Limited company

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. Limited companies may be limited by shares or by guarantee. The former may be further divided in public companies and private companies. Who may become a member of a private limited company is restricted by law and by the company's rules. In contrast, anyone may buy shares in a public limited company.

Limited companies can be found in most countries, although the detailed rules governing them vary widely. It is also common for a distinction to be made between the publicly tradable companies of the plc type (for example, the German Aktiengesellschaft (AG), British PLC, Czech a.s., Italian S.p.A., Hungarian Zrt. and the Spanish, French, Polish, Greek and Romanian S.A.), and the "private" types of company (such as the German GmbH, Portuguese Ltda., British Ltd., Polish sp. z o.o., the Czech s.r.o., the French s.a.r.l., the Italian and Romanian s.r.l., Hungarian kft. and Slovak s.r.o.)

Kinds

Private company limited by guarantee

This is a company that does not have share capital, but is guaranteed by its members, who agree to pay a fixed amount in the event of the company's liquidation. Charitable organisations are often incorporated using this form of limited liability. Another example is the Financial Conduct Authority. In Australia, only an unlisted public company can be limited by guarantee.[1]

Private company limited by shares

Has shareholders with limited liability and its shares may not be offered to the general public. Shareholders of private companies limited by shares are often bound to offer the shares to their fellow shareholders prior to selling them to a third party.[2]

Public limited company

A public limited company can be publicly traded on a stock exchange; this is similar to the U.S. Corporation (Corp.) and the German Aktiengesellschaft (AG).

In specific countries

Australia

The private company equivalent in Australia is the Proprietary Limited company (Pty Ltd). An Australian company with only Limited or Ltd after its name is a public company, such as a company listed on the ASX. Australia does not have a direct equivalent to the plc.

A shareholder in a limited company, in the event of its becoming insolvent (equivalent to insolvency in the United Kingdom) would be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). "Paid" here relates to the amount paid to the company for the shares on first issue, and should not be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.

Brazil

In Brazil, a limited company is registered as any other type of company. To register it, you must pay an accountant to research the name of your future business to check if it wasn't already registered, then the accountant contacts the offices responsible for giving you the CNPJ (the national code for company identification), which are the commercial joint of the state and the IRS. After that the Ltda. or Lda. (rarely used) suffixes can be placed after the companies name or with Cia. (abbreviation for companhia, company in Portuguese): [company name] & Cia. Ltda.

Canada

In Canada, a person wishing to register a limited company must file Articles of Incorporation with either their provincial government or the federal government.[3] Once incorporated, a company may elect to use "limited" or "incorporated" as part of their name.

India

In India, there are three types of limited company: a public limited company, a private limited company, and a one-person company. A company's liability may be limited by shares, in which case the liability of the company's members is limited to the amount of the shares held by them, or it may be limited by guarantee, in which case the liability is limited to a predetermined amount the company's members have agreed to contribute if the company is dissolved with outstanding liabilities. A private limited company is a limited company incorporated under the Companies Act 2013 (or one of its predecessor acts), with a minimum paid-up share capital (if any) of 1 lakh (US$1,400), with an article that restricts the transfer of its shares; it may have between two and two hundred members, and its name ends with "Private Limited" (abbreviated Pvt Ltd). A public limited company must have a paid-up share capital of at least 5 lakh (US$7,000), and at least seven members; its name ends "Limited" (abbreviated Ltd). A one-person company (OPC) is a private company with similar proprietorship and privileges to a private limited company, but with fewer requirements; this type of company may have only one director and member.[4]

Latest Updates:

No Minimum Paid up Capital – Earlier the business organisations which wanted to take up a company as the preferred form of business organisation had to fulfil the requirement of minimum paid-up share capital of not less than ₹ 5 lakhs in case of public company and ₹1 lakh in case of private companies by way of Section 2(71) and 2(68) respectively. However, after in the recent Companies Amendment Act 2015, this requirement is scrapped, and a company can go ahead with its incorporation without fulfilling this criterion.

Nigeria

In Nigeria, there are two types of limited companies namely: a company limited by guarantee and a company limited by shares. The company limited by shares is further divided into two namely a Private limited company (Ltd.) and a Public limited company (Plc.) In Nigeria shareholders of limited companies are only liable for the amount of money they contributed to the company, All Nigerian companies regulated by the CAMC (Company and Allied Matters Commission).

