In U.K , there are four main types of Company , however , the most important two for business uses are private company limited – members’ liability is limited to the amount of share subscribed ( purchased ) , no one must bear the unpaid liabilities of the limited company , if the limited company cannot pay all liabilities , a winding up procedure must be initiated , the shareholders do not bear any unpaid debt of the limited company ; and Public Limited Company ( PLC ) – the company shares may be offered for sale to the general public and members’ liabilities is limited to the share subscribed(purchased) . The remaining two are private limited by guarantee and private unlimited company – there is no limited to the member’s liabilities .

Condition for formation :
Anyone , no matter who is person or legal entity , one or more , could form the company for any lawful purpose by subscribing the memorandum and article of association with all related document for incorporation in a private limited company , however , two persons must be required for Public Limited company . A registered office must be required in the area of England and Wales . Normally , anyone could be the director of the company , except that he/she is an undischarged bankrupt or disqualified by a court from holding the directorship , unless given leave to act in respect of a particular company or companies , in case of PLCs or their subsidiaries , he/she is over 70 years of age or reach 70 years of age while in office , unless he/she is appointed or re-appointed by resolution of the company in general meeting of which special notice has been given . The Companies Act generally allows the corporate director and shareholder for the private limited company and PLC .

Restriction of name :

Any interested parties for incorporation a company in U.K , the name restriction is not great , no exact and highly similarity of the name is allowed to incorporation , only some sensitive words are restricted , for example , group , bank , trust , university , etc , the best way is to consult the consultancy ( contact us to get more opinion )

What are the advantages and disadvantages of the PLC ?

A PLC is a good access to the capital markets for raising fund in the public through the stock exchange market , it can also issue the advertisements offering any securities to the public . However , a private limited company is not allowed to sale the share to the public . A PLC formation is a difficult task , there are a lot of restriction to the incorporation and the operation , for example , A PLC must have at least two members and at least two company directors . The company secretary must be the professional person such as chartered accountant or barrister , solicitor in the United Kingdom , etc , A PLC must prepare the account within seven months after the end of its accounting reference period , a heavy penalty must be imposed by the Government . A PLC could not apply for strike-off procedure to cease the company under section 652A Companies Act 1985 . A newly formed PLC must not commence the business or exercise any borrowing powers until it has a certificate issued under section 117 of the Companies Act 1985 by real capital injection . A private Limited could be allowed to convert to PLC under the special procedure .

What are the basic management of private limited company ?

There are a strict rule of preparation of Annual Return to the Companies House in time , a heavy penalty must be imposed , any sales occurred in the United Kingdom must be paid the VAT , it is a serious offence of breaching this rule , apart from that a company must prepare the account to the Government in time , usually , the first account of the company must be delivered within 10 months of the end of the accounting reference period ; or if the accounting reference period is more than 12 months , within 22 months of the date of incorporation , or three moths from the end of the accounting reference period , which ever is longer .

                 
                                                                                      Top