Definition
A company director is a person appointed to run a limited company and make sure it meets its legal obligations. Every private limited company needs at least one director, who must be 16 or over. Directors are legally responsible for the company’s records, annual accounts, confirmation statement and Company Tax Return even when an accountant does the work, and they must verify their identity with Companies House.
Main responsibilities
GOV.UK summarises the core responsibilities. A director must:
- follow the company’s articles of association
- keep company and accounting records and report changes to Companies House, such as a new director, within 14 days
- file the annual accounts and the Company Tax Return (CT600) and pay Corporation Tax
- tell other shareholders if they might personally benefit from a company transaction
A director who fails to meet these responsibilities can be fined, prosecuted or disqualified.
Director, shareholder or PSC?
The roles often sit with one person but are different. A director runs the company, a shareholder owns it, and a person with significant control holds more than 25% of the shares or votes or otherwise controls it. A sole director who owns all the shares holds all three roles.
Personal tax
Being a director does not by itself mean filing a tax return, but many directors need one, often to report dividends. Self Assessment for company directors sets out the usual triggers.
Related questions
- Do I need to verify my identity with Companies House? Yes. New directors verify before appointment; existing directors by the company's next confirmation statement.
- Can a director live outside the UK? Yes, but the company must keep a UK registered office.
Related terms
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Identity verification
Identity verification is the legal requirement, in force since 18 November 2025, for company directors and people with significant control (PSCs)…
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Person with significant control (PSC)
A person with significant control (PSC) is someone who owns or controls a UK company, sometimes called a beneficial owner.
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Director's loan account
A director's loan account (DLA) is a limited company's record of money moving between a director and the company other than salary, dividends or repaid expenses.
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Self Assessment
Self Assessment is the system HM Revenue and Customs (HMRC) uses to collect Income Tax that is not taken automatically, for example through PAYE.
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