Run a Limited Company
Last updated: 2021-05-31 (originally published on 2017-06-20) — by Alex Tanglao
The most common business structure is a limited company, as this business type offers protection of personal assets from business risks and liabilities.
Putting in place a Shareholders’ Agreement at the start sets out how the company will be run as well as the rights and obligations of the shareholders. This can avoid potential conflict and ensure continuity if shareholders leave or join. Each shareholder receives a Share Certificate as proof of his or her shareholding in the company.
The company is run by directors who have certain legal duties, such as ensuring that an annual return is submitted on time. The company must pay corporate tax, and any profit can then be paid as dividends to the company shareholders. A shareholder can Request for Payment of Interest or Dividends. A company secretary must be appointed to deal with the administration of the company.
A limited company can employ staff and appoint non-executive directors using a Non-executive Director’s Letter of Appointment. The company can raise funds through loans or equity. It is important to always use professionally written agreements and comply with the regulations that govern limited companies in your jurisdiction.
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