There may be good reasons why you want to set up a company, but not necessarily trade for the time being… or you may decide to take a break from contracting, but keep your company ticking over. Here we explain what a ‘dormant’ limited company is, and what responsibilities you have as a company director.
Business Structures - Limited Company
Most professional contractors work via their own limited companies. It remains the most tax-efficient business structure, despite the April 2016 dividend tax hike.
Company directors have more paperwork and legal obligations than umbrella company contractors, but in reality, a specialist accountant can take care of these administrative duties for you.
- If you only have 5 minutes, make sure you read 10 things you should know before setting up a limited company
- How much does it cost to set up a limited company?
- Limited company basics - how to set up a company, and the responsibilities you have as a director
- Limited vs. Umbrella - find out more about the advantages and disadvantages of each business structure
- For in-depth guides to setting up a company, try Limited Company Help
If you have decided to trade via your own limited company, you have to submit an application to Companies House, the registrar of companies. Here, we’ve listed 10 bits of information you need to collect in advance to ensure your formation can be processed correctly the first time.
Which type of business structure should you use? A basic overview of how limited and umbrella companies work, and some of the pros and cons of using each structure.
A recent case has highlighted the impact of the MSC legislation on the contracting industry. How can you ensure that you are not involved with an MSC provider – who is effectively controlling your limited company?
Why recruitment agencies and end-clients are unlikely to hire contractors who do not work via either a limited or umbrella company structure.
When you apply to Companies House to form a company for the first time, you’ll have to provide a number of addresses, the most important one being your registered office address. What can you do to protect your privacy?
If you’ve chosen to set up as a limited company contractor, how much admin work will you have to undertake? In truth, there’s not as much ‘hassle’ as you might imagine, especially if you hire a good accountant.
Every private limited company and limited liability partnership registered in the UK is required to submit a confirmation statement to Companies House each year. So what does this statement contain, and how often must it be submitted?
As a limited company contractor, you can choose to voluntarily shut down your company and remove it from the Companies House register. This means the company will cease to exist and you won’t face any more administrative duties or running costs for the business.
Company secretaries are usually appointed to help directors complete their statutory duties and carry out other task related to corporate governance.