Different Types of Companies in the UK – Structure and Registration
Different Types of Companies in the UK: Their Structure and Registration
Millions of Companies, Corporations, and businesses exist in the United Kingdom, and the numbers have risen to the sky in recent years. The year 2020-21 saw the formation of almost 726,000 companies in the United Kingdom. If you are looking to set up a new company in the UK and want to explore your options about the types of companies in the UK, here is your guide.
What are the different types of Companies in the UK?
The different types of companies depend upon their legal status, structure, and response in case of liquidation. These companies share many differences, but all of them have to go through the same registration process with Companies House, except for slight differences for each one of them.
Compay types include:
Public Limited Company:
A Public Limited Company is a combination of the features of a Public Company and a Limited Company. Firstly, a PLC has investments of the individuals, and at the same time, a Public Limited Company has shares that are available for the public to purchase. Accordingly, individuals can have liabilities depending upon their investments. Also, one important consideration is that a PLC’s shares must have a minimum value of 50,000 Pounds.
Private Company Limited by Shares:
In the United Kingdom, a private company limited by shares has a limited number of shareholders. This can be a group of individuals or some organization. Moreover, these are the most common types of companies that operate in the United Kingdom. In contrast to public companies, the sales of the shares of these companies are managed privately. Usually, Company Formation/Registration Expert agencies manage the formation of these companies. Shareholders are responsible for the respective liabilities.
Company Limited by Guarantee:
These companies have a major difference, as they have guarantors instead of shareholders. These guarantors contribute money towards the formation and establishment of the company and its expenses. The UK law requires these companies to put the term “LTD” in their names.
The major difference between the limited and unlimited Companies is that in the case of liquidation, there is no limit to the amount that the shareholders may have to pay for liabilities, irrespective of their investments.
These companies have one great advantage: the shareholders are responsible only for limited liabilities in the case of liquidation. Partners can directly manage their part of the business and are accountable only for that.
Community Interest Companies:
These companies are registered only for community work and work on the principle of contributing to the community instead of making profits for the shareholders. For their establishment, Companies House is the main registration institution. They can either be directly contacted or with the help of an Expert Company Registration agency like Liscard Business Services, who have expert professionals for each of these kinds.