About this sample
About this sample
Words: 1103 |
6 min read
Published: Mar 1, 2019
Words: 1103|Pages: 2|6 min read
Registration of companies according to UK company law; a company can be registered in accordance with the general rules in England with ease. But after reading and researching, I discovered several important points. The Companies House is the first responsible for the implementation of company law and for the incorporation and establishment of companies. For instance, this organization must agree to and approve of the name of the company. The remaining procedures can then be achieved. Without this approval, these procedures will not be achieved. and any company can be registered either electronically or by sending documents and forms to the Companies House, and in these days the vast majority of companies follow the electronically way because it's faster and cheaper more than the traditional way, Procedures are always different and depend on the type of company. In the UK multiple types of company exist in the UK market. They are: Private Company limited by shares, Private Company limited by guarantee (PCL), Private unlimited company, Public limited company (PLC) and Limited liability partnerships (LLPs). A brief discussion of all types of companies is to be studied.
Firstly, in a private company limited by shares (LTD), shares are not offered to the public and This is the fundamental difference between the two types of companies Private and public limited company and shareholders or participants in the private company limited by shares are not responsible for its debts to the creditors with their own money and the personal assets of the owners or shareholders are not a guarantee to the creditors in case of insolvency. Limited by shares which it means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, and in this example, the shareholders' personal assets are thus protected in the event of the company's insolvency, but money that invested in the company may be lost, and the creditors cannot ask them for money directly. A number of documents must be submitted when the shareholders want to register the company in the House of Companies: Form INO1, the articles of association and the memorandum of association
The second type of company is the Private Company limited by guarantee (PCL) this type of corporation widely used for charities, community projects and most guarantee companies are not-for-profit companies - that is, they do not distribute their profits to their members but either retain them within the company or use them for another purpose, companies or organization and the shareholders' always act as a guarantor for the creditors and it's the same in the company limited by share or guarantee, always the director will only incur any personal liability for the company's depts. and the major difference between Public and Private is a private limited company by guarantee there is no share capital, and any private company must have a one director at least, and there is no share capital because simply because it cannot issue shares to those who would like to back for it and join it and this point facilitated the process of forming this type of business because it simply does not require for a large capital.
The third type of company is the Private unlimited company. They are completely the same because the directors manage the company on a day to day basis on behalf of its members (typically shareholders) .this type of company is more of a default type seeing as it does not have many advantages. Indeed, in the case of insolvency if the company lacks the resources to repay its debts, all the shareholders are held liable for the payment and there is no difference between a 1% shareholder or a 99% shareholder. All of the shareholders are liable for all the debts and no difference is made between one shareholder and another. This type of company must be submitted to the Companies House, with INO1 form and with the Memorandum of Association and Articles of Association which will include an unlimited liability clause.
The fourth type of company is the Public Limited Company (PLC). It has the legal design of a limited liability company which has offered its shares to the general public whose shares may be freely sold and traded to the public and benefits from a limited liability. A PLC's stock is offered to the general public and can be accepted by anyone, either privately, during an initial public offering or through trades on the stock market. This type of company is commonly used in the United Kingdom, and like any English company, it must be registered in the Companies House. When submitting this type of company the shareholders or owners must attach a few documents like the form INO1 and the articles of association and the memorandum of association and the memorandum of association and in UK market there is a minimum for share capital within at least £50,000, Capital can be increased later by trading and buying shares in the company.
The fifth type of company is the Limited liability partnership (LLP). In this type of companies, it takes the legal form of the company but it is not a company in a comprehensive sense. we find that the partners or members are collectively responsible and there are no directors and shareholders or guarantors instead it has members, who are more commonly referred as 'partners' and at least two members to register an LLP in Companies House and there is no limited number of members permitted. and LLP are governed by the Limited liability partnership Act 2000, and all of the member they have a limited liability, and each partner in LLP company must pay income tax on any profit they make. And the same in any company you need to apply in Companies House and submitting your INO1 form and the articles of association and the memorandum of association to register your LLP. And also you will be required to provide a unique LLP name, details of two members at least, a statement of compliance, registered office address and the principal business activities.
I discovered that the legal system in England is more organized than in the United States of America because we see that the Companies House manage everything and corporate laws also working on clearly and directly system and specially Companies Act 2006 it's one of reason that attracted and encourage investors to incorporate in the UK and all of this points attract investors well, and also the Britain's tax laws have become smarter about their understanding of how to encourage businesses to incorporate into the UK market in addition to many advantages especially for start-ups.
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