SETTING UP A LIMITED COMPANY; WHAT YOU NEED TO KNOW

If you wish to have financial freedom and be financially independent, all you will need is to own a company. This is the surest way to financial stability. Setting up a limited company can be highly rewarding to an entrepreneur

Glasgow, United Kingdom (prHWY.com) November 6, 2012 - If you wish to have financial freedom and be financially independent, all you will need is to own a company. This is the surest way to financial stability. Setting up a limited company can be highly rewarding to an entrepreneur if you know the due process to follow.
If you wish to establish a company, there are certain procedures to follow for you to have the required dividend. I will explain the major factors needed in ltd company formation.
 Registration:
Company registration is the first thing to do if you wish to set up a company. This is very important for an easy identification of your business from others. If you are living in the United Kingdom, company formation UK will take you various steps. You have to register the company at the office of the Registrar of Companies House in Cardiff. You will lodge the document for the memorandum of understanding which includes the company's name, the objective, and the registered office of the company, liability and capital of the company. They are exactly what you need to know on how to register a company.
 Owners of the company:
The shareholders own a limited company. They share the profits that accrue from the business by taking the dividends of the business, which is in proportion to the profits contributed by the company. This is very important in limited company formation. If a private individual wholly owns the company, it means that the company has only one shareholder, which is rarely enough to scale your ideas to an enviable height. If you wish to have many dividends from your business, it is good to have several strong shareholders so that the profits will become high as a result of the contributions of the shareholders.
 The managers:
These include the Directors and Chief Executive Officer (CEO). The Directors can as well be the shareholders in the limited company but they must have a clear understanding of their roles as Directors. The managers have the function of executing the decisions of the Directors. The managers are a very crucial factor if you wish to know how to register a business with this organizational structure.
 The staffs:
They are the main employees of the business establishments. They make money for the company through their labor. Setting up a limited company will be incomplete without the employees because they are the main drivers of the business. The day to day running of the company is carried out by them. Having paid staff implies that you will include them in the scheme of payroll and maybe one day provide shares to supplement their wages.
 Administration:
After the enactment of the 2006 Companies Act, companies now have the legal power to choose the company secretary. The company secretary oversees the administration of the company. The secretary ensures that all the companies' paperwork is completed on time. Some companies prefer to hire an attorney for this position because of its legal sensitivity. The company secretary is needed for company formations.
 The accounts:
There is an urgent need to keep the financial status of the company up to date. This is very important in company formations to have funding for your business plan. The accounts will help you to monitor the growth and progress of the business. It is also very important in the preparation of the company's annual report and tax return.



Find more information relating to company registration, and how to register a business here.

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Tag Words: company formation uk

Categories: Business

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