PRIVATE COMPANY LIMITED BY SHARES
- Private Limited Company with shares – minimum 1 share, maximum unlimited
- Suitable for any normal commercial trading purposes
- Objects are usually unrestricted
- Suitable for the vast majority of businesses in the UK
- Can undertake any nature of business
- Can operate anywhere in the world
- Members have limited liability
- Can have a sole director and sole shareholder
- Can have corporate officers
- Limited companies are often advantageous for their shareholders regarding taxation
- Incorporated usually in less than 3 hours and full documents despatched within 24 hours
- Own choice of name subject to “sensitive names” and “same as” rules
A limited company is a legal entity, which in the eyes of the law, is a separate “person”. This basic principle means that a company can hold assets in its own right, conduct business, employ people, it can sue and be sued, and importantly it can outlive its directors and shareholders.
The shareholding of a limited company determines its ownership and the business can be transferred in part or in whole to other owners by a simple transfer of shares. This is a significant advantage over a sole trader or traditional partnership.
Another major benefit to individuals conducting business through a limited company as opposed to being a sole trader, or as part of a partnership, is the principle of limited liability. This means that the shareholders/owners of a business as a limited company do not risk their own personal assets should the company fail and enter administration. Limited liability restricts the ability of an administrator to recover any shortfall from a company’s shareholders to the limit of the value of shares registered in a shareholder’s name that are unpaid at the time of entering administration.
Our Company Formation service for private companies limited by shares allows you to choose the name of your new company, subject to availability, and structure your company however suits you. All company formations are submitted electronically to Companies House as soon as orders are received and your company will normally be incorporated within 3 hours of ordering. Your full company pack will be despatched on the day your company is incorporated.