The Ultimate Guide to Setting up a Limited Company

Starting a business?

We have you covered from set up until you start trading.

Our packages

7 - Appointing company directors

Who can be a company director?

Every limited company has to have at least 1 company director. If you are setting up a limited company on your own this can be you. The only real restrictions on who can be a company director are that you have to be over the age of 16 and not have been disqualified from being a company director as a result of legal action or bankruptcy (you will generally know if this applies to you).

In practice although 16 year olds are legally allowed to be company directors they will struggle to open a business bank account until they are 18. This makes it very hard for them to run a company on their own.

 

What do company directors do?

Company directors are legally responsible for making sure the company is run correctly. If the company breaks the law it is the company directors who will be in trouble. Where there is more than one company director it is normal to have each company director’s areas of responsibilities formally written down. So, one company director might be responsible for making sure health and safety rules are followed, while another is responsible for making sure the company pays its taxes on time.

The company directors don’t have to be shareholders and they don’t have to be involved in the day to day running of the business. However, it is best to keep the company directors to people who need to be involved and who you are happy you can work with to avoid potential problems.

Instantly find an available company name for your business here: