Director information hub: Limited company director essentials
When you become the director of a limited company, you should be aware of the legal requirements and duties involved.
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Being a director
To be a director, you must be over 16 and not currently disqualified.
Legal requirements and duties for limited company directors
As a director, your responsibilities include:
- filing your company’s annual accounts and reports or appoint an accountant to do it for you
- reporting changes in you or your company’s situation including changes of address
- sending a confirmation statement every year to Company’s House
- pay Corporation Tax, VAT, PAYE and National Insurance contributions due on time
Companies Act 2006
When you incorporate your company and become a director, it’s tempting to forget about the responsibilities involved.
After all, you’re starting to trade and grow your business.
However, being a limited company director carries significant consequences if you do not follow the rules laid out in the Companies Act 2006.
The consequences of not operating responsibly as a director can involve legal action and criminal fines.
If you fail to meet your legal responsibilities you could be disqualified from being a director.
And if your company owes money as a result of your actions as a director, you could end up paying compensation to those affected.