Company basics · 2026
Quick answer
A private limited company is a separate legal entity owned by shareholders and run by directors. It owns its assets, signs contracts and pays Corporation Tax on its profits. Shareholders' liability is limited to their unpaid share capital. People with significant control are recorded publicly, and the company files accounts and a confirmation statement every year. — LimitedCompany.Accountants, ICAEW-regulated accountants for UK limited companies.
What a limited company is and how it works: separate legal entity, directors, shareholders, PSCs, limited liability, Corporation Tax, filings and paying yourself.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 21 October 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
Content updated 21 October 2026. Official references are listed below.
Understanding the roles in a company — directors, shareholders and PSCs — explains most of its legal and tax obligations. In small companies one person often holds all three.
Separate legal entity
Directors run the company
Shareholders own it
PSCs recorded publicly
Annual filings
Directors manage the company and have legal duties, including promoting its success and avoiding conflicts. Shareholders own the shares, vote on key decisions and receive dividends. A PSC is an individual with more than 25% of shares or votes, the right to appoint or remove a majority of directors, or significant influence or control.
Company money is not the director's money. Owners take it as salary, dividends from available profits, expense reimbursements or director loans, each with different tax rules.
Statutory accounts, a CT600, a confirmation statement, Corporation Tax payment, PAYE if anyone is paid, and VAT if registered. Directors and PSCs need Companies House identity verification.
Shareholders normally lose no more than their unpaid share capital. Directors can become personally liable for wrongful trading, personal guarantees, certain unpaid taxes or misconduct.
Rates, thresholds and dates reflect the UK position at the content update date, including measures announced for future tax years. Check current GOV.UK guidance, or ask us, before relying on them.
Primary references
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes. In most small companies the same person is both.
The shareholders own it, in proportion to their shares and rights.
A person with significant control, usually someone owning more than 25% of shares or voting rights.
It is not legally required, but most directors use one for accounts, CT600 and tax planning.
Only as salary, dividends, expenses or a recorded director's loan, each with its own tax rules.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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