A limited company is an authorized 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 to pay off the company runs bankrupt.
This form of protection is called limited liability. The financial information and disclosure of corporate are one of the most important obligations of a limited company. This 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 important changes in the business. All this required information are kept in a public record.
Regardless of the size or type, it is possible for any company to operate as a limited company, and this comes with a lot of professional and financial advantage. This includes tax-saving opportunities, improved professional status, limited personal liability and investment opportunities which is the main benefits of Limited Liability Company.
There are four different types of limited companies which different features and benefits accompanied with it.