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About Limited By Shares Companies

 
  • The most common legal structure you can choose is a private company limited by shares. This is suitable for most commercial enterprises, although you may wish to speak to an accountant for further information about other options.
  • Limited Companies are recognised to have their own legal identity, and thus the Company's debts are that of the Company alone, and not that of its Directors and Shareholders.
  • Thus, unlike an unregistered business such as a Sole Trader or Partnership for example, its owner's personal assets are protected by the limited liability status of the Limited Company.

Who Can Own And Run A Limited By Shares Company?

  • In order to incorporate a Limited by Shares Company, just one person is required to act as the Company's Director and Shareholder.
  • There is no limit as to the amount of Directors and Shareholders there are to such a Company.

Why Would This Type Of Company Be Formed?

  • A person, or group of persons, who wish to run a business without the risk of being personally liable for the business' debts should things go wrong would form this type of Company.
  • Each shareholder of the Company have their interests in the ownership of the business registered with Companies House, so there is no risk of dispute as to who owns the Company and its assets.
  • The registration of a business as a Limited Company also allows the business to become more credible and creditworthy as its existence is well documented on the public register of Companies in the UK which is extremely accessible as this register is published within the public domain.

Key Advantages of Limited By Shares Companies

  • Limited Liability
    The Company's Officers (Directors and Shareholders) are not personally liable for the Company's debts, and therefore their personal assets are protected, with the only exception being when a Director provides a personal guarantee for such debts;
  • Ability To Allot Shares / Raise Capital
    Company's can raise capital in the business by selling or alloting/issuing new shares to new members in the business in exchange for funds for investment.
  • Company Name Protection
    Once a Limited Company's name is registered with Companies House, no other Company in the UK can be legally permitted to use the same name.
  • Freedom To Operate
    The European Court of Justice have found that a Company has freedom to operate anywhere in the EU even though it is formed in a Member State other than the one where it conducts its business.

Taxation Advantages

  • Please see our taxation page where we explain the unique advantages of forming your business as a Limited Company.

You Should Note

  • All Directors details and addresses will appear on the public record. Some Directors do wish to retain their privacy by not disclosing their home address. For this purpose we provide as a unique service, use of our Registered Office Address and Officer Service Address for those Companies and Company Officers who wish to protect their privacy.
  • Select the links below in our Address Services details to find out more.
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