Archive for category Limited Company

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Limited Company Formation

Most small business enterprises set up shop as limited companies. This happens for a number of reasons, the most prominent among these being that setting up a limited company allows a person to draw a distinct line between his personal property and that belonging to the company. This way, in case of a future liability, only the company’s finances will be affected, leaving the individual and his assets untouched.

In a limited company though the directors may be required to guarantee loans granted to the company, the shareholders of the company are not liable for the debts incurred by the company. This gives shareholders and directors a lot of financial immunity; something that is not possible if they were registered as sole traders. Thus a limited company is the basic foundation on which a business is built.

In the UK, the formation of a limited company is relatively easy. The company has to be registered with the Companies House. You can also get all important data regarding all British companies. Before registering, it is important to decide what type of registration will suit you the most. Most businesses opt for the standard limited company registration. But you may also register as a non-profit making, charity or limited partnership company. Then, you have to decide on a name of the company, and check out if the name you selected is available for use. To do this, you will have to run a name check which checks a database of every registered company at the Companies House.

The next step is to complete and submit a set of documents before you can complete the incorporation process. The Companies House has all the information regarding the forms and their numbers. You have to submit a Memorandum of Association and the Articles of Association. You also have to submit various forms like Form 10 and Form 12. These will contain important information pertaining to shareholders’ rights, physical address of your company, Directors’ powers and the name and address of Company Secretary etc.

Though you are not required by law to use an agent and you could very well do the entire process on your own, most of the times, these important documents are prepared by the company’s accountant or by formation agents. However, one of the easiest ways to register and form your limited company is through the faster online process. It is now possible for you to form your company, nominate your directors and issue shares online. This is a straightforward and fairly process. Most web services have vast experience in this field and they have an intuitive system that takes you through all the requirements. These services will send you regular email updates regarding the status of your company. Even after your company is formed, online services also allow you to alter company details like changing your registered office and share capital.

As part of one of the UK’s largest company formation agents, with 25 years experience, Company Formations 24.7 offer a fast, straightforward and professional service and have tailored three great company formation packages.

Article Source: http://EzineArticles.com/?expert=Amit_Salkar

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Articles of Association After The Incorporation of a Limited Company

It is essential for every limited company to register Articles of association. This is a lengthy document represent the rules and regulations to govern the internal affairs of the limited liability company after incorporation. The articles of association deals with the allotment of shares and capitals, power of directors, appointment of directors, Dividend payment procedure, Allotment of shares and capital and meeting procedures etc.

“Table A” is referred as the Articles for companies limited by shares. In the United Kingdom “Table A” is recognized as the articles of association. Adopting “Table A” without modification is required to appoint at least two directors. If your limited liability company has only one director, you need to adopt a bespoke version of “Table A”. By a special resolution the unmodified Table A can be changed at a later date after the formation of a limited liability company.

A special resolution is required to pass to change the articles of association and then the copy of that resolution must be registered with the company registrar. In addition to this all future articles of association copies should include the modification. Every UK Company limited by shares must have articles of association in forms of Table A

Table C, D and E are also regarded as articles of association appropriate for a company limited by Guarantee with shares as well as without share and an unlimited company. Every new limited company is essential to have at least one director and one company secretary. A sole director of a company may not be regarded as the company secretary, but if there is more than one director then one of the directors can be chosen as the company secretary

One of the key advantages of the articles of association is that it is content focused rather than focusing on the form. Articles of association is a fundamental document, which includes procedure such as to handle the hiring process for upper level executives in the organization, process charts containing proper method of providing goods and services, organization charts, and a systematic flow chart to maintain the basic accounting procedures.

If you are looking for company registration to do your business in different countries, there must be formal articles of association in place, and they must be able to address at least the minimum issues which are very essential according to the governing laws of the country.

Before preparing the articles of association you have to think some basic things such as:

What will be the day to day operation of the company? What has to happen next in near future? What positions are responsible to run the organization in long run?

