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From a proprietorship or a partnership to a limited company, the step is a very important one in the evolution process of your business. The conversion of your company into a limited one also enables it to emerge as a business turns into a brand and shoots up its status manifold. In addition, liability protection and future tax benefits will also be part of the facilities. But both these benefits come only under certain conditions.

An accountant services near me would guide you through some of the most essential considerations and tips on how to make your company a limited one. Being equipped with necessary information will make it easier for you to take those steps required to make an initiation process.

Understanding the ABC

Before you begin the process of converting your business into a limited company, you must first understand the basic principles of it. In a limited company, the money will be separated from personal funds of the directors and stakeholders. The structure allows your company to gain an advanced level of credibility and financial security that will facilitate obtaining business loans to help in expansion and growth.

Becoming a Limited Company: Five Important Steps

Becoming a limited company is an extremely straightforward process, provided you understand what it entails. Here are five of the most important steps:

Step 1: Making Decisions
No dream materializes without proper planning. Assess different implications related to your business, including legal obligations, administrative duties, tax responsibilities etc. If benefits and responsibilities match your business goals, it will get easier moving with the transition process.

Step 2: Choosing a Name for Your Company
You must choose an exclusive name for your company. Using the same name as some other company will bring you into legal troubles. There are a lot of free online resources that allow you to check whether your company name is already in use and acceptable for use.

Step 3: Getting Ready with Necessary Documents
You have to file two legal documents with Companies house. That includes Memorandum of Association and Articles of Association. The former one is a document of declaration that carries the signatures of all the primary stakeholders or guarantors. The latter one details the rules followed for running a company, which has signatures from the shareholders, directors, and the company secretary. 

Step 4: Registering Your Company
Register your company; the necessary recognition by the authority concerned, then the latter would be in a better position to giving you a registration number after assuring that the documents submitted are valid and information provided is correct. Usually, the whole process of registration takes 24 hours.

Step 5: Know Your Responsibilities
Several responsibilities go with the limited company structure, such as legal obligation, tax responsibility, administration duties, and management of a business bank account, etc. Reasonable understanding of everything is not a choice but mandatory for a limited company owner. Consult affordable accountant near me for necessary guidance.