Advantages of a Private Limited Company

With a simple administration system, no minimum capital deposit and a minimum of just one director/shareholder, a British Private Limited Company (Ltd) is seen as being the most flexible and the most popular among businessmen and women.

Legal context

Since 1993, the freedom of movement of services and goods within the EU allows for any EU citizen to legally create a business in any other EU country without necessarily living there. (The 11th directive of the Council of Europe, ref. 99/666/CEE). In England, it is also possible and just as simple for a non EU resident to create a business.

The “Company’s Act” of 1985, modified in 1989, provides the ground rules for how Private Limited Companies are run and offers a number of advantages to both managers and shareholders with regards to the creation of their business, their responsibilities in light of business failure and on issuing the company capital.

Advantages

• A simple tax and administration system
• Less paperwork ensures that solicitor and lawyer fees are minimal
• An opening into the world market. You can think globally whilst working from any corner of the world
• Minimum of one partner/shareholder required, making it easier for individuals to create their own business
• A nominal capital in sterling or euros
• No minimum amount of capital required
• A minimum of one manager and one shareholder required; they can be active or silent. No need for a business partner. We act as secretary for the company
• A shareholder or partners responsibility within the company is directly proportional to their economic contribution
• Any one person or company, regardless of their country of residence, can be a shareholder and/or director of an English Ltd Company