What is a Limited Company? How to register a Limited Company in the UK?

How to register a Limited Company in the UK?

What is a Limited Company? How to register a Limited Company in the UK?

Have you ever wondered how to register a Limited Company in the UK? Limited Companies are the most preferred and common type of Companies in the United Kingdom, which Companies House very frequently registers. This article covers the details about the structure, types, and guidelines for the UK’s formation and registration of Limited Companies.


A limited company is a company that has its assets separate from its owners. On legal grounds, a limited company is completely separate from its owners, and the respective assets are independent of each other.

How to register a Limited Company in the UK?

Companies House is the official place to register all the limited companies in the United Kingdom. Moreover, this official registration separates limited companies from business owners. The procedure of registration is the same as the other types of companies with only one difference. The owners register their companies as limited companies in the company type section. Moreover, you have to choose a unique name for your limited company.

Limited Liabilities: Biggest Advantage of Limited Companies

Generally, limited Liabilities are regarded as the most advantageous feature of limited companies. As a result of limited liabilities, the business owners enjoy protection in terms of payments. Accordingly, they have to pay liabilities only up to their original investments. Therefore, This offers a great cushion for the business owners and investors.

Three types of Limited Companies:

In the United Kingdom, the following three types of limited companies operate. These companies are

  • Private Companies limited by Shares (Liabilities are applicable only up to the original shares)
  • Private Companies limited by guarantee (Liabilities are applicable only up to the amount of guarantee)
  • Public Companies limited by shares (Liabilities are applicable only up to the original shares

Benefits of a Limited Company in the UK

Limited Liabilities:

Limited Companies involve only limited amounts of liabilities. Consequently, this saves the business owners from massive liabilities.

Tax Savings:

In addition to saving the owners from the liabilities, the limited companies also save the business owners from heavy taxation. Generally, the sole traders pay anywhere between 25% to 45% taxes. On the other hand, limited companies pay only about 19% of taxes.

Market Image:

Lastly, businesses these days are increasingly concerned about their images. In the case of limited companies, the overall market image is better, and businesses count as legitimate and reliable. Eventually, this feature has long-term gains.

If you want to form a Limited Company in the UK, Liscard Business Centre can offer exclusive packages for you