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By valero
- In Uncategorized
You may have read our articles about at how to set up a company in the UK. So now is time to know why the LTD is the preferred type of company in the UK.
But why is the LTD the most famous type of company in the UK? What advantages does it offer and why do so many entrepreneurs choose it? In this article we explain it to you in a simple and quick way.
What does LTD stand for?
LTD is the abbreviation for ‘Limited Liability Company’. It is a legal form that protects the personal assets of the owners, as liability is limited to the capital contributed to the company.
An LTD can have only one owner (who may also be the director) and does not need employees or a physical office to start up.
Advantages of an LTD, the preferred type of company in the UK
There are many reasons why the LTD is the preferred type of company in the UK, and we have selected for you a few of them here. For example, the owner is not liable for the company’s debts out of their personal assets.
We will not stop reminding you that setting up a company in the UK has many tax advantages. They are generally lower than in the rest of Europe.
We will not cease of repeating that it is very simple, cheap and quick to set up your business project in the UK. In less than 48 hours you could have your company set up. The cost and paperwork required is minimum.
Don’t forget the professional and positive image for a client or potential partner to have a company registered in the UK. It is a country with a strong business sector, and it is always a plus of confidence.
Even from Spain or Latin America you can create an LTD without having to set a foot in the UK. You simply can use of the online services specialised in this type of procedure and even facilitated by the British government.
Why is it the preferred type of company in the UK?
The success of the LTD is do to, above all, the advantages we have mentioned above. Remember that its simplicity, low cost and legal and tax benefits make the UK a business-friendly country.
It is important to note that an LTD allows to completely separate your personal finances from those related to the business. This provides more security, easier accounting and management.
Knowing the obligations for the Limited Liability Company
Although setting up a LTD is easy, you should not forget its obligations. One of these is to file annual accounts with Companies House.
It is important that a company keeps its accounts, customers, suppliers and employees details up to date. As well as filing tax returns with His Majesty’s Revenue and Customs (HMRC).
Do not forget that your business doesn’t have to do all this on its own. There is a wide range of online services that can help you for a very reasonable price.
Final note
Opening an LTD gives you access to the UK and international market and improves your credibility with potential partners or investors. Especially if you are working in the digital world, selling products or services online.
It is also useful if you are looking to diversify your business presence or protect yourself legally beyond your country of residence. If you are thinking of expanding or professionalising your business, an LTD can be your best ally.