What are the different types of Limited Company ?
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:
- 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
Sources
Agreement to Form A Limited Liability Company – Get more Legal Forms
Limited Liability Company – Get more Legal Forms
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March 4th, 2009 at 10:27 pm
Forming a new company is simple if you choose a company formation agent that provides an online service. The majority of people form companies that are limited by shares as these are normal profit making companies that are run to maximize profits for the owners.
August 14th, 2009 at 9:05 pm
“well, we all know theirs huge benefits to register a http://www.cyprus-company-formation.net – Cyprus company, lol. My account pointed me to a few blogs on the net which i’m rather reluctant to check out as i’ve been so busy lately”
September 3rd, 2009 at 9:52 pm
Hi – very useful information, particularly for startups. It’s great to see a brief overview of the types of company you can set up rather than trawling through piles of books and websites. Great work and look forward to reading more.
January 12th, 2010 at 5:15 am
Thanks for a great article.
Its good to see someone has gone to the trouble of explaining the different company formation types.
I think your summary of the private limited company will be of particular help to most people
.-= Buy Limited UK Companies´s last blog ..Company Formation – should you set one up now? =-.
December 10th, 2010 at 5:57 pm
Very useful information, particularly for startups.
Thanks for sharing.
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