Limited Company UK

If you have a Limited company you are limiting your personal liabilities.  A Limited Company is a legal entity in it's own right. You are not personally liable for the company's debts, as long as you have traded legally or you have not given personal guarantees regarding contracts or suppliers etc. If things go wrong the creditors are paid out of the company's assets not from your own personal assets. Also once you have chosen and registered your company name no other company can use the same name, unlike business where names can be duplicated.

If you are trading as a sole trader or a business that's not LTD you and your business are treated as one. This means if you have problems with the business you are personally liable for any debts the business incurs. This can put your house and any personal assets you might have at risk.

You can handle the registration process yourself, but it is a good idea to seek professional advice before you do so to ensure that incorporation is right for you. A company formation agent, solicitor, accountant or chartered secretary can carry out the process for you, for a fee, as well as offer advice.

The Companies Act 2006, which came into force in stages in January 2007 to October 2009, introduces a number of changes that affect both directors and shareholders of limited companies.

On average there are over 1,000 company registration applications every day. Most people setting up a limited company are doing so for the first time and are fortunate if they encounter a friendly company formation system to guide them.

Although the UK company set-up process can be an easy one, there are alot of situations where mistakes are made.
On some occasions people incorporate a limited company with shares when they intend to register a limited company by guarantee. Others issue the entire authorised share capital on formation when it would have been wise to issue just a few shares.

These errors are a common occurrence when using incorporation services and, to some are very easy to make, but the tasks of correcting them can be both time consuming and expensive.

Originally, a limited company could only be formed in the UK if there were 2 or more directors and a secretary but this is no longer the case. As a result of recent legislation, the limited company no longer requires a company secretary and there is only a requirement for one director in private limited companies. It's now possible to run a private company as a one-man band, without the need for involving others in its administration and management.