A company "Limited by Shares" is a company which is owned by its shareholders. It is the most common type of business structure and generally is for any company looking to make profit. We can assist you in forming a Limited by Shares company from our package page.
Here are some quick facts about this type of company structure:
- Under the limited company structure, your company and personal finances are kept separate, unlike the sole trader structure. This means your company is it's own legal entity and can hold assets in its name. If things go wrong and a limited company fails, its directors and shareholders have 'limited liability' in that their personal assets cannot be touched.
- A limited company by shares is owned by its shareholders. They can operate with just one director and shareholder.
- Limited companies are subject to corporation tax on their profits. If your limited company is going to turnover £85,000 or more per year, you must register for Value Added Tax (VAT).
- All limited companies must be registered at Companies House. All limited companies should submit a 'Confirmation Statement' (previously known as an Annual Return) to Companies House each year as well as their Annual Accounts.
When registering a Limited by Shares company, you'll need:
- A company name
- At least one director - must be 16 years or older and, can be of any nationality and live anywhere in the world. You can appoint a company as a director but you must have at least one "person" also.
- At least one shareholder and the share capital - the shareholder can be of any nationality and live anywhere in the world. You can appoint a company as a shareholder.
- Details of people with significant control (PSC)
- A UK registered office
- Your Standard Industrial Classification (SIC code)
- To think about registering for corporation tax - if you start trading, you must register for corporation tax within 3 months
- To check whether you need to register for VAT
- A business bank account - to keep your personal and business finances separate (this is optional)
- A licence for some business activities - not all companies need a licence but use the licence finder to find out