Limited Company
A Limited Company is an association of two or more persons generally formed for the purpose of making a profit.
The benefits of a Limited Company are:
- The company enjoys separate legal personality distinct from that of its shareholders and directors.
- The shareholders enjoy limited liability if the company cannot meet all its debts.
- There can be tax advantages but not necessarily in all cases.
The disadvantages of a Limited Company are:
- A company can only be formed by registration with Companies House and involves a reasonable amount of expense.
- Companies must comply with legislation which involves stringent timescales.
- Companies lack privacy and face higher administrative expenses.
If you decide to set up business as a Limited Company we can advise you on a suitable name, form the company for you and register it with Companies House. We will also help guide you through the maize of financial and other records you will be required to keep. You may even wish us to maintain the financial records for you. We will advise you if you require to be registered for VAT. At the end of your trading year we will prepare financial accounts for you, calculate Corporation Tax liability, complete Corporation Tax Return and submit to HMR&C along with the supporting paperwork. In addition we will submit the Abbreviated Accounts to Companies House.
As directors are treated as employees of the company you will have to register the company for PAYE. We will advise you on your legal obligation to operate PAYE. If you find the idea of PAYE daunting our payroll bureau will do the work for you.