2. WHAT IS A LIMITED COMPANY?
A limited company has a separate legal entity to its owners, unlike a sole trader or
partnership. A sole trader is personally liable for the business’s activities putting
the owner’s personal assets at risk should the business faces financial problems.
Members of a partnership are also jointly and severally liable unless it is a limited
liability partnership.
The owners of a limited company have limited liability for the debts of the
business up to the value of their shareholding; they are not personally liable for
the company’s debts (unless personal guarantees have been given, or the
business has been trading fraudulently or in certain circumstances insolvently).
If the business fails the shareholders only lose the amount they have invested in
the company. It also means that the company name is protected and the
company can continue to trade if one of the directors leave.
3. WHY SET UP A LIMITED COMPANY?
Principal Reason - Limited Liability Protection - Put simply, this means that a company’s
directors / shareholders cannot be sued by creditors for the debts of the company as they
are separate. Cautious lenders (banks), however may require personal guarantees.
Dividends and Salary - As the company’s shareholder / director you wear two caps - you
get rewards for your hard work as an employee and also you get a reward for your
entrepreneurship as a shareholder.This means you are able to split your income into
salary and dividends. Assuming profits are made, this could potentially generate large
income tax and national insurance savings.
National Insurance - As the owner of a company you have more scope than many to
undertake effective national insurance planning.
CorporationTax - The corporation tax regime is lighter than income tax with most small
owner managed companies paying corporation tax at a rate of 20%.This compares with a
40% higher rate of income tax which is paid by sole traders and those people who belong
to partnerships.
4. WHY SET UP A LIMITED COMPANY?
Borrowing Money - It is potentially easier as a company to raise additional
finance, for example by raising a floating charge of the company’s assets or by
raising equity finance.
Enhanced Status - Trading as a company is often perceived to have more prestige
than by trading in your own name. People often have more faith when they see
‘Limited’ in the company’s name, even if in practice there is virtually no difference.
Flexibility of Ownership - New people can be easily brought into the ownership
of a limited company. It also gives you the ability to separate ownership and
management, if that is attractive to you, especially if you want to keep your stake
in the business but not be involved in the day to day management.
Continuity - A limited company structure allows for a smooth exit from the
business - the company can continue even if a company member retires, dies or
simply wants to move on.
5. WHY CHOOSETHE COMPANY SHOP FOR
YOUR FORMATION
Largest company formation agent in Northern Ireland offering a comprehensive
range of UK/Irish Company formations
Formed over 20,000 Limited Companies since 1994
Tailor made company formations to suit your needs
Dedicated to providing a fast and efficient service to all customers
Knowledgeable and friendly staff to handle all your questions
Formations available both online and offline
No hidden costs
View our clients testimonials
6. ONLINE PACKAGES OFFER
Package 1 – Standard Formation Package
Electronic and hard copies of all company documents
Free domain name if required
Referral to a Qualified Accountant if required
Package 2 – Registered Office Package
Electronic and hard copies of all company documents
Free domain name if required
Referral to a Qualified Accountant if required
Northern Ireland Registered Office Address for one year
Mail Free Service Address for one Director for one year
Forwarding to the UK for one year
Package 3 – E-Start Up Package
Electronic and hard copies of all company documents
Free domain name if required
Referral to a Qualified Accountant if required
Initial Web Holding Page
Web Hosting (Basic Site) ail Accounts
7. MORE INFORMATION
To speak to a member of our team about setting up a new company contact us:
Tel: 028 90559955
Email: formations@thecompanyshop.co.uk
Forsyth House
Cromac Square
Belfast
BT2 8LA
Or visit our website:
www.thecompanyshop.co.uk
