Private Limited Company

What is a Private Limited Company?

It is a company owned by shareholders, in which their liability is limited to the value of the shares taken in the company. Therefore, the shareholders’ personal assets are almost always protected in the event of the business failing.

Who would register a Private Limited Company?

This type of company is good for individuals or a group of people and/or companies who want to trade without the risk of personal liability, should the business run into trouble. It is also a good company structure for those wishing to add credibility to their business, raise additional capital or take advantage of more favourable tax benefits

How many people are required to register a Private Limited Company?

It is a legal requirement of company registration to have at least one shareholder and two directors. 

Who owns a Private Limited Company?

It is owned by shareholders. Private Business Corporatons are owned by members. Limited by guarantee companies are owned by guarantors.

What are the benefits of registering a Private Limited Company?

The main advantage of registering a Private Limited Company is the limited liability of its members (owners), who are able to share profits without personal liability for company debts. In addition to limited financial risk, limited companies also enjoy a range of tax benefits, are able to raise capital by selling company shares and possess an elevated corporate status. Private Limited Companies are also subject to perpetual succession, which means they will continue to exist even in the event of an owner’s death or a transfer of shares.

What are the tax benefits of a Private Limited Company?

The income tax payable on Private Limited Company profits is lower than the higher rates of income tax payable by sole traders and partnerships. In addition, although directors are paid a salary that is subject to income tax, a Private Limited Company director can utilise their personal tax-free allowance to avoid any income tax deduction. Private Limited Companies can also voluntarily register for VAT, offering cash flow benefits by allowing companies to charge VAT on sales and claim it back on purchases.

What are the annual registry filings of a Private Limited Company?

Every year, a Private Limited Company is required to file an annual return (detailing a snapshot of the current details at a certain date) and a declaration of annual general meeting.

What are the requirements of registering a Private Limited Company?

You must have 3-5 proposed company names, details of all directors, company secretary (optional) and shareholders, company addresses, and the core business objective. Please see our Requirements for company registration page for full details.

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Tel: (0242) 709 883

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Tel: (0242) 709 883

Mobile: 077 470 9378


Copyright 2022 © Companies Made Easy