Section 1: Understanding Limited Companies
1.1 What is a Limited Company?
A limited company is a separate legal entity from its owners (shareholders). It offers limited liability, protecting personal assets in case of business debts or legal issues.
1.2 Different Types of Limited Companies
There are primarily three types of limited companies in the UK:
1.2.1 Private Limited Company (Ltd)
A private limited company is the most common type of limited company. It requires a minimum of one director and one shareholder, and its shares are not publicly traded. This structure offers limited liability and allows for distributing profits through dividends.
1.2.2 Public Limited Company (PLC)
A public limited company is suitable for larger businesses planning to raise capital through publicly trading shares on the stock market. It requires at least two directors and a minimum share capital of £50,000. PLCs are subject to more stringent regulations and disclosure requirements.
1.2.3 Limited Liability Partnership (LLP)
An LLP combines elements of a limited company and a partnership. It offers limited liability to its partners while maintaining the flexibility of a partnership structure. LLPs are commonly chosen by professional services firms.
Section 2: Step-by-Step Guide to “Setup a Limited Company”
2.1 Choose a Suitable Company Name
Select a unique and memorable company name that complies with the legal requirements set by Companies House. Click this link to register limited company
2.2 Registered Office Address
Decide on a registered office address for your company. This address will be publicly available and is used for official correspondence. Harkia provides the registered office address service. Contact us for more details.
2.3 Appoint Directors and Shareholders
Choose at least one director and shareholder. Directors are responsible for managing the company, and shareholders own the company’s shares.
2.4 Share Capital and Shareholders’ Agreement
Decide on the share capital and issue shares to shareholders. A shareholders’ agreement may be beneficial to outline the rights and responsibilities of each shareholder.
2.5 Memorandum and Articles of Association
Prepare the memorandum and articles of association, which outline the company’s purpose, internal regulations, and how it will be managed.
2.6 Register with Companies House
Submit the necessary documents, including Form IN01, to Companies House, along with the appropriate fee to officially register your limited company.
Section 3: Why Choose Harkia Chartered Accountants?
“Create a limited company” through Harkia Chartered Accountants offers several advantages:
3.1 Expert Guidance
Our experienced team of chartered accountants will guide you through the entire process, ensuring compliance with regulations and optimising tax efficiency.
3.2 Tailored Solutions
We understand that each business is unique and provide personalised solutions to meet your specific requirements.
3.3 Ongoing Support
Section 4: Penalties for Incorrect Information Submission
It is vital to provide accurate information when registering your limited company. Failure to do so may result in penalties, such as fines or even criminal charges. The registrar of the Companies House has the authority to dissolve companies that fail to meet their statutory obligations.
Setting up a limited company in the UK may seem challenging. Still, it can be a rewarding experience with the proper knowledge and support. Choosing the correct type of limited company and incorporating through Harkia Chartered Accountants ensures compliance, expert guidance, and ongoing support for your business. Remember to provide accurate information to Companies House to avoid penalties and maintain a strong reputation.