Limited companies are a popular means of starting a business in Wales with (perhaps coincidentally) the official registrant being based in Cardiff.
When the setting up a new limited company is completed online, the process can be completed in as little as 10 minutes to a few hours. Upon successful registration an official and unique company number is issued signifying that the new company is now active and fully registered.
Limited companies generally confer an enhanced status on a business and may instil confidence in persons looking to purchase or supply the organisation. Information about the company is readily available to the public and this apparent openness can be seen as a positive aspect of limited companies compared with other trading mechanisms which do not require such transparency.
A popular aspect of limited companies is the inherent protection they provide the people who run it and those who own it. Their legal status automatically distinguishes the company’s existence from the individuals involved with it. Put simply, the business affairs of the limited company do not impede on the financial personal lives of the directors or shareholders.
The requirements for setting up a UK limited company state what is needed in order to incorporate this type of business entity.
Whilst most business formats do necessitate the preparation of annual accounts, limited companies do have some additional requirements. These are concentrated on the annual return regime which operates solely for limited liability partnerships and companies and the presentation of the business’ financial statements.
Limited companies annuals accounts must be in the format stipulated by the Companies Act 2006 and although these are certainly less arduous for smaller entities, they do require the preparer to adhere to them.