Private Limited Company

Company Type	Time to Incorporate	Cost
Ltd	1 day	£120

A limited company is a separate legal entity created by incorporation into the Companies Register. Once incorporated, a certificate with the company registration number will be issued.

A registered company is a corporation - i.e. a separate legal person distinct from shareholders. For this reason any profits, losses, assets and liabilities are its own. While the company is owned by its shareholders and run by the directors, their assets remain protected from loss in the case of the business failing. This is referred to as limited liability. Partners and sole traders remain personally liable for any business debts.

The business can continue despite resignation or death of any director or shareholder. Moreover, the sale of the business or introduction of outside investors remains simple. Reasons for forming a limited company may include ownership of property, obtaining outside finance, taxation, status and protection from risk.

A private limited company can be tailor made to suit individual needs. Alternatively, a ready made company can be acquired immediately.

Our standard UK Limited Company incorporation package includes all necessary documents to get your company up and running.

Direct Taxation of UK companies

UK companies are tax-resident in the UK for Corporation Tax.

If business activity occurs outside the UK, application to be tax resident in another country may be needed, leaving the business exempt from UK Corporation Tax.

There are three easy rules:

• If no tax is paid in other countries, then the company is a UK tax resident by default
• If there is a tax treaty between the country of trading and the UK, then the terms of the tax treaty apply
• If there is no tax treaty, the UK will unilaterally give double tax relief

UK corporation tax for small companies is expected to be 21% inthe medium term.

VAT for UK companies

A UK company is not formed with a UK VAT number, but needs to apply for a UK VAT number if it has substantial activity in the UK. If the company has substantial activity outside the UK but in another European jurisdiction, the company may need to apply for a VAT number in that jurisdiction.