Company Formation – Some of the Company Types

When the time comes for your company to grow beyond a tiny operation, you’ll want to look into company formation. While it sounds like a complex legal process, it is actually a fairly simple process that can be completed on your own or with the help of a formation agent for much less than you might expect. In fact, the hardest part about the process will likely be just deciding what type of company it is that you want to form. There are numerous different choices available, each with distinct advantages and disadvantages. Here’s a look at some of the more popular company types.

A public limited company is a type of limited liability company that also sells its shares to the public. While it can be listed, unlisted options are available as well. Similar to this is a private company limited by shares, which is also limited liability but whose shares are traded privately instead of publicly. During company formation you may want to create a private company limited by guarantee, which is most commonly used for non-profit organisations that still need a legal entity to function under. And an unlimited company is a company that features an unlimited amount of liability on its shareholders.

Another type of company formation you might decide on is a limited liability partnership, which basically ensures that one partner in the company can’t be held responsible for the negligible actions or misconduct of another. This offers a bit more security to individual partners than a limited partnership, which still protects owners from much of the debt that a company can incur. And finally, a Societas Europaea is a type of company created that shares rules across several European countries, making it easier to transfer the company to another country or to operate in other countries.

Whichever type of company you decide to form, the benefits are plentiful and the task easy. Company formation agents can simplify the process even further and help you create and register the company type that you want within a matter of hours. The Companies House offers a simple way to handle task online, and very few UK companies are formed through the paper filing method anymore due to the ease and speed that technology has provided. If you’re ready to move your company forward but want to protect both it and yourself in the process, incorporation is the best way to go about it.

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