Limited Company Status

A Limited Company is a separate legal entity separate from its shareholders' and directors. The shareholders will own the Limited Company. The shareholders liability is limited to the amount of unpaid share capital. Shareholders are not liable for the liabilities of a limited company.

Directors run the business on behalf of the shareholders, they can be appointed by the shareholders and they can appoint themselves as directors as well. The shareholders define the directors duty and set out the framework for directors to work within.

All Limited Companies require at least one Director and one Company Secretary.

A Director can be a shareholder as well but not necessarily. Directors are an employee of the company.

The Company pays a lower rate of Corporation Tax at 20% (up to profits of £300,000) on the profits after expenses which includes salaries and pension payments. Shareholders qualify for dividends.