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What is a Limited Liability Partnership?

14 January 2014

A limited liability partnership (LLP) is a form of business structure where the involved partners all possess limited liabilities. This form of business entity is usually used for those businesses that carry on trades or professions; and they are especially common among large professional collaborations. LLPs are designated under the law as ‘bodies corporate’, but for tax purposes they are usually considered to be partnerships. Each member of such an organisation has a liability that is limited to the full extent of their assets; meaning no more than the contributed amount can ever be claimed by creditors.

As well as this reduced risk with regards to creditor claims, LLPs bring a great amount of flexibility with regards to internal structure as well, as almost any setup can be adopted with ease. This allows the partnership to maintain its original ethos without conforming to any additional restrictions. Such benefits make an LLP an attractive proposition for many, although some also see certain negatives too. These concerns include the necessity to keep all financial information readily disclosed and the requirement for a formal LLP agreement to be in place at all times; although these drawbacks are usually minor enough to not constitute a barrier for most.

Choosing the right form of legal business entity is a vital consideration for any budding entrepreneur, and here at eformations we can offer you a professional service for LLP formation to ensure that all of your needs are fully taken care of. For your convenience, we can also offer you online incorporation for an LLP, allowing your certificate to be efficiently obtained within a matter of hours. It has always been our priority to serve our customers in the best manner possible, so we provide a reliable service for company formation and registration no matter what you are looking for.

Forming a company, no matter what structure you choose, needs to be conducted in full compliance with all aspects of relevant company law. That’s why we are dedicated to taking care of all of the complex legislation that you’ll ever need to adhere to. With more than 20 years of experience and highly competitive prices, we’re confident that we can meet your every requirement. To find out more about how we could be helping you today, please contact us and our customer focused team will be happy to assist.

What is Company Formation?

07 January 2014

Company Formation is the legal process whereby a business is registered with Companies House, which is the Registrar of Companies in the UK. Company Formation can also be called company registration or incorporation. The business that is registered could be an existing sole-trader business that is to be restructured as a company or simply a new business that has never traded.

The Process of Company Formations

Registering a company is quite a straightforward process, especially if you use our online UK company formations service here at eformations. When you use our service you will be required to fill out an online application form with details of the company that you wish to register, this is then submitted through ourselves to Companies House for their approval. We make the process much simpler than using the registration services offered directly from Companies House at a smaller cost.

What do you need to form a Private Limited Company?

Before registering as a Private Limited Company you must have:

1.       A name for your company – this will be the registered legal name of your new company. The name you choose must not be the same as an existing company, so here at eformations we offer an online name check service so it is easy to see if your chosen name is available. It is a good idea to have a few names in mind, but remember to test them out before making the decision and make sure it is not too similar to another registered company.

2.       An Office Address – This will be the registered and therefore official address of your company. This address will appear on the public register of companies after you have completed to formations process. It is important to note that the address must be real and it cannot be a PO Box. The address must be in the same jurisdiction where your company is registered. You are allowed to use a home address however, as the register is public, people usually prefer to keep this information private and use a separate address.

3.       One Shareholder or One Guarantor – The legal owners of a company are known as ‘members’, you must have at least one shareholder or guarantor for your new company. These shareholders or guarantors can be individuals, or another company can hold those positions. There is no limit to the amount of shareholders per company.

4.       A Company Director – There is no limit to the number of individuals appointed as directors, but all directors must be over the age of 16. The role of the director is to manage the company’s activities and ensure that they are acting within the law. Another company can also be appointed as director however there must be at least one human individual director.

If you require any more information in regards to company formation services please do not hesitate to get in contact with our professional, helpful and friendly team by phoning 0208 232 5479.