Whether you’re an aspiring entrepreneur, a business owner considering a new venture, or simply seeking to expand your knowledge of company structures, this hub page is your gateway to understanding the intricacies of limited companies and the role of SPVs within the business and property landscape.
A limited company offers many distinct advantages, such as limited liability protection, professional credibility, and perpetual existence, making it an attractive choice for many businesses. In addition, special purpose vehicles play a crucial role in various industries, serving specific functions such as asset holding, financing, or risk management.
Throughout this hub and its supporting pages, we will go into the basics of limited companies and SPVs, providing you with valuable insights on setting up a company, complying with regulations, understanding directors’ responsibilities, managing finances, and much more. Whether you’re taking your first steps into the world of limited companies or looking to expand your existing knowledge, we’ve got you covered.
What is a Company Formation Agent?
If you’re planning to start a business in the UK, you’ve likely come across the term “company formation agent”.
But what exactly is a company formation agent, and who needs one?
In this guide we explain the role of an agent when setting up and running a UK limited company, and why you might need one.
Setting Up a Limited Company
The process of setting up a limited company involves several essential steps and considerations.
We will provide a step-by-step guide to help you navigate the process of setting up a limited company successfully.
Directors Loan Account: A Comprehensive Guide
What is a Director’s Loan & How Do They Work? A director’s loan is money that you, as a director, either borrow from or lend to your company. It’s important to note that this money is separate from your salary, dividends, or legitimate expenses. Can I Borrow Money from My Limited Company? – Yes, you …
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What is a private limited company?
Defining a Private Limited Company A private limited company is a type of business structure that is privately owned either by its founders or a group of private investors. This type of company is prevalent in the UK, ranging from single-person operations to large corporations with multi-million-pound turnovers. The ‘Private’ Aspect of a Private Limited …
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Are shareholders on the public register?
Understanding Shares and Shareholders Before we look at the specifics of the public register, it’s essential to understand the basics. So, what exactly are shares and shareholders? Shares represent a unit of ownership in a company. When you own shares in a company, you own a part of that company relative to the number of …
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What becomes public information when you form a company?
Understanding the Role of Companies House Companies House plays a pivotal role in the UK’s business landscape. One of its key responsibilities is to maintain the register of companies. Every time a company is formed or a company document is filed, it is documented on the register. The primary purpose of this register is to …
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Comparison of Limited Companies and Special Purpose Vehicles
Legal Structure and Formation Limited companies and SPVs have different legal structures and formation requirements. Limited companies are incorporated entities that are subject to the Companies Act and relevant company law. They have a distinct legal personality separate from their owners and shareholders. SPVs, on the other hand, are created for specific purposes and are …
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Disadvantages and Limitations of Special Purpose Vehicles (SPVs)
Complexity and Administration Burden Establishing and maintaining SPVs can be complex and administratively burdensome. Setting up an SPV involves legal and accounting considerations, documentation, and ongoing compliance requirements. Maintaining separate financial records, conducting audits, and fulfilling reporting obligations add to the administrative burden. Businesses utilising SPVs should be prepared for the additional time, resources, and …
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Benefits and Advantages of Special Purpose Vehicles (SPVs)
Limited Liability Protection One of the key benefits of SPVs is limited liability protection. By establishing an SPV, businesses can separate the liabilities of specific projects or investments from their parent companies or investors. This means that the liabilities incurred by the SPV do not extend to the parent company’s or investor’s other assets. Limited …
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What is Company Formation?
What is Company Formation? Company formation, also known as company incorporation, is the process of registering a business as a limited company. Upon registration, the business becomes a separate legal entity, distinct from its owners. It is responsible for its own finances, assets, and liabilities. The key advantage of forming a limited company is the …
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Legal Requirements and Regulatory Framework for Limited Companies
Company Formation and Incorporation Process The process of forming a limited company involves several key steps. It begins with choosing an appropriate company name that adheres to the regulations set by Companies House. Once the name is selected, the company must be registered with Companies House, providing necessary information such as the registered office address, …
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Setting Up a Limited Company: Step-by-Step Guide
Step 1: Choosing a Company Name Choosing an appropriate company name is the first step in setting up a limited company. Ensure that the name aligns with the guidelines and restrictions set by Companies House. The name should be unique, not infringe on any trademarks, and not contain sensitive words or expressions. Conduct a name …
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Benefits of Incorporating a Limited Company
Limited Liability Protection One of the primary advantages of incorporating a limited company is the concept of limited liability. When a business is structured as a private limited company, it becomes a separate legal entity, distinct from its owners or shareholders. This separation ensures that the company’s liabilities and debts are not the personal responsibility …
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A Guide to the Register of People with Significant Control (PSC)
Understanding the Concept of a Person with Significant Control So, who qualifies as a Person with Significant Control (PSC)? A PSC is an individual or a registrable legal entity that meets one or more of the following conditions in relation to a company: Decoding “Significant Control or Influence” The term “significant control or influence” might …
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What are PSC Statements?
