UK Limited Company (LTD) Formation
What is it?
It is a type of company in which the owners are only responsible for those debts that correspond to the share capital. This type of company is an entity independent of its owners. That is, it is a form of incorporation that limits the amount of liability to one or more shareholders of the company. In a legal sense, it is a person.
Who is eligible for this type of campaign?
Limited companies are intended especially for small and medium-sized traders who do not wish to risk all of their assets in general or limited partnerships or to establish shareholders’ companies, which are subject to stricter legislative requirements. But it can also be used for large businesses.
You can register a company thanks to our service, which guarantees quality, excellent service and speed, also a minimum payment for all services.. Pay the cost of registration services. In general, registration on other sites can cost from £15 to £249.
LTD annual reporting in the UK
By the title of the paragraph, you may have already realised that limited liability companies submit reports to the tax authorities on an annual basis. It is important to note that once a campaign has started for a year, it is an exempted company. However, after 18 months of existence, the company must submit Annual Accounts, which include a balance sheet and a profit and loss account, as well as explanations for them. You must also initially submit an Annual Return, which provides general information about the company: name, company registration number and address, owners and director. It must be submitted every 12 months from the start of the campaign. It is also important to submit an Annual tax return, which includes information on the company’s profits for the period and the amount of tax paid. Annual Accounts and Annual Return are submitted to the Companies House. In contrast, the Annual Tax Return is submitted to HM Revenue & Customs (the tax office in the UK) as a completed form.
How is a Limited company incorporated?
In order to register this type of company, you will need personal information about you and the shareholders (there have to be at least three points):
- your town of birth
- maiden name of your mother
- father’s name
- passport number
- telephone number and
- national insurance number.
You can register with an agent, third party software or by post, but it’s still better to do it thanks to our service, which works for the well-being of its customers and simplifies the entire registration system and takes care of all the work. If after registering you do not want to use the prefix Limited or Ltd at the end of the company name then you have to register using the post office (this costs around £40).
Important note: after 3 months of doing business you have to register for Corporation Tax. (whether you choose to use our service you may not even think about this — we will do it for your together with the registration
The company registration package must include a completed partnership application form, a brief description of the business and the amount of share capital. Separately, a registered office in the UK is required. Once the documents have been checked, the company will be added to the online register within literally 2 hours. Further in 5-7 days corporate documents of the company will be prepared, which by means of courier services will be delivered anywhere in the world to its owner.
Is it possible to open a business as a non-resident?
Our company will help you with the registration of all addresses, so you do not have to worry about the legal address, address of the director, shareholder, etc. So, if you really want to create a limited company in the United Kingdom, but you live abroad, do not worry and feel free to write to us, and we in turn will be happy to help you in all.
Rights and obligations of a participant in a limited liability company
As for legal rights, they are as follows:
- Participation in the management of the company’s affairs
- Access to accounting and other documents
- Obtaining full information about the Company’s activities
- Exercise of the right to liquidation quota (this means the possibility to receive the monetary or property equivalent of a part of the Company’s property, which remains after the settlement with creditors)
- The ability to withdraw from the company at any time and receive a share of the property, regardless of the opinion of the other members
- Opportunity to sell or assign one’s share (or part of a share) in the authorized capital of the Company
As usual, apart from the rights of the LTD participants, they have the following duties:
- making contributions to the authorized capital (the size of contributions, the procedure of making them and the period within which they should be made are determined by the current legislation and the constituent documents of the Company)
- keeping business secrets and non-disclosure of classified information about the work of the LTD
What are the advantages of such a company?
- No company Secretary Needed
- Minimum share capital is £1
- Possibility of obtaining a taxpayer number
- The first year of operation is tax deductible
- Protection of personal assets (house, flat, etc)
- More likely to be trusted by other companies
- Quick and easy registration
- Corporate tax rate of the company 19%
Thus, we can say that Ltd. companies have so many advantages, because of what they are worth choosing. First of all, it is the simplicity of business registration. Secondly, the minimum tax and the first year of business registration for the company will be preferential. Thirdly, shareholders and directors have no risk of losing their material property (apartment, car, house), but only the assets invested in the company.