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 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 to see which…
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.
Directors must prepare and send annual accounts at the end of their limited company’s financial year. They must be delivered to Companies House 9 months after the accounting reference date (ARD), at the very latest. You can send annual account online via WebFiling or by post. Small and medium companies may qualify for an audit exemption. If…
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…
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.
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 is the name of Companies House form SH01. This form must also be completed if you issue (‘allot’) new shares after company formation. It should then be delivered to Companies House within one month of an allotment.
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…
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.…
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 –…
