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Limited Company
A limited company, also known as a corporation, is a type of business entity that offers the allure of limited liability for its shareholders. This legal structure separates the company's actions and obligations from those of its owners, shielding their personal assets from potential losses incurred by the company. This has made limited companies an appealing choice for entrepreneurs and business owners looking for a secure and protected business setup. At Bakerley Heights we work to ensure you understand and take advantage of all the benefits of being registered as limited company.
One of the primary advantages of a limited company is the reduced personal liability. Shareholders are not personally responsible for the company's debts and obligations beyond their investment in the company. This provides a sense of security and safeguards the personal assets of shareholders in the event of bankruptcy or financial downturn.
Moreover, limited companies have a perpetual existence, meaning that they can continue to operate even if the original shareholders cease to be part of the company. This allows for greater stability and long-term planning, as the company's life is not dependent on the individuals associated with it.
Another crucial aspect of limited companies is the ability to easily transfer ownership. Shares can be bought and sold, allowing for a smooth transition of control and facilitating the attraction of investment. This flexibility makes it simpler to raise capital for expansion or fund new ventures, thus promoting business growth.
Some different types of limited companies
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Private limited by shares (LTD)
Private limited by shares (LTD) is a type of business entity that offers limited liability to its shareholders. This means that the shareholders' personal assets are protected if the company faces financial difficulties. This structure is often favoured by small to medium-sized enterprises looking to limit risk. In an LTD, ownership is determined by shares which are distributed among the shareholders.
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Private limited by guarantee (LTD)
Private limited by guarantee, also known as LTD, is a type of legal structure commonly employed by non-profit organizations and social enterprises. Unlike other forms of private limited companies, LTDs do not have any shareholders or share capital. Instead, they have members who offer a guarantee to cover a predetermined amount of debt should the company face financial difficulties.
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Limited liability partnership (LLP)
A Limited Liability Partnership (LLP) is a unique legal business structure that blends the benefits of both a partnership and a corporation. In an LLP, partners have limited personal liability for the debts and actions of the company, similar to shareholders in a corporation. This means that the personal assets of partners are generally protected from the company's liabilities, providing a level of security.
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Public limited company (PLC)
A Public Limited Company (PLC) is a type of business organization that is owned by shareholders and offers its shares to the general public. It is a legally recognized entity that operates independently from its owners. PLCs are regulated by government authorities to ensure transparency and protect the interests of shareholders.
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Private unlimited company
A private unlimited company is a unique type of business entity that is not commonly seen. Unlike private limited companies, which have a separate legal identity from their owners, private unlimited companies have no limit on their liability. This means that the owners of the company are personally liable for all the debts and obligations of the business.
