In the context of limited company formation, a company is active as soon as it is incorporated. However, it is only considered ‘active’ for corporation tax purposes when it is carrying on any kind of trading activity, such as buying and selling goods or services, managing investments or receiving income of any kind, including bank…
Limited company shares can be transferred or sold just like any other form of property. The need to do so can arise for many reasons. For example: the retirement or death of a shareholder; recouping an investment; gifting shares to family members; raising additional capital; or bringing in a new business partner. A stock transfer…
When you form a company, HMRC will be notified shortly after by Companies House. They will then issue a unique tax reference (UTR) for your new company, so there is no need to apply for a UTR yourself. HMRC will enter your company’s details onto their database and send out a letter with your tax…
Directors are appointed by members (shareholders or guarantors) to lawfully manage the day-to-day business activities and finances of a limited company. Members also have the power to remove a director under certain provisions in the company’s articles of association, by ordinary resolution of the company’s members or by a disqualification order made from an authorised…
You can issue more shares in a company after it has been formed. You may wish to do this to raise additional capital, bring in a business partner or achieve some other kind of objective. There are a number of factors you will have to consider before allotting more shares in your company, namely: authorised…
In order to register a private limited company, you must issue at least one share. It is essentially a ‘piece’ of the company, or a percentage of the business. Think of it like a cake cut into slices, or a pie chart. If a company issues only one, it is worth 100% of the company. If…
The statement of capital was introduced on 1st October 2009 when the Companies Act 2006 came into full effect. It also provides a brief summary of a limited company’s issued share capital at a certain date. All limited by shares companies are required to complete a Statement of Capital and Initial Shareholdings on Form IN01 during…
