Can I reserve a company name?
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.
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Can I remove a company secretary?
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…
The return of allotment of shares explained
The Return of Allotment of Shares is the name of Companies House form SH01. This form must be completed if you issue (‘allot’) new shares after company formation. It should be delivered to Companies House within one month of an allotment.
What is a subscriber of a company?
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…
Can I change a limited company to an LLP?
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.…
What is a holding company?
A holding company is a very specific type of business that usually conducts no activity other than owning (‘holding’) shares in other companies, managing other businesses and receiving dividends from its subsidiaries. Section 1159 of the Companies Act 2006 states that: A company is the “subsidiary” of another company, its “holding company”, if that other company –…
What is a share certificate?
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).…
Where do the company profits go?
Company profits are distributed according to the provisions of the articles of association. Limited by shares companies are set up by profit making businesses, which means that surplus income is normally paid to shareholders in relation to the number and value of their shares. Companies limited by guarantee, on the other hand, are usually set up…
Authorised share capital – how to include, amend or remove it
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 the company’s constitution. Companies registered under the 2006 Act are not required to have this provision…
Will my limited company be audited?
An audit is an in-depth review and analysis of accounting records and bank accounts. It will also involve a full stock take of all assets. The purpose of auditing a limited company is to confirm the accuracy of the financial transactions and figures stated in your annual accounts. It an excellent way to reassure HMRC and investors…
Who owns a limited company?
Private limited companies are owned by individual people, trusts, associations and/or other companies. The owners of a company limited by shares are known as ‘shareholders’ because they each own at least one share in the company. The owners of companies limited by guarantee are known are ‘guarantors’ because they each guarantee a sum of money…
Contractors, freelancers and consultants – what’s the difference?
Contractors, freelancers and consultants. These terms are used frequently in the world of company formation, but what do they actually mean? It’s particularly confusing because these labels are often used interchangeably when discussing self-employment, but there are significant differences between all of them. Consultants Generally, the role of a consultant is to advise or consult.…