Company Formation - Your Options

There are many challenges to running your own business but the potential rewards are also considerable and this has helped make company formation a popular option for many people. One of the first decisions you will need to make is the type of company designation that you register. The most common choices are those of a public limited company, limited liability partnership, or a company limited by shares; PLC, LLC, or Ltd. The public limited company is a company that offers shares to the general public. There must be a minimum of £50,000 share capital and a trading certificate must exist for the individual or group to establish a PLC. In terms of organisational setup, there must be two directors and two shareholders as well as a company secretary, who can also be one of the company directors. A private company limited by shares is similar to a PLC except the shares are not offered to the general public. There must be a minimum of £1 share capital and there are a number of account filing requirements that must also be met. Every Limited company must have a registered address. The shareholders of the company have limited liability which can offer some protection against any financial losses made by the company itself. A limited liability partnership, or LLP, is another popular form of company formation. An LLP operates completely independently from its founder members financially and legally. As long as the business is run legally there should be no recourse for directors of that company in the event of it struggling financially or facing legal problems. Every type of company formation has its own requirements, and these must be met before filing a formation with Companies House. A company formation agent can discuss the various options with you, look at your existing setup, and advise on the type of company designation that would be best for your business. Choosing the right type of company formation can help ensure that your business, and its members, has the greatest chance of success.