The majority of new companies that are incorporated in the UK are ‘Limited’ (abbreviated to Ltd) because this private limited company structure is used by businesses who intend to generate profits, in the form of dividends or salaries, for their shareholders which can be extremely tax efficient.
Another reason this type of company is popular is because it limits the financial liability of the shareholders should the company become insolvent or face liquidation in the future. Because the company itself is a separate legal entity that is owned by the shareholders, this means that each shareholder is only responsible for the amount of company debt equal to the value of their own shareholding thus their personal finances are protected.
Other benefits of a private limited by share company include:
At incorporation, shares are issued to the initial shareholders of a company but, as mentioned above, new shares can be issued at any time to raise capital.
The share capital of a company is represented by the total number of shares in issue multiplied by the nominal value of these shares. As an example, if a company had issued 100 shares with a nominal value of £5 then the company’s share capital would be £500.
Any unissued shares can be issued to a shareholder at any time providing the other shareholders agree to this and issued shares can be transferred between shareholders or sold to a new shareholder.
There are four simple steps in the 121 Company Formation process:
Once you have decided on the name you would like to use for your company, simply visit our
, to check its availability straight away.
This quick search tool is connected to the database at Companies House and will immediately confirm if your chosen name is available to use and approved by Companies House.
If the proposed name of the company is too close to or the same as an existing company name then Companies House will not approve its use but our free search tool means that you can try as many variations of a name or a completely new name as many times as you like until you decide on one you would like to use that is available and can be approved.
For each type of limited company available, 121 Company Formation offers four different packages so you can choose what level of help and support you need both for the company’s incorporation and during its first year of trading.
The packages have been designed to suit every budget too and you can always add on any additional services you find you subsequently need from our excellent range.
Once you have decided which package you would like, together with any additional services, simply make your selections and you will be asked to complete your order details and make payment through our secure process using a debit or credit card or via PayPal. An order confirmation and an invoice will then be emailed to you.
Following receipt of your order and payment, you will be asked to complete a company incorporation document online which will prompt you to enter details of the company’s registered address, full details of its officers, its shareholders, SIC code and so forth.
On receipt of this, we will review the application for errors and omissions before submitting to Companies House and then your company will be formally incorporated and registered within 24 hours at which time we will forward the company’s statutory incorporation documents.
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