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Basic Types Of Limited Liability Company
1. A Private Company Limited By Shares
Most common type of company in the England & Wales. The principal purpose is to earn profits for the shareholders who may or may not be the same as the Director(s) or Secretary. These companies can be formed and registered with as little as one Pound (UK£1.00). In most cases, they adhere to a standardized format and are remarkably inexpensive.
2. A Public Company Limited By Shares
Theoretically this is a company, which has the same profit motive as a private undertaking save that its shares can be offered for sale to the general public. In reality, the vast majority of PLC's simply operate as "private" companies employing the PLC name simply as a prestige marketing "tool". Nevertheless, even a PLC, which has not sought a public stock exchange listing, must adhere to the requirements of English & Welsh legislation.
The most important differences are that there must be a minimum paid up capital of at least UK£50,000.00 with, at least, one quarter of that sum being immediately and fully paid up. Penalties for non-adherence to the provisions of the Companies Act 1985 are also higher. The cost of a non-listed and standard format PLC will vary from UK£250.00 to UK£700.00. However, the cost of forming a publicly listed PLC can run into hundreds of thousands of Pound's since the legal documentation (the Memorandum & Articles of Association) will always need to be specially drafted and the admission rules setout in the "Yellow' Book (which outlines the requirements for public listing) will have to be adhered with.
The latter requiring the services of underwriters, accountants and lawyers - If you think that you may require this type of company please contact our offices by e-mail or by telephone.