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Mint Formations

UK Limited company (limited by shares)

The most common form of company is a Private Limited Company by shares. The company is owned by the shareholders and there must be at least one shareholder to take at least 1 share upon incorporation. The shareholders appoint directors to run the company. It is not uncommon in a small company for there to be one shareholder who is also the sole director.

There are 3 potential advantages to being incorporated as a Limited Company:

1) Tax

Generally speaking, a business owner may be better off financially to incorporate as limited company. Dividend taxes can be lower than self-employed taxes and national insurance.

2) Liability

Unlike a sole trader, a Limited Company director or shareholder is not liable for the debts of a company, unless they have wrongfully traded or have a personally guaranteed debt. The liability in general (for example work completed) is also limited to the company and not the individual director/shareholder.

3) Professionalism

Unlike a sole trader, a Limited Company has a company number and is listed on the register of companies, which can be viewed by the public.

What are the annual requirements of a limited company?

A trading company must file the following every year

  1. Confirmation statement (to confirm information held about company and update persons of significant control register)
  2. Accounts and tax returns to HMRC and Companies House

A non-trading (dormant) company may only file dormant accounts with Companies House and no tax return to HMRC.

What must be on an application to register a Limited Company by shares?

A Limited Company must have at least one director and one shareholder (who can be same person), and a registered office address in the United Kingdom (that cannot be a PO box.) A company must also confirm its trade by way of a “SIC code” and list all those who are persons of significant control (e.g. owning directly or indirectly 25% of the shares).

How do I set up a limited by shares company?

A company must be registered with Companies House, for which you can use our online service.

Form your UK Limited company now

Register your new limited company (limited by shares), the correct way. We offer simple step by step instructions and live support.

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Prefer a personal manager to register your company on your behalf?

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