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Private Limited Companies

Private Limited Companies (LTD or Limited by Shares)

The most popular company type, a company that trades for profit and is limited by shares. Form your LTD company today with Brighton Formations – it only takes a few hours and your company is ready to trade. Start by choosing a company name or choosing a package.

Brighton Formations can incorporate your limited company to be ready to trade today. Start by choosing a company name or choosing a package.

What is a private limited company (LTD)?

A private limited company is a corporate entity that is legally separate from any directors and shareholders. As it can stand alone as a legal entity, it can enter contracts as a company and hold assets in its name.

The word limited here refers to the shareholders limited liability. They are only responsible for any company debts up to the value of their shares within that company. No personal assets are at risk.

Limited companies are also taxed on corporation tax, not income tax. (This might make a difference to you, but check with your accountant whether this is of importance.

It is a solid base for most companies, especially if the right services are added.

Should the company limited by shares generate an income of £82,000 or more, they should register for VAT, we offer a VAT registration service should you need it.

Things to note

Requirements:

  • Minimum of one director and one shareholder (they can be the same person)
  • Needs to file Annual Confirmation Statement to Companies House
  • Needs to file Annual Accounts to Companies House

Companies limited by shares require high transparency. This inspires trust from the public – both partners, clients and customers – and makes your company seem more legitimate. However, it also requires that any company officers, directors, shareholders and finances are all placed on the public record. This includes the full name, home address and date of birth of the director, plus the full name and address of any shareholders. Any changes in officers or personal details must be sent to Companies House to update the public record.

As this takes away much of the privacy of any members of the company, it is possible to use a service address to prevent your personal home address being on the public records. It is also possible to ask for your date of birth to be concealed.

Company registration name

Your trading name falls into a set of rules which protects its uniqueness. No one can register a company under your name and often, names that are too similar are not accepted.

Want to form a private ltd? Start by searching for your company name.