South Africa

In South Africa, the term "Proprietary Limited", abbreviated "(Pty) Ltd", is used to refer to a private limited company. All South African companies are regulated by the CIPC (Companies and Intellectual Property Commission).[5][6]

United Kingdom

The registration of companies in the United Kingdom is done through Companies House, which operates offices in London, Cardiff, Edinburgh and Belfast.

Prior to 1 October 2009, the registration of companies in Northern Ireland was the responsibility of the Department of Enterprise, Trade and Investment (a department of the devolved government). On the commencement of the Companies Act 2006, Northern Ireland's previously distinct company law was repealed and the new companies code instituted by that Act was extended to Northern Ireland.

United States

In the United States, corporations have limited liability and the expression corporation is preferred to limited company. A "limited liability company" (LLC) is a different entity. However, some states permit corporations to have the designation Ltd.[7] (instead of the usual Inc.) to signify their corporate status. A Limited company must file annual tax returns ("corporation" tax returns) with the Securities and Exchange Commission.

Zimbabwe

In Zimbabwe the term "(Pvt) Ltd" refers to a private company limited by share capital. All private entities are regulated by the Registrar of Companies in Harare.

See also

References

  1. ^ "Australian Limited Companies". Archived from the original on July 23, 2010. Retrieved 2010-08-15.
  2. ^ More detailed information on Private Limited Company
  3. ^ "Incorporate in Canada, Alberta, BC, Ontario and SK, Business Registration, Incorporation Services". Retrieved 5 November 2016.
  4. ^ "Companies Act 2013" (PDF).
  5. ^ A Beginners Guide to CIPC
  6. ^ "Private Company ((Pty) Limited) and Close Corporation". Retrieved 5 November 2016.
  7. ^ Driska, Jan. "Delaware LLC". Archived from the original on 2014-08-14.

External links

Accenture

Accenture is a global management consulting and professional services firm that provides strategy, consulting, digital, technology and operations services. A Fortune Global 500 company, it has been incorporated in Dublin, Ireland, since 1 September 2009. In 2018, the company reported net revenues of $39.6 billion, with more than 459,000 employees serving clients in more than 200 cities in 120 countries. In 2015, the company had about 150,000 employees in India, about 48,000 in the US, and about 50,000 in the Philippines. Accenture's current clients include 95 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500.

Aegean Airlines

Aegean Airlines S.A. (Greek: Αεροπορία Αιγαίου Ανώνυμη Εταιρεία, Aeroporía Aigaíou Anónimi Etairía pronounced [aeropoˈria eˈʝeu]; LSE: 0OHY) is the flag carrier airline of Greece and the largest Greek airline by total number of passengers carried, by number of destinations served and by fleet size. A Star Alliance member since June 2010, it operates scheduled and charter services from Athens and Thessaloniki to other major Greek destinations as well as to a number of European and Middle Eastern destinations. Its main hubs are Athens International Airport in Athens, Thessaloniki Airport in Thessaloniki and Larnaca International Airport in Cyprus. It also uses other Greek airports as bases, some of which are seasonal. It has its head office in Kifisia, a suburb of Athens.On 21 October 2012, Aegean Airlines announced that it had struck a deal to acquire Olympic Air, and the buyout was approved by the European Commission a year later, on 9 October 2013. Both carriers continue to operate under separate brands. In addition, Aegean Airlines participated in the final stages of the tender for the privatization of Cyprus Airways, the national carrier of Cyprus. Following the bankruptcy of Cyprus Airways, Aegean Airways established a hub at Larnaca Airport, thus initiating scheduled flights to and from the island to various destinations and filling the service gap created by the services termination of Cyprus Airways.

Aktiebolag

Aktiebolag (Swedish pronunciation: [²aktsɪɛbʊˌlɑːɡ], "stock company") is the Swedish term for "limited company" or "corporation". When used in company names, it is abbreviated AB (in Sweden), Ab (in Finland), or A/B (for some older companies), roughly equivalent to the abbreviations Ltd and PLC. The State authority responsible for registration of aktiebolag in Sweden is called the Swedish Companies Registration Office.

Aviva

Aviva plc is a British multinational insurance company headquartered in London, United Kingdom. It has about 33 million customers across 16 countries. In the United Kingdom, Aviva is the largest general insurer and a leading life and pensions provider.

