The Essential Elements for Setting up Your Limited Company

1. The Essential Elements for Setting up Your Limited Company People go for company formation in Oman for many reasons but you can save a great deal of time, trouble and money by understanding the basic issues before you start. There are five key roles in a company which I will explain below. In small companies, one person may perform more than one of these but you must realize that they are separate functions even if performed by the same person. 1. Owners A company is owned by shareholders who share in the profit of the business by taking dividends in proportion to their shareholding. A new company with only one owner usually has only one share which has a nominal value of £1. That means that the shareholder is only liable for a maximum of £ 1 should the company fail. These days companies do not need to specify the maximum share capital when they are formed. New shares can be issued to new shareholders as necessary and different classes of shares can be created. 2. Managers The directors run the company in the interests of the shareholders. They may also be shareholders themselves, but they need to understand clearly their role is to manage the business and they have a duty to work on behalf of the shareholders. A company therefore must have at least one director. Most company directors will be required to complete a Self Assessment Tax Return. You will need to declare whether a director has any other directorships when applying to form the company. 3. Employees Staff may be employed to work in the company. To start with that is often one of the directors but eventually you may employ others. Once a company employs staff it will need to set up a payroll scheme. There is scope for tax planning when a shareholder is also an employee when there is a potential tax saving by taking dividends rather than salary. You should ask for professional advice to ensure directors receive a salary to at least the National Insurance threshold to maintain their National Insurance Contribution record and.

2. 4. Administration You can now (since the 2006 Companies Act was enacted) choose whether to have a Company Secretary. For a small company they do not need any particular qualifications. If you go for setting up the company in Oman without a Company Secretary, then one of the directors will be responsible for the administration of the company and they will need to be organized as they are responsible for ensuring that the statutory company paperwork - accounts, corporation tax return and annual return are completed and filed on time. If you set up the company with a company secretary, then an accountant can perform this function for you for a small fee.