What is a Limited Company?

A limited company in the United Kingdom or Republic of Ireland is a corporation with shareholders whose liability is limited by shares (Ltd), which is the most common form of privately held company. Setting up as a limited company is a very attractive option for many as, unlike sole traders, personal assets are completely distinct from company finances and protected by limited liability.

Private company limited by guarantee

This type of company does not have share capital but is guaranteed by its members, who agree to pay a fixed amount in the event of the company's liquidation. Frequently charities incorporate using this form of limited liability.

Private company limited by shares

The company has shareholders with limited liability and its shares may not be offered to the general public. Most commonly used.

Public limited company (plc)

Public limited companies can be publicly traded on a stock exchange — similar to the USA Corporation (Corp.) and the German Aktiengesellschaft (AG).

A shareholder in a limited company, in the event of its becoming insolvent would be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). 'Paid' here relates to the amount paid to the company for the shares on first issue, and not to be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.

A limited company can be registered in England and Wales, Scotland, Northern Ireland. The registration of companies in Great Britain (England, Scotland and Wales) is done through Companies House, the UK government registrar.

The registration of companies in Northern Ireland has been the responsibility of Department of Enterprise, Trade and Investment. From 1st October 2009 responsibility transfers to Companies House, under the Department for Business Enterprise and Regulatory Reform (BERR)[4].

Northern Ireland will retain a registry function and presence along similar lines to the Companies House Scotland model.

Registering a Limited Company through WestOne - Official Companies House Agents

Please click here to view our company formation packages. They start at £34.99+VAT, inclusive of Companies House fees and official company certificate. - the most cost effective solution for UK Limited incorporations.