UK company formation through the company formations process is very easy and straightforward. Operating a limited company has more legal, financial, and administrative responsibilities, but the numerous benefits of having a limited company status make these additional duties well worth the effort.
Here are 10 reasons why starting your company in the UK is the best idea:
As a registered UK Limited Company, you will have to pay less personal tax than a sole trader.
You can choose to take a small salary from the company as a director and then receive more income in the form of shareholder dividends. You can effectively lower your required National Insurance Contributions (NIC) payments by doing this.
Dividend payments from limited companies are not subject to NIC payments as they are taxed separately. This implies that you might end up taking home more of your earnings from your company.
Easy formation process
By contacting the best company formation agent such as RTRSupports Limited, you will get the benefits of working with an experienced team of business formation experts that have been working with Companies House for years.
When you are ready to set up a limited company, visit RTRSupports Limited. In just a day, you can register a limited company with Companies House using their UK company formation package.
Also read: 5 Important Points About UK Company Formation (Requirements & Benefits)
Your company will be an entity in its own right
A limited company that has been registered will exist as a separate entity from you. It follows that everything held in the company's name, including its own business bank account, loans, credit agreements, and assets, is entirely separate from those of the company shareholders. This means that your personal assets would be protected if the business had to close for any reason.
Limited Liability protection
With limited liability protection, any financial losses incurred by your company will be covered by the company rather than you personally. This may involve selling off company assets and recovering security deposits to pay off creditors, but no personal funds or assets will be touched.
Your company will look more professional if it is a Limited Company. This can significantly help you to boost customer confidence in your product or service. Many big businesses will be pleased to do business with you if you operate as a limited company.
Please watch the video given below to get more details:
Better business financing
As a limited company, it is considerably easier to obtain the necessary credit, funding, and business loans for your company. Due to your limited company status, you will find that you have more possibilities for obtaining business financing, and many lenders will offer you more favourable interest rates and repayment terms.
Protected business name
This means that once your name is registered, it is protected by UK law and no one else can use it to run a business. Additionally, no one is allowed to conduct business under a similar name, particularly if their operation is almost identical to yours or belongs to the same sector.
This is excellent because you'll know that no one can harm your company by pretending to be you to draw away consumers or by setting up your direct competition with an intention of confusing customers.
Also read: Should I need a UK Nominee Director? (Roles & Benefits)
You can issue shares in a variety of classes, and each share class will have its own set of rules and responsibilities. By creating your own shareholder agreements, you can select what voting rights and how much control your shareholders have over your business.
As a limited company, your company can pay your executive pension and claim it as a legitimate business expense. It means that you will be gaining a huge tax advantage.
If your company is registered as a limited company, you can make arrangements to transfer ownership of your business to another person. If you decide to retire, you may do so with the assurance that the company you worked so hard to develop would continue to operate without you by selling your shares to other shareholders or members of your family.