Skip to main content
Login

Limited company

Although there is no legal obligation for your limited company to hire an accountant, there is a vast amount of compliance to be met and this can be overwhelming. Mollio will be there every step of the way and can offer a service tailored to the individual business needs. We have a range of services that can support your business through its growth and development.

Why set up a limited company?

Registering and running a limited company involves more paperwork and accounting than a sole trader business or partnership, but this is offset with extra protections in terms of financial liabilities. A limited company’s liability is just that: limited.

Deemed to be its own legal entity, a limited company can own property and assets, incur debts, sue, and be sued but its finances are separate from the personal finances of its owners. Consequently, should the business not succeed, then (unless there has been some material negligence on the part of the directors, e.g., fraud, and there being personal guarantees for the liabilities of the business, e.g., to a landlord) neither you nor the other owners can be held responsible for any of its debts.

Unlike sole traders or business partnerships, a limited company is an effective way to run a business with less risk to personal wealth or assets.

Ownership of a limited company is divided up into shares which are then allocated to each shareholder.

Shares can be separated into different classes with different rights (e.g., some voting or non-voting) and can be held by shareholders in any proportions.

Therefore, the company can be owned in any way you like.

Legal requirements for limited companies

Limited companies must have at least one director to run the business.

Company directors are legally required to:

  • File an annual confirmation statement with Companies House. Submit your company’s annual accounts to Companies House.
  • Submit an annual Corporation Tax Return to HM Revenue and Customs (HMRC). Corporation tax is then calculated and must be paid within nine months of the company’s accounting year end.
  • If your business turnover exceeds the VAT threshold, currently £90,000, then your company must be registered for VAT and quarterly VAT returns completed online. If turnover is less than the threshold you can still register voluntarily, and there can be pros and cons of voluntary registration – if in doubt you should seek specialist advice.
  • All employees of the company including directors must pay income tax and Class 1 National Insurance Contributions. If you operate the company payroll yourself, you must report employees' payments and deductions to HMRC on or before each payday and then pay what you owe to HMRC monthly – although small employers may be able to pay quarterly.

Kinds

We offer a wide range of services that are designed to help small businesses with their finances, such as

Managed bookkeeping

Accurate bookkeeping is the foundation to business success, without it the information is historic and useless. Mollio can act as your book-keeping department fully or we can train you or your staff to use the software more effectively.

Invoicing software

Making use of OCR recognition software for receipts and automated bank feeds there is no need for paperwork to pile up. We provide a service that will review your need and build a stack of Apps that works for your business, using  HubDoc or AutoEntry to facilitate ease of data collection with its simple snap and store system. Snap and store of receipts could result in less tax, as there are less lost receipts.

Tax returns

There is no need to be late in filing Self-Assessment. We file as soon as possible after 5th April once all information has been obtained. Mollio uses a dedicated client portal for you to upload all documents that are required to complete your tax return.

Payroll services

For clients that have employees or are making that jump it can be a daunting task. Making sure employees are paid accurately and on time is essential to every business whether sole trader or limited company. We take the task in hand and aim to give you peace of mind:

VAT returns

These cannot be done accurately without accurate bookkeeping. We offer this on top of the managed bookkeeping for VAT registered business.

Free advice

Our website provides many up-to-date blogs with hints and tips, keeping you up to date with any changes and giving you valuable accounting information.

Working With Mollio

You can expect a service that is tailored to your needs, that can be flexed and moulded as your business changes. We understand that working hours are no longer 9-5, and as such try to be flexible about appointments. We all run busy businesses and want to maintain a decent work life balance. We will offer early evening slots once or twice a week, and we can cope if young children are about during meetings.

Equally if the weathers good you may find Leesha takes time out to fit a cycle ride in and will then work late in the evening. There will always be good coffee and relaxed conversations to be had and we will always be honest and do what is right.

Let's chat

We're up to speed when it comes to the latest and greatest in cloud accounting software.

