- What is a Limited (Ltd) Company?
- A Limited Company is a legal business structure that offers limited liability to its owners. It is a separate legal entity from its owners, providing protection to their personal assets.
- How is a Limited Company different from other business structures?
- Unlike sole proprietorships and partnerships, a Limited Company is a distinct legal entity. This means that the company itself is responsible for its debts, and the owners’ personal assets are generally protected.
- What is Limited Liability?
- Limited liability means that the owners (shareholders) are not personally responsible for the company’s debts. Their liability is limited to the amount invested in the company or the value of their shares.
- How do I form a Limited Company?
- To form a Limited Company, you need to register with the appropriate government authority, such as Companies House in the UK. This involves submitting necessary documents, including the company’s articles of association and details about directors and shareholders.
- What are the benefits of having a Limited Company?
- Benefits include limited liability, potential tax advantages, a professional business image, and easier access to funding. Limited Companies often have increased credibility with clients and partners.
- What is the process of registering a Limited Company?
- The registration process involves choosing a unique company name, providing details about directors and shareholders, creating articles of association, and submitting the required documents to the relevant government authority.
- Can I be the only director and shareholder of my Limited Company?
- Yes, you can be the sole director and shareholder of your Limited Company. This is common for small businesses and freelancers.
- What is a Registered Office Address?
- A Registered Office Address is the official address of a Limited Company. It is used for official communications, and certain documents, such as legal notices and government correspondence, are sent to this address.
- What are Articles of Association?
- Articles of Association are legal documents that outline the rules for running the company. They cover aspects such as the rights and responsibilities of shareholders, director powers, and decision-making processes.
- How are profits distributed in a Limited Company?
- Profits can be distributed through dividends to shareholders. Directors can decide when and how dividends are paid, but they must ensure the company has sufficient profits to cover the distributions.
- What is an Annual General Meeting (AGM)?
- An AGM is a yearly meeting where directors report to shareholders on the company’s performance, and shareholders vote on matters like the appointment of directors and auditors.
- What are the ongoing compliance requirements for a Limited Company?
- Ongoing requirements include filing annual financial statements, updating the Companies House with any changes in company details, and holding regular meetings as required by law.
- Can I change the name of my Limited Company?
- Yes, you can change the name of your Limited Company. The process involves following the guidelines provided by the relevant government authority.
- How can I dissolve a Limited Company?
- Dissolving a Limited Company involves a formal process that includes filing the necessary documents and ensuring all debts and obligations are settled.
- What are the tax implications for a Limited Company?
- Limited Companies are subject to corporation tax on their profits. Shareholders may be liable for income tax on any dividends they receive.
These FAQs provide general information, and it’s advisable to seek professional advice for specific details based on the jurisdiction in which the Limited Company is registered.