Before your business can begin operating as a limited company, it has to be registered with the Companies House. A limited company is a legal structure in which needs to have at least one director and one shareholder. A director is a person who legally is working for the business. A shareholders is a owner of the business.
As a result a person can be a director and a shareholders at the same time. A limited company does not need to have a secretary any longer. If you wish , you can appoint one person who can not be the secretary and a director at the same time.
The initial capital in a limited company is the capital employed to start up the venture. This capital is divided in pieces know as shares in which the shareholders own them. Lets say for instance this company has two owners (two shareholders ) and the total capital is £1.000 ( divided in 100 shares of £10,00 each). If each partners has 50% of the business, they will have 50 shares of £10,00 each one.
Please, follow the next steps to register your company. If you have any question, please contact us at : 0207 328 8338
Limited Companies have to pay corporation tax on their profits. They also need to operate a PAYE system to collect and pay income tax and National Insurance Contributions from their employees – including company directors.
The company itself must work out how much corporation tax it needs to pay, using a self-assessment system. To avoid paying penalties, it’s important to understand how this system works and when your company needs to make returns.