A limited company is a company ‘limited by shares’ or ‘limited by guarantee’.

The most common limited company is limited by shares and are usually businesses:

  • that make a profit
  • has shares and shareholders
  • can keep any profits it makes after paying tax

The limited by guarantee companies are usually:

  • not for profit
  • has guarantors and a guaranteed amount
  • invests profits it makes back into the company

You will get a ‘certificate of incorporation’.

This confirms the company legally exists and shows the company number and date of formation.

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