Benefits and Considerations of Setting up a Ltd Company

With 32,091 companies operating in the country, the United Kingdom is definitely the industrial hub of the world, according to the February 2010 reports of the Companies House. Business organizations that are established as limited companies take on a legal identity, separate from their owners or shareholders to become a corporation. In this way, setting up a Ltd company proves advantageous to the entrepreneur.

There are three types of limited companies:

• Private companies that are limited by shares. These offer limited liability to the entrepreneurs and shareholders.
• Private companies that are limited by guarantee do not have share capital. It is guaranteed by the members of the company.
• Public limited company, in which the payment on share amount is handled by the shareholders.

Benefits of Setting up a Ltd Company
For setting up a Ltd company one has to submit the required documents and data to the sole authority of company formation in the UK, the Companies House. In such an establishment, the entrepreneur’s liability is limited. In this way, the owner has to tackle less responsibility of debt situations than an entrepreneur of an unlimited company. The following are some of the main benefits enjoyed by a limited company:

• Personal liability or other risks can be avoided to a great extent
• Loans for business purposes can be availed easily
• A Ltd company enjoys more credibility
• Such a company cannot appoint Nominee Company officers or shareholders
• Records of business formalities are not required to be maintained
• The option of ‘pass through’ taxation

Considerations before Setting up a Ltd Company
There are certain considerations to be kept in mind while setting up a Ltd company. The most important of all is filling up the Memorandum of Association. This is the most crucial document and, therefore, an entrepreneur has to ensure the incorporation of the following points:

• ‘Ltd’ has to be mentioned after the company’s name. The option of not applying the word can be granted with specific exemptions only.
• The location of the company had to be mentioned.
• Company objectives need to be mentioned, along with all the activities that the company might engage in.
• Subscription of the initial members, along with their names, addresses and description must be mentioned.

Apart from this, one also has to make sure that the company name is different from existing or booked company names. Several such clauses and conditions can be easily completed with professional aid. For more information about the registration procedure, visit www.companyformations247.co.uk.

Essentials to Register a Company

Statistics provided by the Companies House, the UK, the official registrant of businesses houses in England, Scotland and Wales, show that 28,072 companies were formed in the United Kingdom in January 2010 and 32,091 companies came into being in February 2010. From small business enterprises to the big industrial brands, all want to make their presence felt in this region. To register a company in the UK, one has to simply contact the Companies House and adhere to the established rules and regulations. Getting in touch via the internet has become the preferred option, rather than visiting in person.

Requisite Paperwork to Register a Company
One could register a company under the Section 10 of the Companies Act, 1985 until October 1, 2009. After this, Section 8 of the Companies Act, 2006, was implemented. Some of the documents that have to be presented before the Registrar of Companies include:

Memorandum of Association: This form must compulsorily have the following information:

• Company’s name
• Office address
• Business objectives

The aim of establishing a business organization does not require elaboration. The objective can simply be to continue operating as a general commercial organization. This memorandum has to contain the signature of each of the subscribers, which must be attested by a witness.

Articles of Association: This document establishes the ground rules that would determine the company’s internal affairs management. This document also requires the subscriber’s signature and the attestation of a witness before it is delivered to the Registrar.

Form 10: This specifies the:

• Facts about the first directors, including the director/s names, residential addresses, date of birth, their occupation as well as information of any job profiles they have held in the last five years.
• Information regarding the secretary
• Registered official address

Each of the appointed officers and subscribers has to sign and cite the date/s of signature.

Form 12: This is a constitutional declaration of compliance with legal requirements of the company incorporation. The form needs to have the signature of the solicitor who helps in the business incorporation process. Alternatively, it also has to be signed by one director or even the secretary whose name is contained in the form. This document may be signed by any of the following:

• commissioner for oaths
• a notary public
• a justice of the peace
• a solicitor

For completing the entire procedure, you can hire agents. One of the oldest and the best incorporation agencies is Company Formations 24.7. To know about the expert services offered, visit www.companyformations247.co.uk.

Is Company House the Supreme Authority for Company Registration?

The UK had introduced a company formation and registration system in 1844. Since the year 2009, company registration affairs began to be dealt with according to the rules mentioned in the Companies Act 2006. Prior to this, business details were filed according to the laws of the Companies Act 1985. Company House, an executive agency of the UK government that operates under the Department for Business, Innovation and Skills (BIS), takes care of business registrations. All limited companies established in England, Wales and Scotland are registered at this agency. More than 2.6 million limited companies function in Great Britain and each year witnesses the incorporation of over 300,000 new business houses.

Functions of Company House

• The three major functions of Company House include:
• incorporation and dissolution of limited companies
• examination and filing of company information submitted under the Companies Act
• making all this information accessible to the public

General Information about Company House

Directors’ residential address not in public domain: Since the enforcement of the Companies Act 2006 on October 1, 2009, the home addresses of company directors are not available for public review like it was before. Previously, the obligation to file residential addresses while registering businesses had proven disadvantageous to celebrities and those business men functioning in sensitive locations. The director’s address will be displayed only if liquidators, creditors or shareholders request for disclosure of address after providing substantial evidence of the company address being ineffective. The address can also be disclosed in case it is necessitated by a decree of court.

Types of companies: The following are some of the types of companies recognized by Company House:

• Public Limited Company (PLC)
• Private company limited by shares (Ltd)
• Private company limited by guarantee
• Unlimited company
• Limited Liability Partnership (LLP)
• Limited partnership (LP)
• Societas Europaea (SE)
• Companies registered by Royal Charter (RC)
• Community interest company

The Registrar of Companies: The Registrar for England and Wales is Gareth Jones. He is also Chief Executive of Company House. His office is in Cardiff. The Registrar for Scotland is Dorothy Blair and her office is in Edinburgh. The Registrar for Northern Ireland, Helen Shilliday, is based in Belfast. Apart from this, Company House has an Information Center in London.

The best way to register a company is with the help of online registration agents, such as Company Formations 24.7. The expert team at www.companyformations247.co.uk specializes in assisting entrepreneurs with company formation procedures, administration and information services and offers its services for all stages of the incorporation process.