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THE UNITED KINGDOM PRIVATE LIMITED COMPANY Legislatively controlled by the UK Companies Act 1985, along with its subsequent additions and amendments, a private limited company in the U.K. comprises a registered and uniquely named entity, through which its owner(s) will conduct an appropriate trade or business. LIMITED LIABILITY The
immediately apparent advantage of a "limited company" is vaguely
explained in its name! The owner of a limited company is removed from the
onerous accountability of its debts and protected from personal loss by the
inherent nature of limited liability. Provided the company is operated within
the legally defined framework, the benefits of limited liability can offer
valuable safeguards, effectively nullifying any financial vulnerability on the
part of its owner(s). Consideration of the obvious advantages enjoyed by a
limited company is adeptly illustrated by the array of statutory requirements,
relating to its management, control and ownership. It is essential that the
company be administered in a competent and organised fashion, since failure to
comply with regulated procedures could jeopardise and prejudice the company's
good standing. COMPANY
FORMATION AND STRUCTURE
The
formation of a Private Limited Company in the United Kingdom is a
straightforward procedure. However, legal requirements regarding the company
structure and the filing of appropriate forms with Companies House are vital to
maintain a company in good standing. Aktiebolagstjänst, Acadi Mark OY and Acadi
Norway A/S and their professional staff will assist you throughout the existence
of your company. Prior
to incorporation, the
availability of your proposed company name has to be checked and we will be
pleased to assist you to find an appropriate available name. A formation with
your own proposed name will take six to ten working days. However, in order to
process urgent transactions (e.g. to commence trading immediately), the
acquisition of a readymade company may be an ideal alternative. A list of
readymade companies is also available and such acquisitions do not involve any
additional cost. The
basic requirements for the structure of the company will include a minimum of
two officers (one or two director(s) and one secretary) and at least one
shareholder. The appointment of officers and shareholders provide the legal
framework for the management of the company. Such appointments can be effected
and changed by us and appropriate legal forms for appointments and resignations
will be filed with Companies House accordingly. Officers may be individuals or
corporate entities. Furthermore, the company will require to have a registered
office, which need not necessarily be the trading address but will require to
display an appropriate nameplate, identifying the company name. Finally, the
standard capital of a limited company is £1,000 (divided into 1,000 shares of
£1 each) and the minimum number of shares to be issued is one (£1). STATUTORY
REQUIREMENTS
Once
incorporated, the company is legally entitled to commence trading under its
newly acquired name and status, paying due attention to the statutory
requirements now demanded. The company is obligated to inform the Inland Revenue
of all information relating to paid directors and employees, since registration
for PAYE or Self-Assessment is critical to the Revenue's requirements. Companies
House can provide the director(s) of the company with necessary and accurate
information. Depending
on the company's annual turnover, it may be necessary to register for VAT and
any uncertainty in this respect should be addressed immediately with an
accountant or directly to the Customs and Excise. Information regarding VAT
Registration is available through Aktiebolagstjänst. Complete
and accurate accounting procedures must be exercised and the Accounting Date of
the company will designate the chronology of its filing responsibilities with
Companies House. The Accounting Reference Date is the last day of the month in
which the anniversary of incorporation falls. However, this date can be changed
and Aktiebolagstjänst will assist you regarding the legal procedure. Accounts are required for all companies but audited accounts are required for companies whose Gross Turnover exceeds £350,000. The Net Profit will determine the amount of corporation tax payable. Furthermore,
an Annual Return will have to be filed with Companies House.
Maintaining
the Company Register is also an essential duty and all changes to officers and
members must be documented, consistent and in continuity with information held
at the Registry. The Company Register is part of the Company kit provided by
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