Keeping in mind the structure and history of The Companies Act, it is evident that a company registered in UK enjoys various benefits especially when it comes to credibility. It is a certificate of incorporation as well as the affiliation between your company and the most detailed and oldest Corporate Law structure in the world.
After company registration in UK, limited company is taken as a separate individual by the law. Limited Company is responsible for its debts and liabilities. Some of the corporate information has to be disclosed to public. Companies need to stick to the various filing and reporting requirements that have been set by the Companies Act. Limited Companies are also required to pay corporation tax on their taxable income.
If you register your company in UK, following are the benefits of company registration:
- Liability is Limited: The biggest benefit you get by limited company registration is that of limited liability. If the company faces some financial difficulty, both the personal finances and assets of shareholders are secured beyond their shareholding value. If company is not in the position to pay its debts, the shareholders are only required to contribute according to the nominal value of their shareholdings.
- Acquiring Loans: Another benefit of company registration is in getting loans. For carrying out the operations of business, you need to apply for small loans for the business. While doing so, you need to provide evidence that you are actually a business. Investors, lenders or banks even ask for your company registration along with other requirements of applications before your loan is approved. If you apply for a credit card, that may also require you to show your registration paperwork.
- Builds Repute: When you want to get into a business venture with clients, customers or other businesses, an assurance is required that determines you are a legitimate business. If the client detects that your company registration is a farce, he might not trust you. When a business happens to be on the file with the state, this builds a repute of your business. Thus, the clients get comfortable and are at ease while deciding about investing their money with your company.
- Business Bank Accounts: When you wish to open a bank account for your business activities you need to provide the bank with suitable proof of company registration. Business accounts happen to be an essential asset for small business as they enable you to keep your personal activities separate from your business activities.
Furthermore, having a business bank account gives your clients a business name for payment. It gives an authentic impression that your business is legitimate and their money is going in the right direction.
- Tax Efficiency: If your business has gone through company registration process, you could enjoy more opportunities along with great flexibility in taxation on profit matters and personal income.
Professional and Corporate Status: After the limited company registration, you company gets a corporate and professional image that boosts the value of the business. Industries and professional businesses are more comfortable with doing business with registered companies. Limited companies are considered more committed, credible and established after company registration.