Each and every potential member of a new company should try to read and understand the provisions contained within the Articles of association, because it clearly mention the purpose of the organization or company. The eventual conclusion of preparing the articles of association is to make certain the efficient function of the company by making it easier for the organization to achieve more with the available resources.

Rudradatta rath is an online marketing leader currently working in Orisysinfotech.co.uk, writing articles for Lincroft.co.uk which is a leading online company formation and registration agent based in UK provides company formation, company registration and accounting services to both UK and international clients. For more information on how to form a limited liability company please visit www.lincroft.co.uk.

Article Source: http://EzineArticles.com/?expert=Rudradatta_Rath

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UK Accounting Reference Dates For Private Limited Companies

When a private limited company is incorporated companies house advise the company of the accounting reference date and a set of financial accounts are required to be made up and submitted from the day of incorporation to this accounting reference date. The accounting reference date is set by companies house as the last day of the month 12 months after the date of incorporation.

For example a company registered on 7 January would have an accounting reference date of 31 January the following year. Financial accounts are required for the period from 7 January one year to the 31 January the following year.

The financial accounting period for a limited company which has been trading in previous years starts on the day after the accounting reference date and continues until the next accounting reference date. In the example above the final accounts including profit and loss account, balance sheet and notes to the accounts including audit report where required would be prepared from 1 February until 31 January.

The accounting reference date can be changed by a limited company by sending to companies house form 225. There is a time limit on when the form can be submitted which in any financial year is the day before the accounts are due for delivery to companies house.

There are a number of reasons why the directors of a limited company might wish to change its financial year end although in the vast majority of cases the financial year is not changed.

Common reasons for changing the financial year end date would be to bring the year end date into line with other business interests such as an associated company. Seasonal and trading factors may make one month end more appropriate or the company might wish more time to prepare a particular set of final accounts although it can be a problem if the date is changed more than once in a 5 year period.

A significant reason for changing the financial year end of a limited company would be to bring the company financial accounting period into line with the tax year as tax rules change from year to year and accounting and tax alignment simplifies the tax calculation as only one years tax rules would apply instead of two tax years rules when the tax year end is straddled.

For limited companies in the UK the practise in recent years has been for tax rules and capital tax allowances changes to be announced in the budget each year which is the third week of March and the tax rules to be applied from the 1 April the following year. An accounting year in line with the tax year end would then be 1 April to 31 March each year.

A new private company filing its first set of annual accounts must do so within 22 months of incorporation. In subsequent years the financial accounts need to be submitted to companies house within 10 months of the company accounting reference date. Companies house normally send a reminder of when the accounts need to be filed 6 to 8 weeks prior to the deadline date.

Companies house automatically impose an escalating scale of civil penalties on private companies for the late filing of the annual accounts as follows

Up to 3 months late the penalty fine is 100 pounds.

Over 3 months and up to 6 months the penalty fine is 250 pounds.

Over 6 months and up to 12 months the penalty fine is 500 pounds.

Over 12 months the penalty fine is 1000 pounds.

The accounting documents to be sent to companies house which are required to be prepared in a specific format and in addition to stating the registered office of the company and the company registration number for identification purposes must also send

Profit and loss account or income and expenditure account for a non profit organisation.

Balance sheet signed and dated by a company director stating the company asset and liabilities balances.

Directors report signed by a director or company secretary describing the companies activities and also including for companies not classified as small and exempt a business review of future performance.

Auditors report signed by the auditor unless the company is exempt from audit under the small companies exemption rules.

When a small private company submits abbreviated accounts and takes advantage of the exemptions then the accounts must also contain the statutory statements as notes to the accounts advising the basis and exemptions under which the annual accounts have been prepared.

Terry Cartwright, qualified accountant, designs UK Accounting Software that automates the Financial Accounts of private limited companies and produces a full set of Company Accounts bookkeeping and accounting spreadsheets

Article Source: http://EzineArticles.com/?expert=Terry_Cartwright

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