Limited companies

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Limited company is the most frequently chosen form of a business activity in United Kingdom. It is one of the most favourable, which gives many advantages and perks.

Taxation – one of the biggest advantages of running limited company is its tax efficiency.
Self-employed and partners in a partnerships pay progressive income tax in which tax rate increases as the taxable amount goes up. The limited companies pay corporation tax which rate is static across the board (currently at 19%), regardless of the level of profit before tax. The limited companies have incomparably more factors (allowable expenses, reliefs) to drive the profit before tax down and therefore reduce its corporation tax liability.

Separate legal entity – has its own legal rights and obligations separate from those of its members or directors. The company’s property is its own and is not treated as belonging to the company’s directors or shareholders. The company itself can enter into contracts, employ people sue and be sued and can be liable if it commits criminal offences.

Quick incorporation – registration is quick and seamless. The process comes down to filling in relevant form on the Companies House website. The processing time takes around 24 hours. There is no requirement in terms of the level of share capital from initial share holders, although often it stands at £100 and is made up of 100 shares. It is not expected to deposit the initial capital in the company bank account but instead declare the amount at the point of incorporation. There is only one shareholder required to register the company. It is allowed for the same person to be a director and shareholder at the same time.
The successful registration does not require for the shareholders to live or be resident in UK. The only condition to meet is the UK registration address and phrase “Ltd” or “Limited” used in the name of the company.

Limited liability of shareholders – on the off chance that a company goes into financial difficulties, the share holders is legally protected. Financial liability for the company’s debt and obligation is restricted to the value of his shares and potentially, loan given to his own Ltd company.

The company’s name is legally protected – when you register your company’s name at Companies House, it is protected by law. No other business can use it.

Our practice provides comprehensive accounting service to limited companies of various sizes. We will look after the bookkeeping, flag up outstanding debtors, periodically report a balance sheet and profit or loss statement to shareholder(s) and directors.

Acting as your agent authorised by HMRC, we will prepare the corporation tax computation, file annual accounts with Companies House, prepare annual tax return for directors and shareholders and fulfil any formalities required by law. We will deal with your payroll. When the time comes, we will register your company for VAT, file quarterly returns and de-register in due course when it becomes economically viable and justified. We can do all this to free you up and enable time to focus on expanding the operation. Being in touch throughout, we will advice on the tax & NIC related matters to shareholders and directors.

Finally, we will represent your company, shareholders or directors during HMRC audits & investigations. If there is a need to change the companies name or in the adverse circumstances of dissolution and de-registration, our company will guide you through the process.