A limited liability company formation carries a number of substantial benefits to small and medium sized self employed businesses. A limited company formation effectively creates a new corporate body distinct from the owners of the business, shareholders, which protects those owners from unlimited personal liabilities in the majority of circumstances and can carry significant tax advantages which vary from year to year
Incorporation does carry additional responsibilities to being self employed. The company formation requires the submission of the incorporation details to Company House which must be updated and confirmed each year through the Company House Annual Return. Audited financial accounts must be filed annually both with Company House and the Inland Revenue.
Every limited liability company must have formally appointed company officers at all times. A private limited company must have at least one director, the company articles of association may require more than one, and each limited liability company must have at least one company secretary. While a director can be the company secretary a sole director cannot.
Limited Liability Company Formation
Starting a limited liability company in the UK is not complicated, company formation requiring the two Company House forms, 10 and 12, and the submission of a memorandum and articles of association to complete the company formation and registration.
Company House Form 10 provides details of the first directors and intended situation of the registered 註冊香港公司 office. A name check should be carried out with Company House to ensure the proposed name is available and suitable and the proposed limited liability company name entered on form 10 with limited as the last word. Also check addresses and post codes with Royal Mail to avoid the company formation registration being rejected. Company House form 10 must be signed by either by or on behalf of the subscribers to the memorandum Of association.
Company House Form 12 is a legal declaration that the limited liability company formation details are true and can be signed by a solicitor engaged in the limited liability company formation or a person named as director or company secretary on form 10 under section 10 of the Companies Act 1985.
The Memorandum of Association sets out the objects and scope of the proposed limited liability company stating the company name with details of the subscribers to the Memorandum of Association witnessed.
Table A is a standard format of a set of Articles of Association, a statutory document that governs the internal affairs of the limited liability company and it is recommended that Table A, Articles of Association is adopted in its entirety.
Following a final check to ensure accuracy submit all 4 documents to Company House with the company registration fee and the company formation is complete.