If you decide to set up a limited company there is lots to think about, below is a glossary of some of the terms you will come across and what they mean:

Certificate of Incorporation – The legal document which is evidence that the company has been set up in accordance with to Companies Act 2006.

Registered Office – The address where official communications are sent from people such as HMRC and Companies House.

Director – The person or people legally responsible for running the company.

Shareholder – The person or people that own the company.

Company Secretary – The person who is legally responsible, along with the directors for certain tasks required by the Companies Act, such as filing the annual return, establishing and maintaining the registered office and maintaining the company register. Private companies are not longer legally obliged to appoint a company secretary.

Articles of Association – The rules about running the company that shareholders and directors must agree to.

Corporation Tax – The tax paid on profits of companies. You must register the company to pay corporation tax with HMRC once they send you the company’s Unique Tax Reference Number (UTR). This is usually done within a few days of registering the company.

When setting up a limited company it is important that you get the details right and set it up in the correct way. Failure to do so may mean you don’t comply with the Companies Act 2006 and furthermore, may have tax implications.

If you would like help with setting up a new company please get in touch and we can help you set up your company quickly and hassle free.