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Videos

Why do start-ups succeed?

In this TEDTalk serial entrepreneur Bill Gross identifies the single biggest reason why start-ups succeed - and it surprised even him!


The case for the new investor

How do investors benefit from the Seed Enterprise Investment Scheme (SEIS)?


Start-up success story - Ladudu Ltd

Teresa Le shares the story of starting her Vietnamese mobile cooking school after being made redundant with the British Library Business & IP Centre.


Articles and PDFs

How to start your business - the 100 day guide

Learn the lessons of the entrepreneurs who have gone before you and download our FREE 100 day guide on how to set up your own business.


5 common start-up mistakes before you have even got started

Decisions you make in the beginning can often prove to be some of the most important ones you will ever take.


Website Legal MOT Checklist

Use your website to sell or advertise online? Take our FREE 'Website Legal MOT' and use our handy checklist to see what you are missing or where you may be exposing yourself to unnecessary liability.


You can't build a business by yourself. You'll need to build a team too.

To build a successful business you're going to need to build a successful team at the same time.


Quick info

Legals

What is a Private Company Limited by Shares?


Legals

What is the minimum number of directors required for my company?


Finances

What is a company's accounting reference date?


Legals

Where must I display my company name?




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5 key things about articles of association and shareholders agreements every new business owner should know

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To be a limited company or not to be - the advantages and disadvantages of a limited company

Posted on 26 July 2018

When setting up a business in the UK you will need to decide what structure your business will take...

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What is a Private Company Limited by Shares?

A company that has had shares issued but whose shares are not for sale to the general public.

In a UK private company limited by shares, the liability of a shareholder is limited to the amount unpaid on their shares. In other words if a director or shareholder holds 1 share with a value of £1 their financial liability would be  £1.

For a more detailed view of the characteristics of the different types of company that can be formed in the UK take a look at our Basics of Business™ blog article.

Or if you're ready to form a private company limited by shares now you can start your new business journey right now. We'll guide you every step of the way!

What is the minimum number of directors required for my company?

The Companies Act 2006 requires that all types of private company in the UK must have at least one director. If a company only has one director then that director must be an individual rather than a corporate entity (e.g. another company).

The Articles of Association of a company may also impose a minimum number of directors.

If you are forming your UK limited company with Lightwork Business then our Articles will allow you to have the statutory minimum number of directors which is one.

What is a company's accounting reference date?

A UK company's accounting reference date is the end of it's financial year. It is often abbreviated to 'ARD' and is the date a company must make its annual financial accounts up to.

As each financial year comes to an end, you will have to:

  • Arrange to complete your company's annual accounts,
  • Send a copy of the accounts to each shareholder in the company,
  • Send a copy to Companies House, and
  • Send a copy to HMRC.

The annual accounts are needed to report your business’s activity during that financial year, up to and including the accounting reference date.

It’s very easy to change the ARD subsequent to company formation if you intend to extend or reduce your 12 month financial year. There is no limit to the amount of times you can shorten a company's financial year but you can only extend it once every five years, except in certain circumstances. You can also only change the ARD before the deadline for providing your company's annual accounts - i.e. nine months after your accounting reference date. You can not change the ARD though if the company's accounts are already overdue.

Where must I display my company name?

Unless a UK company has been dormant since incorporation, it must display a sign with its registered name at:

  • Its' registered office.
  • Any inspection place.
  • Any location at which it carries on business unless the location is primarily used for living accommodation.

The registered company name - together with other details such as company number, place of registration and registered office address - must also be included on all business communications such as letters and emails.


ACRA

© 2018 Lightwork Business Legal Glossary Back to Top

Name and registered office: Lightwork Group Limited, 200-203 Strand, London, WC2R 1DJ
Registered in England and Wales (Company no. 04450299)
VAT number: 939007320

© 2018 Lightwork Business

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