Forming a Limited Company
Limited companies are often set up by small companies, sole traders and new business start ups. There are two types of limited company - privately owned and public limited companies. Privately owned companies are simply owned by an individual/individuals whereas public companies here will trade their shares on the stock market.
In order to set up a limited company you will need to:
1. Decide on a company name and then make a check to see if the name is already registered and that the name will be acceptable.
2. Have a registered address for the company in the UK.
3. Apply to Companies House to register your limited company (this will involve a fee). This is often referred to as Incorporation.
Limited companies do not need their owners to take responsibility for problems such as debts - this is known as limited liability. To qualify here you will need to:
1. Go through the registration process with Companies House as previously outlined.
2. File Annual Accounts and an Annual Return with Companies House every year.
3. Take responsibility for any dealings with the Inland Revenue.
4. Make sure that all employees of the company pay income tax and national insurance.