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Scroll down to find the private limited company advantages and disadvantages.

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Starter

£19.99

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Full trading Ltd company – Limited by shares.

Digital documents via email.

Executive

£34.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Professional

£54.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Hardcopy Memorandum & Articles.

Company register (Unbranded).

Starting a company with GoBizAp

 

Like all our services it couldn’t be easier to do we used the same service to register Go Biz App’s Ltd.

“It took 20 minutes to fill in the forms and we were registered with company’s house in under 4 hours.”

If you find anything a little tricky just get intouch and we can help you through the proccess.

GOOD LUCK WITH YOUR NEW VENTURE 🙂

 

Head to the bottom to find out the private limited company advantages and disadvantages.

 

 

Details you need to form a limited company

PROOF OF ID

We have a legal obligation to check proof of ID and proof of address documents for all customers who use our address services – this is to ensure we comply with Anti-Money Laundering (AML) regulations and ‘Know Your Customer’ (KYC) requirements.

COMPANY NAME, COMPANY ADDRESS AND BUSINESS ACTIVITY

Your company name must not contain any words deemed to be sensitive, or it cannot be the same as an existing company on the Companies House register. You can use our company name check system to check whether your name is available.

Every company must have a registered office within the UK – England & Wales, Scotland or Northern Ireland, which is the official address of the company. It will need to be a physical address (i.e. not a PO BOX without physical location) as Companies House, and HMRC will need to send correspondence to this address.

You’ll need to choose your company’s business activity (a maximum of 4) called a SIC code, which descriptions can be found in the SIC reference table.

A CORPORATE (COMPANY) DIRECTOR

If you want to appoint a company as a director, you will need to supply the following:

Company Name

Full Name (of the Company Director)

Company’s Address

EEA or Non-EEA (whether the company is registered in the European Union or not)

Country Registered

Registration Number

If the company is non-EEA you will also need to provide the following:

Governing Law (?)

Legal Form (?)

Please note, Corporate Directors cannot be the sole director. If you have a Corporate Director, you will need at least one human director as well.

For instructions on how to incorporate a company director, click here.

SHARE CAPITAL AND SHAREHOLDER DETAILS

A minimum of 1 shareholder is required. You can be both director and shareholder. You will need to supply the name and address of each initial shareholder in the company (known as a subscriber).

Full Name

Residential Address

Share Currency (GBP, EUR, USD)

Share Class (Ordinary, Preference, Redeemable)

Number of Shares

Value Per Share

3 Security Questions (these act as an online signature)

First three letters of Town of birth

Last three digits of Telephone number

First three letters of Eye colour

You can be a UK company shareholder regardless of your nationality or location.

A (Corporate) Company Shareholder

If you want to appoint a company as a shareholder, you will need the following information:

Company Name

Full Name (of the Company Director)

Company’s Address

Share Currency (GBP, EUR, USD)

Share Class (Ordinary, Preference, Redeemable)

Number of Shares

Value Per Share

3 Security Questions (these act as an online signature. Use the Company Director for the questions)

First three letters of Town of birth

Last three digits of Telephone number

First three letters of Eye colour

PEOPLE WITH SIGNIFICANT CONTROL (PSC)

A PSC is a person or relevant legal entity (such as a company) who has significant influence or control over the company. All UK Limited companies will need to provide Companies House a record of people who own or control their company. Also known as people with significant control (PSC).

Starter

£19.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Executive

£34.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Professional

£54.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Hardcopy Memorandum & Articles.

Company register (Unbranded).

private limited company advantages and disadvantages

 

Operating as a private limited company advantages and disadvantages, it is the one of the most popular business for all sizes and types of businesses. In order to register a company in UK, The business must be incorporated legally with the Companies House. Companies House is a government agency which is sponsored by Department of Business, Innovation and Skills. It operates as official registrar of the companies in Wales, England, Northern Ireland and Scotland.

When a limited company is incorporated, it is considered a separate individual by the law. A limited company is responsible for its own liabilities and debts. The company has to disclose some corporate information on the public records. Companies must also adhere to different reporting and filing requirement according to the Companies Act of 2006. They also have to pay 20% Corporation tax on their taxable income.

Both a for profit company which is limited by shares and a non-profit company which is limited by guarantee, enjoy many benefits which are not available to the sole traders. Operating as a sole trader is also a very popular structure for businesses of small and medium size. In fact it is the 2ndmost popular type of business structure in the UK.

In a sole trader structure of business, the business is owned and operated by the same individual and he is himself liable for all the claims and debts. The person is also responsible for paying National Insurance Contributions and Income tax return on all the taxable income. The person has to file Self-Assessment tax return each year. There is no legal distinction between a person operating as a sole trader and his business.

The major differences between the two types of structures are tax efficiency, professional status, required administrative and filing responsibilities and financial liability. One should consider these factors carefully in order to determine which legal structure will give the most benefits to the business and the owner.

