Limited Companies (UK)

What is a Private Limited Company (UK)?

Most people require a standard limited company since this is suitable for nearly all types of trading. We will be happy to tell you more about the advantages and disadvantages of a private limited company. A limited company is a form of business legally separate from its shareholders and directors. Even if a limited company has just one person as its shareholder and director it remains a legal entity separate and distinct from that person. The company can enter into contracts, and can also be issued, in its own right. The owners of the company are protected by “limited liability”, hence it is a “limited” company. Apart front a case of fraud or other serious wrongdoing, the owners are liable for the debts of the business only up to the value of their original investment in it. Three main types of limited company in the UK are a private company limited by shares, a private companies limited by guarantee and a public limited company.