Working together we'll set up a baseline suite of streamlining systems to support you and your business:

accounting accreditations

Intuit QuickbooksSageXero

Frequently asked questions

How to set up a limited company?

The new company cannot have the same name as another registered   company in the UK. Even if not the same, if your proposed name is too similar, then you may end up in a dispute as to having the right to use it, especially if the existing company is in a similar sector to you and/or it has registered the name as a UK trademark.

Search the Companies House Register for any company with the same name, it is also worth doing a Google search for names like the one you are considering.

Do I need to have a Registered office?

This will need to be a physical address (i.e., not a PO Box) and it needs to be in the relevant part of the UK – i.e., an English company will need to have a registered office in England; a Scottish company one in Scotland. This address will be made public and is used by, among others, Companies House and HMRC to send official documents or legal notices to the company. It should also appear on all company documentation such as invoices.

As a public record, any other party wishing to write to the company will be able to use that address for formal correspondence. Therefore, while it does not need to be the trading address of the company, it should be somewhere where post is checked regularly.

Do I need to decide on the officers?

Private limited companies need to have at least one company director – usually the person starting and running the limited company – while public limited companies that have publicly traded shares need at least two directors and a company secretary (for private companies having a company secretary is optional).

  • Company directors manage the company in accordance with the law and with its articles of association (i.e., the company’s rule book). A company director is responsible for ensuring annual accounts and confirmation statements are received by Companies House by the deadline, as well as all notices of any change in the registered information such as the registered office address. You cannot be a company director if you are an undischarged bankrupt or have been disqualified by a court from holding a directorship or are aged under 16.
  • Company secretaries, usually in place in larger companies, are responsible for maintaining statutory registers, keeping minutes of board meetings, and ensuring all statutory filings are completed. They are typically professionally qualified accountants, barristers, solicitors, or advocates.
Who registers the limited company?

It is straightforward to register a limited company with Companies House yourself – you will need to complete a series of documents.

Alternatively, you can pay an agent to register your business for you, which is usually easier, quicker and with less chance of a mistake being made. Mollio offers a company secretarial service to clients to facilitate this.

Do I need a company bank account?

As the Limited Company is legal entity you will require a bank account in the Company name, it is not acceptable to use personal accounts. Mollio can help you decide which bank will work best for you and connect to your accounting software.

How do I pay for your services?

We tailor make any payment terms as part of our proposal based on your business and requirements. This can change as your business evolves, changes, and grows.

What types of small businesses does Mollio work with?

Mollio works with a variety of businesses in various industries and services. We pride ourselves on getting to know and understand your business and provide the right accounting services to help you grow and be successful.

What are business accounting services?

Business accounting services refer to the professional financial management services provided to businesses. These services may include bookkeeping, tax planning and compliance, financial analysis, payroll management, and other financial reporting services. The aim is to help businesses manage their finances more efficiently, make better financial decisions, and comply with the UK's tax laws and regulations. These services are usually offered by accounting firms and can be customized to fit the specific needs of each individual business

Is there a minimum contract period?

There is no minimum contract period, but we do require 30 days' notice of termination of our services.

What if I need to switch accountants?

If you require to change accountants for any reason, we are happy to provide a 'handover' so that your business is unaffected by the change. There is no reason for the change to be disruptive

Why our customers love Mollio

As a start-up I was worried about how I would handle all of the accounting aspects of running a business, but Mollio completely takes away the stress of this, with sound advice and a wonderfully efficient service, leaving me to focus on the running of my business.

As start -up business we needed an accountant that would be patient and understanding with our lack of knowledge regarding financial matters. Someone who was willing to provide us with hands on support whilst we got to grips with using our accounting software. Mollio has always been there for us when we have needed any financial advice or business support and they are a constant advocate and promoter of our brand.

Leesha and Mollio have been invaluable to me from day one of setting up. Always available and on hand to answer every type of question. Approachable, experienced and super friendly. We have since launched another business and Leesha involved from Day 1 on that too, she turns the accountancy jargon into understandable accountancy language – thank you Leesha for all your support.