Registration requires specific details. In order to Register a Company, one can either use the paper process or file electronically. In contrast to the paper process, registering electronically does not require a statutory declaration. Registration is significantly sped up as a result. In most cases, formation agents file electronically. Although they may have different processes depending on the software they use, they have direct links to Companies House.
Company Officers
Every registered limited company must have confirmed company officers at all times. The company must have at least one director. The articles of association of the company might require more than one director. Some requirements for company officers are:
- A director may be another company, but at least one director must be an individual
- Directors must be at least 16 years old
- Persons who've been banned from being a company are restricted
- Persons previously declared bankrupt are restricted
Shares
The limited company has shareholders whose liability is restricted to the capital originally invested. This investment would be the nominal value of the shares and any installment paid for them. Such limited liability protects the personal assets of the shareholder if the company becomes insolvent. Any money invested by the shareholder will be lost. If there are no shareholders, or share capital, the director of the company must make a limited liability guarantee in case of insolvency. Unlike those of public limited companies, the shares of private limited companies cannot be offered to the general public.
Documentation
If registering a limited company yourself, there are four forms of documentation required, a Memorandum of Association, Articles of Association, Form 10, and Form 12. If registering electronically, Form 12 isn't required. The documentation is described as follows:
- Memorandum of Association describes the company name, location, functions, and liabilities
- Articles of Association set the rules for running the internal affairs of the company
- Form 10 gives details of the first directors and secretaries and the intended address of the registered office
- Form 12 is a declaration of compliance with all the legal requirements relating to the incorporation of the company
UK limited company advantages
It is incredibly easy and inexpensive to form a company. Using an online service, you can Register a Limited Company with Companies House, the UK agency that regulates every limited company in England and Wales, in a matter of hours. As a contractor you can benefit from significant tax advantages by trading through a ltd business. Most contractors pay themselves a minimum salary and take the company profits as dividends, which can result in much higher take-home pay compared to being paid a salary from other trading options. You can claim legitimate business expenses from your own ltd company, such as the costs of running a home office with all the computers, software and equipment that requires, plus travel expenses, subsistence and even training costs. And, as its name suggests, a limited liability company can protect your personal assets, such as your home, if the worst happened and a client decided to sue your company.
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