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01 July 2014

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Different Types of UK Companies

There are four main kinds of UK companies which can be registered. Each might be suitable in specific situations, although to some extent, more than one type of company may satisfy the particular requirements of the purchaser.


The four main types of company in the UK are: companies limited by shares, companies limited by guarantee, public limited companies (PLC's) and less commonly known, unlimited companies.


UK Companies Limited by Shares

Companies limited by shares are by far, the commonest form of entity which can be incorporated in the UK.

This type of company is a standard profit making organisation which will carry out some trade or other activity. As the name suggests, a company limited by shares has one or more shareholders who own the business. They are thus entitled to any profits generated by the company,although all gains made by the enterprise are rarely distributed in full to the owners. It is often the case that a proportion is retained within the business for working capital and future growth purposes.


Companies Limited by Guarantee

Companies limited by guarantee are usually non-profit organisations such as charities, clubs and associations.

There emphasis is normally concerned with the provision of a service for the benefit of the public or a specific section of it. Whilst a company limited by guarantee might actively seek to apply such funds in relevant projects which the company are engaged in.

Companies limited by guarantee do not have shareholders as normal limited companies do. They consist, instead of guarantors or members who agree to indemnify the company in the event that it is unable to repay any of its outstanding debts.

The amount which is guaranteed is usually £1 per member and their liability would be limited to this sum.


Public Limited Companies

Public limited companies or PLCs as they are also known, are generally larger profit orientated businesses.


In order to register and set up such an entity, there is a requirement that it has an issued share capital of at least £50,000. Of this amount, a minimum of £12,500 must be paid to the company.

As most companies limited by shares are incorporated with anything from one share to one thousand, the above requirement for PLCs put them in to a different class of financing.

Some public limited companies are traded on the stock exchange, however this is not mandatory for a PLC.

The levels of administration involved in maintaining this type of company is greater than that of most other kinds of business. Full non-exemption statutory accounts need to be produced at the end of each year.


Unlimited Companies

UK unlimited companies are those which are registered without any degree of limited liability which is commonly found amongst other companies.To the extent that its shareholders are protected, these kinds of company are more closely associated with a sole trader and partnerships, the owners being personally liable for any business debts incurred, in other words the owners personal is at stake in the event that the organisation is unable to discharge its debts.


Creditserve are able to provide both online and bespoke (freshly investigated) credit reports all types of limited companies and non limited businesses , sole traders and partnerships. For more information please visit our website or to look at the various credit reporting packages please visit ourOnline Shop


Google Author: "By Chris York"

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