News
Limited Company registrations and dissolutions rise in Wales
05 - 08 - 2013
The number of limited company registrations and failures in Wales has gone up, according to BBC Wales.
In the financial year 2012-13, 16,267 limited companies were set up in Wales, an increase of 8.9% from 14,937 in 2011-12. However, this is lower than the UK average of 13%.
The number of limited companies being dissolved also increased, by nearly 4% from 9,347 in 2011-12 to 9,716 in 2012-13. The UK average, on the other hand, showed a decline in companies being wound up.
‘Vibrant economy’
Professor Jones-Evans, director of the ‘Wales Fast Growth 50’ which monitors growing companies, said that the rise in limited companies being formed may be due to people who have been made redundant starting up their own businesses.
‘Unemployment had increased and people look very carefully about what their options are and what we tend to find is that people in their mid-30s and early 40s are the sort of people who start a business, and those are the people being made redundant,’ he said.
‘Clearly there are businesses that are closing down or de-registering as limited companies but that's to be expected in a vibrant economy where you need businesses to start up and businesses to fail - it's called a 'churn' in the business population that shows you've got a dynamic economy.’
What is a Limited Company?
A limited company is a separate legal entity, distinct from its directors, shareholders and employees. The company’s owners are not personally liable for the company’s debts.
There are many benefits to trading through a limited company, including the opportunity to take home more pay and the ability to claim a wide range of legitimate business expenses.
Of course, limited companies require a little more administration than being a sole trader but, for most people, the financial reward more than makes up for this.
If you would like to know more about setting up and running a limited company, our knowledgeable and friendly Advisors would be delighted to help you. Feel free to give us a call on 01244 625 500 for a no-obligation chat.
