• I have just received my company package, what do I do next?
• What is a limited company?
• Choosing a name for your company
• How long will it take to form my company?
• Do I need a company seal?
• What is the difference between a limited company and a plc?
• Can anyone be a company director?
• Will I need to file audited accounts?
• Where can I get more detailed information?

A limited company is a separate legal person created by incorporation at Companies House. Its profits, losses, assets and liabilities are its own. The company is owned by its members (the shareholders) and run by the director (or directors) whose assets are protected from loss if the business should fail. This is sometimes referred to as limited liability. Because a company has a life of its own the business can continue despite the resignation or death of any directors or shareholders and the sale of the business or the introduction of outside investors is simplified. Reasons for wanting or needing a limited company may include ownership of property, obtaining outside finance, taxation, status and protection from risk.

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Every company's name is registered at Companies House and no two U.K. companies can have the same name or names so similar as to cause confusion. Certain words and phrases are classified as sensitive by the Department of Trade and Industry are their use is either prohibited or must be justified. We are able to arrange justification if appropriate.

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How long will it take to form my company?

This varies depending on the workload at Companies House but standard formations are usually completed within 24 hours.
Ready-made companies are available immediately and documents are delivered by courier in the U.K. mainland the following working day after payment is received.

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Changes to the Companies Act in 1989 mean that a seal is no longer required and therefore our standard package does not include a seal. If required we can supply a plier type seal for £17.50.

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• A plc is a public limited company, a limited company is a private limited company. Private limited companies are much more common than public limited companies.
• A plc may be listed on the Stock Exchange or the Unlisted Securities Market but does not have to be. A private limited company cannot be listed.
• Before it can start to trade a plc must have at least £50,000 worth of shares issued and at least 25% of the value must have been paid. A private limited company can have just one £1 share issued.
• A plc must have at least two directors and a secretary. A private limited company may have just one director and a secretary.

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Anyone, of any nationality, living anywhere in the world can be appointed a director unless:

For English and Welsh companies there is no minimum age restriction.

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All U.K. Limited Companies must file accounts at Companies House and there are penalties for late filing.
Companies with a turnover of under £1,000,000 a year can claim exemption from audit but must include a report by a qualified accountant.
Companies with a turnover of under £90,000 may dispense with audit completely.
The above figures should be checked with Companies House as they may be subject to change from time to time.
If exemption from audit is claimed the accounts must include a note stating the basis for claiming exemption.

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If you need more detailed information regarding UK Company Law we suggest you read the Companies House notes or buy Company Law by E. Marshall and M. S. Oliver. It is the textbook we use when we need to look things up.

Click here to link to Companies House notes or visit our bookshop at http://www.companysecretaryshop.co.uk/books.htm