A private limited company is a company with a share capital owned by private individuals or another private limited company. The liability of shareholders is limited to the value of the shares they own.
The shares of a private limited company are not traded on a stock exchange and are not available for public purchase. Private limited companies are typically small or medium-sized businesses. If you want to set up a private limited company, you should contact a Pembroke Pines accountant.
How to set up a private limited company
- Deciding the right structure
There are several different structures that private limited companies can take, and the right one for your business will depend on several factors. The most common structures are sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations.
Sole proprietorships are the simplest business structure owned and operated by a single individual. This structure offers the owner complete control over the business, but it also comes with unlimited personal liability for the debts and obligations of the company.
- Choosing the best name
The best name for your private limited company will depend on the products or services you offer, your company’s mission and values, and your target market. However, some tips for choosing a great name for your private limited company include choosing a name that is easy to remember, spell, and pronounce. However, you should avoid names that are too similar to other companies in your industry; and select a name that conveys a positive message about your company.
- Providing registered address
The registered address of a private limited company must be provided to Companies House when the company is formed. It is the address at which official correspondence from Companies House and HMRC will be sent and where certain documents relating to the company must be kept. The registered address can be the same as the company’s trading address, but it does not have to be.
- Appointing directors
The directors of a private limited company may be appointed in several ways, depending on the company’s articles of association. The most common method is for the directors to be appointed by the shareholders at a general company meeting. The articles of association will be provided to the directors appointed by the board of directors or other bodies, such as the committee board.
- Nominating shareholders
The shareholders in a private limited company can nominate individuals to fill vacancies on the board of directors. The board of directors is responsible for the company’s management and makes all major decisions regarding the company’s operations. The shareholders may also nominate individuals to serve on committees that advise the board of directors on specific matters.