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A limited company is a business structure where the liability of its members, directors and shareholders will be limited. There are many different types of business structures that you can consider when forming a limited company. These include companies that are limited by shares, companies that are limited by guarantee and public limited companies. All limited companies will be registered with Companies House who are the regulatory body for all limited companies. The running and operation of all limited companies will be regulated by the Companies Act 2006. Any limited company must comply with companies Act 1996. It is also important to remember that a limited company is a separate entity and any financial risks or loss will be taken on by the company and not the directors. There must be at least one director in a limited company.

Why are the benefits of a limited company?

There are several benefits that a limited company structure can offer which include the following;

1) Unlike being a sole trader, a limited company ensures that you personal finances are separate to those of the company. Any profits or losses will belong to the company.

2) A limited company structure will also offer tax efficiency as dividends which can be taken out by directors and share holders will not be as heavily taxed as salaries. This is because dividends are not subject to national insurance contributions.

3) A limited company also offers the ability to share ownership easily with shares also available to employees which can encourage greater company loyalty

4) Limited companies can also be much more tax efficient  

It is worth noting that Limited companies pay corporation tax on the profits that the company makes. Limited company directors will be taxed just the same as employees

How to register a limited company

Once you have chosen the right limited company structure, the next stage is to register your company with Companies House. There are 2 ways in which you can complete the company registration process.

1) Register your company through Companies House

2) Use a company formation agent

For those wanting to register a company themselves, you can acquire more information from Companies House who provide various guides to help you through the process. It can be a daunting process so employing the help of a company formation agent can be much easier.

You can complete the company formation process online. Company formation agents have specific Companies House electronic interfaces where the full process can be completed and your registration completed through Companies House. Established company formation agents such as company formations 247 can help you with choosing the right structure whilst also completing the full registration process for you. Completing the process online through a company formation agent also means that you can get full support with various other business requirements such as opening a new company bank account.

How to Register a Limited Company Online

Setting up and registering a company online could be easier. By using an established company formation agent, the process can be completed within a matter of hours. This is how the process works

Step 1) Choose you company name

Choosing your company name will be the first step. In most cases you will have done this first. Simply use the company name search to check its availability and select your chosen company name.

Step 2) Select your company formation package

There are many company formation packages now available offering different requirements. The cheapest package is not always the best option as you may only end up adding these extra services at a later date so be sure to check the content of each package carefully. All company formation packages will include

• Electronic copy of the Certificate of Incorporation
• Electronic copy of the Memorandum & Articles of Association
• Electronic copies of the Share Certificates

Step 3) Complete the secured checkout

Once you have chosen your selected company formation package, simply purchase and complete the payment process.

 Step 4) Appoint directors and shareholders

The final part of registering you new limited company online is to appoint your directors and shareholders. Once this part has been completed, all registration details are filed with Companies House for processing. You will then receive your official company registration documents once the process has been complete.

Author Bio

The following post was brought to you by company formations 247. They offer advice and support on how to set up a limited company formation whilst also providing business support services.

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Need more information on how to set up and run an LLC? Check out the resources below:

Limited Liability Company (LLC) - IRS.gov - LLC information from the US Internal Revenue Service

LLC - Inc.com - Limited Liability Company from business site Inc.com

How to Set Up an LLC - Info on establishing an LLC from Inc.com

Incorporation Tips: The Difference Between an LLC and S-Corp? - Incorporation tips from Under30CEO.com

LLC Basics - Fundamental LLC information from Entrepreneur.com

Limited Liability Company - SBA.gov - LLC information from the Small Business Administration 

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