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How to Create a Company in UK
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If you are looking to create a company in the United Kingdom, there are a few things you need to consider before doing so. Creating a company is a process that can take some time to accommodate, however before you even begin the creation of a company, you must first decide whether you want a limited company, which is private, or a public limited company.

What’s the difference between a (private) limited company and a public limited company (PLC)? 

Private limited companies are much more common than public limited companies. A limited company is a separate person that is created by incorporating at the Companies House. All of the assets, liabilities, profits and losses are solely owned by the limited company. The company itself is owned by shareholder members and is run by a single director or board of directors. The directors and their assets are protected from losses if the limited company should fall under hard times – this type of company and the protection that it offers to the directors is sometimes referred to as limited liability. The business itself can survive despite the board of directors and who sits on the board. Selling the business or the inclusion of outside investors in a limited company is much more simple than with a public limited company. Private limited companies can not be listed in the Stock Exchange or in the Unlisted Securities Market. It is only required that one £1 share be issued. 

There are many reasons for choosing a private limited company including:

  • Obtaining outside financing from investors
  • Taxation
  • Protection from risk
  • Ownership of property

 A public limited company can be listed in the Stock Exchange or in the Unlisted Securities market but those listings are not requirements. Private limited companies must have at least £50,000 of company shares issued and at least 25 per cent of the value must have been paid. These shares of the PLC may be made available for sale to the public on the exchanges. A public limited company must also have a certificate of entitlement, also known as a trading certificate, in order to borrow capital and do business. 

The public limited company must have at least one secretary and two directors on the board.  

When you incorporate a company in England, Wales or Scotland, you must register it with Companies House. For companies in the Republic of Ireland, the equivalent body is the Companies Registration Office, Ireland, and Ireland-based incorporated companies must be registered with them.

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