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…
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, or a community interest company (CIC). Essentially, a…
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. Companies House, HMRC and other government agencies, will send statutory mail to these individuals at their nominated service…
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…
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 at any time after incorporation. This can be done either by having the members (be they shareholders or guarantors) pass a special resolution or (if the company’s articles permit it) by the directors resolving to do so. The first thing you should do is check the articles of association…
A dormant company is one that is currently not trading, which means it is inactive for Corporation Tax purposes. You do not have to tell Companies House that your company is dormant until it’s time to file your annual accounts. However, you must tell HMRC as soon as possible. You can do this by contacting the Corporation Tax…
There is no legal requirement for a private limited company to appoint a secretary, unless their articles states otherwise. This follows amendments to the Companies Act 2006 in April 2008. If a secretary is required under the articles, you must have one at all times. If there is no such provision in the articles, you…
