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. It’s entirely up to you whether to use Limited or Ltd. Using Limited or…
One of the many important statutory duties of directors is prepare and send annual accounts at the end of their limited company’s financial year. These accounts must be delivered to Companies House 9 months after the accounting reference date (ARD), at the very latest. You can deliver them online via Companies House WebFiling or Companies…
A dormant company is a limited company that is not trading (i.e. not doing business) and not receiving any other forms of income. In such instances, the company is deemed ‘inactive’ for Corporation Tax purposes. If your company is dormant, you do not have to tell Companies House until it’s time to file your annual…
To reserve a company name, you will need to register a limited company. If you have a name in mind, we would advise reserving it as soon as possible, even if you are not quite ready to start trading. This will prevent anyone else from registering the same company name. Reserve a company name by…
There is no legal requirement for a private limited company to have a company secretary, unless the articles of association expressly state that one must be appointed. This follows amendments to the Companies Act 2006 in April 2008. If a secretary is required under the articles, you must have one in office at all times.…
The Return of Allotment of Shares is the name of Companies House form SH01. This form must be completed if you decide to issue (allot) new shares at any point after incorporation. You must deliver the Return of Allotment of Shares to Companies House within one month of an allotment. There are many reasons why…
A subscriber is an original member of a limited 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 company, become members, and have their names entered in the company’s register of members. The subscribers…
Limited companies and LLPs may share a number of characteristics, but they have very different internal structures and taxation requirements. This means that you cannot change a limited company to an LLP by simply converting one structure to another. The only option available is to dissolve the existing company and then register the business as…
A holding company, sometimes known as a parent 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 subsidiaries. Section 1159 of the Companies Act 2006 states that: A company is the “subsidiary” of another company, its “holding…
Limited companies issue share certificates to their shareholders when they purchase or receive gifted shares at any point after company formation. The share certificate certifies ownership of a share from the date that it is purchased or transferred. It is essentially a receipt of ownership. Recording original shareholders (subscribers) shares The Companies Act 2006 prescribes…
Company profits are distributed in accordance with the provisions set out in 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 the form of dividends. Companies limited by guarantee are usually set up by non-profit businesses, so surplus income…
Prior to the Companies Act 2006 coming into full effect on 1st October 2009, companies were registered under the Companies Act 1985 and restricted to issuing a maximum amount of share capital at any given time. This was known as authorised share capital, which was expressly stated in the company’s constitution. Companies registered under the…
