Company Types and Abbreviations
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Company Types and Abbreviations
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About Company Types and Abbreviations
Understanding the various company types and their abbreviations is essential when setting up a business in the UK. Each company type has distinct legal implications that impact ownership, liability, and filing obligations. Choosing the correct structure—whether it’s a Private Company Limited by Shares (Ltd), Public Limited Company (PLC), Limited Liability Partnership (LLP), or Community Interest Company (CIC)—is crucial, as it determines how liabilities are handled, who controls the company, and the required documentation. This guide outlines the main UK company types, from Limited Partnerships (LP) and Scottish Limited Partnerships (SLP) to Overseas Companies (OC), helping you understand the abbreviations and legal responsibilities that accompany each structure.
With this overview, businesses can make informed decisions based on their ownership needs, liability preferences, and the specific filing requirements mandated by Companies House in the UK.
Detailed below are the most common company types you may come across.
Company Type | Abbreviation | Description |
|---|---|---|
Public Limited Company | PLC | Allows shares to be sold to the public and traded on the stock exchange. Has stricter legal and financial requirements, and shareholders’ liability is limited to the value of their shares. |
Private company limited by shares | Ltd, Limited | Owned by shareholders with limited liability, meaning their financial responsibility is limited to the value of their shares. Commonly used by small and medium businesses. |
Private company limited by guarantee | CLG | Typically used by non-profit organizations or charities. Members’ liability is limited to a predetermined amount, often £1, that they guarantee to contribute if the company faces liquidation. |
Private unlimited company | ULL | Shareholders or members have unlimited liability, meaning they are fully liable for any company debts or obligations. Less common due to high personal financial risk. |
Limited liability partnership | LLP | Combines elements of partnerships and limited companies. Partners have limited liability, and it is often used by professional services firms. |
Limited partnership | LP | Consists of one or more general partners with unlimited liability and one or more limited partners whose liability is limited to the amount they have invested. Commonly used in private equity and real estate investment. |
Societas Europaea | SE | An EU-wide public company format for businesses operating in multiple EU countries. Similar to a PLC but must adhere to both UK and EU regulations. |
Royal Charter | RC | Established by a Royal Charter, usually for professional institutions, and operates under the terms of the charter. Members may have limited or unlimited liability. |
Community interest company | CIC | Established to benefit the community rather than shareholders. Operates as a limited company (either by shares or guarantee) and must pass a “community interest test.” |
Charitable incorporated organisation | CIO | Specific to charities; offers incorporated status without needing to register as a company. Provides limited liability to trustees and members. |
Overseas Company | OC | A company incorporated outside the UK but registered to operate within the UK. Must comply with specific registration and reporting requirements related to its foreign incorporation. |
Industrial and Provident Society | IPS | Often registered as co-operatives or community benefit societies. Members usually have limited liability, and these societies must be for mutual benefit or community |
Scottish Limited Partnership | SLP | A partnership structure specific to Scotland, often used in investment or property management. Has both general partners (fully liable) and limited partners (limited liability). |
Useful Links
For further reading on UK company types and their abbreviations, consider the following resources:
Companies House: Guidance for Limited Companies, Partnerships, and Other Company Types - This comprehensive guide provides detailed information on various company structures, their legal implications, and registration processes.
Choosing the Right Business Structure – Companies House Blog - An insightful article discussing the advantages and disadvantages of different business structures, helping you make an informed decision.
Set Up a Private Limited Company: Register Your Company
A step-by-step guide on registering a private limited company in the UK, including necessary forms and procedures.