Key Facts For Private limited Company
- UK Registered address
- One company secretary ( person or corporate)
- One director (person or corporate)
- If there is only one director he cannot be at the same time the company secretary
- Minimum capital is £ 1
- General Trade in the memorandum and article of association
- Company statutory books must be maintained properly
- There are two authorities that your company is accountable to one is the Inland Revenue where your taxes and tax return must be file and the second one is the Companies House where your company is registered and abbreviated accounts must be file. Failure to file accounts on time will result in penalty being imposed.
- VAT - Must registered when business turnover reached £64,000
- Accounts - after the accounting period end which is 12 months from the date of incorporation you will have 9 months and 1 day to pay the corporation tax and file the corporation tax return and 10 months to file the accounts with the Companies House
- Tax rate on net profits are: 20% for the first £300,000, 30% when profit is above £1,000,000, there is a marginal relief rate for profit between the two figures
PRIVATE COMPANY
- LIMITED BY SHARE
- LIMITED BY GUARANTEE
- What is a single member company?
A single member company is a private company, limited by shares or by guarantee, which is incorporated
with one member, or whose membership is reduced to one person.
- Can a single member run the company?
No. The company must still have at least one director and a secretary who cannot also be the sole director.
- How can a single member hold general meetings?
Unless the company's articles of association specify anything to the contrary, a single member - present
in person or by proxy - constitutes a quorum. If such a meeting is held, it must be recorded in the minutes.
If a single member takes a decision, except by written resolution, then the decision must be given to the
company in writing.
- How should a company record an unwritten contract with a sole member?
If the company enters into an unwritten contract with the sole member who is also a director of the company
(and the contract is not in the ordinary course of the company's business), the company must ensure that the
terms of the contract are set out in a memorandum or are recorded in the minutes of the next directors'
meeting.
- What about the register of members?
A company's register of members must accurately record its members. If a company is incorporated with one member,
then the register must reflect this. If the company originally had more than one member and the membership
reduces, then the register must show when this happened. Similarly, the appropriate entries must be made in
the register of members if the number of members later increases.
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