Private Limited Company
The UK Private Limited company is a company limited by shares, and this type of UK Company cannot be publicly traded. A Private Limited Company, sometimes simply called a Limited company, is the most common type of UK incorporation service requested.
UK Private Limited Companies can be formed online (through licensed company formation agents like us), directly through Companies House, or through third party lawyers or accountants. Limited company formation is actually more affordable, and simpler to achieve through company formation agents, such as ourselves.
To register a UK Private Limited Company, simply follow our online incorporation process. First of all we will need to establish, if the proposed name of your limited company is available via our search engine. This takes seconds. Then you just need to choose a suitable package for your UK private limited company, then pay and submit your order. You will then be asked to input the details of officers, decide on share designations, etc. At this stage of the UK company formation, you would be able to add any additional services. The whole process of UK incorporation is relatively simple and there is helpful advice, as you progress through each stage of the order.
Occasionally, for some services in order to complete private limited companies formation, you may need to provide us with a valid form of picture identification and verification of a residential address.
Private Limited Company — Advantages
There are several reasons why more individuals choose to register private ltd companies.
The advantages of a private limited company include:
- A Private Limited Company is a legal entity; the company’s finances are separate from its owner’s finances.
- Protection from personal liability to Limited company owners.
- Added credibility for Private Limited Companies, which can make it easier for a Private Limited Company to borrow money, raise capital and achieve financing without personal risk.
- Private Limited Companies have a reliable legal precedent to guide and direct the shareholders and directors (or managers.)
- Private Limited Companies have an unlimited life; their existence does not cease with the death of a director or shareholder.
- Ltd companies’ may bring additional taxes benefits, and are subject to lower corporation tax.
- The Private Limited Company structure is suitable for profit or non-profit use.
Private Limited Company — Disadvantages
- Private Limited Companies must hold annual meetings and the shareholder and directors have specific formalities to observe.
- A Limited Company is more expensive to set up than a sole trader or partnership.
- Private Limited Companies pay annual fees and have periodic filing obligations.
- Owners of the limited companies have less personal control over the company compared to sole traders due to compliance issues.
Private Limited Company — Company Limited by Shares
A Private Limited Company is a more complex business structure than a sole trader or ordinary Partnership (not to be mixed with Limited Liability Partnership (LLP)). A private company limited by shares is simply referred to as a Private Limited Company. To show the limited by shares choice, all private companies limited by shares must attach the suffix “Limited” or “Ltd” or ”Ltd to the end of their company name, for example ABC sole trader would become ABC LTD.
A private company limited by shares indicates that the company has shareholders whose liability is limited to their capital investment. The shares of a private ltd company may not be offered to the general public, unlike those of a public limited company (plc.) and cannot be traded on a public exchange.
Private Ltd. Company Officers
Following the Companies Act 2006, all Private Limited Companies must at all times, have a Company Director. The secretarial requirements for a Private Limited Company are more relaxed than a (plc.) company in that a Company Secretary is no longer obligatory, but rather discretionary. The company officers are formally appointed in the Private Limited Company’s Articles of Association. It is a common practice for Private Limited Companies to have more than one director. In such cases, at least one of the directors must be an individual. Other directors can be individuals or if chosen corporate bodies. However, it is also possible to form a Private Limited Company with one individual being a director, shareholder and if chosen secretary.
Private Limited Company Formation Requirements
Limited Company Names
You must provide at least one proposed name for your limited company. Your choice of a Private Limited Company name must end with ’Limited or ’Ltd.’ Companies House may refuse to register a company name if:
- it is offensive
- it implies a connection with central or local government, or with some public authorities
- it includes a ’sensitive’ word or expression
- it includes banned characters, signs, symbols and punctuation
- it is the same as another name appearing on the index of company names
- it misuses the name ending in way that it is deliberately misleading or confusing
The availability of the name for your private limited company can be checked on our website. If after submitting your private limited company formation order we are in any doubt as to your names chance of success, we will contact you.
When you form a Private Limited Company, at least one share must be issued. The limited company can be created with any number of shares — of any value.
An example of share allocations would be: a Private Limited Company that issues 100 shares at £100 for a share capital of £10,000. The minimum capital requirement is 1p, although we recommend at least £100.
Private Limited Company first accounting period starts on the day of incorporation. It is important to maintain accurate books and accounts, as financial statements must be filed 9 months after your limited company’s financial year end.
Registered Office of a Private Limited Company
All private limited Companies must have a registered office in their country of incorporation. This does not have to be the business address; it can be the address of the ltd company’s accountant or lawyer. This address is important: this is where all notices and government correspondence is sent. All company official letters should always bear this address.
Process for Private Limited Companies Formation
The online application for a Private Limited Company will capture the name, address, date of birth and occupation of the first directors and the first secretary (if any); plus the address of the registered office.
Our complete basic package for Private Limited Companies will include (but is not limited to) emailed PDF versions of.
- Certificate of Incorporation
- The Standard Model Articles of Association
- Memorandum of Association — stating the name of the company, the registered office and the company objectives, with the name and signature of shareholders, and the share allocations of the Limited Company.
Additional documents may be added depending on your incorporation requests at an additional fee. At any time during formation of the Private Limited Company, you may add a luxuriously bound Company Register (including Register of Members, Directors and Secretaries, Directors Interests, Register of Mortgages and Company charges, Minute Book, Share Certificates, Register of Transfers, Register of Directors’ Addresses and Agreements) at an additional fee.
Formation of a Private Limited Company can be completed in one working day, two working days maximum.