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FAQ's

Q. What is a Limited Company?

A.

A limited company has a separate legal entity to its owners, unlike a sole trader or partnership. This means the company’s finances are separate from the personal finances of their owners. A sole trader is personally liable for the business’s activities, putting the owner’s personal assets at risk should the business face financial problems. Members of a partnership are also jointly and severally liable unless it is a limited liability partnership.

The owners (known as the shareholders) of a limited company may be individuals or other companies have limited liability for the debts of the business up to the value of their shareholding; they are not personally liable for the company’s debts (unless personal guarantees have been given, or the business has been trading fraudulently). If the business fails the shareholders only lose the amount they have invested in the company. It also means that the company name is protected and the company can continue to trade if the shareholding in the business changes.

Q. What are Shelf Companies?

A.

These are companies that have already been legally formed, but have never traded nor engaged in any business transaction whatsoever. If you require a company urgently we carry a number of pre-incorporated companies which can be updated to your specifications.

Once the appropriate forms have been signed and returned with copy ID documents the company will be ready to trade.

Q. What are Companies Limited by Guarantee?

A.

A guarantee company is a non profitable corporate entity. It is a suitable vehicle for membership organisations, clubs, sports associations and the like.

To form a Guarantee Company you need a minimum of one director and one member (this can be the same person). Each member undertakes to subscribe £1.00 in the event of the company being wound up. Once the name and the main objects of the company have been established, we draft the Memorandum and Articles of Association for your approval. Where necessary, we will merge your organisations constitution with the statutory documentation. Our system has helped many charities obtain Charitable Status with Revenue and Customs.

Q. What is a LLP (Limited Liability Partnership)?

A.

Limited Liability Partnerships enjoy the commercial benefits that come from being a body corporate and their members benefit from the protection of limited liability. They are similar to an ordinary partnership – in that a number of individuals or limited companies share in the risk, costs, responsibilities and profits of the business. The difference is that in a LLP the liability is limited to the amount of money they have invested in the business and to any personal guarantees they have given to raise finance. Each member is entitled to an equal share of the profits, unless the members agreement specifies otherwise. The members pay tax and National Insurance contributions on their share of the profits. LLPs can be attractive vehicles for professional firms and other businesses, including start-ups and joint ventures.

Q. What is a Property Management Company?

A.

The Memorandum and Articles for a property management company are set up to allow the company to manage and administer a property or development, normally divided into several units with each leaseholder owning a share in the company. The company does not operate for profit but for the benefit of the shareholders. Once we have an accurate description of the property involved we will draw up memorandum and articles in draft form if required.

Q. What is an Unlimited Company?

A.

An unlimited company is a company in which the liability of the members is unlimited. The benefits being that there is a certain level of protection over the name and there is no requirement to file any accounting information at Companies House.

Q. What is a Public Limited Company (PLC)?

A.

A public limited company is necessary if the company is to trade it shares to the public. The members have limited liability and must have at least two directors, two shareholders and a company secretary. The minimum number of issued shares is £50,000.

Q. What is a Dormant Company?

A.

Many new businesses register their company as limited to protect the name and prevent anyone else registering a company in that name. If they wish to trade as a sole trader or partnership initially they do so and simply fulfill their statutory requirements of filing an annual return and dormant balance sheet. A company which is dormant if it has had no significant accounting transactions during the period in question.

Q. Once my Company is Formed What am I required to submit?

A.

All limited companies must file a set of accounts and an annual return (which is prepared by Companies Registry) A set of accounts must also be filed with the Inland Revenue.

VAT

The current threshold for VAT registration is £77,000 and you must register for VAT if your business turnover reaches this figure. You may also register voluntarily even if your anticipated turnover will not reach the threshold or you feel it may do in the future.

Registered Office Service

Your Registered Office need not be the same as your trading address and there may be advantages to keeping them separate. Certain documents have to be kept at the Registered Office and made available for public scrutiny. We can provide a Registered Office service for your new company and mail will be forwarded to you on a weekly basis. You can choose this option when entering your company details

Company Secretary

With effect from the 5th April 2008, a company secretary is no longer required on NI and GB companies. If required a secretary can be appointed in the normal way on an AP03 form submitted to Companies Registry.

Directors Service Address

If you do not want your residential address to appear on the public record, you should provide an alternative, service address. This address WILL be publicly available and could be the company’s registered office, if you wish, or another address of your choice.

Q. Can I change my Company name after it has been Incorporated?

A.

Yes, we can complete a Company Name change by completing in an NM01 and filing it at Companies House. This process can be completed within 2 -3 working days.

Q. How do I change my Registered Office Address?

A.

You can change your Registered Office address by completing a AD01 form. This form is available for download on our website.

Q. Can anyone be a Company Director?

A.

Generally, yes, but you cannot be a UK Limited company director if:

1) You have been declared bankrupt or disqualified by a court from holding a directorship, unless given leave to act in respect of a particular company or companies

2) There is a minimum age limit of 16 in the Companies Act for a director to be appointed in the UK

 

"We have worked with Des and the team at The Company Shop for 10 Years ...

Brendan Corr, Corr & Corr Chartered Accountants

 
 

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