In Poland, a limited liability company is literally called a « limited liability company » (spółka z ograniczoną odpowiedzialnością, legally abbreviated as sp. z o.o. (or sometimes Sp. z o.o. under certain names). Informally, it is abbreviated to Polish slang as spółka zoo (pronounced with a long « o », as in « tow. »). Sp. However, z o.o. has a legal personality (separate from its owners), which gives it the possibility to perform certain acts in accordance with the law, and it is considered a « company ».

The basis of a limited liability company is that all debts that a company incurs are the liabilities of the company and not directly the legal liabilities of the shareholders or directors of the company. Directors of a limited liability company do not accept personal liability, since all their actions are carried out as representatives of the company. In this article, we are going to talk about the different aspects of a limited liability company. Forming a limited liability company can suit all sizes of businesses and offers various advantages over operating as a sole proprietor or partnership. One of the main advantages is the fact that liability is limited only to what you invest in the business. However, this benefit also creates more paperwork and official documentation published in Companies House. • The company must be registered and incorporated with Companies House • Financial statements containing specific financial information must be sent to Companies House • HMRC must be informed if the business is profitable or generates taxable income • Corporate income tax must be paid to HMRC within nine months of the end of the year • The annual return must be submitted to Companies House each year in addition to a small fee • The employees must pay income tax and social security contributions to funds earned through the company Before May 2015, the registration of companies required the completion of several documents, such as the DIR-3 for the acquisition of the DIN (Director`s Identification Number), INC-1 for obtaining a name, INC-7 for the registration of the company with the articles of association, INC-22 for the registered office and finally, Form DIR-12 for directors. As of January 2018, the new approval process for the name « RUN » was notified and the electronic form INC-1 was omitted. Form INC-7 omitted. Step 2: Apply for a DIN (Director`s Identification Number) The DIN is an identification number for a Director General.

It must be acquired by anyone who wants to be a director in a company. A DIN is enough to be a managing director in a number of companies. With this, you are ready to set up your own limited liability company. It is recommended to consult the right people and make the best choice for smooth growth. 1. Limited risk to personal assets – The shareholders of a limited liability company are limited. This means that you, as a shareholder, are only responsible for the company`s responsibility to the extent of the contribution you have made. The partners are not personally liable and therefore do not have to pay the liability of the company from their own assets. In Russia and some other countries of the former Soviet Union, an entity with a similar structure is called Общество с ограниченной ответственностью (Obshchestvo s ogranichennoy otvetstvennost`yu) (lit., « limited liability company »), usually abbreviated OOO, or in some CIS countries such as OcOO. [ref. needed] Prior to 2015, shareholders (called members) had to pay at least 1 lakh (equivalent to 1.3 lakh or $1,700 in 2020) as a subscription amount to form a limited liability company.

[18] A limited liability company may have a maximum of 200 members. A company with one member is called a one-man business. [19] Companies House, an executive agency of the UK Government, is the official registrar of companies and is responsible for all matters relating to the formation of companies. To be incorporated as a limited liability company, the following information must be sent to Companies House: 1) Form IN01 « Application for Registration of a Company » a. A unique and valid business name – check availability b. Registered office of the company v. Name of Director(s) and Corporate Secretary(s) (if applicable) d. Subscriber details e. Information on share capital and required information on classes of shares 2) Articles of Association a. Contains the names and signatures of the subscribers who form the company, including the obligation for each subscriber to acquire at least one share (does not apply: 3) Articles of Association a. Includes operational details, including internal management issues, accountability policies, and other important information. These are the articles of association of the company.

If you use standard sample items, they do not need to be submitted to Companies House The above items must be sent to Companies House with the appropriate fee. Details on where to send this information can be found on the Companies House website. Step 6: PAN and TAN Application You can also use this SPICe+ form to apply for the company`s PAN and TAN. The system automatically generates these forms after submitting the SPICe+ form. The PLC Certificate of Incorporation is issued with the PAN issued by the Income Tax Department after approval of the SPICe+ form. An email with certificate of incorporation, PAN and TAN is sent by MCA. The income tax department issues the PAN card. Existing companies: 9 months after the end of your company`s financial year The limited liability company in Latvia is called sabiedrība ar ierobežotu atbildību (SIA). SIA is taxed as a corporation. The minimum legal share capital is €2,800. [21] However, it is permissible to create an SIA with a share capital of €1.00, but it must be increased to a minimum share capital of €2,800 by increasing the share capital with money or by transferring at least 25% of the annual profit to the capital of €2,800.

[22] Now that you know what a limited liability company is, the next step is to know the characteristics of such a company: if you issue or transfer shares of a corporation, you may need to issue share certificates to formalize the transfer of ownership. Companies must issue a share certificate within two months of its incorporation or the date of transfer or issuance of new shares. For more information, see Share forwards and new shares. « Limited » means that the Company`s financial liability is limited to the value of the Company`s shares that have not been paid. This means that if a company has one member (shareholder) and they each own 20,000 shares worth £1, they would owe £20,000 (if not paid) at the time of liquidation.