We will answer your questions about Companies House
As property accountants, we are regularly asked questions about Companies House. We will look to answer the below questions in this article.
– Who are Companies House?
– What do Companies House do?
– Can you read accounts of limited companies on the Companies House website?
– Do I need to register a business in the UK?
– How do I structure a limited company?
– What is a confirmation statement companies house?
– What is the companies house authentication code?
– How to file accounts at companies house?
– When are accounts due to companies house?
– How to file dormant accounts to companies house
– How do you close down a limited company on Companies House?
Who is Companies House and what do they do?
Companies House is a registrar of all limited companies in the United Kingdom. They will list the company by name and number. Each limited company will have a unique reference number.
Not only will Companies House show the limited companies throughout the United Kindom, but they will also show the people involved in those limited companies such as:
– The directors that run the day to day operations of the business
– The shareholders of the limited companies (owners/investors)
Companies House will also show any charges against the limited company. Examples being debenture loans and mortgages.
Members of the public can find the below information about a limited company free of charge using the Companies House beta service.
Members of the public can use Companies House to:
– Make changes to the limited company and
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Setting up a limited company on Companies House
As property accountants, we know that there are a lot of considerations when setting up a limited company. Typical questions that we ask our clients when they set up a limited company is as follows:
– What will the business be set up to do?
– How much profit is expected to be generated during its lifetime?
The activities of the business will be showing on Companies House by way of a Standard industrial classification (SIC).
– Who are the shareholders of the company?
– How much capital are they putting into the limited company?
– How much loans are they going to provide to the company?
– What is their tax position?
– How much money do they need from a limited company?
– Will they have voting rights to appoint directors in the business and have a significant influence on how the company will be run?
– Who are the directors of the limited company?
– What are their daily roles in the running of the limited company?
– Will, the directors, be paid a wage?
– What are the tax status of the directors involved in the limited company?
We can create a legal structure once we have established the answers to the above-limited company questions. We can use the standard approach to set up a limited company structure using Companies House services.
Before you get started, please ensure that you fully understand the various tax structures that are used when using a limited company.
There are many tax-efficient ways in which you can extract money out of a limited company. It is important to work with a tax advisor for them to understand your tax status and to illustrate ways to pull money out of the limited company tax efficiently.
Limited Company filing of accounts and confirmation statements
A limited company will have two main reporting responsibilities to Companies House.
– Annual confirmation statement
– Annual accounts
As illustrated above, there is a lot of data that is stored on the Companies House website about each limited company. The directors of the limited company will need to file the annual confirmation statement on the Companies House website.
The confirmation statement submission is to tell Companies House the members of the public if there have been changes to the people involved in the company, its address and activities.
Limited company Annual accounts
The filing of limited company accounts on Companies House may be done directly via Companies House or via an accountant using commercial software.
The annual accounts are broken into sections. The key sections that most accountants and other financially astute people will be interested are as follows:
– Profit & loss account: This shows the income, costs and profitability of the company. Micro companies do not need to show the profit and loss account on the Companies House website.
– Balance sheet: This section of the annual accounts shows the assets less liabilities to show the net asset value of the limited company.
If there is no trading activity in the business, then dormant accounts may be filed to Companies House. Dormant accounts signify to the members of the public that no income nor costs have been incurred in the year in question.
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Closing down a limited company
There may come a time when the limited company is no longer required. You can use Companies House services to close down the limited company using a DS01 form.
You need to ensure that all creditors have been paid before this process.