UK Limited Company Formation, Register a UK Company, Form UK limited Company

Company Formation of UK Limited Company

What is a UK limited company, Set up a Limited Company UK

What is a UK limited company?

A UK limited company is a distinct entity in which the liability of its members or subscribers is limited, by shares or by guarantee. Limited company shareholders or directors are not responsible for any debts run up by the business and their personal assets cannot be touched. For sole traders, they are personally liable for business debts.

A limited company limited by shares, may be further divided into public companies and private companies. A limited company is registered at Companies House and must operate within the Companies Act 2006.

Private companies:

At least one director must be appointed to run the company. At least one director must be an individual. Appointment of a company secretary is optional.

Public companies:

At least two directors and a secretary must be appointed. At least one director must be an individual and the secretary of a public company must be qualified.

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Top 10 reasons to form a UK limited company:

  1. Limited companies limit the liability of shareholders to their investments.
  2. Officers of companies have limited personal liability for their actions.
  3. Limited companies benefit from higher credibility than other entities such as partnerships and sole traders.
  4. Limited companies often receive unique tax incentives.
  5. Shareholders rights are protected and clearly defined.
  6. Corporation tax is only payable after the first financial year.
  7. Directors of companies can be private individuals, nominated individuals or corporate bodies.
  8. Directors of UK Limited Companies can be of any nationality.
  9. Secretaries if appointed (no longer mandatory) can be of any nationality
  10. Secretaries can be private individuals, nominated individuals or corporate bodies.

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What is a UK limited company | Form a UK Limited Company