Understanding Limited Companies

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*Front:* Limited Company

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business structure where owners' liability is limited to their shares.

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*Front:* Shareholders

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or entities that own shares in a limited company.

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*Front:* Limited Liability

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are not personally responsible for company debts beyond their investment.

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*Front:* Private Limited Company (Ltd)

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company whose shares are not publicly traded and are limited to private investors.

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*Front:* Public Limited Company (PLC)

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company whose shares can be freely sold and traded to the public.

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*Front:* Advantage: Capital

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to raise capital by issuing shares.

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*Front:* Disadvantage: Regulation

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to more regulations and public disclosure requirements.

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*Front:* Legal Requirement: Registration

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be registered with Companies House in the UK.

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*Front:* Key Feature: Perpetual Succession

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to exist even if ownership changes.

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*Front:* Disadvantage: Cost

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setup and administrative costs compared to sole traders.