Definition of limited company director
A limited company director is legally responsible for the day-to-day management and running of a limited company. A limited company can have more than one director.
The director and the company are separate entities, they incur debts and pay bills in their own right.
What are the responsibilities of the director?
If you are a director of a limited company you are legally responsible for running the company and sending information to Companies House on time. Director responsibilities include:
- keeping accounting records
- maintaining company records and reporting changes
- paying Corporation Tax
- completing and filing an annual Confirmation Statement
- maintaining a register of Persons with Significant Control (PSC)
- informing other shareholders if you might personally benefit from a transaction the company makes
There are some restrictions on becoming a limited company director; you must be over 16 years old, have no disqualification by court order or history of bankruptcy.
If you’re looking to start a limited company, check out our guide on how to register a limited company business name.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circ*mstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.
