Advantages of a Limited Company in the UK
Advantages of a Limited Company in the UK
There are different legal structures for forming Companies in the UK. But, none of them is as common and as advantageous as the Limited Company structure. Here in this article, we shall shortly describe the structure of a limited company, the advantages of a limited company, and will also look into any disadvantages that it may have.
What is a Limited Company?
A Limited Company is the type of Company in which the owners and shareholders have only limited liabilities. Accordingly, these liabilities are limited to the share values of the shareholders. Thus, the owners and shareholders are responsible only up to a certain value.
Advantages of a Limited Company in the UK:
The limited Company Structure offers many advantages. These include the following:
Limited Liabilities:
As a limited company is separate from its shareholders and directors, thus they are not personally liable for any extravagant business losses.
Less Taxation on Limited Companies:
Limited Companies have much lesser taxes on them, as compared to other types. Primarily, limited companies pay only 19% corporation tax. In addition to this minimum tax value, they also enjoy certain allowances and amenities. Moreover, the taxation on the salaries of the shareholders and directors is also lower than other company types.
Additional Funds and Credibility:
Limited Companies are registered with Companies House and regularly submit their reports and account details to them. As a result, they are viewed as more reliable and credible by the business owners. Additionally, the investors also tend to favor limited companies because of their credible image. This leads to greater funding opportunities for limited Companies.
Disadvantages:
Limited Companies have certain disadvantages, as well.
Registration Process:
Limited Companies involve a great deal of paperwork in their registration. Moreover, their registration fees are also higher than other company types. However, Company Formation agents like Liscard Business Centre can help company owners in this regard with their discounted offers and smart packages.
Complex Operations:
Limited Companies involve a great deal of documentation. The owners have to maintain detailed records of the accounts and make annual submissions of their account statements to HMRC and Companies House. Moreover, they also pay annual taxes through PAYE to HMRC, which is a time taking process.
Despite the disadvantages, limited companies remain the most preferred type of Companies in the UK. If you are planning to form one of your own, Liscard Business Centre can help you with its Company Formation and Registration experts who can simplify the entire process for you.
Liscard Business Centre
Liscard Business Centre is a company formation service that offers different packages for company formation in UK. If you want to register your businesses anywhere in UK (that include England, Scotland, Wales, and Northern Ireland), Liscard Business Centre would be pleased to help. We can help you in forming your companies in much shorter periods of time while also saving you considerable sums of money.
Registration, Documents Verification, Banking Details, Statements of Association, and Official Addresses are all managed by Liscard Business Centre.
