What is a limited company?
A UK ltd company is a corporation, which has shareholders, whose liability is restricted by shares (Ltd). This is the most common form of privately held company. Establishing as a limited company is an attractive alternative for a lot of people as, opposed to sole traders, personal assets are completely distinct from company finances.
The individual company equivalent in Australia is the Proprietary Limited company (Pty Ltd). An Australian company with just Limited or Ltd at the end of its name is a public company, for instance like a company listed on the ASX (though public companies can be, and often are, unlisted). Australia doesn't have a direct equivalent to the plc.
Private company limited by guarantee
This type of Company doesn't have share capital but is assured by its members, because they have agreed to pay a fixed amount in the event of the company's liquidation. Oftentimes charities incorporate using this form of limited liability. Another example is the Financial Services Authority. In Australia only an unlisted public company can be limited by guarantee.
Private company, which are limited by shares
It has shareholders with fixed liability and its shares may not be offered to the general public.
A shareholder in a UK limited company , if ever becomes insolvent (equivalent to bankruptcy in the US) is going to be liable to contribute the amount remaining unpaid on the shares (usually zero, as most shares are issued fully paid). 'Paid' here associates with the sum paid to the company for the apportions on first issue, and not to be mixed up with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability.
A limited company can be registered in England and Wales, Scotland, Northern Ireland, the Republic of Ireland or Australia. The registration of companies in the United Kingdom (England, Scotland and Wales) is done through Companies House. Registration of companies in Australia is done through the Australian Securities and Investments Commission (ASIC).
