UK Private Limited Company (Ltd) – Procedure of Incorporation
Private Limited Companies are governed by the ‘Companies Act 1985’. A Private Limited Company is a legal entity in its own right; separate from those who run it, the shareholders. The limited liability, potential tax advantages and simplicity in running a private limited company make it the most common form of registered business in the UK. As a shareholder, your personal assets remain separate (unless they are secured against the business for borrowing) and your risk is reduced to only the money you have invested in the company and any shares you hold which you have not paid for.
There is no minimum capital requirement for a Private Limited Company. Private Limited Companies are required to have a minimum authorized share capital of GBP1 (or its currency equivalent) and are formed with both authorized and issued share capital. The minimum issued capital is one share but additional capital is usually issued to reflect the stability of the company. Unissued shares can be issued at any time by the directors, subject to prior approval from the shareholders. Shares in a Private Limited Company are transferred by private agreement between the seller and the buyer.
Documents Required for Incorporation:
In order to incorporate a Private Limited Company the company name must be officially approved by the Registrar of Companies. Once approved the following documents are required:
- Certified proof of ID for directors / shareholders and beneficial owner
- Certified proof of address for directors / shareholders and beneficial owner
- Completed Application Form (supplied by Eltoma)
The formation of a Private Limited Company is a very quick process and we can even offer next day incorporation (once all documents are received and approved)
The following documents will be received upon incorporation:
- A Certificate of Incorporation
- Memorandum and Articles of Association
- Minutes of the First Meeting of Directors
- Share Certificates and Company Register