Businesses that want to trade as limited companies must be registered with the Companies House under the provisions of the Company Law. Currently in the UK these companies must be registered under the provisions of the Companies Acts 2006 which became effective from 2009.
Limited companies can either be private companies or publicly listed companies. Publicly listed companies are listed on a stock market, which is also an additional regulator for publicly limited companies. Private limited companies must display the letters “Ltd” or the word limited at the end of its name and publicly listed companies should display the letters “PLC” or the words publicly limited after its name.
Consequences of Operating as a Limited Company
Forming a limited company is one option that is available to business owners. It has its merits and demerits when compared to other legal forms of businesses. The consequences of operating as a limited company are discussed below.
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