If you decide to set up a private limited company, you can do it by yourself without other directors. Setting up a public limited company is a bit different, requiring a qualified secretary and at least two directors who must all be different people. Our article about the differences between public and private limited companies compares the two in more detail.
In this article, we cover the options you have when setting up a private limited company and the requirements around this.
Setting up a private limited company: how many directors does it need?
Since the implementation of the Companies Act 2006, setting up a private limited company is possible with just one sole director. Before the Act was put into place, a company formation required a director and a secretary.
This is great news for people who wish to operate by themselves in business, whilst limiting their personal liability.
You must appoint a minimum of one company director in order to set up a private limited company, but you can still form it with multiple directors, or add more at a later date.
At the moment, there is no statutory cap on how many directors can be appointed at any given time.
Public limited companies however, are still required to appoint a company secretary as well as a minimum of two company directors to go through the formation process.
Who can be a sole director?
When setting up a limited company with a sole director, it’s essential that the director is a real or ‘natural person’ (i.e. an individual human being), as opposed to another company (corporate director).
There are other requirements that a company director must meet:
they must be 16 or over
not currently disqualified from being a company director
company directors cannot be an ‘undischarged bankrupt’ (or have ongoing bankruptcy proceedings against them)
Do I have to live in the UK to be a UK company director?
A director of a UK company can live anywhere in the world – you don’t have to be a UK resident in order to set up shop here.
Talk to one of the team about your limited company by calling 020 3355 4047 or sending a message to email@example.com. To get an instant quote for our online accounting services, click here.
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