If you are thinking of starting a business, then you may be thinking about the different types of companies that are present. Do you wonder what type to form? If so, it may be a good idea to learn about some types of companies. This article is intended to tell you about limited, single member and unlimited company.
Let’s start by describing what a company is.
What is a company?
A company tends to be a legal form, particularly a business organization, which is considered a separate legal entity. Therefore, it is independent and distinct from the people who run it.
Now let’s take a look at some types so you can get an idea of which one may be best for you to train.
a limited company
The shares present will be owned by the shareholders it has.
In a limited liability company, it’s vital to know that shareholders’ liability, if the business fails, tends to be limited to precisely how much, if any, of the remaining defaults on precisely the shares they own.
Being a separate legal entity, this type of business therefore tends to be separate and distinct from the people who run it.
It is important to know that only the company can be sued in particular for its obligations and can also sue to assert its rights.
There are different types of limited companies. This includes a private company limited by shares (LTD company), a designated activity company (DAC), a designated activity company limited by guarantee (DAC), a company limited by guarantee (CLG) and a public limited company (PLC).
A one-member company
This is a business incorporating with only one member. Or it is one whose membership tends to be reduced to a single individual.
However, the company must have a minimum of two directors plus a secretary. (This case can be overturned if it is a limited company. It can also be if it is a company with a single director).
It is the sole shareholder’s responsibility not to hold General Assemblies, including Annual General Assemblies (AGM’s).
Financial statements along with reports that would normally be submitted prior to your AGM will still need to be prepared and sent to the member.
Remember that all types of companies can be sole proprietorships.
an unlimited company
There is no limit placed on the liability of members of an unlimited company.
Creditors can turn precisely to shareholders specifically with regard to any liability that is owned by the company that it has failed to meet.
This type of company can be public or private. Must have at least two shareholders.