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June 5th 2014 / BY: Wisteria

Why set up a limited company?

The process to set up a limited company in the UK is easy, simple and quick. A limited company is an entity which is managed by directors and owned by shareholders and in which the shareholders have limited liability.

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The reasons to set up a limited company are:

  • A limited company is a separate legal entity, this means that when a director or shareholder leaves the company, the company operations will continue, this way the employees and other stakeholders are still secure.
  • Limited companies can sometimes be more tax efficient and funds for the company can be raised by issuing shares to investors.
  • A limited company is easier and more likely to be sold as compared to a sole trader
  • A limited company usually creates an element of prestige. The corporate identity often appears more professional, more established, consumers and creditors know that they are legally registered and regulated.
  • A limited company is generally more credible to potential customers, partners or investors.
  • Once a limited company has been registered with Companies House, the name of the company is protected and cannot be used by another company.
  • A limited company generally has a lower personal financial risk, because of the structure and separation between the company and the directors; they are protected from the personal financial losses.
  • A limited company usually has tax benefits; it is to result in a lower tax liability for managers. Various tax planning opportunities exist which can be tailored to the situation and circumstances.

Wisteria specialises in company formation for limited companies. The formation process is very easy and simple; it usually takes around three to four hours for the company to be incorporated. Wisteria offers a consultation with a Chartered Accountant, Business and Tax consultant after incorporation and before setting up the company. The consultation is usually beneficial to the company because it gives the director a better idea of the requirements for company formations. We offer company secretarial services as well, and these services are important for the company since the company secretary is mainly responsible for the efficient administration of a company and ensures the compliance is followed.

Wisteria Chartered Accountants, Tax and Business Advisers provide a variety of services for companies and individuals.  For accounts or tax advice, information on our services or details on setting up a limited company in the UK, please contact us on 0208 952 0140 or email info@wisteria.co.uk.