Forming a limited company can be a very exciting and momentous event in your life. Creating a limited company can also be a time consuming and confusing process. There are so many different elements to take into consideration, including the different types of limited company certificates, the Companies House register and the UK limited company formation guidelines. All these different elements need to be considered carefully and effectively limited company before you make any decision at all.
Creating a limited company doesn’t have to be a painful or difficult process. Choosing how to set up a limited company correctly is a major decision and setting up a limited company properly is only one of your many options open to you. Setting up a limited company simply means making a separate legal entity in your own name, whether you are the sole founder or not. Limited company certificates will be issued to your company which will entitle you to use the company’s initials, trade marks and so on.
The main function of limited company certificates is to give your company an official identity and to enable you to make the necessary decisions about the ownership and control of the company. Limited company directors are the people that hold the directorships, voting rights and shares of the company. Company directors can be anyone, including the shareholders, partners, relatives or even friends. To start a limited company, there must first be a Board of Directors and then there must be a Company Registration Service.
Company registration is an essential step in the limited company formation process because it allows for the transfer of shares from the company to the owners of the shares. After this has happened, all limited company directors are required to sign the document known as Memorandum and Articles of Association which set out the exact legal responsibilities and duties of all shareholders. These duties include the payment of dividends and capital gains to the shareholders and management of the company and its assets.
When you are doing limited company formations, it is important that you understand the differences between registered office and non-registered office. Registered offices are where all documents and dealings with the authorities take place in your own name and there are strict regulations regarding these issues. Non-registered offices are not places of business and so there are no legal documents that have to be filed with the government. These issues are dealt with at the administrative level. When you are registering the company, you should also ensure that you get an Employer Identification Number (EIN). This is a social security number that cannot be used by the business for any purpose without the permission of the authorities.
The Memorandum and Articles of Association should be registered with the Companies Registry in your name. After this, you will have to get the Memorandum of Association certified by a notary public. Once this is done, you can issue limited company shares to the company and this is when limited company tax will be charged on them. Before issuing the shares, the company will have to obtain a certificate of authority from the Secretary of State. The certificate has to be renewed every year and it should mention all the prescribed particulars mentioned above.