Companies

Company Type

There are four main types of company in the UK. Each is distinguished by the members’ and owners’ legal liability for any debts incurred.

  • Private company limited by shares - The members' liability for any debts incurred by the company is limited to the amount unpaid on shares held by them.
  • Private company limited by guarantee - The members' liability for any debts incurred by the company is limited to the amount they have undertaken to contribute to the company's assets if it is wound up.
  • Public limited company - The members' liability is limited to the amount unpaid on shares held by them, and which must have an authorised share capital of at least £50,000 at the time of incorporation.
  • Private unlimited company - There is no limit to the members' liability for the debts that the company incurs.