Running a Limited Company - where do I start?

• What is Limited Company?

Limited Company is a legal entity where the owner's liability is limited to the amount that they have invested in shares. They are not personally liable for the debts of the company.

• What is the difference between director and shareholder?

Shareholders and directors have two completely different roles in a company.

Director is a person that will be responsible for running the company along with shareholders. Directors also known as ‘officers’, are appointed by members to run the company on their behalf and try to make it a success.

Shareholders are also known as ‘members’. Shareholders invest in a company by purchasing shares each of which represents a certain percentage of the business.

• Can a director and shareholder be the same person?

Yes, directors and shareholders are often the same people in small limited companies and can be just one person.

• How to register and set up Limited Company?

You will need to register with Companies House, this is also known as Incorporation. When choosing a name check your availability https://find-and-update.company-information.service.gov.uk/ .

You will also need to decide your company trading address. When you register your company, you'll need to choose a SIC code. This stands for 'Standard Industrial Classification', and basically places your company into a category depending on the products or services you provide

Information regarding the limited company once registered is published on the public domain by the Companies House and is accessible to all.

• Where to open business bank accounts?

Because your limited company is its own legal entity, it's important that you keep all business and personal finances separate.

You can compare business bank accounts and choose one that suits your business needs here https://www.moneysupermarket.com/current-accounts/business-bank-accounts/ .

• Do I have register with HMRC ?

Yes, you will need to register for Corporation Tax within 3 months of the company being active.

Also remember that If your company's annual turnover exceeds £85,000 you will have to register for VAT and when your LTD start employing staff you will need to register with HMRC as an employer.

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