Tuesday, December 23, 2008

The Formalities Necessary to Form a Limited Company

There are certain dos and don'ts attached to the formation of a limited company. The Companies House in the UK looks after the matter of company formation. In order to form a limited company in the UK, one needs to provide the concerned authority (in this case it is the Companies House) with necessary information and documents. These are clearly dictated in the booklets published by the House, both in online and print versions. There are basically three types of limited companies in the UK: private company limited by shares, private company limited by guarantee and public limited company. The first one is similar to a private limited company. The second type of company does not have share capital; rather, it is guaranteed by its members. The members agree to pay a fixed amount in the event of the company's liquidation. One can form a limited company in any of these ways. In a public limited company, the shareholders would only be liable to pay the amount that remains unpaid on the shares. This amount is usually zero as shares are issued fully paid. The shareholders in the limited companies always have a limited liability. In order to form a limited company in the UK, one needs to register it with the Companies House. The registered office can be in England and Wales, Scotland and North Ireland. The registered office and all the other things involved in company formation process in the UK have some formalities attached to them. The very naming of a limited company has a legal formality attached to it. If you are to form a limited companyin the UK, you have to include the word 'limited' in its name. The contracted form of the word, 'ltd' will also do. This way, there are some other dos and don'ts to be taken care of while forming a limited company in the United Kingdom.

About the Author: lThe Author is an experienced writer presently writing on topic like offshore company formation and company formation agent to make business services successful in the UK.

1 comment:

aparna john said...

Hi,Aspect should be accomplished upfront. Make this as clear as possible. Some accountants for company formation in Qatar charge by the hour while others work on a monthly basis. Costs, however, should not be your sole reason in choosing.Thanks...