If you have decided to set up your own business for the first thing, you need to register a limited company at Companies House. A limited company can be registered via the paper process or electronically.
A limited company is an organization in which the liability of the shareholders is limited. The company and owners are considered as two separate entities. The company is considered as an artificial person, with its own set of rights, which are different from those of its owner(s). In the event of bankruptcy, the personal wealth of the owner and shareholders remain safe. This is why it is one of the most preferred forms of company incorporation worldwide.
Register a Limited Company: Types
A limited company can be basically divided into two categories: public and private. In most cases, small companies looking to become a limited company become private limited companies and not public limited companies (PLCs).
The differences between the two are explained below:
A private limited company cannot sell its shares on the stock market, whereas a PLC can.
A private limited company need not necessarily have a specific number of directors, shareholders or a company secretary. On the contrary, a PLC must have a minimum of two directors, two shareholders and a company secretary.
In case of a PLC, a minimum of 50,000 of share capital is required. Conversely, a private limited company does not need minimum share capital to get incorporated. It can be started even without share capital.
A private limited company is also called an unlimited company. If a private limited company decides to go public, it will have to go through a re-registration process.
The other main categories of limited companies are:
Private Company Limited by Guarantee
Private Company Limited by Shares
A private company limited by shares can convert into a PLC, but it will need to re-register in order to do this.
Register a Limited Company: Requirements
The elementary requirements to register a limited company are:
Think of a name for your company
Check if it is available
File an application of registration
Appoint a director for your company
Appoint a secretary for your company
Get a registered address
File the essential documents online
A1 Company Services Limited is one of the market leaders specializing in UK company formations. Visit a1companeies.com and follow the instructions to get your company registered right away.