Limited by Shares

This is the most popular and most common type of company.

The liability of the members is limited by shares.

The company is:

• is legally separate from the people who run it
• has separate finances from your personal ones
• has shares and shareholders
• can keep any profits it makes after paying tax

.

Limited by Guarantee

Limited by Guarantee companies are usually ‘not-for-profit’.

The company:

• is legally separate from the people who run it
• has separate finances from your personal ones
• has guarantors and a ‘guaranteed amount’
• invests profits it makes back into the company

.

Limited Liability Partnership

The Limited Liability Partnership is a business entity with limited liability for the members. It is similar to a limited company and the main difference is that an LLP has no shares and has the organisational flexibility of a partnership and is taxed as a partnership.

Public Limited Company

A Public Limited Company (PLC only) is a type of limited company in the United Kingdom which is permitted to offer its shares to the public. All public limited companies’ names end in ‘PLC’.

There is a minimum share capital for Public Limited Companies: Before it can start business, it must have allotted shares to the value of at least £50,000. A quarter of them, £12,500, must be paid up. Each allotted share must be paid up to at least one quarter of its nominal value together with the whole of any premium.

Flat Management and Right to Manage (RTM) Companies

Flat Management Companies

A Flat Management Company is set up to manage a property divided into a number of separate flats. Each flat owner usually has a lease of their own flat. They can also be a member of a management company that owns the freehold (or lease) of the entire building.

Right to Manage (RTM) Companies

These are Private Limited by Guarantee Companies which allow long leaseholders in blocks of flats to take over the management of their building.