Open UK Limited Company: Benefits of UK Limited Company

  • Post By admin
  • May 19, 2021

A Limited Company is a popular business structure that a lot of entrepreneurs follow in the UK. Now, the LTD business structure is so popular because of the facilities it offers. So, if you have plans to open UK Limited Company, then you are on the right track.

We often see the word LTD attached to a company’s name. The abbreviation LTD is short for Limited. Now, a Limited Company is a type of business in which the institution remains legally separated from its owners including shareholders and directors. And, in the case of the UK, the business has to be incorporated at the Companies House.

After following all the procedures, a company gets a unique company registration number. Further, the personal details of the owner also don’t appear in the public register.

Now, before you proceed to open UK Limited Company, let’s look into the advantages and disadvantages of it

Benefits of UK Private Limited Companies

There are many benefits of opening a UK Limited Company. Here are they –

Shared Liability

As there is no limit on the number of shareholders associated with the organization, the risk is always divided. The liabilities or risks of shareholders are limited to the number of investments made by them in the organization.

Tax-Friendly

Compared to sole proprietorship, partnership, and other similar setups, private limited organizations have an edge in taxation. Managing accounts is simpler which ensures smooth operations

Separate Entity

The shareholders of a privately held company and the organization are two separate entities. Regardless of if any shareholders resign or liquidate their shares, the organization is never dissolved and carries on existing.

Easy Funding

Financial institutions are also more eager to finance privately held organizations owing to their business model of offering affordable prices using revenue generation strategies.

Drawbacks of Private Limited Companies

Despite several benefits, there are certain drawbacks of UK Limited Companies. These are –

Limited Capital Generation

Investors for growing organizations can be hard to find. As private limited companies are not permitted to offer shares publicly to raise capital, shares have to be sold privately.

Director’s Guarantee

While privately-held organizations can borrow money in their name, but it needs a director to act as the loan’s guarantor. Private assets may be required to be included as collateral.

Open UK Limited Company: The Setup Procedure

Having a UK Limited Company can be beneficial in many ways. And, we have already discussed that. Now, the question is how to open a UK Limited Company. To begin, there are several things that the owner needs to open UK Limited Company. Here’s a list –

  • First of all, you are going to need a Business Name and Address. Now, this name has to be unique and the address must be of the UK.
  • Then, to open UK Limited Company, you need at least one shareholder. Also, you will need one director to the least. Here, a shareholder can be a director as well.
  • Further, you will need a memorandum and Articles of Association. This is an agreement that you need to open a company and the rules in writing.
  • Lastly, the details of people who are associated with your company in terms of shares or voting rights. This means, details of people who own more than 25% of the shares of your company and people who have voting rights in significant decision-makings of your company.

Once you prepare all of the above, you will be eligible to register your company in the UK.

Open UK Limited Company Remotely: Connect with Activate Global

Do you know that you can now open UK Limited Company without even leaving your home? And, all you need to do so is Activate Global. In short, opening a UK Limited Company is a great start for your business. While the procedure can be quite strenuous for any non-resident.

So, we, at Activate Global, simply make the entire procedure easy. What we do is take care of all the jobs such as arranging a UK address, filling the application to the Companies House, and such on your behalf. And, all you have to do is go through a process of identity verification after placing your order.

Besides, there is pre-implementation support from our side as well. So, you can contact us any time you need consultancy or suggestions. We are 24/7 active to assist you. Finally, we have some discounts on eligible orders as well. Book your appointment now to find out.

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