Types of UK Company: Ltd, Guarantee, LLP and PLC

There are five main types of UK company: the private company limited by shares (Ltd), the private company limited by guarantee, the limited liability partnership (LLP), the public limited company (PLC) and the unlimited company. For most people starting a business for profit, the answer is a private company limited by shares: one person can run it, the owners’ liability is limited, and it is what banks, clients and accountants expect. This guide compares each type, who it suits and what it needs to set up, so you can be sure before you register.

UK Company Types Compared

Type	Owned by	Owners’ liability	Usually suits
Private company limited by shares (Ltd)	Shareholders	Limited to the unpaid amount on their shares	Most businesses: freelancers, contractors, start-ups, family businesses, property and holding companies
Private company limited by guarantee	Members (guarantors), no shares	Limited to the amount each guarantees, often £1	Non-profits, charities, clubs, residents’ management companies
Limited liability partnership (LLP)	Members, at least 2 designated	Limited to what members agree to contribute	Professional firms such as accountants, solicitors and consultants
Public limited company (PLC)	Shareholders; shares can be offered to the public	Limited to the unpaid amount on their shares	Large businesses raising money from the public
Unlimited company	Members, with or without shares	Unlimited	Rare: specialist cases where privacy of accounts matters more than limited liability

Private Company Limited by Shares (Ltd)

This is the standard UK company. It is owned by shareholders, run by at least one director, and its name ends in “Limited” or “Ltd”. The same person can be the only director and the only shareholder. A shareholder’s liability is limited to what they paid, or still owe, for their shares, so their personal assets are protected if the company cannot pay its debts (unless they personally guaranteed a loan).

Why most businesses choose it:

Limited liability for the owners
Profits can be taken as dividends, as well as salary
Easy to bring in co-founders or investors by issuing shares
Corporation Tax on profits rather than Income Tax on everything the business earns

The trade-off is more paperwork: annual accounts, a confirmation statement and a Company Tax Return. See annual filing requirements. How to set one up is in how to set up a limited company, and how to split ownership is in shares and shareholders.

Private Company Limited by Guarantee

A guarantee company has no shares. Its members, called guarantors, each promise to pay a set amount, often £1, if the company is wound up owing money. It usually reinvests its profits rather than paying them to its members. That makes it the usual choice for charities, community groups, sports clubs and residents’ management companies that own the freehold of a block of flats. A guarantor with more than 25% of the votes is a person with significant control.

Limited Liability Partnership (LLP)

An LLP combines a partnership’s flexibility with limited liability. It has members rather than directors and shareholders, needs at least two, and at least two must be “designated members” who handle the filings. An LLP is usually tax transparent: it does not pay Corporation Tax, and each member pays Income Tax on their share of the profits. Professional firms often use LLPs. Members must verify their identity with Companies House, just like directors; see LLP member verification.

Public Limited Company (PLC)

A PLC can offer its shares to the public. Before it can trade it must have allotted shares with a nominal value of at least £50,000, with at least a quarter paid up. It needs at least two directors and a qualified company secretary, and has stricter accounts and audit rules. Most small businesses never need to be a PLC; a private company can re-register as one later.

Unlimited Company

In an unlimited company, the members are personally liable for all its debts. In return, many unlimited companies do not have to publish accounts. They are uncommon and used in specialist situations, usually on professional advice.

Which Type Should You Choose?

Running a business for profit, alone or with partners? A private company limited by shares.
Not for profit, a charity or residents’ management company? A company limited by guarantee.
A professional partnership wanting partnership-style tax? An LLP, after speaking to an accountant.
Raising money from the public? A PLC, with professional advice.

Still deciding whether to incorporate at all? Compare sole trader vs limited company. GOV.UK explains the two kinds of limited company in limited company types.

What Every Type Has in Common Since 2025

Whatever the type, every director, LLP member and person with significant control must now verify their identity with Companies House. For a new company, directors verify before it is registered. See identity verification for company formation and the full list of information needed to register a company.

Forming a Private Limited Company? CorpAssist Does It in One Order

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Frequently Asked Questions

What are the main types of company in the UK?

The main types are the private company limited by shares (Ltd), the private company limited by guarantee, the limited liability partnership (LLP), the public limited company (PLC) and the unlimited company. Most businesses use a private company limited by shares.

What is the most common type of company in the UK?

The private company limited by shares. It suits anyone running a business for profit: one person can be the only director and shareholder, owners’ liability is limited to their shares, and profits can be paid out as dividends.

What is the difference between Ltd and PLC?

A Ltd company cannot offer its shares to the public and needs only one director and one shareholder. A PLC can offer shares to the public, needs at least two directors and a qualified company secretary, and must have allotted shares worth at least £50,000, at least a quarter paid up, before it can trade.

What is the difference between a limited company and an LLP?

A limited company is owned by shareholders and run by directors, and pays Corporation Tax on its profits. An LLP is owned and run by its members, needs at least two, and is usually tax transparent: members pay Income Tax on their share of the profits.

What is a company limited by guarantee?

A company with members who guarantee a fixed amount, often £1, instead of shareholders. It usually reinvests its profits rather than paying them out, which is why charities, clubs and residents’ management companies use it.

Should I be a sole trader or a limited company?

A sole trader is simpler and has fewer filings, but you are personally liable for the business’s debts. A limited company separates the business from you, can be more tax efficient at higher profits and can look more established to clients. See our sole trader vs limited company guide.

Ready to register? See company formation packages.

Checked against GOV.UK on 30 October 2026. CorpAssist forms private companies limited by shares only, and does not give tax advice.