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 beneficial owners of a limited company. These individuals invest money in a business in return for a portion ownership in the form of equity shares. This enables them to vote on the management and overall direction of the business and receive a portion of the profits, relative to their percentage of ownership. Shareholders are also responsible for…
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 restriction to the number of directors a company has. Typically, new appointments…
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. UK private companies and LLPs must now create and maintain an up-to-date register with details of the individuals who have significant control or influence over the company or partnership. From June 30th 2016, the information…
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 just a simplified version of the annual return with an additional requirement to include details of the information held on your register of people with significant control. You only…
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…
A corporate shareholder is the term used to describe a business entity that owns shares in another limited company. The term ‘corporate shareholder’ may refer to another limited company, a group of companies, a general partnership or limited liability partnership, a non-profit organisation or charity, a trust, a community interest company (CIC). Basically, a corporate…
A service address is the official contact address of a limited company director, company secretary, subscriber, LLP member and any person or corporate body who is registered as a Person with Significant Control (‘PSC’) of a company, including shareholders who own in excess of 25% of a company’s share capital, and guarantors who hold more…
Limited by guarantee companies are an alternative type of business structure that are normally used by non-profit organisations. They don’t have share capital or shareholders. Instead, they are owned by one or more guarantors, each of whom guarantees a fixed sum of money to the business in the event of insolvency. Typically, guarantors do not take any profit from the…
Before we discuss how to change a SIC code, it is important to understand what it actually is! What is a SIC code? Standard Industrial Classification (SIC) codes are used to classify and identify a company’s main business activities, i.e. what the company does. Limited companies are required to choose up to four SIC codes and…
You can change a company name any time after incorporation. This can be done in one of two ways. The members (shareholders or guarantors) can pass a special resolution, or the directors can vote to change it without the members’ approval. The latter is only possible if the director are granted this power in the…
