Companies as a separate legal identity are registered under Companies Act 2006 in the United Kingdom.
There are two kinds of companies:
1) Private limited company:
Companies which are formed and their shares are held by some individuals privately and their shares are not offered to general public are known as private limited companies
2) Public limited company:
Companies which are formed with the intention of initial public offering (IPO) are known as public limited companies.
Because they carry large interest of the public, these sort of companies requires a long list of compliance, which needs to be complied with in order to secure the public interest of the company.
Following are the benefits of Setting Up a Limited Company
1) It limits the liability to which owners are liable to pay if some drastic situation demands them to redeem the company loses i.e.
personal assets of the owners are protected and cannot be pledged in order to cover the company losses.
2) Companies are more reliable for the banks and creditors to provide financing to because their compliances often exhibit a clearer picture of the business.
3) Companies specifically public listed companies open door to never-ending pool of affordable finance in terms of ordinary and preference shares from the stock market.
It also gives the business an opportunity to get listed in various stock markets around the globe and drain cheap finance from all over the world.
4) Corporate tax is levied on companies rather than income tax. Not only companies relish lower tax rates but also companies are granted tax benefits on other aspects as well.
5) Prestige and trust of suppliers and customer are always on higher grounds for the company as compared to sole proprietorship or partnership because company formation exhibits long-term commitment of the owners towards their business.
Process of Company Formation:
First of all, name of the company is decided which has to be unique (never used before by any other registered company) and has to exhibit the nature of business to provide a better marketable image to the public. Then registered office address is nominated for the company.
Most important part is preparation of memorandum and articles of association. Memorandum includes the company name and initial shareholder details to which initial shares are issued. This detail can vary from at least one share issuance to many.
This detail can vary from at least one share issuance to many. Article of association includes the rules and regulations which are to be followed by the company in order to operate. Changes in
Changes in an article of association are only possible by the shareholders exercising their voting powers.
After all the documents are collected and augmented. These documents are sent to the registrar of companies for further processing. After the company is formed, a first meeting of the board is held and registers are prepared and maintained on the regular basis which includes information regarding shareholders, directors etc.
Where can “WE” help?
WeAccountax has a team of expert accountants excelling in wide range of skills which can be very handy for greasing the entire process of company formation.
Starting from providing a feasibility report for our clients’ businesses and helping them determine the monetary and non-monetary benefits that they can earn by forming a company.
Further by analyzing the business nature and suggesting a marketable unique name for the company registration which covers all aspect of your business activities and attractive towards your customers.
Our team, expert in legal frameworks, can gather and develop all the documents required including memorandum and article of association making sure no stone is unturned and your approval for the company formation is approved first time and every time.
Our other business consultancy services such as accountancy and corporate taxation can provide amazing synergies after company formation. Since we were involved in the company formation of your business, definitely we have a better understanding of your entire business, making us more eligible to provide other services better.
At the end apart from saving your valuable time, money and legal consequences, you will end up having a clearer picture about your business with a great sense of direction towards the future.