Limited Company

Most people like to go for Limited companies because there will be less paper work and better facilities. It is better to start your business as a limited liability company if you plan to start a new business. The two main advantages of Limited company are decrease in the amount of tax that is probable of your company and greater security of your private assets if and when the company runs into debts.

The name is the major object that one makes a decision when you are starting a company. The Companies House maintains a record of all the companies and you can just go to their website and make sure whether your 'name' already exits. However the name should always end with the world Limited or its abbreviation 'Ltd'. A Limited company also wants two significant posts from the very beginning. The first one is the 'director' and the other one is the 'company secretary'. The secretary might also be the director of the business but then he or she cannot be the only director.

When two people form a Limited company, usually the two tasks are shared by the two people respectively. The responsibility of the director is also specified to the secretary. There is as well another choice obtainable to the new businessmen. They can use the expert armed forces of a third gathering which does the same work that a conservative secretary does for a company. The subsequently purpose is to make a decision on the number of shares of your new company and the cost of each share in the marketplace. These shares are sell to people who wish for invest in this company. They usually develop into the share holders of the company and make dividends on the profit of the company. The unsold shares are called 'unallocated shares'.