The majority of private companies registered in the UK are limited by shares.
This company structure is particularly popular as the company exists as a separate legal entity from the individual owner.
This means the owners have limited financial liability, so their personal finances are protected if the company encounters financial problems.
The incorporated status will greatly improve your professional image and business profile.
Limited companies are often more appealing to prospective clients and investors, giving the impression of a well-organized, established, and reputable business.
When you register a company name it is protected and cannot be used by any other limited company or LLP.
What are the advantages of this type of company?
Your personal assets like your property, car, finances, etc are secure and cannot be used if the company becomes insolvent.
Professional status and corporate image.
You can take advantage of favourable tax rules.
What is the difference between a sole trader and a Limited company?
- A sole trader is an individual who sets up a business on their own and registers with HMRC as self-employed.
- Unlike limited companies there is no legal distinction between the business and the individual.
- Sole trader accounts are relatively simple and no information about the business or the sole trader is made available to the public.
- Limited companies must file detailed financial accounts and company records with Companies House and HMRC each year.
- Information about a company, its directors and shareholders, and its financial accounts are all made available to the public.
Who can own a company Limited by Shares?
- Any person or corporate body can own an LTD company.
- The owners are known as shareholders and they will appoint directors to run the day-to-day activities of the company.
- You can be a Shareholder and Director of your company.
How many people are needed to set up a limited company?
- Only one person is required to register and run the company.
- You must have at least one director and one shareholder, but the same person can hold both positions.