Business Glossary

Company Director

A company director is a person chosen to control or oversee the affairs of your company, promoting your business success. They must produce proper accounts, send all required documents to Companies House and ensure compliance with the law and regulatory requirements associated with your business, including health & safety, employment law and tax.

They must not:

  • Be disqualified from acting as a company director of any other company.
  • Be bankrupt.
  • Be under the age of 16.

 

Companies House

Companies House is a part of the Department for Business Innovation and Skills. Its main functions are to:

  • Incorporate and dissolve limited companies.
  • Examine and store company information delivered under the Companies Act and related legislation.
  • Make this information available to the public.

 

Company Registration

Company registration, also known as formation or incorporation, is the process of setting up a new limited company and registering it with Companies House.

For simple incorporations this can take as little as three hours with our online process. Once you’re finished with the business glossary, you’re ready to start comparing our packages and starting your formation.

 

Company Secretary

A company secretary is appointed by the company directors and usually undertakes all administration for the company.

A company secretary:

  • Can also be a director of the company.
  • Does not need to be a full time employee and can have other roles.
  • Must not be the company’s auditor.
  • Must not be bankrupt.

 

Dormant Company

A dormant company is one which has been registered but has not yet started trading.

Dormant companies can be set up to get the ball rolling while still perfecting your business plan, to protect your chosen company name and hold intellectual property.

 

Formation Agent

Formation agents are generally approved by Companies House to register your company on your behalf. Incorporating many companies every day means they have the expertise and processes in place, which means registering your company is less expensive and much quicker than if you were to go through a third party or even direct through Companies House.

 

Memorandum and Articles of Association

The Memorandum of Association is the official document for the company listing. It is a statement by your company directors that you wish to form a company under the Companies Act 2006, that you have agreed to become members and, if your company will have a share capital, that you will take at least one share each.

The Articles of Association sets out the responsibilities of the company directors, the type of business that will be carried out and the level of control that shareholders may hold.

 

Registered Office

Your registered office address must be displayed on all company literature and public documents and is where all statutory documents from Companies House and HMRC will be sent.

 

Service Address

Company directors are required to register either a private address or a service address.  Directors’ addresses are available to the public and for this reason many directors choose not to list their home address, instead setting up a service business address.

 

Shareholder

shareholder is a person or company that legally owns shares in a limited company.

 

Shares

A share represents a part ownership in a company. They are bought from the company and can be set at any value.

 

For more help on unfamiliar terms which may not be in the business glossary, head over to the help centre.

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