Aviva also has a focus on the markets in Europe and in Asia and, in particular, on the growth markets of China and South East Asia. Aviva is also the second largest general insurer in Canada. Aviva has a primary listing on the London Stock Exchange, and is a constituent of the FTSE 100 Index.

Company

A company, abbreviated as co., is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. Company members share a common purpose, and unite to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms, such as:

voluntary associations, which may include nonprofit organizations

business entities with an aim of gaining a profit

financial entities and banksA company or association of persons can be created at law as a legal person so that the company in itself can accept limited liability for civil responsibility and taxation incurred as members perform (or fail to discharge) their duty within the publicly declared "birth certificate" or published policy.

Companies as legal persons may associate and register themselves collectively as other companies – often known as a corporate group. When a company closes, it may need a "death certificate" to avoid further legal obligations.

Division (business)

A division of a business, sometimes called a business sector or business unit (segment), is one of the parts into which a business, organization or company is divided. The divisions are distinct parts of that business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the divisions. However, in a large organization, various parts of the business may be run by different subsidiaries, and a business division may include one or many subsidiaries. Each subsidiary is a separate legal entity owned by the primary business or by another subsidiary in the hierarchy. Often a division operates under a separate name and is the equivalent of a corporation or limited liability company obtaining a fictitious name or "doing business as" certificate and operating a business under that fictitious name. Companies often set up business units to operate in divisions prior to the legal formation of subsidiaries.

Generally, only an "entity", e.g. a corporation, public limited company (plc) or limited liability company, etc. would have a "division"; an individual operating in this manner would simply be "operating under a fictitious name".

Independent business

An independent business is a business that is free from outside control. It usually means a privately owned establishment, as opposed to a public limited company, the latter of which is owned by investment shares traded in the stock market. In many cases, independent businesses are sole proprietorship companies.

Joint-stock company

A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.In modern-day corporate law, the existence of a joint-stock company is often synonymous with incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company). Therefore, joint-stock companies are commonly known as corporations or limited companies.

Some jurisdictions still provide the possibility of registering joint-stock companies without limited liability. In the United Kingdom and other countries that have adopted its model of company law, they are known as unlimited companies. In the United States, they are known simply as joint-stock companies.

List of legal entity types by country

A business entity is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable. Most often, business entities are formed to sell a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability companies and other specifically permitted and labelled types of entities. The specific rules vary by country and by state or province. Some of these types are listed below, by country. For guidance, approximate equivalents in the company law of English-speaking countries are given in most cases, for example:

Ltd. (UK, Ireland and the Commonwealth)

public limited company (UK, Ireland and the Commonwealth)

limited partnership

unlimited partnership

chartered company

statutory company

holding company

subsidiary company

one man company (sole proprietorship)

charitable incorporated organisation (UK)

non-governmental organizationHowever, the regulations governing particular types of entities, even those described as roughly equivalent, differ from jurisdiction to jurisdiction. When creating or restructuring a business, the legal responsibilities will depend on the type of business entity chosen.

Nouvelair

Nouvelair Limited Company (French: Nouvelair Société Anonyme, Arabic: الطيران الجديد تونس‎), trading as Nouvelair Tunisie, or simply Nouvelair, is a Tunisian airline with its registered office in Tunis, while its head office in the Dhkila Tourist Zone in Monastir, near the Hôtel Sahara Beach. The airline operates tourist charters from European cities to Tunisian holiday resorts. Its main bases are Monastir International Airport, Tunis–Carthage International Airport and Djerba-Zarzis Airport.

Old Mutual

Old Mutual Limited is a pan-African investment, savings, insurance, and banking group. Established in 1845 in South Africa, it had more than 12 million customers and R1.2 trillion funds under management as of 31 December 2017. It is listed on the Johannesburg Stock Exchange, Zimbabwe, Malawi, Namibia and London Stock Exchanges.

Osakeyhtiö

Osakeyhtiö (Finnish pronunciation: [ˈosɑkeʔːˌyhtiø], "stock company"), often abbreviated to Oy, is the Finnish name for a limited company (e.g., Ltd, LLC, or GmbH). The Swedish name is Aktiebolag often abbreviated to Ab.

