Types of companies in UK
Company formation and its further activities in the UK are regulated by Companies Act 2006. Limited Liability Partnerships (LLP) are governed by the Limited Liability Partnerships Act 2000.
There are several types of companies in the UK which we will specify below. Based on your requirements, the professionals at the Imperial & Legal will help you to choose the right type and incorporate a company in the UK.
Types of UK companies:
It is a typical and most common type of a trading UK company. It has shareholders with fully limited liability; it must have at least one shareholder and one director, with the same person acting in both capacities.
It is a company whose shares may be freely sold and traded to the public. However, there is no obligation to sell shares on the stock exchange and a company in most cases has only a few owners. A company must have at least two shareholders and two directors as well as a secretary. A minimum share capital is £50,000; a quarter of them, £12,500, must be paid up.
It is a legal entity combining the best qualities of a limited liability company and a traditional partnership. Unlike a traditional partnership an LLP has a certain legal independence from its partners which allows it to enter into contractual relationships and for example own a property. At the same time, there is no corporation tax and all the profit of an LLP is distributed among partners who have to declare it in their country of tax residency. There must be at least two partners, and at least two of them must become Designated Partners who are responsible for the business and reporting.
Unlike LLP, an SLP has a full legal independence and less financial reporting liability. There must be at least two partners with one becoming a General Partner. With no activity in the UK, no financial reports are required.
It is a private company that doesn’t have a share capital, but instead has members who act as guarantors. It is used primarily for non-profit or charitable organisations. It can distribute profit to its owners or give it away to charity.
Other types of UK companies:
Property management company is often used to manage common areas in a real estate owned by several owners.
Community Interest Company (CIC) is registered and acts as a social enterprise using its profit for the public good.
To discuss your requirements, please contact our specialists or call us on +44 (0)203 490 41 21.