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INCORPORATING A COMPANY 

There are many advantages and disadvantages with incorporating a company rather than operating as a sole trader or partnership. 
 
The main advantage of forming a limited liability company is the protection against losing your personal assets. As the description states when incorporation a limited liability company the actual liability remains with the company and not you personally. There are exceptions to this such as providing personal guarantees but this does not apply for general trading agreements. 
 
This is known as the ‘corporate veil’. Any debt, losses, or legal claims associated with the company are the responsibility of the company itself – not its owners (shareholders/guarantors) or directors. 
 
As a shareholder, you will have no legal obligation to pay more than the nominal value of the shares you hold. If your company becomes insolvent and is unable to pay its creditors, you will only be required to pay the nominal value of any unpaid shares you own. 
 
 
 

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Due to data protection and GDPR directors no longer have to publicly show their private residences and can just use a service address which is usually the company’s registered office. Overseas and non resident directors can also use a third party address for service of legal documents, etc. These are normally then company’s accountants or company formation agents’ addresses. 
 
In the UK there are specialist company formation UK agents who provide various company formation UK services and company formation UK packages to suit the clients requirements. These services can be just a basic UK company formation service to nominated officers and a UK registered office address. Also providing a service address to receive and forward all mail and legal documents which are sent to their address. 
 
Forming a limited liability company can also be more beneficial than a sole trader when it comes to undertaking larger contract. Many larger corporations prefer to deal with registered companies rather than sole traders or partnerships. One of the reason for this is the availability of information which has been filed ate the local company registries. This information will include ownership and management details plus financial data where available. This information enables a larger client or supplier to establish the credibility of the company. 
 
There are many different requirements and legalities across the world when forming a limited liability company but generally it is more beneficial where entering into cross border trade agreements. 
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