There are several obligations that you need to fulfill in order to ensure that your limited company stays legally compliant. While these requirements might feel overwhelming, they can be easily managed with a bit of discipline, planning and organisation. In this blog, we will be discussing the key compliance responsibilities and obligations.
These regulations relate to companies registered at Companies House. Usually,this means that your business structure should be one of the following:
- Company limited by shares (LTD or PLC)
- Company limited by guarantees (LBG or CIC)
- Limited Liability Partnership (LLP)
These accounts are prepared at the end of each financial year with the help of your business’ financial records. Annual accounts include:
- A profit and loss statement
- A statement of financial position (or balance sheet)
- Notes related to the accounts
- Director’s report
- For extremely large companies: Auditor’s report
All new companies are required to file the initial accounts within 21 months of incorporation.
Corporation Tax Returns:
Upon filing the tax return, you are required to calculate:
- The profit or loss for tax purposes
- Corporation Tax Bill
You have to file your tax returns within 12 months of the period that the returns cover. Limited companies are allowed to file their accounts and tax returns simultaneously.
Remember that you are obligated to file a return even if you have not made a profit. In fact new companies often record losses in their first year of trade and agreeing those losses with HMRc can often lead to valuable reliefs in future years.
This means that you are obligated to notify the Companies House of any events that take place within your company. These events include:
- Changing of registered office
- A new share allotment
- Any change in company name
- Any change in appointments or PSCs
Remember that not adhering to these obligations or deadlines can lead to penalties and punishments for you and your business. In fact, your company could end up being removed from the registrar altogether!