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Trading Company Article

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Limited Liability Trading Company Formations Jumps Online — The Automated UK Trading System

from: www.TradingExposed.com


The success of trading activities in England is attributed to the adoption of the limited liability concept in trading company formations. The concept of Limited Liability Company lets trade to flourish through enabling credit to be extended with minimum risk to the parties involved inside the company. In other words, the direct parties involved, which are the company’s shareholders, cannot be held liable for the debts of the company. Debtors cannot make any claims to a shareholder’s personal assets, thus only the shareholder’s interest or investment on that particular company is at risk.



Such legal limitation is formed in the UK through registering at the Companies House. The process is referred to as the Incorporation. It is popular to most investors who want to form a trading company in UK because their personal assets are protected by the limited liability concept of the company. Investors are aware of the volatility of the trading market and losses are always a possibility for every trade that they will make. By employing the limited liability concept in the formation of their trading company, their personal assets and interests are guaranteed to be protected. Only their interest on the trading company is at risk.



A limited liability trading company in UK is able to issue profits to its shareholders through dividends. In case of taxation, the rules and regulation that are applicable to both personal and corporate level are consistently modified by the Chancellor of The Day to adapt to the fast-paced movement of the market. However, in most cases, the distribution of profits through dividends are so far the most effective way of taxing a UK limited liability trading company without imposing any risk to the shareholders.



One of the most common forms of companies employing the limited liability concepts is the private limited trading company, which have more than 1 million currently-registered at the Companies House. Such companies can be easily recognized through the suffix “Limited” or “LTD” at the end of their business names.



One of the obligations that every formed limited liability trading company in UK must meet is public information. They are required by UK law to maintain the records of all their affairs at the Companies House. In this way, every individual who wants to buy such information before executing a trade with such company is possible. In trading, it is important that you will be able to check the background of the trading company you will forge a deal with.



Formation of limited liability trading companies in UK can now be easily executed over the Web. There are various websites that cater to the needs of different UK-based investors interested to form a limited liability trading company. Online company formations generally include the following:



• Every document or process that will be required by the Companies Act;


• Limited Liability Trading Company Registration;


• Certificate of Incorporation;


• Completed Statutory Register which involves:


o Register of share ledgers and members;


o Register of transfers;


o Register of debentures;


o Register of applications and allotments;


o Register of charges and mortgages;


o Register of directors;


o Register of secretaries; and


o Register of documents sealed and/or executed.


• Companies’ Articles of Association;


• Companies’ Memorandum of Association; and


• Share Certificates.



All of these are possible when you form your UK limited liability trading company online.




Christine P. Gray is a recognized authority on the subject of online trading. Her website Trading Exposed provides a wealth of informative articles and resources on everything you will need to know about Trading Company. All rights reserved. Articles may be reprinted as long as the content and links remains intact and unchanged.





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