When you decide to start a new business, setting up a limited company is one of the most crucial steps you need to take. Company formation not only offers you and your business a wide range of essential legal protections, but it also cements the foundation of your business. That’s why you should never leave…
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…
Most private limited companies in the UK have to put ‘Limited’ or ‘Ltd’ at the end of their name when they are registered. Welsh companies can use ‘Cyfyngedig’ or ‘Cyf’ instead. However, some companies are exempt if they can satisfy specific criteria.
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…
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…
We are often asked to explain the difference between ‘Limited’ and ‘Ltd’ at the end of a company name. There is absolutely no difference, other than the fact that one is a complete word and the other is the shortened form. So, you can use whichever one you like.
Yes, you can reserve a company name, but only by registering a limited company. If you have a name in mind, it’s a good idea to reserve it even if you are not quite ready to start trading.
Subscribers are the first shareholders in a limited by shares company, or the first guarantors in a limited by guarantee company. They are called ‘subscribers’ because they subscribe (add) their names to the memorandum of association during the company formation process. By doing so, they are agreeing to form the business and become members of that company. If the subscribers are…
It is not possible to convert an existing limited company to an LLP because they have completely different internal structures and taxation requirements. If your business is currently set up as a limited company and you want to change it to an LLP, you will have dissolve your existing company and register your business as a Limited Liability Partnership.…
Limited companies issues share certificates to their shareholders when they purchase shares after company formation. This document certifies ownership of a share from a particular date. It is essentially a receipt of ownership. Recording original shareholders (subscribers) The Companies Act 2006 prescribes that a company must issue a share certificate when any shares are allotted (issued).…
Prior to the Companies Act 2006 coming into full effect on 1st October 2009, companies were restricted to a maximum amount of share capital they could issue. This was known as the authorised share capital, which was stated in companies’ articles of association. Companies registered after 2006 are not required to have this provision in…
A limited company is one of the most popular business models for all sizes of organisation. This is due to the many benefits it provides over other types of legal business structures. Whether you choose to register a commercial (‘for-profit’) company limited by shares or a non-profit company limited by guarantee, there are a number of perks that far…
