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Why form a LTD Company?

Last updated: 31 March 2022

Why form a LTD Company?

Limited Companies are an important factor in the trading success of the United Kingdom. They allow commerce to flourish by minimising the risk to company owners, shareholders and creditors by removing the threat of personal liability and by publishing company records.


Avoiding danger

Without limiting your personal liability, every business owner and shareholder would be completely legally responsible for their company’s debts. Your personal assets would therefore be at risk.

Having a limited company ensures that the owners and shareholders have “limited liability”. This means that they are not personally liable for the debts of the business or for any claims made against the company. This protects your personal assets even if your business falls into debt.


Public information

Limited liability companies are obliged by law to maintain records of their affairs at Companies House, these records are available for anybody to purchase before trading with the company, ensuring that creditors can assess the risks in providing goods and services on credit.


A benefit for all

A balance between the benefits of “limited liability” and an ability to access the company’s records ensures that the risks involved in business are minimised – whether you are forming a limited company or trading with one.

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