This means that your liability could be as little as £1, depending on the number of shares you issue and purchase. It is common practice to set the nominal value of most shares at £1. A Covent Garden registered office address for your business Beyond that, your personal assets will be protected. If your company becomes insolvent and is unable to pay its creditors, you will only be required to contribute the nominal value of your unpaid shares. Any debt, losses, or legal claims associated with the company are the responsibility of the company itself – not its owners (shareholders/guarantors) or directors.Īs a shareholder, you will have no legal obligation to pay more than the nominal value of the shares you hold. This separation is known as the ‘corporate veil’. Therefore, the business is entirely separate from the people who own and manage it. This is because a limited company is treated as a separate legal entity a legal ‘person’ in its own right. Simply put, should your company run into trouble, your personal assets will be secure. The biggest benefit of forming your own company is limited liability protection. However, there are a number of other limited company advantages available.
The principal reasons for trading as a limited company are limited liability, tax efficiency, and professional status. We will also outline the potential downsides of company formation when compared to the sole trader structure. To enable you to make an informed decision, we will provide an overview of the limited company advantages on offer. All Inclusive Package Special Offer - limited time only, save 50% This is due to the many professional and financial benefits it offers, all of which far surpass those available to sole traders or contractors working through an umbrella company.
A limited company is one of the most popular legal structures for all types and sizes of businesses in the UK.
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