Limited company
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| Business law |
|---|
| Business organizations |
| Basic forms: |
| Sole proprietorship |
| Corporation |
| Partnership (General · Limited · LLP) |
| Cooperative |
| USA: |
| Business trust · LLC · LLLP Delaware corporation Nevada corporation |
| UK/Commonwealth: |
| Limited company (By shares · By guarantee) (Public · Proprietary) |
| Civil law countries: |
| AB · AG · ANS · A/S · GmbH |
| K.K. · N.V. · OY · S.A. |
| European Company Statute |
| Doctrines |
| Corporate governance |
| Limited liability · Ultra vires |
| Business judgment rule |
| De facto corporation and corporation by estoppel |
| Piercing the corporate veil |
| Related areas of law |
| Contract · Civil procedure |
A limited company in the United Kingdom is a company whose liability is limited by English law or Scots law. There are three main types of limited companies which are set up by the Memorandum of Association & Articles of Association:
- private limited company by shares (Ltd.)
- Similar to Pty. Ltd.
- private limited company by guarantee
- These companies do not have share capital but are 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. Another interesting example is the Financial Services Authority.
- public limited company (PLC).
- Public limited companies by shares (plc) (similar to the U.S. Corporation and the German AG) offer several advantages over trading as sole trader (e.g. limited liability).
As a shareholder in a limited company, if it were to go bankrupt, you would only 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 shouldn't be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. Being a shareholder means you have limited liability.
A limited company can be registered in London, England, England and Wales, Northern Ireland, Scotland or Wales. The registration is done through Companies House.
See also
- Private unlimited company
- Limited liability company (LLC)
- Limited liability partnership (LLP)
External links
- Company Formation Glossary -- Company Formation Glossary
- Limited liability company
- Managed Limited Company Services in the UK
Categories
Articles to be merged since September 2006 | Legal entities | Types of companies