Company Limited by Shares


A company registered at Companies House, owned by the shareholders who are members of the company and are its beneficial owners. The company can pay dividends to its members out of profits. The AGM of the company elects the directors and approves the accounts. Members can vote at the AGM in proportion to the number of shares they hold. Shares can be sold and can go up or down in value. Companies are governed by the Companies Act 2006.

 Accounting regulations

Must prepare accounts in accordance with:

 Tax implications

  • Subject to corporation tax
  • Able to distribute post-tax profits by way of dividend; receipt of dividends is subject to favourable tax treatment for the recipient


  • Cheap and easy to create
  • Limited liability
  • High audit threshold – unlikely to need an audit
  • Listed on Companies House website, and all directors details and filings available there
  • Considerable tax benefits to distributing profit by means of dividend


  • Cannot have a non-profit aim as its main objective (in theory)
  • Shares are not easily transferable or sold back to the company as Employer Related Securities regulations apply
  • Shares cannot be advertised for sale so it is difficult to use this structure to raise investment funds, as it is governed by the Financial Services and Markets Act 2000

Services required

  • Accounts preparation
  • iXBRL tagging of accounts and filing of these with online Corporation Tax return CT600