Private limited company (Pvt. Ltd.) is a corporate structure whereby the corporation is considered as a separate entity from its owners and shareholders. The company has to pay own tax on its profits and gains. Liability of the owner is confined only to the amount invested as capital in the company and cannot be held personally liable for the company’s debts or liabilities.

For example, In case of insolvency shareholder’s personal assets are protected. Trade creditors, bank, and other payables cannot recover their debt from investor’s personal assets (unless personal guarantees have been signed). The features of a corporation and a sole proprietorship or partnership are combined in this hybrid structure.

This will be typically the right option if you are looking to attract investors for you business and for those who are very concerned to protect their personal assets.

Limited liability status is one of the major benefits of incorporating a limited liability company, but obviously, the limited liability is not the only the matter of consideration before investment. Other parts of consideration include:

Profit Distribution:

In limited company shareholders invest capital by issuance of shares and once capital is invested, investors can withdraw their money in the form of dividends or loan from the company. HMRC also charge 25% tax any overdrawn directors account balance at year-end (which is repayable when the balance of directors account is reduced either by paying back the cash to company or by adjusting dividends etc.). The amount of dividends (which can be withdrawn) also depends on the availability of company’s net profit (after paying tax).

Capital investment in companies:

Private limited companies are mostly family owned businesses or some closed friends established businesses and often has limited access to capital investment, because the companies cannot offer shares in open market, while the public limited companies can offer shares in stock exchange.


Directors play active role in decisions making at corporate level, while shareholders can exercise their voting right in annual general meeting (or AGM) to pursue any business strategy. The company is run under corporate governance rules and these decide how a company’s governance structure is designed. There can be specific committees which can play important role in the management and decision making of a company (e.g. audit committee, nomination committee and remuneration committee).

Reporting Requirements

Every private limited company registered in England and Wales has to submit its annual accounts and annual return to Companies House and those will be publically available at Companies House website.

Financial statements are prepared in accordance with International Financial Reporting Standards and International accounting standards. These standards define the recognition criteria of assets, liabilities and equity in the financial statements. Together with the financial statements preparation there are also the statutory audit requirements for some companies depending upon criteria defined by the Companies House.

Tax Implications

Limited liability companies pay corporation tax on its own profits and gains as a separate entity to its owners, while in sole proprietorship and partnership the owners pay income tax on their share of profits.

Services to incorporated Companies

WeAccountax offer the services related to the management and operations of a company

  • Solid Financial Report Package Customized to Your Business
  • Preparation and submission of annual accounts
  • Management accounts on any desired intervals
  • Monthly Bookkeeping Services or Xero Support Services
  • Vat return preparations
  • Matters relating to payroll
  • Personal tax planning, corporation tax planning
  • Advising on dividends and minimum wages
  • Vat and Payroll registration services
  • Cash flow budgeting
  • Liaison with HMRC and relevant authorities on your behalf
  • Submission tax returns to the Companies House.

Industry Specific Rules and Regulations

There are industry specific tax rules and regulation, and also has unique type of reliefs available to different sectors. Every industry has its own challenges and has to face its unique financial reporting standards.

Professionals working at WeAccountax have working experience in vast portfolio of industries, so they can manage your financial reporting and tax matters in most efficient manner.

WeAccountax will ensure timely submissions of accounts, tax returns, annual returns and vat returns (if required) by sending reminders before two months of reaching deadline to prevent penalties and dealing with different authorities like Companies House and HMRC.

How much we charge for our services?

We provide full set of accounts along with a range of additional valuable services in price which is favorable to you business.

We provide competitive fixed fee services starting from £50 for Limited Companies.

Just put your business details and receive a quotation tailored to your business.