office. At last your company is ready.
Starting up a new company is always a tiring job. You need to start it from the bottom and with its completion comes to the top. But it should be kept in mind that maintaining all the rules and regulations is necessary along with accomplishing the task. Even the minutest of the points should not be left behind. Firstly decide the type of company you want to get start, it can either be a Partnership based, or a Sole Ownership or a Limited Company. For the first time you must prefer a Limited company as there are numerous benefits available with it.
Setting up a limited company thus may give several benefits. Due to limited liability, the personal assets are safe and secured, if by a bad luck the business has to face losses.The procedure of company formation fast and included with it inexpensive, it is almost just a matter of some time in case of using on line services. Various significant tax advantages are found.
BA Global may provide the facility of limited company formation and UK limited company are very beneficial. Thus many of the people these days may prefer on setting up limited company.
Keywords: limited company formation, UK limited company, setting up a limited company
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