When you set up a limited company, as company director, you will have certain statutory and legal responsibilities which you should be aware of.
Although your accountant is likely to take care of much of your dealings with Companies House and HMRC, you are ultimately responsible for meeting your deadlines, and for ensuring that you keep and submit accurate records at all times.
Limited company director responsibilities
Here are the key legal and financial responsibilities you will have as a limited company director:
- Annual Return (Form AR01) – this must be completed each year and returned within 28 days of the anniversary of your company formation.
- Annual Accounts – you must submit your company’s annual accounts to Companies House.
- CT600 – you must submit the annual Corporation Tax return to HMRC together with electronic payment for any taxes you owe.
- You must let Companies House know of any changes to the particulars of the company personnel (e.g. changes of name, addresses, resignations, etc.)
- Any change to the company’s registered address must be communicated to Companies House.
- You must let Companies House know of any allotment of shares, changes to the company share capital, certain special resolutions, or charges made.
- You must comply with all relevant legislation including employment rules, discrimination law, and health and safety regulations.
- Ensure that you pay all taxes and NICs are paid to HMRC on time for both you and your employees.
- You (or the company secretary) must maintain accurate company records at all times, including meeting minutes and the details or any resolutions passed by the directors.
- Always trade solvently, and ensure that you are always able to meet the company’s tax liabilities. You should only declare dividends out of company profits, for example.
- You must always act in the interests of your shareholders, and not do anything which may cause damage to the company.