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…
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…
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…
Generally, it is not possible to be appointed as a company director or continue acting in such a capacity if you become bankrupt. These restrictions will remain in place until you are ‘discharged’ (i.e. released) from your bankruptcy order, which usually lasts 12 months but can be longer. In some cases, the court may permit…
To enjoy the benefits of limited liability, UK companies and the people who set up, control, and own them must provide certain information to Companies House. Most of this data is added to the public register of companies, which is available to everyone and can be accessed free of charge online. The details on this…
In the UK, Stamp Duty tax is payable on the transfer of existing shares. Calculated at a rate of 0.5% of the sale price of the shares, Stamp Duty (SD) must be paid to HMRC by the purchaser (the new shareholder) when: the price paid for shares is greater than £1000, and the sale is…
A dissolved company is one that has been closed and struck off the register at Companies House. When this happens, a company ceases to exist and is no longer able to trade. In certain circumstances, however, it is possible to restore a company that has been closed by applying to Companies House for ‘administrative restoration’.…
Put simply, a shareholder is someone who owns one or more shares in a company. A share essentially entitles you to a piece of the business. Usually, the bigger your shareholding, the larger proportion of the company’s profits you are entitled to, and the greater control you will have in the company. Companies can have…
Are company directors liable for the debts of the company? We explain the circumstances where directors of a limited company can be held responsible for its debts. While setting up a limited company entails a bit more in the way of formation than being a sole trader, as well as greater financial and admin responsibilities,…
Companies House Service is a digital search service that provides free access to all public information stored on the UK register of companies, and until recently was called Companies House BETA. The public ‘beta’ trial period for Companies House Service was launched in June 2015. ‘Beta’ is an IT industry term for software which is…
