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How Do You Start A Limited Company?

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The registration process requires specific details. To Register A Company, one can use the paper process or one can file online. The major difference between the paper process and registering electronically is that there's no requirement for a statutory declaration. This speeds up the registration process significantly. Formation agents usually file electronically. Though they may have different processes due to the implementation of the software they use, they have direct links to Companies House.


Company officers.

Every registered limited company must have a confirmed board of directors 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 in a company are restricted

- Persons previously declared bankrupt are restricted

Shares

The limited company has shareholders whose liability is limited to the capital invested. This investment would be the nominal value of the shares and any installment paid for them. Limited liability company 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, shares of private limited companies cannot be offered to the general public.


Documentation

When you register a limited company yourself, there are four forms of documentation required: a Memorandum of Association, Articles of Association, Form 10, and Form 12. If registered electronically, Form 12 isn't required. The documentation is described as follows:

- Memorandum of Association describes the company name, location, functions, and liabilities

- The 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

Company formation is incredibly fast and inexpensive. You can Register A Limited Company with Companies House, the UK agency that registers every Ltd company in England and Wales, in a matter of hours. This is because you can do it using an online service. As a contractor you can benefit from significant tax advantages by trading through a limited company. 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. This includes the costs of running a home office with all the computers, software and equipment that it 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 unthinkable happens and a client decides to sue your company.

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