Types of Company Formation

There is more than one type of company you can form, standard ltd is the default choice and suits most needs, however please contact us if you wish to discuss which type is best for you.

Limited Liability Company 'Limited/Ltd'

A limited company has a separate legal entity to its owners, unlike a sole trader or partnership. A sole trader is personally liable for the business’s activities putting the owner’s personal assets at risk should the business faces financial problems. Members of a partnership are also jointly and severally liable unless it is a limited liability partnership*  The owners of a limited company have limited liability for the debts of the business up to the value of their shareholding; they are not personally liable for the company’s debts (unless personal guarantees have been given, or the business has been trading fraudulently or in certain circumstances insolvently). If the business fails the shareholders only lose the amount they have invested in the company. It also means that the company name is protected and the company can continue to trade if one of the directors leave. 

Limited Company (custom made as opposed to a shelf company)

To form a custom made limited company  you will need at least one Director and one Shareholder (this can be the same person). The director is responsible for the day to day running of the company and the shareholder is the owner of the business. The shareholders liability is limited to the value of the shares they hold in the company should the business fail. Limited status gives credibility to a company and protection over the name. As the company is a seperate legal entity it can continue to trade when directors and shareholders change.

 

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If you require a company urgently we carry a number of pre-incorporated companies which can be updated to your specifications. These are companies that have already been legally formed, but they have never traded nor engaged in any business transaction whatsoever.
 
VIEW OUR CURRENT SHELF COMPANY LIST
 

Companies Limited By Guarantee

A guarantee company is a non profitable corporate entity. It is a suitable vehicle for membership organisations, clubs, sports assocations, societies, educational institutions and the like.
To form a Guarantee Company you need a minimum of one director and one member (this can be the same person). Each member undertakes to subscribe £1.00 in the event of the company being wound up. Once the name, main objects and other details about the company have been established, draft the Memorandum and Articles of Association for your approval. Where necessary, we will merge your organisations constitution with the statutory documentation. Our system has helped many charities obtain Charitable Status with Revenue and Customs.
 

Limited Liability Partnerships enjoy the commercial benefits that come from being a body corporate and their members benefit from the protection of limited liability. They can operate with all the organisational flexibility of a partnership, and are taxed as such. LLPs can be attractive vehicles for professional firms and other businesses, including start-ups and joint ventures. They are particularly valuable for businesses that would find corporation tax and other consequences of forming and operating a limited company onerous, but want to enjoy corporate status and limited liability for members (require minimum of  two designated members).

The Memorandum and Articles for a property management company are set up to allow the company to manage and administer a property or development, normally divided into several units with each leaseholder owning a share in the company. The company does not operate for profit but for the benefit of the shareholders. Once we have an accurate description of the property involved we will draw up memorandum and articles in draft form if required.

An unlimited company is a company in which the liability of the members is unlimited. The benefits being that there is a certain level of protection over the name and there is no requirement to file any accounting information at Companies House.
 

 

A public limited company is necessary if the company is to offer it's shares to the public, however there is no compulsion to do so, and many are privately owned and operate as PLC's for commercial purposes. The members have limited liability and the company must have at least two directors, and two shareholders. The minimum number of shares is £50,000.

Dormant Company

Many new businesses register their company as limited to protect the name and prevent any one else registering a company in that name. If they wish to trade as a sole trader or partnership initially they do so and  simply fulfill their statutory requirements of filing an annual return and dormant balance sheet. Full details of requirements are provided.