Why most people are willing to set up a private limited company? After all, setting up a limited company is more likely to include the administration and higher cost than if you are a self - effacing sole trader.
Also, if you are willing to set up a private limited company issues, personal financial liable for its bill. Also, if you are in personal bankruptcy risk if the debt is considerable and cannot pay it. You will be on the safe side if you are into a limited company.
Why set up a limited company?
A limited company is a different legal entity and as like, legally, it is responsible for its own activities. The finances of these companies are totally different from those. These companies can have one or more shareholders, but they cannot be sold on the stock market (publicly). You can do this with a Private limited company.
How to set up a limited company?
You will have to register with the Companies House to start up a limited company. Also, for an accountant, small fee, agent or solicitor can do this for you. All you have to do is to set up a limited company that offers some basic details and a few signatures.
There are ready made limited companies that you can buy, it's totally up to you. Also, if you are willing to build a form a brand new limited company, you need to send the articles of association, memorandum of association and a completed IN01 form to Companies House.