There are four main types of company:

• Private company limited by shares. This includes community interest companies (CICs).
• Private company limited by guarantee
• Private unlimited company
• Public limited company (Plc)

• A private limited company cannot sell shares on the stock market.
• Its members or shareholders are one and the same people and are essential the owners of the company.

• Its share holders have limited liability. This means that the liability of the shareholders to any creditors of the company is limited to the capital originally invested by them. If the company becomes insolvent, the money invested in the company will be lost, but a shareholder's personal assets are protected.

• It must have at least one director and one secretary, who does not have to be formally qualified.
• Company accounts and an annual return must be provided to Companies House each year.

• This is a private limited company which is established to trade for the good of the community.
• Assets and profits must be permanently kept within the CIC and used only to benefit the community.
• For example, a charity may set up a CIC to act as its trading arm. An existing charity can convert into a CIC, but would lose its charitable status.
• A Community Interest Statement must be provided with the application for incorporation to show how the CIC will serve the community.

Private Company Limited by Guarantee

• A private company limited by guarantee is used mainly for non-profit organisations such as schools, clubs, trade associations or charities.
  It does not have share capital. Instead of shareholders it has members who are guarantors.

• The liability of its members is limited to amounts that the members can undertake to contribute in the event of the company being wound up.

Private unlimited company

• An unlimited company is a company where the liability of the members is unlimited. This means that they are liable to contribute all the money required to pay the debts of the company should it go into liquidation.
• It is very similar to a partnership.
• It is not a common form of incorporation and there are only a few occasions when it will be used.
  • where the company will not actually be trading.
  • it is trading, but in an area where limited liability is not acceptable.
  • secrecy about finanical issues is required as this form of company has far less financial reporting obligations.
  • where there is a low risk of insolvency. 

Public Limited Company

• A public limited company, often known as a Plc, is a company that can offer shares to the public. 
• A PLC cannot start business until it has a Certificate, issued by Companies House, entitling it to do so.
• A Plc must have raised authorised share capital of at least £50,000.
• A quarter of the shares, at least £12,500, must be paid up before the plc can start business. Of the remaining allotted shares, a quarter of each shares' nominal value together with the whole of any premium on top must be paid up.
• A Plc must have at least two members and two company Directors.
• The secretary must have the necessary knowledge and ability. For example, they must have previously held a similar post or be qualified accountant or barrister.
• Company accounts and an annual return must be provided to Companies House each year.

Charities

• A charity is incorporated as a charity limited by guarantee. See Private Company Limited by Guarantee.
• As well as incorporating and registering with Companies House, a charity will also need to register with the charities commission www.charity-commission.gov.uk
• There are advantages to registering as a charity if it is appropriate for your organisation. There are tax benefits and being a registered charity can greatly increase the amount you can fund raise by improving public reception.

Offshore Companies

• Offshore companies often have tax benefits and are usually set up on the advice of a tax advisor. Please consult your tax advisor to see if an offshore company is suitable for you.
• Different countries have different tax and legal systems and some countries may suit you better than others for your purposes. Requirements for incorporation will vary depending on the country in question.
• Offshore company structures may help to reduce tax in the following situations:
  • When used as a distribution or sales company if purchasing and selling goods in different countries.
  • When investments are being made in another country and there are double taxation treaties in place between different countries.
  • When tax is payable on royalties for patents or copyright.
  • For a professional working overseas. They can receive a fixed level of their pay and have the rest paid into an offshore company.
  • For authors, consultants and actors etc, who may use an offshore company to receive fees for their services.
  • To reduce inheritance tax by having assets held in an offshore investment company.
  • If you own property overseas or a holiday villa.
  • If you own a ship or a yacht.

Property Management Company or Flat Management Company

• A property management company acts as a liaison between a landlord and his tenants. It provides neutral, efficient management and distances the landlord and tenant thereby making the relationship easier to manage.
• A property management company will:
  • collect rent
  • deal with maintenance issues
  • advertise vacant properties
  • do credit and background checks on potential tenants.
• Property management companies charge landlords a percentage of the gross rent collected each month (typically 3-10%), in addition to commission on individual leases.
• This is a limited company and so incorporation has all the same requirements as any other limited company.

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