Key Benefits

Private Limited Companies are governed by the Companies Act 1985. A Private Limited Company is a legal entity in its own right; separate from those who run it, the Shareholders.

Key Benefits

United Kingdom

Source image: UK Parliament by Michael D Beckwith / CC BY-SA 3.0

The limited liability, potential tax advantages and simplicity in running a private limited company make it the most common form of registered business in the UK. A Shareholders personal assets remain separate (unless they are secured against the business for borrowing) and your risk is reduced to only the money you have invested in the company and any shares you hold which you have not paid for.

There is no minimum capital requirement for a Private Limited Company. Private Limited Companies are required to have a minimum authorised share capital of £1 (or its currency equivalent) and are formed with both authorised and issued share capital. The minimum issued capital is one share but additional capital is usually issued to reflect the stability of the company. Unissued shares can be issued at any time by the Directors, subject to prior approval from the Shareholders. Shares in a Private Limited Company are transferred by private agreement between the seller and the buyer.

Key Benefits

UK Limited Companies have very few restrictions or requirements which makes them a simple yet flexible solution for many businesses.

The main requirements of a Private Limited Company are as follows:

  • A registered office is required.
  • One Director is required, the Director does not need to reside in the UK.
  • At least one Director must be an individual.
  • A Company Secretary is optional however it is advised to appoint a secretary at the registered office so all requirements can be easily fulfilled.

There are a number of advantages associated with a Private Limited Company. Some of these are as follows:

  • Limitation of Liability: This is the main advantage of a Private Limited Company. The company is a separate corporate body from the individual and liability for payment of the debt stops with the company.
  • Profit Distribution: Profits made by the company can be distributed to theShareholders in the form of dividends.
  • Ownership & Control: Private Limited Companies are flexible in their control and ownership and decisions can be made quickly and easily.
  • Separate Entity & Succession: Being a separate entity a Private Limited Company can benefit from continued existence and ownership can be easily transferred to another person.
  • Flexibility of Objectives: Because Private Limited Companies do not have to set the objectives for their business in the Memorandum of Association this leaves companies free to operate in many areas and markets.

Take the next step, we are here to help.

Register a UK LTD company.
Open a UK LTD bank account.

  Resources:

Creating Physical Presence & Capital Requirements for Cyprus Shell Company Crackdown

Creating Physical Presence & Capital Requirements for Cyprus Shell Company Crackdown

Recently, the Cyprus Central Bank issued guidance to banks & credit institutions, advising them of the new mandatory refusal to take on new clients or to continue servicing existing accounts with so-called shell or letter-box companies.

How the UK is Combating Offshore Culture & How it Could be Doing More

How the UK is Combating Offshore Culture & How it Could be Doing More

Typical tax haven destinations such as BVI, Jersey and Switzerland have always been in the spotlight from profiting off of helping clients circumvent legislation in their jurisdiction of residence for decades.

Nevis: The Offshore Tax Haven Nation of the World

Nevis: The Offshore Tax Haven Nation of the World

In the world of offshore, Nevis specialises in letting its clients create corporations with greater anonymity than almost anywhere else on earth. Since 2012, the island’s financial services sector has grown exponentially, as those wishing to retain anonymity relocated to a place that promises just that. However, with ever-expanding counter legislation cropping up globally, how can Nevis continue to host such controversial services?

Expert Opinion on Cyprus’ New Borrower Incentives to Reduce the Islands NPLs

Expert Opinion on Cyprus’ New Borrower Incentives to Reduce the Islands NPLs

The Cyprus Ministry of Finance has released a statement regarding the IMF (the International Monetary Fund) & the European Commission is recommending Bills regarding the islands longstanding issue with Non-Performing Loans.

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

The financial world is undergoing a technological revolution, with approximately 3 trillion financial deals entered into using digital ledger technology (DLT) and smart contracts within the next five years.

FATCA: Foreign Financial Institutions & NFFE’s

FATCA: Foreign Financial Institutions & NFFE’s

The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, was implemented to able foreign financial Institutions and certain other non-financial foreign entities to report on the foreign assets held by their US-based account holders or be subject to withholding tax on the relevant payments.

ICOs: A Smart Business Decision or Just a Risky Investment?

ICOs: A Smart Business Decision or Just a Risky Investment?

There are many financial experts voicing their concerns over ICOs being too much of a risky investment, however should we be so quick to dismiss ICOs as a legitimate vehicle? ICOs can be used as a substitute for Venture Capital funding due to parallels in the phase of company’s lifespan and risk profiles, which give potential opportunities for future start-ups and companies.

How Initial Coin Offerings Differ from Initial Public Offerings

How Initial Coin Offerings Differ from Initial Public Offerings

Since the hectic and intense ecosphere of the cryptocurrency ventures conception, a new sphere has caught investors’ attention from all over the world, being coined ICOs or Initial Coin Offerings.