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 bring a dissolved company back to life 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…
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, there are certain advantages – one of which is ‘limited liability’. As the name suggests, any liabilities of a limited company generally do not extend beyond the…
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…
Address requirements can cause a great deal of confusion when setting up a business. If you find yourself in this situation, you’re not alone. When you start any type of small business, whether you set up as a sole trader or register a limited company, you will need to nominate at least one address for…
Shareholders are the legal beneficial owners of a limited company. These individuals (or companies) invest money in a business in return for a portion ownership in the form of equity shares. In return, they are usually entitled to vote on the management and overall direction of the business and receive a portion of the profits,…
The first directors of a private limited company are appointed by shareholders (or guarantors) during the incorporation process. New directors can be appointed at any time after company formation, either as a replacement or in addition to the current director(s). There is no statutory restriction on the number of directors a company has. Typically, new…
A director is someone who manages the day-to-day aspects of running of a limited company, which includes all operational, financial and administrative duties. Along with company secretaries, directors are also referred to as “officers”. Directors are appointed by the shareholders or guarantors (“members”) who own the company. In many cases, particularly small companies, members assume…
The requirement to keep a register of people with significant control (PSC register) came into effect on 6th April 2016. Under the regime, UK private companies and LLPs must create and maintain an up-to-date register with details of the individuals who have significant control or influence over the company or partnership. What is the PSC…
On 30th June 2016, the annual return was replaced with a new filing requirement called a ‘confirmation statement’. Despite the different name, the confirmation statement is essentially a simplified version of the annual return. You only need to file a confirmation statement once a year and there is no change to the filing fee and…
A limited company is a type of business structure that has been incorporated at Companies House as a legal ‘person’. It is completely separate from its owners, it can enter into contracts in its own name and is responsible for its own actions, finances and liabilities. The owners of a company are protected by ‘limited liability’, which means…
