Are there any set provisions (in Company law) for how Directors are re elected? Are elections (or re elections) of Directors voted upon by existing directors or shareholders?
Shareholders elect the Directors, not the existing Directors. The Chairman of the Board of Directors is elected by the Directors.
Do you have to have a accountant if you have a limited company or can you do the accounts yourself. I thought it was a legal requirement that a accountant prepared the accounts
If the company is small then you don’t need an auditor, so can i submit the accounts without an accountant?
It never was a requirement to have an Auditor prepare the accounts. Not even for a PLC. The functions of audit and preparation being separate. The accounts of a public limited company must be audited by an appropriately qualified person.
A limited company which has a turnover of less than one million and/or gross assets of less than 1.4 million, need no longer have an audit carried out. There is a simplified accounts format for the purpose of submitting accounts to the Registrar of Companies in such cases. Request details from them, because there are one or two additional requirements
The inspector of Taxes will scrutinise the tax computations and accounts more thoroughly, however, when they have not been audited.
Qualified Accountant.
This is my unboxing of the limited edition…nothing very special here.
Duration : 0:1:36
I am currently a Sole Trader but now looking at forming a private Limited Company.
I am worried however that my competitors will be able to see how i’m trading after my 1st year accounts have been filed with them & this could affect my market credibility.
What sort of information can the public access after i have filed my annual accounts (i.e.- would they just see Share Capital or would they see my Net Profits, Balance Sheet, P&L, etc.).
Any help would be greatly appreciated here. Many thanks.
You have to file accounts but these can be an abbreviated version of the full accounts.
This is a bit simplistic but basically they will consist of a balance sheet plus a few (not very informative) notes.
Your profits will not be immediately obvious, only the retained profit figure showing as part of shareholders funds. This figure is after your salary and any dividends paid.
You might want to make sure that the balance at bank is not too high at the year end as competitors might jump to the conclusion this means a high profit.
How to form a limited company
A short ‘how to’ guide (plus a few things which might help you)
This video first outlines the benefits of going limited. For most contractors and freelancers, going limited is the most tax efficient way of working.
The specifics of forming a limited company are then covered off. There are some considerations such as choosing a name and appointing a director but, surprisingly, it will only take you 5 minutes to form your limited company.
If you want to form your own limited company click on this link
http://www.sjdaccountancy.com/about/resources/limited_company_formation.html
If you want to find out more about going limited, give our experts a call on
01442 232 700
or email Michelle
michelle.turbutt@sjdaccountancy.com
SJD Accountancy is the UK’s largest specialist provider of fixed fee, limited company accountancy services to contractors and freelancers. We’ve been acting for clients across the UK since 1992 and have more than 10,000 already. We are the only national specialist firm of accountants with offices in all major UK cities, so youll never be far from your accountant.
All of our clients receive:
• Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings – tax is complicated and sometimes only a meeting will do.
• Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant face to face.
• Money back service guarantee. All your telephone calls and emails will be answered the same day or we will refund your monthly fee.
• Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
Duration : 0:3:10
Hi,
Just wondering how you would value a company if we were to create shares within the business.
This case would not be for sale, but a valuation to distribute share to employees and appropriate the correct current valuation of these shares and also appropriate any tax associated.
We have very few assets – maybe £2k worth
Turnover is fairly good (250k) and profit is about (75k)
I have looked on the web and it’s very confusing, just want some pointers.
Hi, Just to clarify, this is a UK based company… 
Companies with employee share ownership tend to do better than those that don’t, so distributing shares to employees is a sound idea. You will end up with fewer, but more valuable shares. As a rule of thumb, shares valued at 5% -10% of an employee’s after tax pay are considered to be a suitable incentive.
While you can use Price/Earnings and Price/Revenue multipliers of similar public companies as a guide, the multipliers for your company will be different because the risk profile of a small company is different. Your company’s multipliers will be at the low end of the scale.
Any distribution of stock is in effect a sale of the company. The shares will have no value to the employees and may even cause dissatisfaction if your company does not provide a mechanism for the employees to sell their shares. If you don’t want outsiders involved, make a rule that employees can sell only to one another or to the company. This means that the company valuation will need to be done at least once per year in a manner that is seen as fair to all involved. An independent appraiser will be needed and this will be an added cost.
There are legal issues with employee stock plans. Be aware that more stringent regulations take effect as the number of shareholders grows. At minimum, your company with have increased reporting requirements and increased accounting costs. If your company ever becomes public, the regulators will need to be satisfied that all grants of shares were within 10% of fair market value at the time of the grant.
As an alternative to distributing shares, consider allocating a part of the company’s profit to a profit sharing program. That way you hold all the shares, get a lot of the benefit and avoid most of the costs.
If yes were can I find the names of the company dircectors?
I don’t think they can, but you can find out all the info you need at Companies House: http://www.companieshouse.gov.uk/
Woolworths is up for sale for a quid, and as part of the deal the buyer must take on the 300 million quid of debt, but is there anything to stop someone forming a limited company and then buying Woolworths?
Do you think that the Administrators would sell it to someone with a start up plc with assets on their balance sheet of £1?
I have been working as self employed and have started my own ltd company do i have to get a business bank account to get paid
Normally yes but you may decide to use a general account.
Using a business account makes everything and your company seem more proffessional really.
I will be working for a Canadian company but will be based here in the UK. I’m wondering what the tax implications are. I’m the director of the limited company that I work for. thanks.
First if you are working in UK, you need to have a valid visa. You need to have either work permit, HSMP or PR visa.
Tax will be deducted at source. you will get salary after deducting tax. But if your company pays without deducting tax, you are supposed to file a tax return. Take an appointment with Inland revenue, they will help you out. These inland revenue people are quite helpful.