Limited Company FAQ’s

Make sure that you’ve got all the information you need about forming your limited company. Here are some commonly asked questions about company formation to help you understand the basics, provided by our partners Duport Associates.

Why should I form a limited company?

A limited company means having “limited liability”. The most important reason for forming a limited company is that it can help protect you from risks to your home and other assets because your liability is limited.

There are also other benefits to becoming a limited company, including protection for your trading name (provided it does not breach an existing trademark registration), the credibility of having limited company status, and you may also be eligible for tax relief, subject to certain conditions (for more information, contact a qualified accountant).

What are the basic requirements of forming and running a limited company?

There are 4 basic requirements for forming a limited company. You need:

• A Registered Office (in England or Wales to register with Companies House Cardiff, or in Scotland to register with Companies House Edinburgh)
• 1 or more Company Directors
• to file an Annual Return and submit accounts to Companies House each year
• to keep your company register up to date

There is no longer a legal requirement to appoint a company secretary, however companies with only one director will often require a second signature on legal documentation (for example when you open a bank account). If you do not appoint a company secretary this documentation will need to be signed by an appointed witness and many companies are still opting to appoint a company secretary.