PRIVATE. COMP LIMITED

A private limited company is a common form of UK company incorporation. It is a distinct legal entity separate from its owners, the shareholders. This means the company owns its assets and is responsible for its liabilities, and shareholders are not fully responsible for company debts. Directors manage the company and are considered employees. Advantages include limited liability for shareholders (personal assets protected), a more professional status than sole traders, and potential tax benefits. Private limited companies cannot issue shares to the public and have stricter regulatory scrutiny. This provides a more controlled environment for shareholders with more direct control over the organization’s decisions and operations.