A company limited by shares is the type of company commonly used for forming a small business. These "limited companies" will have limited liability - if the company fails there is no claim on the assets of the shareholders (beyond their original investment).
Shares are issued and directors are appointed by the shareholders (often the same people in a small business). The purpose of this type of company is to trade and make profits. These profits can be retained in the business to fund future growth or distributed to shareholders as dividends.
The process to form a limited company is reasonably straightforward. You need to choose an acceptable name, complete the appropriate documents and send to Companies House with a (£20) registration fee.
The Articles of Association and Memorandum of Association documents comply with the statutory changes effective 1 October 2009.
This Limited Companies Package provides all the necessary documents, as well as a guidance note, to enable you to form your own company limited by shares in England and Wales or Scotland. Documents included are:
Most of the constituent documents of the package are also available individually. The package is also included within our Business Annual Subscription (£99 own use) or Full Annual Subscription (£199) - giving you access to wide range of documents, packages and forms for a single annual fee.
If you wish to form a "not for profit" company limited by guarantee you need the Limited by Guarantee Package.