In a limited company , the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. A private limited company has one or more members, also called shareholders or owners, who buy in through private sales. Directors are company employees who keep up with all administrative tasks and tax filings but do not need to be shareholders.
It refers to a legal structure that ensures that the liability of company members or subscribers is limited to their stake in the company by way of investments or commitments. Limited companies are business entities that legally exist in their own right. Incorporate a private limited company - register it with Companies House and rules on directors, shares, articles of association and telling HMRC about the . UK, whose owners only have to pay part of the money . Forming a limited company is easy enough: it can actually be done in less than five minutes. What takes much more time, though, is thinking through whether . Definition of private limited company : A type of company that offers limited liability , or legal protection for its shareholders but that places certain restrictions on its . Setting up a private limited company can suit all sizes of business and provides various advantages over operating as a sole trader or partnership.