Company Limited by Shares

Company Limited by Shares

Contents

Companies House1

Company Limited by Shares1

Documentation and Information Required1

Name and Address of company2

Registered Address2

Company Directors and Secretaries3

Secretaries3

Shareholder3

Shares and Capital3

Memorandum of Association4

Articles of Association4

Setup Corporation Tax5

Separate legal personality6

Relevant cases6

Lee v Lee Air Farming ltd (1960)7

Piercing the Veil7

Importance of Creditors8

Summary8

Company Limited by Shares

Past (a)

Describe and explain in detail the documentation and information that is required by Companies House for a company limited by shares to be set up and registered.

Companies House

In UK, company house is registrar of companies that incorporated and registered specific details that are required under Companies Act 2006 (Khele et.al, 2008).

Company Limited by Shares

Company limited by shares is registered with Companies house is a standards form of limited liability. These companies start trading as the limited company which have separate legal entity according to law and its subject to offers protection to its founder. Company limited by shares divides its share capital into fixed amount of shares and they issue theses shares to company shareholders who become company owners (House, 2008). The shareholder has a right to vote in how the company is run. This company governed by Board of Directors. Company is governed by two major articles that known to be as Memorandum of Association and Article of Association. Regulator of a company limited by shares is Companies House and has limited liability. Major sources of finance for these companies are equity finance, loans and rarely grants. According to (House, 2008), limited share companies must require at least one shareholder to be registered during the process of formation. These companies also require issuing relevant share certificate before it starts trading legally. One major restriction on this company is that, it cannot offer its share for sale to the general public.

Documentation and Information Required

Formation of a company is a lengthy process which may takes a period of more than 1 year. Limited Share Company is needed to provide all necessary information and documents to Company House (registrar) to keep their corporation process in flow. Company limited by share must be incorporated with the Companies house: to do this owner need to perform this

Name and Address of companies

Registered Address

Name of directors and Secretaries

Shareholders

Details of the company that known as Memorandum of Association

Rules and regulations of company that known as Article of Association

Setup Corporation Tax

Name and Address of company

Name of all the company limited by share in UK must end with 'Limited', ltd, “cyfyngedig” or 'cyf', and name cannot

be the same as other company listed already registered in Companies house

company is not allow to use any sensitive name, otherwise they need permission from companies house for suggestion

company name should be remain offensive

Company is also required trademark for its registration separately because registration of company does not mean name trademark is protected.

Registered Address

Company limited by share is needed to register themselves with Companies house. Company official communication is sent to their registration office. The address does not require where company operate its business, but it is must mentioned

physical address of company such as ...