Free Business Forum UK  

Go Back   Free Business Forum UK > Main Business Forum > Starting a Business - Help and Advice

Starting a Business - Help and Advice The Place for Help and Advice on Starting a New Business







PublicLiabilityInsurance.org - What Is Public Liability Insurance








What is involved in running a Limited Company?

Starting a Business - Help and Advice


Reply
 
LinkBack Thread Tools Display Modes
  #1  
Old 11-08-2008, 08:51 PM
IP2
Guest
 
Posts: n/a
Default What is involved in running a Limited Company?

On the surface of it very little is involved in running a Limited Company.

A limited company can be set up for under ?30, complete with Memorandum of Association and Articles of Association.

As standard procedure Ltd Companies are created with 100 shares of a nominal value of ?1 each.

A Director and a Company Secretary need to be appointed (which can be the same person!)

The company is not legally required to trade, but is legally obliged to complete certain tax forms annually (or else a fine will be imposed). Each year the company must complete an 'Annual Return' which is basically a form that confirms the Registered Office address, names the shareholders, directors and company secretary or amends any changes that have occurred through the year.

A fee of ?15 - ?30 is payable (depending whether you file online or not) annually with your Annual Return.

Additionally your accounts must be submitted to your local tax office each year (even if you have not traded) along with a cheque for any Corporaion Tax due on profits.

Finally you need to submit a CT600, a complicated looking form, but quite straight forward to fill in once you have mastered it. The form (again annual) breaks down the elements of income that your company has received and provides the basis of how you have worked out your tax liabilities.

I am more than happy to help people with the basics of a CT600, but if your affairs are complicated, I would strongly advise employing an accountant.

And that is it! In a later post I will explain the duties of Directors and Company Secretaries and some odd quirks. But for now, please do feel free to ask any questions or add comments.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to For This Useful Post:
BenEddie1112 (11-08-2008), Smithers37 (23-04-2009)


Register to remove these Advertisements.
  #2  
Old 11-08-2008, 09:15 PM
Resident Wheeler Dealer
 
Join Date: Aug 2008
Posts: 2,590
Thanks: 89
Thanked 235 Times in 200 Posts
Default

Thanks John, that's a great post . How do you go about adding more shares into the company?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #3  
Old 11-08-2008, 09:47 PM
Super FBF Member
 
Join Date: Aug 2008
Location: Brighton and Hove
Posts: 1,464
Thanks: 41
Thanked 241 Times in 196 Posts
Default

Quote:
Originally Posted by BenEddie1112 View Post
How do you go about adding more shares into the company?
These things are rarely simple, but Table A is the starting point for a lot of issues for most companies. You would want paragraph 2.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Peter W For This Useful Post:
BenEddie1112 (11-08-2008)
  #4  
Old 11-08-2008, 09:51 PM
Resident Wheeler Dealer
 
Join Date: Aug 2008
Posts: 2,590
Thanks: 89
Thanked 235 Times in 200 Posts
Default

Thanks again people, much appreciated , don't quite understand it though. How would I actually make shares? Is there a cost involved to the owner of the company?

Cheers,
Ben

Last edited by BenEddie1112; 11-08-2008 at 09:54 PM..
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #5  
Old 11-08-2008, 10:21 PM
Senior FBF Member
 
Join Date: Aug 2008
Location: England
Posts: 120
Thanks: 1
Thanked 4 Times in 3 Posts
Default

Quote:
there a cost involved to the owner of the company?
Yes and no. "The Owner" of an ltd or plc is anyone who owns a share. Its called Equity. Owning even 1 of the 100 shares amkes you a part owner of the business. So if one man, lets just call him Ben, started an Ltd as a budding young businessman, but then kept all the shares himself, selling shares would be a way of raising income for the business. So the business gains and therefore so does the owner. But, the original owner loses some of his holding in the business and also has to consult shareholders on decisions

IP2, want to talk about liability?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #6  
Old 11-08-2008, 10:26 PM
Super FBF Member
 
Join Date: Aug 2008
Location: Brighton and Hove
Posts: 1,464
Thanks: 41
Thanked 241 Times in 196 Posts
Default

Ben selling some of his shares would primarily be a way of raising money for Ben, not for the company. Ben would then be at liberty to lend that money to the company.

Another approach would be for the company to issue some new shares at a premium. That is, charge say ?2,000 for each one, rather than the ?1 that they cost when they were issued to Ben.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #7  
Old 11-08-2008, 10:35 PM
Resident Wheeler Dealer
 
Join Date: Aug 2008
Posts: 2,590
Thanks: 89
Thanked 235 Times in 200 Posts
Default

So it does or doesn't cost me money to make new shares in a limited company?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #8  
Old 11-08-2008, 10:39 PM
Super FBF Member
 
Join Date: Aug 2008
Location: Brighton and Hove
Posts: 1,464
Thanks: 41
Thanked 241 Times in 196 Posts
Default

Quote:
Originally Posted by BenEddie1112 View Post
So it does or doesn't cost me money to make new shares in a limited company?
Well, if you own 100% of a company with some value, and you sell half of it much too cheaply, then it has cost you money even though no money has left your bank account.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #9  
Old 11-08-2008, 10:45 PM
Resident Wheeler Dealer
 
Join Date: Aug 2008
Posts: 2,590
Thanks: 89
Thanked 235 Times in 200 Posts
Default

I think I may have portrayed my question wrong. Say I had 100 shares to begin with, would it then cost me money if I wanted to make 1000 new shares?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #10  
Old 11-08-2008, 10:49 PM
Super FBF Member
 
Join Date: Aug 2008
Location: Brighton and Hove
Posts: 1,464
Thanks: 41
Thanked 241 Times in 196 Posts
Default

If they were ?1 shares, it would oblige you (or whoever took the new shares) to pay ?1,000 into the company, at some point.

Last edited by Peter W; 11-08-2008 at 10:51 PM..
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Bookmarks

Tags
company, involved, limited, running

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Running a business... BenEddie1112 General Business Questions and Discussion 3 31-08-2009 08:34 AM
tax advice for new limited company please nanoos Accounts, Finance and Tax Affairs 5 31-03-2009 07:28 PM
Limited Company pvcprinting Accounts, Finance and Tax Affairs 7 14-02-2009 04:01 PM






All times are GMT. The time now is 05:44 AM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.1
© Free Business Forums 2011

Ad Management plugin by RedTyger