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…
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 a company limited by guarantee are known as ‘guarantors’ because they guarantee a sum of money…
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.…
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…
There is no legal requirement to take out any kind of business insurance when you set up a UK limited company. However, you must be adequately insured if you employ people other than yourself and family members, you own commercial premises, operate company vehicles, are part of a recognised profession, your business activities present a…
The vast majority of first-time entrepreneurs underestimate the unyielding power of branding. They do so at their own peril. Branding cannot be treated in the same way as marketing or advertising. But what exactly is branding and why is it so important? According to the American Marketing Association (AMA), a brand can be defined as…
You have a significant degree of freedom when you’re deciding what to call your limited company, but there are some important rules and restrictions to be aware of. Your first port of call should be an online name-checker. This will tell you if your desired company name is available and whether you need to provide supporting…
Section 97 through 101 of the Companies Act 2006 allows for companies to change their legal status from a UK public limited company (PLC) to a private limited company (LTD) in one of three ways: passing a special resolution of the shareholders; obtaining a court order to reduce the capital of your company; or following…
Non-UK residents from outside the European Economic Area (EEA) and Switzerland can apply for a Business Visitor visa if they need to visit the UK for a short period of time for any business related activities. EEA and Swiss nationals do not need a UK visa. The need for a visa will apply if you have…
Private limited companies are required to pay Corporation Tax on all forms of taxable income. To do so, a company must be registered with HMRC as ‘active’ for Corporation Tax purposes. This must be done no later than 3 months after carrying on any type of business activity, which includes: Buying and selling goods and services Renting…
Companies House displays the names and shareholdings of all company owners on public record. The first shareholders, who are also referred to as ‘subscribers‘, must also provide a service/contact address. However, any shareholders who join a company after incorporation do not have to provide address details. Update shareholder information with an annual return If the…
You have lots of different options regarding how many shares you can issue when setting up a limited company. A minimum of one whole share must be issued during the company formation process. If you are registering a company with more than one shareholder (member), you must issue at least one whole share to each…