Private company limited by shares

A Private Company Limited by Shares is a class of Private Limited Company incorporated under the laws of England and Wales, Scotland, certain Commonwealth countries, and the Republic of Ireland. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company.

"Limited by Shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholder's personal assets are thus protected in the event of the company's insolvency, but any money invested in the company may be lost.

A Limited Company may be "private" or "public". A Private Limited Company's disclosure requirements are lighter, but its shares may not be offered to the general public and therefore cannot be traded on a public stock exchange. Most companies, particularly small companies, are private.

Private limited company

A private limited company is a type of business entity in "private" ownership used in many jurisdictions in contrast to "public" ownership, with some differences from country to country. Examples include LLC in the US, private company limited by shares in the UK, GmbH in Germany or společnost s ručením omezeným in the Czech Republic.

Proprietary company

A proprietary company is a form of privately held company in Australia and South Africa that is either limited or unlimited. However, unlike a public company there are, depending on jurisdiction, restrictions on what it can and cannot do.

In Australia, a proprietary company is defined under section 45A(1) of the Corporations Act 2001 (Cth).The Act puts certain restrictions on proprietary companies such as not permitting them to have more than 50 members (shareholders). Another important restriction relates to fundraising. A proprietary company must not engage in fundraising that would require a disclosure document such as a prospectus, an offer information statement, or a profile statement to be issued (sec.113(3)). The Act states in which circumstances a company must issue a prospectus when attempting to raise funds. This means that a proprietary company must not offer its shares to the public.

Section 45A of the Act also distinguishes proprietary companies as either "large proprietary" or "small proprietary". The differences here relate to issues such as operating revenue, consolidated gross assets, and the number of employed persons.

Large proprietary companies are required to appoint an auditor and lodge appropriate financial statements with the Australian Securities and Investments Commission (ASIC).

Public company

A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets. In some jurisdictions, public companies over a certain size must be listed on an exchange. A public company can be listed (listed company) or unlisted (unlisted public company).

Public companies are formed within the legal systems of particular nations, and therefore have national associations and formal designations which are distinct and separate. For example one of the main public company forms in the United States is called a limited liability company (or LLC), in France is called a "society of limited responsibility" (SARL), in Britain a public limited company (plc), and in Germany a company with limited liability (GmbH). While the general idea of a public company may be similar, differences are meaningful, and are at the core of international law disputes with regard to industry and trade.

Public limited company

A public company (legally abbreviated to PLC) is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be freely sold and traded to the public (although a PLC may also be privately held, often by another PLC), with a minimum share capital of £50,000 and usually with the letters PLC after its name. Similar companies in the United States are called publicly traded companies. Public limited companies will also have a separate legal identity.

A PLC can be either an unlisted or listed company on the stock exchanges. In the United Kingdom, a public limited company usually must include the words "public limited company" or the abbreviation "PLC" or "plc" at the end and as part of the legal company name. Welsh companies may instead choose to end their names with ccc, an abbreviation for cwmni cyfyngedig cyhoeddus. However, some public limited companies (mostly nationalised concerns) incorporated under special legislation are exempted from bearing any of the identifying suffixes.

The term "public limited company" and the "PLC"/"plc" suffix were introduced in 1981; prior to this, all limited companies bore the suffix "Limited" ("Ltd."), which is still used by private limited companies.

Schroders

Schroders plc is a British multinational asset management company, founded in 1804. The company employs over 5,000 people worldwide in 32 different countries around Europe, America, Asia, Africa and the Middle East. Headquartered in the City of London, it is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index. Schroders has two share classes: voting shares (SDR.L) and non-voting shares (SDRC.L).

Schroders bears the name of the Schröder family, a prominent Hanseatic family of Hamburg with branches in other countries. The Schroder family, through trustee companies, individual ownership and charities, control 47.93 per cent of the Company’s ordinary shares.

Telent

telent is a British radio, telecommunication, and Internet systems installation and services provision company. The company was formed in 2006 from the United Kingdom and German services businesses of Marconi Corporation (formerly General Electric Company) which had not been acquired by Ericsson. Companies with "Marconi" in their name can trace their ultimate origins, through mergers and takeovers, to The Marconi Company Ltd., founded by Guglielmo Marconi in 1897 as The Wireless Telegraph & Signal Company.

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