Comparison of the most common legal entities in the UK
|
Companies limited by shares (“limited”) |
Company limited by guarantee |
Public limited company (“PLC”) |
Limited liability partnership (“LLP”) |
Minimum authorized capital |
n/a |
n/a |
£50,000 A PLC must have at least a quarter of the nominal value of each share paid up before it can start trading. |
n/a |
Founders/Members |
Minimum one shareholder |
Does not have a share capital or any shareholders, but members (1 or more) who control it. |
Public limited companies must have a minimum of two shareholders. |
There must be at least two members, but there is no upper limit. |
Company Secretary requirement |
No |
No |
Yes |
No |
Status |
Legal entity |
Legal entity |
Legal entity |
Legal entity |
Liability |
the members’ liability is limited to the amount, if any, unpaid on the shares allotted to them
|
The company does not have a share capital. The members’ liability is limited to the amount that they have agreed to contribute to the company’s assets if it is wound up (normally a nominal amount). This type of company is used principally for charitable organisations and clubs. |
The members’ liability is limited to the amount, if any, unpaid on the shares held by them (“PLC”). Only the shares of a PLC can be offered for sale to the general public. |
An LLP is a body corporate with legal personality separate from that of its members. It has unlimited capacity. The members of an LLP have limited liability. |
Legal Address |
All UK companies shall have physical location in United Kingdom where official documents can be served. |
|||
Management body |
There are no residency or nationality requirements for directors of UK companies |
Must have at least one director |
A minimum of two Directors and two Shareholders are required and a suitably qualified Company Secretary must be appointed;
|
There are no statutory provisions for general meetings, directors, company secretary, share allotments, etc. |