What is Contractors Limited Company?

What

Why

How

Free

Register

What is a Limited Company and what are the implications?

A limited company ensures that the owner(s) has limited liability. If things go badly wrong and a limited company fails, its director(s) and shareholder(s) has 'limited liability'. This means their personal assets cannot be touched.

A private limited company is owned by its shareholder(s) and operated by a director(s). It needs to issue just £1 worth of shares to open for business.

No Risk at Home

The company's finances are totally separate from the personal finances of their owner(s). Shareholders in a limited company are not responsible for the company's debts.

To go into business as a limited company, the company must:

Be registered with Companies House
File annual accounts and an annual return each year
Update Companies House with basic details relating to the company and director(s).

Tell Me Tell You

HMRC must be informed if the company has any profits or income that is subject to tax. Also, a limited company must complete an annual HMRC corporation tax return and pay any taxes within nine months of its financial year end.

Anyone employed by the company must pay income tax and Employees National Insurance. The company must pay the corresponding Employers National Insurance in respect of the employee(s).