Companies Limited by Shares and Guarantee
Private Companies Limited by Shares
Private companies are companies which are not PLCs. The vast majority of limited entities in the UK are private. They have less stringent requirements in terms of share capital, number of directors and the qualifications the company secretary must have.
Companies Limited by guarantee are allowed to abstain from having the words limited at the end of their name. Entities limited by shares have to have this word at the end of their name in accordance to the companies act.
Companies Limited by Guarantee
Companies which are limited by guarantee are generally non profit making organisations. They are often used to provide an organised structure to a club or society.
The owners of this type of company are called members. They enjoy limited liability just as shareholder counterparts do. Their liability is limited to the extent of an agreed amount contained in the company's constitution. This amount is usually £1 but can be higher if the members agree.
Types of companiesPublic Limited CompanyLimited CompaniesUnlimited Companies