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:

The Dematerialisation of Shares in the UK: Current Update & Assessment

The Dematerialisation of Shares in the UK: Current Update & Assessment

Business is an area that is continuously developing. An integral part of both business and economics are companies. It is possible to say that companies dictate the conditions of the market to a certain extent. Any public or private company has its own shares; a share is a security that provides a portion of ownership of the company and gives the holder the right to a part of the profits.

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.

Contrary to the Bearish Trend: How Tether Gained a Place in the CoinMarketCap Top 10

Contrary to the Bearish Trend: How Tether Gained a Place in the CoinMarketCap Top 10

Tether Ltd, the issuer of Stablecoin, a type of cryptocurrency under the ticker USDT, has been hotly debated for the past year. Many representatives within the crypto-community suspect the issuer of the "tokenised dollar" regarding the insufficient supply of the currency, as well as the regular "quantitative easing" of the market during periods of recession.

Current Information on the Payment of Cyprus Income Tax

Current Information on the Payment of Cyprus Income Tax

An individual is considered to be tax resident in Cyprus by spending a total (consecutive or otherwise) of 183 days or more in any one calendar year in Cyprus. Anyone earning an income in Cyprus falls into two categories:

UK Company Law: The Doctrine of Lifting the Corporate Veil

UK Company Law: The Doctrine of Lifting the Corporate Veil

One of the main advantages of forming a legal entity is to limit the liability of the members of the company. However, in some circumstances, legal entities can be disregarded. This process is known as piercing the corporate veil and is the most common method for shareholders to take responsibility for the actions of the corporation.

How to Spot Professional Money Laundering Activities: A Guide for Companies

How to Spot Professional Money Laundering Activities: A Guide for Companies

A sound client due diligence (CDD) policy is crucial for any providers offering banking, incorporation, legal or accounting services to any extent or otherwise. Compliance must play a huge role around all company decisions to accept and work with new clients, with an explicit set of rules for knowing and identifying different risk categories.

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.