All limited companies must have at least one director at all times. In small companies with a sole director, just because they do all the work does not mean they will automatically be classed as employees. Instead, company directors are known as office holders. The status of ‘employee’ will only be afforded to them under…
The vast majority of companies in the UK are limited by shares. However, some organisations choose to be limited by guarantee. At some point during the life of a company, as a result of a change in direction or policy, it may become preferable to operate under the alternative setup. But can you convert a…
Each year thousands of businesses are asked to complete ONS business surveys. Similar to jury service, being selected to take part in a survey is relatively random and complying with the request is a legal requirement. So what is the ONS and what is the purpose of their business surveys? What is the ONS? The…
There are two methods of removing a company from the register maintained by Companies House: compulsory or voluntary strike off. These are mutually exclusive and their use depends on the particular circumstances of a limited company. We will take a look below at the differences of having a company struck off the register compulsorily or…
What is share capital? All companies limited by shares must assign a nominal value to each of its shares upon incorporation, e.g. £1 or £0.01. This nominal value represents the ‘limited liability’ of company members; it denotes the sum that shareholders must pay in respect of each share if the company is wound up. The…
Setting up an online business in the UK is an increasingly popular option for both start-ups and established ‘bricks-and-mortar’ retailers. With more consumers than ever before now choosing to shop online, the UK has the largest e-commerce market in Europe and the third largest in the world. The Coronavirus crisis has further accelerated the shift…
There is a wealth of information available online which can help people who are considering forming a limited company. Whether it’s a start-up or an established business which wants to move from a sole trader or partnership model to an incorporated entity, troves of government information and well written business blogs can provide valuable guidance…
Electronic signatures have been around for a number of years and have been applied to a variety of documents which previously required a physical or ‘wet ink’ signature. But can an electronic signature alone be relied upon to process all corporate documentation? We will take a look below at some of the legalities and practicalities…
There are many good reasons to use an accountant to help with the smooth running of a limited company, particularly when it comes to submitting annual accounts and managing tax affairs. However, in terms of the process of forming a limited company, there is no need to use an accountant, even though they will generally…
If you are starting a new business or converting from sole trader to a limited company, you will need to choose a company name before making an application to Companies House. This may sound like an easy enough task, but it does require quite a bit of consideration to ensure that the name is right…
Whereas sole traders generally pay themselves directly out of any business profits, there are more options available to the owners of limited companies. As well as being able to pay themselves as employees through PAYE, a company shareholder (who may also be the sole director and owner, particularly in smaller companies) can also, or alternatively,…
There are around 1.7 million contractors in the UK, many of whom operate as sole traders. A large proportion provide services exclusively (or primarily) to one client. A significant number of companies have tried to convert a portion of their workforce from employees to contractors, often for tax avoidance purposes. To counter this trend, the…
