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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Is a Limited Company right for me?
A Limited Company is a distinct legal entity in its own right.
The law sees the “company” as a separate person. It has rights and responsibilities. A limited company can own property or equipment and can have its own bank accounts and can hold shares in other companies.
A limited company must have at least one director and a registered office. As a managing director, 100 per cent of the shares would be issued to you, but many freelancer contractors split the shares with their spouses. The registered office is where the company resides for official purposes. It must be within the jurisdiction where the company was incorporated. that is within the same country..
Legally, a sign must be displayed outside the building to show that this is the company registered office. However, if the Registered Office is a private dwelling, this isn't enforced with rigour.
A limited company must also file annual returns to Companies House, as well as a Corporation Tax return to HMRC. This confirms who owns and who runs the company. It must also report its annual financial position to Companies House.
There are many advantages of operating through a Limited Company;
1. A limited company offers you protection against liability for the company's debts - as a shareholder, or director, you would not be liable for the company's debts but would only lose the value of your shares. In most cases, this is £100 or £1000.
2. When you're running your own company, you will be liable for ensuring that all of your company administration and legislative paperwork is up to date. However this is something that your Accountant can do on your behalf.
3. As you have full financial and administrative control over your company transactions, the limited company option is often seen as the most tax efficient way of working as a freelance contractor as you keep more of your income.
Of course there are some downsides to operating as a Limited Company, although these tend to be focused around the need to maintain proper records - you are responsible for day to day issues as invoicing, keeping an accounting system and filing all forms and returns. Because you own the company, you also have more responsibilities in terms of paperwork and deadlines. Most new contractors struggle with these responsibilities.
However, these can easily be outsourced to your accountant.
See Also
Limited Liability Partnerships
Umbrella Companies
Choosing the Right Accountant
Legals
Partners - Company Formation
Recommended Links.
Your obligations under the Companies Act
Companies House Guidance Books
The law sees the “company” as a separate person. It has rights and responsibilities. A limited company can own property or equipment and can have its own bank accounts and can hold shares in other companies.
A limited company must have at least one director and a registered office. As a managing director, 100 per cent of the shares would be issued to you, but many freelancer contractors split the shares with their spouses. The registered office is where the company resides for official purposes. It must be within the jurisdiction where the company was incorporated. that is within the same country..
Legally, a sign must be displayed outside the building to show that this is the company registered office. However, if the Registered Office is a private dwelling, this isn't enforced with rigour.
A limited company must also file annual returns to Companies House, as well as a Corporation Tax return to HMRC. This confirms who owns and who runs the company. It must also report its annual financial position to Companies House.
There are many advantages of operating through a Limited Company;
1. A limited company offers you protection against liability for the company's debts - as a shareholder, or director, you would not be liable for the company's debts but would only lose the value of your shares. In most cases, this is £100 or £1000.
2. When you're running your own company, you will be liable for ensuring that all of your company administration and legislative paperwork is up to date. However this is something that your Accountant can do on your behalf.
3. As you have full financial and administrative control over your company transactions, the limited company option is often seen as the most tax efficient way of working as a freelance contractor as you keep more of your income.
Of course there are some downsides to operating as a Limited Company, although these tend to be focused around the need to maintain proper records - you are responsible for day to day issues as invoicing, keeping an accounting system and filing all forms and returns. Because you own the company, you also have more responsibilities in terms of paperwork and deadlines. Most new contractors struggle with these responsibilities.
However, these can easily be outsourced to your accountant.
See Also
Limited Liability Partnerships
Umbrella Companies
Choosing the Right Accountant
Legals
Partners - Company Formation
Recommended Links.
Your obligations under the Companies Act
Companies House Guidance Books