If you want to launch a new business, should you operate as a sole trader or a limited company? The latter option provides various benefits e.g. a greater degree of personal financial protection, but as a company director, you will also have certain responsibilities, such as completing filing obligations.
It is wise to research company formation, before pursuing this option. Look at the creation process, which involves registering the firm with Companies House, something which as experts in this field, we can help with. With this in mind, how many people are required to register a limited company?
Required personnel
Business advice portal Start-ups writes that there is no maximum limit on the number of people who can register a limited company. You will be required to name a company director, shareholders and people with significant control of your new business. In theory, you can fulfil all of these roles, so the minimum number of people needed to register a limited firm with Companies House is just one.
Company directors
A company director runs the firm day-to-day and you can appoint more than one when registering your business. Directors are required to file accounts with Companies House and Company Tax Returns with HM Revenue and Customs (HMRC) annually. They need to register for Self-Assessment, send a Personal Self-Assessment to HMRC annually, report changes to this agency and keep records.
Directors are also responsible for ensuring that all personnel adhere to the firm’s rules. You will establish these in your firm’s articles of association, when registering the business with Companies House. Furthermore, directors are obliged to make decisions in the best interests of the business, not themselves and aim to make the enterprise a success with their skills, experience, and judgement.
Shareholders
Also directors are required to report when they may benefit from business transactions to shareholders, whom you can also appoint when registering the firm. Shareholders back the company financially, in exchange for shares, so they own the business. Shareholders are obliged to exercise this ownership through voting at general meetings, to ensure your firm charts a successful course.
Persons with significant control
You are now also required to name people with significant control (PSCs) of your firm, although they hold no official duties. PSCs include anyone who owns over 25% of your firm’s shares, over 25% of its voting rights, the right to appoint/remove the majority of directors or can exercise significant influence or control over the business. You are further required to add any PSCs who exercise significant influence or control over a trust of firm which meets one of the first four conditions to your register.
Company secretary
Until recently, you were also legally required to appoint a company secretary when registering your firm. This is no longer mandatory, but it can prove advantageous, as a company secretary can help you with key filing and administration tasks, allowing you to devote more time to making the business a success. As part of our corporate services, Turner Little can provide you with a company secretary.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
