UK Limited Company – Accounts Filing Penalties

Having your own UK Limited company can provide one with many benefits as compared with being a sole trader.

For one thing it does give many potential consumers the feeling that a Limited company is a more substantial undertaking than just a one man band.

How ever having a limited company does bring with it certain responsibilities more info on startups and Ltd companies and requirements that cannot be ignored.

One of the main reasons why business people trade through a limited company is simply because it has “Limited Liability”.

The liability of Directors and Shareholders liability is Limited to the amount unpaid on any shares that he has subscribed for. For example you can issue say 1000 one pound shares and if a shareholder pays 500 pounds then these shares would be 50p part paid. So if the company ceased to trade the most the share holder would need to pay is the amount unpaid on their shares and in this case that would be 500 pounds.

If all the shares that he owns are paid up for in full then he will have no additional liability for the company’s debts should these exceed the assets of the company.

All the assets and liabilities of the company belong to the company so that the personal assets of shareholders nor that of the directors’ assets can be used on behalf of the company’s liabilities.

Of course this does not mean that the Directors can act in a reckless way in their trading activities and they have very considerable responsibilities.

Directors have to act at arms length with the company.

These are some of the other advantages in having a UK Limited liability company.

A Limited company is a separate legal entity and it is one that will survive despite the death of its shareholders whose heirs will inherit the shares.

If the directors cease for what ever reason the share holders can appoint new directors.

A Limited company will have an issued share capital and this can be divided between people working together or to provide an incentive for key employees. Shares can be issued which have different classes and rights. This can give considerable planning opportunities in providing income and capital for family members.

 

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