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Different Types of UK Companies


There are four main different kinds of UK companies which can be registered. Each might be suitable in specific situations, although to some extent, more than one type of company may satisfy the particular requirements of the purchaser.

The different types of company in the UK are: companies limited by shares, companies limited by guarantee, public limited companies (PLCs) and less commonly known, unlimited companies.

When forming a company, the choice of which type of business structure to adopt is an important one and requires adequate consideration.

Changing the type of company might be possible in certain situations, whereas in others, it would not be an option.

Whilst it is possible to change a private company limited by shares to a PLC, it is not permissible to change the fundamentals of the incorporation and migrate it to a limited by guarantee entity.

Registering a company of any kind will carry with it its own set of business regulations which have to be adhered to. Some of the requirements are more stringent and potentially onerous than others, particularly those for public limited companies.

The purchasers should consider their capacity to both manage and fund whichever kind of entity they select and might wish to plan a migration route to another kind of company based on their future ambitions and plans.

Limited Company Formation
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