Limited by Shares is the most common company registered in the UK.
This company structure is particularly popular as the company exists as a separate legal entity from the individual owner, meaning the owners have limited financial liability, so their personal finances are protected if the company encounters financial problems.
When you register a company name it is protected and cannot be used by any other LTD and LLP Company.
You must have at least one director and one shareholder, but the same person can hold both positions. The owners are known as a shareholders and the director, which is appointed by a shareholder, will run the day to day activities of the company.
It is Directors responsibility to file detailed financial accounts and company’s records to HMRC and Companies House each year.
A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities.
It therefore can exhibit elements of partnerships and corporations.
In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence.
This structure is mostly used by professionals working in industries that operate as partnerships such as solicitors, doctors, architects.
To set up an LLP you will always need at least 2 partners, and its recommended to make an LLP Agreement, which is like a contract between you and the other partners.
The LLP agreement sets out how the company will be run, how profits are shared among members, who needs to agree on the decision-making process, all members responsibilities and how members can join and leave LLP.
You can write the agreement yourself, ask solicitor to draft you one or we can help you as well.
LLP companies are not liable for corporation tax and it is each member responsibility to register with HMRC for Self-Assessment and pay income tax on any profit they make
Limited by Guarantee are most often formed by non-profit organisations such as sports clubs, workers’ co-operatives, social enterprises, community projects and membership organisations
A company limited by guarantee does not usually have a share capital or shareholders, but instead has members who act as guarantors of the company's liabilities and who agree to pay a set amount of money towards company debts.
LBG is incorporated and regulated by Companies House and If the company is charitable, it will also be subject to charity law and be regulated by the Charity Commission.
Company limited by guarantee must include the suffix "Limited" in its name, but if the company does not distribute profit, the suffix is not necessary.
The legal requirement for Limited by Guarantee company is to have both a Memorandum and Articles of Association, in which the Articles will often contain a list of predetermined objects, defining what the company will do.
They will also often contain a specific clause restricting the payment of any profits to members, instead directing the reinvestment of surplus income to further the company’s objects.
The company must have Registered Office Address in the country of incorporation, register its annual accounts and submit Conformation Statement to Companies House.
Property management companies (known as 'flat management companies') can be formed by residents who want to purchase the property's freehold; however, they are typically set up by developers.
When accumulating properties, a developer may need to consider how they will manage these properties and their tenants or owners.
Management companies deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.
In that case to register a company and make it viable, you only need one director.
However, we recommend that a property management company have at least two directors, as it is a lot of responsibility for one person.
It is legal requirement that all Property Management companies must list company’s objective in their Articles of Association, such us configuration of the building and the land, as well as company’s responsibilities for maintenance, repairs, insurance etc.
A Public Limited Company (PLC) is a limited liability company under United Kingdom company law, whose shares may be freely sold and traded to the public with a minimum share capital of £50,000 and usually with the letters PLC after its name.
Public limited companies will also have a separate legal identity.
A PLC can be either an unlisted or listed company on the stock exchanges. There are advantages to becoming a public limited company, especially if you are interested in raising capital for your business.
To open and PLC you need to have at least 2 shareholders and 2 directors, but there is no limit on how many shareholders you can have, and all the shareholders are entitled to transfer their shares freely without needing someone’s permission.
As PLC deals with public money, it is crucial to pass heavy compliance checks with regards to income tax and regulated bodies.