Separate Legal Existence: A limited company has its own legal existence. Contracts will be signed on the ltd company's behalf whilst the company secretary and directors are the agents of the limited company. On the Death or resignation of company director the limited company cannot be dissolved.
Limited Liability: is another advantage of forming a limited company. Liability of the shareholder is restricted to the value of shares owned by him or her and personal assets of shareholder cannot be used for company's debts payments.
Company Name Protection: Forming company will protect the company name and after the company's incorporation that business name cannot be used by any other company.
Tax benefits: Company pays corporation tax on company's profits.
Structured Dispute Resolution: Another benefit of forming a limited company is that it has structured procedure to solve shareholder's disputes.
No Obligation to trade within a time period: After a Ltd company is incorporated, there is no obligation for it to start trading within a set time period.
National Insurance Benefits: Improved national insurance benefits are offered by a limited company.
