A limited company is an authorised business structure registered
with Companies House in the form of incorporation.
Limited companies have a unique plus of allowing business owners to take advantage of company profits without any personal liability. However, the financial liability of company owners is limited to the financial guarantees or shares which implies that they are in control of the business debts up to the amount they agree or invest in paying off if the company goes bankrupt.
This form of protection is called limited liability. The financial information and disclosure of corporate are one of the essential obligations of a limited company. This protection can only be achieved by following several annual filing requirements and event-driven obligations. Other requirements include filing tax returns, the submission of confirmation statements, annual accounts and reporting any critical changes in the business. All of this required information is kept in a public record.
Regardless of the size or type, any company can operate as a limited company. This strategy comes with a lot of professional and financial advantage, including tax-saving opportunities, improved professional status, limited personal liability, and investment opportunities which are the main benefits of a Limited Liability Company.
There are four different types of limited companies with different features and benefits accompanying it.