Private limited companies
There are four types of companies. They are:
- a private company limited by shares (members’ liability is limited to the unpaid share capital except where any personal guarantees have been given);
- a private company limited by guarantee (members liability limited to the amount undertaken to be contributed by members);
- a private unlimited company (unlimited liability of members); and
- a public limited company (“PLC”) (members liability is limited to the unpaid share capital and at the time of incorporation a PLC must have an allotted share capital of £50,000.00).
By far and away the most popular company is the private company limited by shares. Though straightforward, its formation is more complicated than forming a partnership or LLP.
One interesting feature of a private limited as opposed to a PLC is that there is no minimum threshold of either the share capital requirement or the par value of those shares.
Please contact:
Steen Rosenfalck - Partner