Limited Companies:

One or more people, called members are the owners of the private limited company advantages and disadvantages. The members of those companies which are limited by shares are referred to as shareholders. On the other hand members of those companies which are limited by guarantee are referred to as ‘guarantors’. The directors are responsible for managing the both types of companies.

However, large number of small companies are managed and owned by only one person who takes care of the roles of guarantor/shareholder as well as director. A limited company has a flexible nature, giving and opportunity to set up companies with multiple directors and members and an opportunity to appoint new people after formation.

private limited company advantages and disadvantages

The three main reasons of trading as a limited company are status, tax efficiency and limited liability.

Limited Liability: It is the biggest benefit of running your business as a limited company. In case the company goes in to financial difficulty, the assets and personal finances of shareholders are protected beyond value of their shareholding. This means that if a company is unable to pay debts, the shareholder will only have to contribute according to the nominal value of their shareholding. It can be as small as £ 1.

 

If you want to provide high value services or supply which can lead to liability claims and/or operate in public domain then limited liability is important. In such situations, your personal finances and assets are protected. Operating as a sole trader does not have this benefit.

Professional Status: A professional and corporate image is created by a limited company, thus boosting the value of business. More corporations and industries like to do business with companies, instead of sole traders. This is because limited companies are considered to be more established, credible and committed. Sense of security is also provided by limited liability to certain industry professions while choosing to use the services of new business or while investing.

Although operating as a limited company has greater administration costs and accounting requirements, requiring more attention and time, the professional and financial gains cover these drawbacks.

Tax efficiency: More opportunity and great flexibility is offered by limited companies in the case of taxation on profits and on personal income. The profits of companies have a rate of 20% Corporation Tax. Before 1st April 2015, Corporation tax had two rates; if profits were £300,000 or above then the corporation tax was 20% and if the profits were £1,500,000 then the corporation tax was 21%. But not the rate is 20% regardless of the size of profit. On the other hand sole traders pay 20% income tax on their profits of £31,865 or above; 40% income tax if their profits are between £31,868 and £150,000; and the rate is 45% for profits above £150,000.

 The directors can keep their income level below the higher bands through taking remuneration in combination of dividends and salary. This results in more money being available for reinvestment or distribution among the shareholders and directors. Sole traders don’t have any such strategy to save tax.

 

In conclusion to the private limited company advantages and disadvantages.

Disadvantages of operating as a limited company:

Must incorporate the company with Companies House.

Generally, there are more costs to set up.

One cannot be a director of a company if he is disqualified director or un-discharged bankrupt.

There are certain restrictions regarding the company name.

The information relating to the owner of the company and the company are displayed on public record.

There are more complex, time consuming accounting and administration requirements.

The accountancy costs are more expensive. A professional accountant might be required.

Withdrawal of money form companies can be difficult.

 Sole Trader

Starting a sole trader business is quite easy. The administration and registration requirements are very simple and one can begin trading any time he likes. Operating as a sole trader does not require working alone and one can employ people to work for them. Ultimately the owner is personally and wholly liable for the business and the debts.

On the other hand, as there is no legal distinction between the personal finance and the business finance of a sole trader, one does not have to go through a complex procedure in order to take money for personal use.

Advantages of operating as a sole trader:

There is no requirement to register with the Companies House and there are no registration costs.

It is easy and quick to set up online via HMRC.

Usually, a small amount of capital is required to start the business.

The accounting requirements and paperwork are minimal in comparison to a limited company.

Either there are no accountancy costs or are very small.

The owner can retain all profit after tax.

The owner has the full control over the business.

The owner enjoys ownership of all the assets of the business.

Tax relief is available on all business expenses and purchases.

The details about the owner and his business are private.

Responsibilities and Rights of sole traders

Completing Self-Assessment tax return annually for HMRC

Maintaining accurate accounting and business records – like that of costs, sales and expenses.

Registering for VAT (value added tax), if it is expected that the earning will exceed threshold of £82,000 a year 2016

Unlimited liability – all the business claims and debts are the liability of the sole trader alone.

Payment of Class 2 National Insurance every week or twice every year

Payment of income tax and Class 4 National Insurance on all profits of business.

Responsibility to adhere to requirements of health and safety related to workplace for employees.

Responsibility to register as employer (in case applicable).

Payment to employees through the PAYE.

In case one is planning to provide contract or a subcontract service to construction industry, He must register with CIS (Construction Industry Scheme)

Disadvantages of operating as a sole trader:

It can prove difficult to raise capital and to setup and grow business.

Unlimited liability – debts and liabilities of the business are owner’s debts and liabilities.

Only one person must take all the responsibilities and decisions.

The owner must pay income tax on all profit and it can be as high 45%

The owner is responsible for paying tax and National Insurance contributions.

