 New Ready To Trade CompanyLimited Company Formation With Registered Office
PopularityLimited Companies (Companies limited by shares) are the most popular type of company formation. They are structured to make and distribute profits while at the same time protecting those who own them (shareholders) and those who run them (directors). Limited Companies are the type of organisation with which Investors, banks, suppliers and customers are most comfortable. They are identified by the “LTD†or “Limited†suffix.
Protecting a Name Limited companies are often formed to own or protect a trading name. Companies House will not allow two companies or LLPs with the same name to be on the register, so the first registration stops other companies being formed with the same name. The level of protection afforded by having a name on the Companies House register is not the same as trade mark protection. For instance, it does not stop someone opening an unincorporated company with the same name. Being first on the Companies House register is an inexpensive method that gives a reasonable amount of protection but is not “air tightâ€; Trade Mark registration is significantly more expensive. Creating a Limited Company (Company limited by Shares) Limited Companies are created by a process of registration at Companies House. The entire process can be completed online and without the need for signatures or paperwork. Details of directors, shareholders (also known as members or subscribers), the official address (registered office) of the company, a statement of capital and its Articles of Association are submitted online to be processed by Companies House. The information submitted is checked by Companies House. They take 1 working day (24hrs) to complete the process and register the company. Legal Entity Once a company is registered it becomes an independent legal entity (legal person). It has legal capacity and is separate from its owners (also known as shareholders or members) and its directors. It has the legal capacity to own property and assets, employ staff and accept financial obligations. Its assets and debts are its own. Shareholders and directors A limited company only needs 1 director and 1 shareholder, and they can be the same person. It can be formed with £1 capital, so only 1 share of £1 needs to be issued. There is no requirement for a company secretary. The fact that so little is required to form a company further explains their popularity. Other companies can also be shareholders and directors of limited companies, as when a group of companies is created. A limited company must have at least 1 natural person as a director.Shareholders are the joint owners of a company. Each shareholder’s stake in a company is represented by the number of shares he or she owns. There is no limit to the number of shareholders a company can have. Directors handle the running of a company and are answerable to the shareholders. In small companies, in particular, shareholders are usually the directors as well. Company Secretary
There is no longer a legal requirement to have a company secretary unless your company is a PLC or your Articles of Association state otherwise. The duties of a company secretary are not set out in the Companies Acts.
The duties of a company secretary are usually; the maintenance of the share register and statutory books, filing of documents at Companies House, updating of Companies House records, arranging and recording of shareholders and directors meetings, and drafting resolutions.
Notifying HMRC that you are tradingHMRC monitor the Register at Companies House. They are aware of all new company formations. Shortly after your company is registered, they will issue your company a UTR (Unique Tax Payer Reference number) which will be sent to your Registered Office. You are obliged to advise HMRC that your company is trading if they do not contact you or if you have previously notified them that your company is dormant.
Articles of AssociationThe Articles of Association are the written rules of the company. They explain the way it will conduct its business, call meetings of shareholders, meetings of directors and so on. They are the constitution of the company. The majority of Companies, including those incorporated by us, use the model Articles contained in the Companies Acts 2006. A company is governed by the Companies Act 2006 and its own Articles of Association.