When deciding to run a Limited Company in the United Kingdom, i.e. a limited liability company, you need to know the basic advantages.
One of the main ones are:
To register a Limited Company, we only need three days. You can set up a Limited Company even if you are not a UK resident and a minimum of one person is required to register. In fact, after receiving the Certificate of Incorporation, you can start working straight away, in the meantime we would be applying for the necessary registrations. The company must have a shareholder and a director who will represent the company (it can be the same person), who also will be responsible for finances and settlements. The owner’s liability is limited to the amount of capital invested, which helps protecting owner’s private assets.
It is important to know that once opening limited company there is no restrictions on the establishment of share capital,
in principle you can start from £ 1. Limited company can operate globally, open branches and employ employees.
Limited Company does not have a tax-free amount, but employees remunerations are tax deductible. Income tax for Limited Company (Corporation Tax) is currently 19%, in the future it is to be reduced to 17%.
The tax must be paid within nine months of the end of the company’s tax year.
The company ends its tax year 12 months after registering with Companies House. If the company’s revenue exceeds the amount of £ 85,000, you must register as a VAT payer.
Operating as a Limited Company, i.e. as a legal entity, provides higher credibility than self-employment. It is much easier to get a loan, funding or a more favorable contract
If you are still not convinced whether the Limited Company activity is for you – get in touch with us! We will be happy to answer every question and advise you which solution is best to achive your goals. A reliable accountant is also your success!