It can prove to be difficult to manage work, take holidays or sick leaves.

Status – Generally sole traders seem to be smaller and less established compared to limited companies.

One cannot leave the money in business as a strategy to save tax – All money is subject to tax, in the same financial year it is earned.

 

Certain companies may not deal with sole traders – Because it is considered risky.

Sole traders are not eligible for the Statutory Maternity Pay.

 

We hope this has helped you to come to an conclusion on private limited company advantages and disadvantages.

 

Good Luck

 

Starter

£19.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Executive

£34.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Professional

£54.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Hardcopy Memorandum & Articles.

Company register (Unbranded).

Home Based Business Advice

A great way for people to make money is to start a home business. A home business allows individuals to gain income by doing something they enjoy. Home businesses allow for flexible hours and schedules. If you would like to learn how to set up a home business, then continue reading this article.

When making the decision of starting a home business, it is important for you to pick a subject that you are familiar with. Remember, you own the business, so you do not want to have the responsibility of having to deal with customers’ problems and not knowing what to do about these problems.

If your home office has enough room, create a portion of it as a separate sitting area with a couch or lounge chair. When the work you need to do does not involve the computer, utilize this relaxing space. It can help you brainstorm, spur your creativity and keep you fresh.

Make a list of products that are intriguing when you can’t come up with an idea about what to sell from a home business. Pick products that will be useful to people. Identifying a need is the first step to selecting a successful product. If there is something that you could use in your life, chances are other people could as well.

One good way to jump start your home based business is to send emails to your friends notifying them of your business. This will not only give you your first set of customers, but they can also act as advertisers as they tell more and more people of your business.

At the launch of your business, send an email to your family, friends and co-workers that lets them know what you’re up to. Offer them a freebie or discount to help get your business started. Ask them to tell others about your enterprise. Word of mouth can help make your business thrive in a big way.

Find out how to accept credit card purchases for your home business. There are several wonderful web sites online that can help you with the process. You can also check with your bank to see if they can help. You need to make it as convenient as possible for people to buy your product; if it is a hassle, they probably will not want to bother completing the deal.

You should always include a banner page on your site. You will be able to trade links for banners with other businesses. This can also help your search engine results and help your products and pages to be found easier.

Do not forget about taxes! When you are running a home business, it is easy to put aside the thought of paying the government. However, you not only have to pay federal and state taxes, but you also must pay something called a self-employment tax. It may be best to obtain the help of an accountant to get you started.

It is not hard to promote a business once you know what you are doing. Creating a website is a good option for home businesses. Setting up a website will take no more than a day. It is possible to register a domain at no charge sometimes, but usually there is a small registration fee. Even if there is a fee, the profits from your site will quickly make up for it.

Put together a quality website visitors will easily remember. Choosing a name for your domain that is too long or tough to spell means that your clients will forget it. Catchy and easy to remember are the things you must work towards when choosing a domain name.

Don’t let yourself be lazy with your home business. Write up a business plan before you open up shop, and be sure to stick to it. If you want to be absolutely certain your plans are sound, contact a business adviser for a few expert tips before you open your doors for business.

Business slowdown? Could be seasonal or the economy. Who knows? Take advantage of this quiet time to ramp up your marketing, tackle your email, log into user forums, beef up your web site and organize your office. Step outside and network with others in your field. Turn this slowdown into an opportunity.

Sell products that have solved a need in your own life. Having personal experience with a product is a huge selling point to potential customers. If you are trying to sell someone on hair replacement when you look like a model, your customer isn’t going to buy it.

When you first launch your new home business, do not be shy about encouraging friends and family to patronize it. Virtually all businesses rely on networking to build their clientele; you should not ignore the potential of your own network of already-established relationships. You need not put any pressure on your friends, but you should definitely let them know you are in business.

Find out more about affiliate marketing. You can base your home business on selling products you get from affiliate marketing, or you can use affiliate marketing to have people help you sell your products. Recruit your agents carefully, offer them proper training in marketing and pay them regularly if you want them to work for you.

Work From Home

If you feel yourself getting stressed in your home business, take a breather. Sometimes when you work from home, it is easy to forget to take breaks. It’s more than likely your business on the line, after all. But if something stressful is occurring, take the time to relax for 10-15 minutes. You’ll come back to the problem with a clearer head and be more productive in solving it.

As stated before in the introduction for this article, a home business is a great way to make money. Home businesses let individuals gain income by doing things they love while having a flexible work schedule. Using the tips found in this article, you can set up your own home business.

Starter

£19.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Executive

£34.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Professional

£54.99

Fast startup same business day.

Easy forms to fill in.

Full trading Ltd company – Limited by shares.

Digital documents via email.

Hardcopy Certificate of Incorporation.

Maintenance of Statutory Books.

Hardcopy Memorandum & Articles.

Company register (Unbranded).