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Tell Me About Company Directors and the Company Secretary.

Having chosen a company name the first decision that you will face is who to choose as a Director and Company Secretary. The Director is easy, that can be you. Having a company secretary is a legal requirement and their duty, in theory, is to ensure accurate completion of all statutory documents. Normally your spouse, partner, family member, friend or a secretarial company can be appointed as secretary.

How should I allocate shares?

The share holding is the second decision you will face. The share holding of the company will affect the split of any dividends you declare. The dividends are paid in direct proportion to the number of shares held by each shareholder. Anyone can be a shareholder and they don’t have to be an officer of the company.

How much salary should I draw?

Any expenses incurred or purchases made to aid your work in the company can be paid for through the company and will be offset against tax at the end of the year. If you are unsure about whether an expense is allowable or not then speak to us directly.

What do I need to do to help me avoid a revenue audit and to ensure that if I have a revenue audit, then I will have no worries?

Always keep your book-keeping up to date and never use the company cheque book to pay personal expenses. Also don’t be tempted to “borrow” money from your company. Don’t be tempted to round up your expense allowances, always be honest when recording your expenses. Ensure your company and personal returns are submitted to the relevant authorities by the due date.