| | |
| | The
main advantages of a limited company are as follow: |
| | |
| | Separate
Legal Identity |
| | A
limited company is a separate legal entity. It is separate from management and
its members (the shareholders) |
| | |
| | Limited
liability |
| | The
protection given by limited liability is the most important advantage of a limited
company. |
| | Members'
only liability is for the amount unpaid on their shares. Since most private companies
issue shares as fully paid, if things go wrong, a members' only loss is the value
of the shares and any loans made to the company. |
| | |
| | Personal
assets are not put at risk. |
| | |
| | The
protection of limited liability does not, however, apply to fraud. Company directors
have a legal duty not to incur liabilities in their companies which they have
reason to believe the company may not be able to pay. |
| | |
| | Protection
of Company Name (Legal status ) |
| | The
name of the company is followed by the word Limited or of its abbreviation: "Ltd".
This term underlines the limited responsibility of the shareholders. |
| | New
Shareholders and Investors can be easily introduced. |
| | The
issue, transfer or sale of shares is a relatively straightforward process. |
| | A
minimum of one shareholder is required. This can be a person or a company. They
can based anywhere in the world. |
| | |
| | Capital
|
| | The company
can be set up quickly (between 2 and 4 weeks) and relatively inexpensively. The
minimum capital required for a limited company in the UK is £1. |
| | |
| | Taxation |
| | Companies
pay Corporation tax on their taxable profits. There is a wider range of allowances
and tax-deductible costs that can be offset against a company's profits. |
| | |
| | Memorandum
of Association |
| | Part
of the registration process involves stating the nature of your new company. |
| | |
| |
Registered office |
| | The
company must have an address in the UK. This is called the registered office or
the official address of the company. On the other hand the meetings of director
can be held anywhere. |
