How Many Directors Does A Limited Company Need?

A minimum of one director is required to register a company. Following registration, your company must have at least one director, but there is no statutory limit to the number of directors a company appoints during or after incorporation. Often, shareholders are directors of their own companies. It is very common for one person to set up a limited company and assume the positions of sole director and shareholder.

What are the Requirements and Duties of a Director?

Directors must run a company in accordance with the Companies Act. They are legally responsible for running the company and making sure company accounts and reports are properly prepared. There need be only one director within a company, but certain requirements must be adhered to.

Requirements:

• A director must be 16 or over and not be disqualified from being a director.
• Directors do not have to live in the UK, but companies must have a UK registered office address.
• Directors must provide a service address, which will also be publicly available.
• Even if you have a company secretary, the directors are legally responsible for the company.

Duties:

• Registering the company for business taxes
• Preparing and delivering confirmation statements, annual accounts and tax returns every year
• Maintaining accurate accounting and company records
• Regularly reporting changes to Companies House and HMRC
• Managing payroll and PAYE

Some of the above may sound like the responsibility of a secretary, however, it should be considered that before the implementation of the Companies Act 2006, all private limited companies were obliged to appoint a company secretary as well as a director. But, since the Act became law, a company can be run with the appointment of a sole director, thus disregarding the commonly known roles of a secretary’.

What are the Requirements and Duties of a Secretary?

As aforementioned, you do not need to appoint a company secretary by law for a limited company. However, some businesses utilise them to take on some of the director’s responsibilities.

Requirements:

• Every company can have a company secretary; if there is a sole director, they cannot also be the company secretary. If there are two or more directors, then one (or both) can also act as secretary.
• Anyone can be a limited company secretary, if they are not also the company auditor, a disqualified director or an un-discharged bankrupt.
• There are no formal qualifications required to hold the position of secretary in a private limited company, but the role does demand a great deal of skill, knowledge and competence.

Duties:

• Sorting confirmation statements, annual accounts and tax returns
• Maintaining company registers and records
• Regularly reporting changes to Companies House and HMRC
• Signing contracts and documents of behalf of directors
• Payroll and PAYE

The responsibilities of a company secretary are often to reduce the workload of the company director(s) by conducting some of their statutory duties.

If you would like any more information about company formation, directing your company or the importance companies act for limited businesses, please do not hesitate to get in touch today.