What are the different types of Limited Company ?

October 6th, 2008 honey Posted in How to, Stuff |

Its been 9 months of legal registration of my company (Hostcurry) and recently i’m walking along the legal papers and terms like Registration ,Requirements of legal deals ,Company directors ,Company secretaries ,Share capital ,Share types and so many other things that integrates a company. Later i get to know about the limited company and i found that a limited company is some how a corporation whose liability is limited by law.

I research on the Internet and books where it clearly states that there are basically four types of limited company:

by Intrepidation

Private company limited by shares: The members’ liability, if the company is wound up, is limited to the amount, if any, unpaid on the shares they hold. The maximum number of members is 50. This is the standard limited company, the most common type of company structure operated by the majority of small to medium sizes business concerns and the company structure formed “as new” by company promoters when starting up in business
Company limited by guarantee not having a share capital: As this is a public company, there must be a minimum of seven members. The members’ liability is limited to the amount they have undertaken to contribute to the assets of the company, in the event it is wound up, not exceeding the amount specified in the memorandum. If a guarantee company does not have a share capital, the members are not required to buy any shares in the company. This type of company is generally favoured by charities, professional bodies,clubs, sporting associations etc. This company structure is the most suitable vehicle for such entities as the benefits of separate legal personality and of limited liability without the requirement of the members to raise funds is clearly defined.
Private company limited by guarantee having a share capital: As will be a private company if the maximum number of members is 50. The members have liability under two headings; firstly, the amount, if any, that is unpaid on the shares they hold, and secondly, the amount they have undertaken to contribute to the assets of the company, in the event that it is wound up.
Public limited company: The PLC as it is more commonly known. This type of company must have a minimum of seven members. Their liability is limited to the amount, if any, unpaid on shares held by them. It should be noted that it is unlawful to issue any form of prospectus except in compliance with the Companies Acts 1963-2001. The nominal value of the companys allotted share capital must not be less than €38,092.14, at least 25% of which must be fully paid up before the company commences business or exercises any borrowing powers