Limited Companies

Limited Companies...

All limited companies are incorporated, which means they can sue or own assets in their own right. Their owners are not personally liable for the firm's debts (limited liability). The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder.

A public limited company (PLC) can sell its shares on the Stock Market, while a private limited company (Ltd) cannot. Unlike a sole trader or a partnership, the owners of a limited company are not involved in the running of the business, unless they have been elected to the Board of Directors.

To become a limited company, applicants have to submit a Memorandum of Association which states the business' name, address and main purpose. It also describes…