LS Legal News Bulletin
Forms of business in England: comparing all options
Thursday 8th June 2023
When establishing a business in England, choosing the right organisational and legal structure is critical. Fortunately, forming a company in England is straightforward and offers many advantages. To help you navigate the options available, let's compare the forms of businesses in England.
- Private Company Limited by Shares, the most popular among entrepreneurs from different countries. Each member is only liable for their shares in this type of company.
- Private Company Limited by Guarantee, which has guarantors and a "guaranteed amount". In this case, the board members are responsible for the company's debts and also act as guarantors.
- Another type of business structure in England is the Limited Liability Partnership (LLP). This partnership requires a minimum of two parties, and the liability of each partner is limited to their contributions.
- The Limited Partnership (LP) is a partnership in which the partners' liability is limited, and at least two partners are required to create an LP. Limited Partnerships (LPs) are not recognised as separate legal entities.
- A Private Unlimited Company is another option but has unlimited liability, negatively affecting its popularity. In this type of company, members are personally liable for the company's debts.
- The final form of business structure is the Public Limited Company (PLC), a public limited company with authorised capital starting from £50,000. A minimum of 25% of this amount must be received before the start of the company's activity.
Selecting the right type of company in England can be challenging. If you are facing any difficulties, please do not hesitate to contact us for further information and assistance. We are always here to help.
