Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be further divided into public companies and private companies.
It’s responsible in its own right for everything it does and its finances are separate to your personal finances.
Any profit it makes is owned by the company, after it pays Corporation Tax.
Ownership
Every limited company has ‘members’ - people or organisations who own shares in the company.
Directors are responsible for running the company. Directors often own shares, but they don’t have to.
Legal responsibilities
There are many legal responsibilities involved with being a director and running a limited company.
Most limited companies are ‘limited by shares’.
This means that the shareholders’ responsibilities for the company’s financial liabilities are limited to the value of shares that they own but haven’t paid for.
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