Private Limited Company (Ltd)

A Ltd. Company is owned by a group of shareholders who are usually family and friends as within this type of company the financial status of the company is private and only the people within the company can know its financial position, unlike a PLC as any member of the public can buy shares and view the financial position of the company. The running of the company is not always by the shareholders as often there can be two many, therefore these companies would have a board of directors which its their jobs to make all key decisions about the company and control the running of it. The first stage of setting up this type of company is to for the shareholders to invest capital or some form of loan needs to be taken so the company can get up and running, then a Ltd company would have to register with the registrar of companies and then a memorandum of association and articles of association need to be drawn up and finally a certificate of incorporation needs to be obtained. This type of company has three mains objectives, which are: growth, sustain a competitive share of the market and finally to gain as much profit as possible.

Join now!

The main advantages of becoming a Ltd. Company are:

  •   This type of company has Limited Liability
  •   Capital can easily be raised by the company selling more shares.
  •   The financial status of the company is kept private as only friends and  family who own shares within the company can view the financial status of the company.
  •   This type of company is more likely to be able to obtain a loan from a bank.
  •   Suppliers are more likely to give you goods on credit.
  •   Responsibilities are shared between the shareholders so the business will have ...

This is a preview of the whole essay