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Types of companies
Following are the 3 main types of companies that can be incorporated in the UK:
At least one person is required in order to legally register a company. Further, every company is required to formally appoint company officers throughout its term of existence.
Anyone can be appointed as the Director of a company; however, there are a few exceptions. For example, a person who had been declared bankrupt in the past cannot become the Director of a company.
Selecting the company name
In order to incorporate a company, you need to select a name for it; however, there are various restrictions that are associated with this process. Following are some of the factors that you should consider while selecting a name your company:
In case an objection is raised within 12 months of incorporation to the name selected by you, you could be forced to change the name of your company. It is for this reason that you verify from the Registrar of Companies that the name selected by you is not similar to any other registered company.
Every company in the UK has to maintain the following Statutory Registers:
One of the main reasons for the success of joint stock companies in the UK is that the owners of such companies are not personally liable to repay the debts of the company. What this implies is that the owners have limited liability, and they cannot be called upon to pay for the debts of the business or any claims against it.
The process of registering a company with the Companies House is known as Incorporation. The reason why most companies are being incorporated as with limited liability is that the liability risk involved is much lower as compared to other forms of companies.
All limited companies in the UK can easily be identified since they are mandated under the laws to add the word ‘Ltd’ as a suffix.
Although the rules related to taxation of companies change frequently, one rule that has remained constant is that dividends, which refer to the distribution of profit to shareholders, are tax free.
All limited liability companies are mandated under the state law to disclose details about their accounts in the register of companies. This transparency will benefit those who are about to deal with that particular company.
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