Understanding PSC Statements PSC stands for ‘People with Significant Control’. In the context of UK business, a PSC statement is a declaration made by a company when it cannot provide information about its PSCs. It’s important to note that PSC statements are not the same as confirmation statements. While both are required by Companies House, …
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Limited Liability: What Does This Mean for You and Your Company?
Understanding Limited Liability Limited liability is a legal principle that safeguards you as a business owner from personal financial loss if your company faces financial difficulties. In essence, it limits your personal financial responsibility to the amount you’ve invested in your company. For instance, if your business fails or is sued, the amount of money …
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The Differences Between a Company Director and a Sole Trader
What is a Company Director? A company director is an individual appointed to manage and direct a limited company’s affairs. They are legally responsible for running the company, making strategic decisions, managing operations, and ensuring compliance with necessary legal regulations. A limited company, also known as a company limited by shares, has its own separate …
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Understanding the Service Address
What is a Service Address? A service address is the official correspondence address for an individual company director, LLP member, secretary, or person with significant control (e.g., a shareholder who owns more than 25% of the company’s shares). It is where they will receive their official government mail. The address must be a physical location, …
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How Many People Do You Need to Form a Limited Company?
Can You Set Up a Limited Company with One Person? The short answer is, yes, you can set up a limited company in the UK with just one person. The application form requires you to list a minimum of one director and one member, who can be a shareholder or guarantor. Interestingly, the same individual …
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How Many Limited Companies Can Be Registered to One Address?
Understanding the Registered Office Address A registered office address is a legal requirement for every limited company incorporated in the UK. It’s the “official” address of your company, registered with Companies House, and is publicly available for anyone to view. This address is used for all official correspondence from government agencies such as Companies House …
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Understanding the Company Registered Address
Legal Requirements for a Registered Address According to the Companies Act 2006, every UK limited company must have a registered address. This address must be a physical location, not a P.O. Box, and must be situated in the same country where the company is registered – England and Wales, Scotland, or Northern Ireland. Functions of …
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The Essential Role of a Company Secretary
Legal Requirements and Eligibility Company secretaries serve as key officials within a company, tasked with assisting directors in managing administrative duties, including the submission of necessary documents to Companies House. While public limited companies are obligated to appoint a company secretary, the appointment of such a role in private limited companies is optional. While small …
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Can I Borrow Money from My Limited Company?
Understanding the Director’s Loan A director’s loan is any money that a director personally receives from their company that isn’t a salary payment, dividends from shares, reimbursement of business-related expenses, reimbursement of money that they have previously paid into the business, or pension contributions. In simpler terms, it’s money that a director borrows from the …
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Guide to Shareholders in Small Private Limited Companies
Becoming a Shareholder Becoming a shareholder in a private limited company typically involves purchasing shares directly from the company or from an existing shareholder. The benefits of being a shareholder include the potential for financial gain if the company performs well and the ability to influence the company’s direction through voting rights. However, shareholders also …
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What is a Company Formation Agent?
The Role of a Company Formation Agent A company formation agent specialises in registering, or incorporating, companies on behalf of new businesses. This service makes the process of setting up a company quick, straightforward, and reasonably priced. Company formation agents offer a variety of services, including: How a Company Formation Agent Works Working with a …
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What are the Company Registration Documents?
Understanding ‘Company Registration Documents’ When we talk about ‘Company Registration Documents’, we’re referring to a set of legal documents required to register a company in the UK. This term can be interpreted in two ways. First, it could mean the specific form that must be completed and sent to Companies House to register a company. …
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The Role and Responsibilities of a Company Director
Legal Responsibilities of a Company Director Company directors are bound by the Companies Act 2006, which outlines their legal responsibilities. These formal duties include: The Relationship Between a Company Director and Shareholders Company directors are accountable to the shareholders of the company. They have a duty to promote the success of the company for the …
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How to get a mortgage with a limited company
Most investors will require a mortgage to buy a property but there is often confusion about what type of mortgage is needed when using a holding company.
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SPV Guide
In this guide, we will provide an overview of bridging loans and offer some tips on how to get the best deal for short term finance.
Specialist Mortgages
Specialist mortgages can be very varied. From an unusual property, to multiple streams of income to using an SPV Company.
Mortgage Broker Guide
In this guide we’ll take a look at what mortgage brokers do, how they can help you, how they get paid plus tips on how to find a good one.
