If you are reading this blog then it most likely means that you are seriously considering forming a limited company. There are currently over 2 million limited companies in the UK, and they are often preferred to sole traders and partnerships for a number of reasons including:

Separate Legal Identity

A limited company has its own identity; this means that these kinds of companies will survive the death of the owners, and it’s possible for the shareholders and directors to change over time. The company will therefore carry on unless it is formally wound up or liquidated. This undoubtedly gives more perceived security for your employees than any other business type.


The formation of a limited company signifies permanence, giving your customers the confidence that you are both effective and responsible. Many larger businesses refuse to deal with sole traders and partnerships, only choosing to liaise with limited companies.


Although you are starting a company, it is a good idea to look out for the long term prospects too. The owners of sole trading businesses or partnerships also individually own the assets of the business, so selling it can be laborious and difficult. Limited companies are much easier to sell on, as ownership is represented by shares that can be sold without disrupting the activities of the company.


It’s quick and easy to start a limited company, and it can all be done here online. You don’t have to deal with Companies House directly, you are often better using a company formation agent, who is just as quick and is allowed to offer you advice, unlike Companies House who are a government agency. If you want to set up a limited company then it couldn’t be simpler with our company formations service. Registering a company through Formations Direct is competitively priced, with a variety of packages on offer starting from as low as £17.

Once you have filled in the form online, we will fill in the necessary paperwork and submit it to the Companies House, completing the whole process within hours of us taking your order. If you need any help or assistance once you have set up your company, then we can provide you with after-sales advice too. For more information call us free today on 0800 085 45 05.

Written by FDAdmin