Starting a new business can be challenging due to all the paperwork and requirements. Sometimes a startup business idea is weighed down due to unpredictable processes to be followed. That is why entrepreneurs look for taking the services of formation companies which assist them to open a limited company. They help thousands of start-up businesses to meet requirements and complete the registration of the company with Companies House.
Company formation providers offer different packages according to your need. They also provide additional services like professional mail forwarding, meeting rooms and secretarial services. Talking about the advantage of incorporating a UK company, here are some.
Tax Advantages
As an owner of a registered company, you have to pay less personal tax as compared to a self-employed sole trader. You will be the director of your company, you can choose to take a small salary from your business and then can take more income in the form of shareholders. By doing so, you can reduce the amount of National Insurance Contribution you need to pay.
Limited Liability Protection
Sole trader has no limited liability protection. They personally need to pay back any debts running in their business name. But in the case of a limited company, you get limited liability protection. Any financial losses made by your business will be paid by the company rather than you personally. This may cause to selling off your company assets and recovering security deposits to pay financiers.
Professional Image
Opening a company with the help of company formation provider gives your business a more professional image. This can help you build customer trust and belief in your business. There may be several companies which are ready to work with you being a sole trader, but there may be thousands or more which will work with your limited company happily.
There are many other benefits of opening a limited company with the help of the company formation service provider. Whether you belong to the UK or any other country, there is a good market for business starters in the country. You only need to look for a company formation provider which would guide you and does not let your idea to weigh down.