- A private limited company is a regular company, which is taxable under the normal and obliged to file annual accounts.
- The main law governing the establishment and activity of English companies is the Companies Act 2006.
- Limited companies have general legal capacity, i.e. they have the right to engage in any commercial activities, except those, which require a special permit.
- A company’s Articles of Association form its main document. A company may use model articles provided by Schedule 1 to Companies (Model Articles) Regulations 2008.
- Both natural persons and legal entities of any residence may be shareholders of a company. A company must have at least one shareholder.
- A company must have at least one director. Only a natural person may act as a director (pursuant to The Small Business, Enterprise and Employment Bill 2015) without residency restrictions.
- A company does not need a secretary unless this is stipulated within the company’s articles.
- A company’s capital is divided into shares distributed among its members. There is no minimum or maximum amount of share capital (authorised and paid-up) that shareholders may hold.
- A company must have an office that is registered within the UK through which to receive official correspondence from Companies House and HMRC (Her Majesty’s Revenue and Customs).
- Limited companies must keep accounting records and submit to Companies House financial statements, tax returns and an annual return or – since 2016 – an annual confirmation statement. Companies that pay VAT must submit also VAT returns to HMRC.
- A company’s activities can be ended legitimately and the company closed down either through an application to have it struck off, i.e. removed from the Company Register at Companies House; or through an application to liquidate the company voluntarily; or else through arranging a compulsory liquidation if it is insolvent and cannot pay its bills.
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