Before you set up as a Limited Company you should be aware of the reporting requirements and financial requirements of running a Limited Company.
What is a Limited Company?
A limited company is a separate legal entity and the finances of a limited company are separate to the individual shareholders and directors’ finances. Limited companies are subject to tight reporting and financial responsibilities. The directors of the limited company also have their own duties and responsibilities.
Running a Limited Company
In this fact sheet on Running a Limited Company, we outline more on:-
- The Memorandum
- The Articles of Association
- Limited liability
- Legal continuity
The Companies Act 2006 outlines seven statutory directors' duties:
- Duty to act within their powers - in accordance with the company's constitution
- Duty to promote the success of the company
- Duty to exercise independent judgment
- Duty to exercise reasonable care, skill and diligence
- Duty to avoid conflicts of interest
- Duty not to accept benefits from third parties
- Duty to declare interest in a proposed transaction or arrangement
Maintaining statutory registers
All companies must maintain up-to-date registers of key details. These include:
- Register of members
- Register of directors
- Register of directors' residential addresses
- Register of mortgages and charges
- Register of debentures
- Minutes of board meetings
- Minutes of general meetings
- Directors service contracts
- Register of People with Significant
Other requirements, when running a Limited Company
- Accounts and Confirmation Statement
Running and Limited Company and Taxation
- PAYE, NICs and employing staff
- Corporation tax and self-assessment (CTSA)
- Payment of corporation tax.
Annual filing requirements
- Notice to file
- Submission of the return
At DRG Chartered Accountants, we offer a full range of accountancy services to help you run your Limited Company – including routine book keeping, monthly accounts, VAT, corporate tax, maintaining your statutory registers and filing your annual return. If you would like to find out more, please get in touch with the DRG team. We would be delighted to hear from you.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.