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Limited Liability Trading Company Formations In The UK

Oct 13, 2007
Trading activities in the UK has been success mainly due to the adoption of limited liability concept which is used for the formation of trading companies. This concept lets the trading expand by enabling the expanding of the credit, providing a reduced risk to the party inside the company at the same time.

In other words we can say that the share holding parties are not held responsible for any company debts. Debtors are not allowed to make any claim regarding the shareholder's personal assets. Thus, the only risk to the shareholders is to the investment or interest in the company they are involved with.

By registering with the Companies House, the above mentioned type of security to the party is legally formed. This registering process is known as Incorporation. This process is popular amongst many traders who are forming a trading company located in the UK using the Limited Liability Concept.

With this concept the company is able to protect its personal assets. This is an advantage for the traders because trading market is place full of fluctuations causing loss to some while giving profit to others. Investors, in the UK, are very much aware of this situation thus to provide a security to their assets they prefer to register and adopt Limited Liability Concept. The only insecurity they have is their interest on trading company.

A UK trading company, under limited liability concept, can, using dividends, issue its share holders profits. In case of taxation, adapting to the fast movement of trading company the Chancellor of the Day makes some change in rules of the company which are followed by both corporate and personal level. Dividends or profits given to shareholders is still considered as the best and secure way to tax a UK trading company, avoids any insecurity to the shareholders.

The most common type of company under limited liability is private limited trading company. Over 1 million such companies have so far registered to the Companies House. These types of companies can easily be recognized since they commonly use suffix 'LTD or 'Limited' their business names.

One requirement that every limited liability concept company in UK should fulfill is public information. Through this requirement they keep a record of their dealings with public with the Companies House. An advantage of this is that anyone can buy these records before they execute a trade with the company. It is always important especially in trading that you keep information about the company you're dealing with.

There are many websites online that cater for many UK based investors needs who are interested forming a company under limited liability concept.

The information that generally includes when forming an online company is given below:

* The documents that are asked by the Companies Act
* Limited Liability Trading Company Registration
* Incorporation Certificate
* Statutory registration which is complete. It should include the following:
Register of :
Members and share ledgers
Allotments and applications
Mortgages and charges
Documents sealed and/or executed
Share certificates
Companies' Articles of Association
Companies' Memorandum of Association

All this is possible when you form an online limited liability trading company in the UK
About the Author
Abhishek has an uncanny insight into Trading! Visit his website www.Trading-Masters.com and download his FREE Trading Report and learn some amazing Trading tips and tricks for FREE. His tips would save you thousands and make you better at Trading! But hurry, only limited Free copies available! www.Trading-Masters.com
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