A limited company is a type of business entity which acts as a legal ‘person’. It is a legal entity completely separate from its owners, and it can enter into contracts in its own name and is responsible for its own actions, finances and liabilities. The owners of a company are protected by ‘limited liability’, which means they are only responsible for business debts up to the amount of their investments or what they guarantee to the company.
A branch is an outlet of a company or, more generally, an organisation which does not constitute a separate legal entity, while being physically separated from the organisation's main office. Creating a Branch still leaves the main company responsible for full taxability and legal liability with regards to the branch office's operations.
The Registrar of Companies must receive all the necessary documents within one month of the settlement of a Branch.
Companies may own one or more other companies which are its subsidiaries.
The relationship between parent and subsidiary depends on majority control of the voting rights of
shares or the ability to control the board of directors.
A UK holding company is a company established for the sole or majority purpose of holding shares in the Groups subsidiary companies incorporated in countries in which the Group is engaged in business activities. The holding company will receive the dividends paid by those subsidiaries and use them to declare a dividend to the ultimate parent.
The UK Limited Liability Partnership is a new type of entity that made its first appearance in 2001. Although the UK LLP is comparable to the U.S. LLC features, there are some crucial differences:
a Limited Liability Partnership incorporated in the United Kingdom is considered a corporate body and as such, statutory accounts must be submitted to Companies House each year.
The concept of partnership entails a group of individuals or businesses (members) participating in an enterprise and sharing its costs, risks, profits and responsibilities. The main feature that renders an LLP unique is a certain degree of protection granted by the limited liability to the amount invested in the business and to any personal guarantee.
The main advantage of a PLC is that it has access to capital markets and can sell its shares to the public through the mean of stock exchange. It can also issue advertisements, offering any of its securities for sale to the public. In contrast, a private company may not offer any shares to the public .A newly formed PLC must not trade or exercise any borrowing powers until it has received certificate issued under section 117 of the Companies Act 1985, confirming that the company has a statutory minimum share capital. The company must ensure that there is at least £50,000 worth of shares in issue when the application is made, with at least 25% of each of the shares making that figure paid up in cash in order to get the certificate from the Companies House.
Establishing a new company can be rewarding, exciting and full of possibilities.
Your new business will depend on many things, including what it should be called, how it will be set up, its
activities and what its future will be.
GR MORGAN FORMATIONS is a leading firm for those entrepreneurs who want to establish their company smartly
Whether you are taking the first steps to starting your Ltd or Plc Company, or need to make the presence of your
existing company more effective with a new online strategy or innovative accountancy solutions, we are by your side.
Here is a list of some of the business support services we offer to new businesses: