Что такое частная компания с ограниченной ответственностью

Что такое Частная компания?

Частная компания – это фирма, находящаяся в частной собственности. Частные компании могут выпускать акции и иметь акционеров, но их акции не торгуются на публичных биржах и не выпускаются посредством первичного публичного предложения (IPO). В результате частным фирмам не нужно выполнять строгие требования Комиссии по ценным бумагам и биржам (SEC) к подаче документов для публичных компаний . В целом акции этих предприятий менее ликвидны, и их оценку сложнее определить.

Как работает частная компания

Частные компании иногда называют частными компаниями. Существует четыре основных типа частных компаний: индивидуальные предприятия, корпорации с ограниченной ответственностью (LLC), S-корпорации (S-corps) и C-корпорации (C-corps) – все они имеют разные правила для акционеров, участников и налогообложения.

Все компании в США начинаются как частные компании. Частные компании различаются по размеру и охвату, включая миллионы индивидуальных предприятий в США и десятки  стартапов- единорогов по всему миру. Даже такие американские фирмы, как Cargill, Koch Industries, Deloitte и PricewaterhouseCoopers с годовым доходом более 25 миллиардов долларов, подпадают под действие частной компании.

Однако оставаться частной компанией может затруднить сбор денег, поэтому многие крупные частные фирмы в конечном итоге предпочитают выходить на биржу через IPO. В то время как частные компании действительно имеют доступ к банковским займам и определенным видам финансирования за счет акционерного капитала, государственные компании часто могут с большей легкостью продавать акции или привлекать деньги посредством размещения облигаций.

Типы частных компаний

Индивидуальные предприниматели передают собственность компании в руки одного человека. Индивидуальное предприятие не является собственным юридическим лицом; его активы, пассивы и все финансовые обязательства полностью ложатся на отдельного владельца. Хотя это дает человеку полный контроль над решениями, это также повышает риск и затрудняет сбор денег. Партнерские отношения  – еще один тип формы собственности для частных компаний; они разделяют аспект неограниченной ответственности индивидуального предпринимательства, но включают как минимум двух владельцев.

Компании с ограниченной ответственностью (LLC) часто имеют несколько владельцев, которые разделяют собственность и ответственность. Эта структура собственности объединяет некоторые преимущества товариществ и корпораций, включая сквозное налогообложение доходов и ограниченную ответственность без необходимости регистрации.

S-корпорации и C-корпорации похожи на публичные компании с акционерами. Однако эти типы компаний могут оставаться частными, и им не нужно представлять ежеквартальные или годовые финансовые отчеты. Корпорации S могут иметь не более 100 акционеров и не облагаются налогом на свою прибыль, в то время как корпорации C могут иметь неограниченное количество акционеров, но подлежат двойному налогообложению.

Преимущества и недостатки частных компаний

Высокая стоимость IPO – одна из причин, по которой многие небольшие компании остаются частными. Публичные компании также требуют большего раскрытия информации и должны регулярно публиковать финансовые отчеты и другие документы. Эти документы включают годовые отчеты (10-K), квартальные отчеты (10-Q), основные события (8-K) и отчеты доверенных лиц.

Еще одна причина, по которой компании остаются частными, – это сохранение семейной собственности. Многие из крупнейших частных компаний сегодня принадлежат одним и тем же семьям на протяжении нескольких поколений, например, вышеупомянутая Koch Industries, которая осталась в семье Кох с момента ее основания в 1940 году. Оставаться частной означает, что компания не должна отвечать перед своими обязанностями. публичные акционеры или выбрать других членов совета директоров. Некоторые семейные компании стали публичными, и многие сохраняют семейную собственность и контроль за счет двухклассовой структуры акций , что означает, что семейные акции могут иметь больше прав голоса .

Выход на фондовый рынок – это последний шаг для частных компаний. IPO стоит денег и требует времени для создания компании. Сборы, связанные с размещением на бирже, включают регистрационный сбор SEC, сбор за регистрацию в Регулирующий орган финансовой индустрии (FINRA), сбор за листинг на фондовой бирже и деньги, уплачиваемые андеррайтерам предложения.

Большинство российских коммерческих компаний создаётся в виде ООО. Популярность этой организационно-правовой формы заключается в её простоте. В этой статье мы расскажем о том, что такое общество с ограниченной ответственностью, каковы его основные характеристики и особенности.

ООО — это коммерческая структура, созданная для получения прибыли. Партнёры объединяют свои усилия, ведут совместную работу и делят между собой доход, который остаётся после оплаты всех издержек и налогов. При чём тут ответственность и чем она ограничена? К этим вопросам вернёмся чуть позже.

Коммерческая компания ведёт свою деятельность по нормам закона от 8 февраля 1998 года № 14-ФЗ «Об обществах с ограниченной ответственностью». Закон определяет ООО как хозяйственное общество, имеющее разделённый на доли уставный капитал и созданное одним или несколькими лицами.

Участники ООО

Лица, которые организуют ООО, на момент открытия называются его учредителями, а далее — участниками. Это могут быть граждане России или других стран, а также юридические лица любой формы собственности. Запрет на участие установлен лишь для государственных и муниципальных органов.

Участники вправе управлять делами компании и получать часть заработанной прибыли. Приобретают они и определённые обязанности, например, вовремя внести свой вклад в уставный капитал и соблюдать коммерческую тайну. Участника, который не выполняет свои обязанности или вредит деятельности бизнеса, могут исключить из общества через суд.

В ООО может быть не более 50 участников. Ключевые вопросы решаются совместно путем голосования. Общество может быть организовано и одним лицом, тогда все решения принимаются им самостоятельно. Существует одно правило — в качестве единственного учредителя не может выступать организация, которая сама была образована всего одним лицом.

Состав участников общества со временем может меняться. Собственник вправе продать или подарить свою долю в бизнесе частично или полностью. Кроме того, он может выйти из ООО, если такое право закреплено в уставе. В этом случае доля передаётся обществу, а бывший участник взамен получает пропорциональную часть имущества компании. Остальные участники обязаны эту долю распределить между собой или реализовать. Если этого не сделать в течение года, долю придётся погасить.

Уставный капитал

Все участники общества должны внести первоначальный вклад в активы компании. Уставный капитал (УК) обеспечивает работу предприятия на первом этапе, а также служит гарантией для кредиторов. Законом определён минимальный размер УК, в общем случае это 10 000 рублей. Для некоторых сфер бизнеса капитал установлен в большем размере. Минимальный УК нужно внести только деньгами, а всё, что выше, можно внести имуществом или дополнить любой суммой денег.

Большинство ООО открывается с минимальным капиталом. Нередко этого бывает достаточно, но порой его приходится увеличивать, и причин для этого немало. Например, требование инвесторов, необходимость получить лицензию или желание продемонстрировать свою платёжеспособность. Ведь чем выше УК, тем надежнее выглядит фирма в глазах потенциальных контрагентов, а значит, у неё больше возможностей для сотрудничества. Несмотря на то что уставный капитал является страховкой для кредиторов, он не обязан лежать мертвым грузом на банковском счёте. Эти средства можно использовать для текущей работы компании.

Доли в УК

Уставный капитал поделен на доли по договоренности между учредителями. Допустим, если двое сделали одинаковые вклады в денежном выражении, то доля в УК каждого из них будет составлять 1/2 или 50%. Размер долей может быть разным, никаких ограничений закон не устанавливает. Например, одному бизнесмену может принадлежать 90% компании, а двум другим — по 5%.

Каждый участник должен оплатить свою долю УК самостоятельно, освободить его от этой обязанности нельзя. Внести вклад надо не позднее четырёх месяцев с даты регистрации общества с ограниченной ответственностью или раньше, если это оговорено в уставе. Если не оплатить долю в срок, она перейдёт обществу для дальнейшей продажи или распределения.

Управление обществом

В ООО довольно простая система управления. Высшим органом является общее собрание участников (ОСУ). Именно на нём решаются ключевые вопросы. Голоса считаются пропорционально долям голосующих в уставном капитале, но это правило можно изменить. Например, установить, что у каждого участника один голос вне зависимости от размера его доли. Чтобы это положение заработало, его нужно прописать в уставе. По некоторым вопросам участники должны принять решение единогласно. Например, так нужно проголосовать за продажу или распределение принадлежащей обществу доли, за ликвидацию или реорганизацию. Для решения других вопросов нужны 2/3 голосов или простое большинство.

В большинстве случаев работой организации управляет директор, которого выбирают участники. Им может стать как один из собственников, так и нанятый работник со стороны. Помимо него, можно предусмотреть коллегиальный исполнительный орган — Дирекцию или Правление. Как распределить руководящие полномочия, учредители решают самостоятельно. Кроме того, общество с ограниченной ответственностью может организовать для управления Совет директоров, но это встречается нечасто.

Устав ООО

Устав является учредительным документом общества, на основании которого оно ведёт хозяйственную деятельность. В уставе закрепляется базовая информация о компании:

• наименование;
• место нахождения;
• размер УК;
• сведения об органах управления;
• права и обязанности участников;
• порядок передачи доли;
• правила хранения документов;
• порядок информирования участников о деятельности общества.

При формировании устава действует много диспозитивных норм. Они будут применяться лишь в том случае, если их включить в документ. Если же такие положения не упомянуть, то они либо не будут работать вовсе, либо будут применяться так, как прописано в законе. В частности, к диспозитивным нормам устава относятся:

• право участника на выход из ООО;
• запрет на реализацию доли третьим лицам;
• правила преимущественной покупки доли;
• переход доли к наследнику только с согласия остальных участников.

Можно установить в уставе и свой порядок распределения прибыли. По умолчанию это происходит пропорционально долям, но допустимы и другие принципы деления. Можно предусмотреть дополнительные обязанности и права для всех участников или только для некоторых. Кроме того, устав может содержать особые нормы, регламентирующие правила крупных сделок, порядок проведения общего собрания и даже срок, на который создается компания.

Ответственность общества и его участников

А теперь вернёмся к началу и вспомним, что такое ООО. Повторимся, что расшифровка этой аббревиатуры — общество с ограниченной ответственностью. Это коммерческая организация, которая занимается бизнесом и несёт связанные с ним риски. Когда бизнес идёт успешно, всё хорошо: компания получает прибыль, а её владельцы — дивиденды. Но может случиться и так, что дело не пойдёт, как предполагалось. Например, привлечены заемные средства, накапливаются обязательства, которые нечем оплатить. В итоге договоры с партнерами не выполняются, растет налоговая задолженность, а компании грозит банкротство и ликвидация.

Какие риски при этом несёт учредитель ООО? Подразумевается, что участник не должен отвечать по обязательствам своей организации, то есть оплачивать её долги. А значит, он не может потерять больше, чем вложил в бизнес. Однако, есть и такое понятие, как субсидиарная ответственность. Суть его в том, что владельца доли всё же могут привлечь к расчету по долгам ООО. Но только лишь в том случае, если доказано, что его умышленные действия привел к банкротству компании. Если же не применять серые схемы и не проворачивать незаконные операции, то риск привлечения участников к субсидиарной ответственности невысок.

Итак, мы разобрались, что такое общество с ограниченной ответственностью, и описали его основные черты. Сегодня эта самая простая в организации и управлении форма юрлица для коммерческой деятельности. Она даёт возможность вести бизнес совместно с партнёрами и при этом ограничивает риски, связанные с предпринимательством.

Бесплатная консультация по регистрации ООО или ИП

Если у вас остались вопросы по регистрации ООО или ИП, оставьте заявку на бесплатную консультацию по регистрации бизнеса. В рабочее время вам перезвонят специалисты из вашего региона и подробно ответят на вопросы с учётом региональной специфики.

A private limited company is any type of business entity in «private» ownership used in many jurisdictions, in contrast to a publicly listed company, with some differences from country to country. Examples include the LLC in the United States, private company limited by shares in the United Kingdom, GmbH in Germany and Austria, société à responsabilité limitée in France, and sociedad de responsabilidad limitada in the Spanish-speaking world. The benefit of having a private limited company is that there is limited liability. However, shares can only^{[citation needed]} be sold to shareholders in the business, which means that it can be difficult to liquidate such a company.

Abbreviations[edit]

Country/Region	Business form	Abbreviation(s)
United States (may vary by state)	limited liability company (has members, does not issue shares, privately owned)	LLC, LC, «Ltd. Co.»[1]
privately held company (has shareholders, issues shares, can be privately owned)	Co., Corp., Inc., Ltd.[2]
public benefit corporation (has shareholders, issues shares, can be privately owned)	PBC[3]
Poland	spółka z ograniczoną odpowiedzialnością	sp. z o.o.
United Kingdom	private company limited by shares	Ltd.
Ireland
Kenya
Hong Kong
Zimbabwe	private company limited by shares	(Pvt) Ltd
Pakistan	Private company limited by shares (can be multi-member or single-member (SMC))	(Pvt.) Limited (SMC-Pvt.) Limited
India	private company limited by shares	Pvt. Ltd. (OPC)
Nepal
Bangladesh
Netherlands	besloten vennootschap (met beperkte aansprakelijkheid)	bv
Belgium	bv
société à responsabilité limitée	SRL
France	SARL
Luxembourg
Switzerland
società a garanzia limitata	Sagl
Gesellschaft mit beschränkter Haftung	GmbH
Liechtenstein
Austria
Germany
Unternehmergesellschaft (haftungsbeschränkt)	UG (haftungsbeschränkt)
Greece	Εταιρεία Περιορισμένης Ευθύνης	Ε.Π.Ε.
Ιδιωτική Κεφαλαιουχική Εταιρεία	Ι.Κ.Ε.
Czech Republic	Společnost s ručením omezeným	s.r.o., spol. s r.o.
Slovakia	Spoločnosť s ručením obmedzeným
Hungary	korlátolt felelősségű társaság	kft.
Croatia	Društvo s ograničenom odgovornošću	d.o.o. (д.о.о.)
Bosnia and Herzegovina
Montenegro
Serbia
North Macedonia	Društvo so ograničena odgovornost
Slovenia	Družba z omejeno odgovornostjo	d.o.o.
Iran	Ba Masooliat Mahdood
Argentina	sociedad de responsabilidad limitada	SRL, S.R.L.; o Ltda. (Solo Chile)
Bolivia
Chile
Mexico
Paraguay
Peru
Spain
Uruguay
Italy	società a responsabilità limitata	S.r.l., Srl
Colombia	compañía limitada	Ltda.
Sri Lanka	private company limited by shares	(PVT), Ltd
Portugal	sociedade de responsabilidade limitada	Lda.
Brazil	sociedade limitada	Ltda., Lda.
Russia	общество с ограниченной ответственностью	ООО
Tajikistan	ҷамъияти дорои масъулияти маҳдуд	ҶДММ
Denmark	anpartsselskab	ApS
Sweden	privat aktiebolag	AB
Finland	(Yksityinen) osakeyhtiö	Oy
Australia	proprietary limited company	Pty Ltd
Brunei	شريکت سنديرين برحد (Syarikat sendirian berhad)	Sdn. Bhd.
Malaysia	Sendirian Berhad	Sdn. Bhd.
Singapore	(exempt) private company limited by shares	Pte Ltd
Estonia	osaühing	OÜ
Latvia	Sabiedrība ar ierobežotu atbildību	SIA
Lithuania	Uždaroji akcinė bendrovė	UAB
Uzbekistan	Masʼuliyati cheklangan jamiyati	MChJ
Romania	Societate cu răspundere limitată	SRL
Bulgaria	Дружество с ограничена отговорност	ООД (OOD)
Еднолично дружество с ограничена отговорност	ЕООД (EOOD)
Ukraine	Товариство (з обмеженою відповідальністю)	ТОВ (TOV) or ТзОВ (TzOV) (Cyrillic)
Albania	Shoqëria Me Përgjegjësi Të Kufizuar	sh.p.k.
Kosovo
Israel	חברה בערבון מוגבל	בע»ם or Ltd.[4]
Indonesia	Perseroan Terbatas	PT
Azerbaijan	məhdud məsuliyyətli cəmiyyət	MMC
South Africa	private company	(Pty) Ltd
Vietnam	Công ty trách nhiệm hữu hạn	(Cty) TNHH
New Zealand	Limited liability company	Ltd
Japan	合同会社 (gōdō kaisha)	GK
South Korea	유한책임회사 (有限責任會社, yuhan chaeg-im hoesa)	LLC
Armenia	Սահմանափակ Պատասխանատվությամբ Ընկերություն (sahmanap’ak pataskhanatvut’yamb ənkerut’yun)	ՍՊԸ (SPƏ)

Albania[edit]

In Albania a limited liability company (Albanian: Shoqëri me përgjegjësi të kufizuar Sh.p.k) is a commercial company founded by persons of physical or judicial status, who are not liable for the company and personally bear losses only up to the outstanding contribution agreements. Partners’ contributions constitute the registered capital of a limited liability company. Each partner has his quota in the company in proportion to the contribution of the capital so the registered capital of the company is divided between the partners based on the proportional ratio of their contribution. In Albania a limited liability company may not have a capital of less than 100 lek.^[5]

Argentina[edit]

Although not an exact equivalent, the Argentine variant of the LLC is called Sociedad de Responsabilidad Limitada (S.R.L.) and it limits the liability of its members up to their capital contribution in the company. The equity is divided into equal stakes (can not be called «shares»), each one of which represents a percentage of the company and that can not be traded on the stock exchange. Their by-laws are regulated by law N° 19550^[6] and the commercial partnership is limited to a maximum of 50 partners.

Bolivia[edit]

In Bolivia, the LLC variant is called Sociedad de Responsabilidad Limitada (S.R.L.). These companies’ legal framework consist in the Trade Code (Decree Law N° 14379 of February 25, 1977), its modifications and other supplementary laws. The members participate in it through capital stakes, and their liability is limited to the value of their contributions. The number of members must be minimum 2 and maximum 25.

Bosnia and Herzegovina[edit]

Bosnian and Herzegovinian legislation, similarly to that in Serbia, Montenegro, North Macedonia contemplates LLCs as društvo s ograničenom odgovornošću (d.o.o.). Companies using this structure append the abbreviation d.o.o. to their company name. A shareholder or member in a d.o.o. is only personally liable up to the value of the member’s investment in the company.^[7]

Brazil[edit]

The corporate structure in Brazilian law most similar to the American LLC is the Sociedade Limitada (“Ltda.”), under the new Brazilian Civil Code of 2002. The sociedade limitada is the new name of the sociedade por quotas de responsabilidade limitada, and it can be organized as empresária or simples, under this new code, roughly corresponding to the form types of comercial (“commercial”) and civil (“non commercial”) of the Commercial Code. A new law in Brazil has made it legal to obtain an LLC by a sole-proprietor in two forms: Empresa Individual de Responsabilidade Limitada (Eireli for short), or Sociedade Unipessoal Limitada (“Ltda.”). The main requirement for an Eireli is a capital of 100 times the current minimum wage,^[8] R$ 78.800,00 ^[9](US$26.267.00) as of 2015; whereas for a Sociedade Unipessoal Limitada the same rules apply as for other Sociedades Limitadas ^[10]

Bulgaria[edit]

Bulgarian legislation corresponds LLCs (Ltd, GmbH, SARL, etc.) as «Дружество с ограничена отговорност» (Druzhestvo s ogranichena otgovornost; company with limited liability). Companies incorporated under this structure append the cyrillic abbreviation ООД (Latin script: OOD) to their name. In the case of an LLC incorporated with a sole-shareholder/member (sole-ownership), this is designated and known as «Еднолично дружество с ограничена отговорност» (Ednolichno druzhestvo s ogranichena otgovornost; sole-ownership company with limited liability) and abbreviated as ЕООД (EOOD). The EOOD specifically, is exempted from annual, general or extraordinary meetings for making decisions and may just issue written resolutions.^[11]

Chile[edit]

Chilean law contemplates a certain form of LLC known as «Sociedad de Responsabilidad Limitada» (Limited Liability Association). Also (LLC) These companies are regulated by law N° 3.918. Among their most important characteristics we can say that:

• They can pursue a commercial or non-commercial purpose (Sociedad Comercial de Responsabilidad Limitada / Sociedad Civil de Responsabilidad Limitada).
• They must be formed by two or more partners and can hold up to a maximum of fifty.
• Their equity is divided into «cuotas» (not shares) each one of which represents a percentage of the company.
• They can be managed by one or more managers (external if need be), or by a board of directors.
• Their by-laws can’t be modified, nor their partners be changed, without the consent of all the other partners.
• In tax considerations, they differ from the LLC’s because they pay a corporate tax for their income, amount that can be deducted by their owners as a credit against the taxes they pay.

Chilean law also contemplates a very special kind of individual owner LLC called Empresa Individual de Responsabilidad Limitada (Limited Liability Individual Company), which uses the E.I.R.L. aggregation.

Colombia[edit]

Colombian legislation contemplates a very similar structure as mentioned above in the Chilean case. The Ltda. abbreviation is also used in Colombia.^[12]

Croatia[edit]

In Croatia, a private limited liability company is termed društvo s ograničenom odgovornošću (literal: limited liability company), abbreviated d.o.o.. A public limited liability company is termed a dioničko društvo (literal: joint stock company) abbreviated d.d..^[13]

Czech Republic[edit]

Czech legislation contemplates LLCs as společnost s ručením omezeným (s.r.o. or spol. s r.o.). An s.r.o. is not technically comparable to an LLC because the profits are still subject to double taxation. Czech law does not offer a possibility to start up a limited company without the possibility of avoiding double taxation. As of 2014 the liability is not limited in Czech, since managing director (jednatel, mandatory board member in Czech LLCs) bears full liability that extends to all of his/her property, including private one.

Denmark[edit]

The Danish form of the LLC is the kommanditselskab (K/S). There is no minimum capital requirements. In a K/S there are two types of shareholders, the komplementar which is fully liable, and the kommanditist which liability is limited. The K/S is a tax-transparent company, which means the income «passes through» the company directly to the shareholders.

Dominican Republic[edit]

Dominican Republic legislation contemplates LLCs as Sociedad de Responsabilidad Limitada, also known by their abbreviation S.R.L.;; S.R.L.s award limited liability to their members up to their contribution in the company (i.e., contribution of capital). This type of company began after the law number 479 of the year 2008.

Estonia[edit]

The Estonian version of private limited company (limited liability company) is called osaühing (OÜ). The type of entity is also required to be identified in the name.
An OÜ is taxed as a corporation. The minimum capital required by law is €2,500.^[14]

Finland[edit]

Although not an exact equivalent, the Finnish version of the LLC is the Oy (osakeyhtiö) or in Swedish Ab (aktiebolag). An Oy is taxed as a corporation. Since 1 July 2019, there is no minimum capital required by law.

Germany[edit]

Because of its hybrid characteristics it is very difficult to determine the German equivalent. On one hand it is possible to consider it as a kind of Gesellschaft mit beschränkter Haftung (GmbH) because it has aspects of a corporation; on the other hand it could be considered to be a kind of Kommanditgesellschaft (KG), which is the German equivalent of a limited partnership. Based on the literal translation of the word «company», an LLC should be considered to be a kind of KG without any liable partner. The German equivalent that comes closest to LLC, is GmbH & Co KG, a nested Kommanditgesellschaft (KG) where a Gesellschaft mit beschränkter Haftung (GmbH) takes the role of the fully liable partner. For the purpose of taxation, the Bundesfinanzministerium (German Federal Ministry of Finance) gives detailed guidelines of the circumstances under which an LLC is to be considered to be a «corporation» or as a «limited partnership».^[15] It is useful to note, however, that the original LLC statutes of Wyoming and other US states were more or less explicitly modeled after the GmbH.^[16]

Greece[edit]

A limited liability company (LLC) in Greece is synonymous to an EPE (ΕΠΕ — Εταιρεία Περιορισμένης Ευθύνης).^[17]

Hong Kong[edit]

In Hong Kong, the Limited Company is the most commonly incorporated type of company^[18] and bears the characteristics of a Limited Liability Company. The core characteristics of a Hong Kong Limited Company include: i) it requires a minimum of one shareholder and one director (can be the same person), ii) a Hong Kong company requires a company secretary resident in HK, iii) foreign ownership is allowed, iv) company shareholders have limited liability and v) the company must have registered HK address.

Entrepreneurs who register a company in Hong Kong can choose a Hong Kong offshore company. This company structure is basically a HK Limited Company but all business is conducted outside of Hong Kong. The advantage of this structure is that all business income that is sourced outside of Hong Kong is tax exempt.

Hungary[edit]

Hungarian legislation contemplates LLCs as Korlátolt felelősségű társaság. Companies working under this structure append the abbreviation Kft. to their name.^[19] Hungarian LLCs are required to have a 3 million HUF (Hungarian Forint) (approx. US$8,000) starting capital. The time of formation by the new electronic formation option has been reduced from 2 weeks to 2 hours, additional cost of formation is around 100,000 HUF (approx. US$270). Kft.s can be formed by the cooperation of lawyers.

The Hungarian Kft. is the most common form of doing business in Hungary. As being part of the European Union (EU), Hungarian Kft.s can now obtain an EU VAT registration number for doing business across the EU. The Hungarian EU-VAT reg. number starts with «HU». This way the existence of the subject company, VAT issues and the cross-check is available on the common EU website for companies.^{[citation needed]}

Iceland[edit]

According to Icelandic legislation, there are two main types of LLC forms, private and public held limited liability forms. Private LLC is abbreviated «Ehf.» The minimum capital of 500,000 Icelandic krónas (kr.). Public LLC is abbreviated «Hf.» with minimum capital of 4,000,000 kr.

India[edit]

Almost 93 percent of the companies incorporated in India are registered as Private Limited Companies.^{[citation needed]}

The Ministry of Corporate Affairs is the governing body which regulates all Private Limited Companies in India. The main law regulating Private Limited Companies is the Companies Act 2013.^[20]

Prior to 2015, the shareholders (known as members) had to pay a minimum of ₹1 lakh (equivalent to ₹1.3 lakh or US$1,600 in 2020) as a subscription amount to incorporate a private limited company.^[21] A private limited company can have at most 200 members. A company with one member is referred to as a One Person Company.^[22]

The Companies Act, 2013 is the regulating Act along with the Rules (Delegated Legislation), Notices, Circulars and Notifications issued by the Ministry of Corporate Affairs.

Iran[edit]

As of 2015, there are seven types of companies which can be registered under Iran’s company registration law. One of these seven types of companies and partnerships refers to LLPs. Like many other countries, two persons are required to form an LLP in Iran. Each person has his/her own shares and is responsible for business liability equivalent to his/her share percentage. LLPs in Iran are named according to the format illustrated by the following example: «Sherkat Ba Masooliyate Mahdood» translates as «Sherkat شرکت Company» + «Mahdood محدود Limited» + «Masooliyat مسئولیت Liability».

Italy[edit]

The Italian Civil Code, approved in 1942 and as amended by the Government Act 6/2003 and furthers modifications, mainly provides three forms of limited liability company:

• Società per azioni (S.p.A.): the minimum required starting capital for an SpA is €50,000.^[23] The capital is divided into shares (azioni) that can be transferred by endorsement or bought and sold on stock exchange. Only SpAs can be quoted in stock exchange market, issue corporate bonds, and other financial instruments. SpA form and a higher capital are required by law to operate in protected businesses (i.e. banks, leasing companies, etc.).
• Società a responsabilità limitata (Srl): the minimum required starting capital for an Srl is €10,000. Its capital is divided into stakes (quote) which can be bought or sold just by notarial act. Srls can issue corporate bonds but are subject to many limitations. Similar to the Srl is the Società Cooperativa a Responsabilità Limitata (Scarl) whose scope is not making profit but give benefits to stakes’ holders.
• Società in accomandita per azioni (Sapa): the minimum required starting capital for a Sapa is €120,000 divided into shares. Sapas have a mixed liability scheme, where standard shareholders have limited liability while managing shareholders have full liability. Except this, SAPAs are exactly like SPAs even if uncommon.

Companies append the corresponding abbreviation to their company names.

Japan[edit]

Japan passed legislation in 1996 creating a new type of business organization, godo kaisha (J-LLC), a close variant of the American LLC.^{[citation needed]} Japanese Tax authority does not consider J-LLC (Godo-Kaisha) a pass-through entity, but as a taxable entity.

Latvia[edit]

Limited liability company in Latvia is referred to as sabiedrība ar ierobežotu atbildību (SIA). SIA is taxed as a corporation. The minimum share capital required by law is €2,800.^[24] But it is allowed to set up SIA with share capital €1.00, but it must be increased to minimum share capital €2,800 by increasing share capital with money or by moving at least 25% from annual profit until capital will be €2,800.^[25]

Mexico[edit]

Mexican legislation contemplates LLCs as Sociedades de Responsabilidad Limitada (including Sociedades de Responsabilidad Limitada de Capital Variable), also known for their abbreviation «S. de R.L.» (or «S de R.L. de C.V.») (limited liability company or limited liability company with/of variable capital). S. de R.L.’s award limited liability to its members up to their contribution in the company (i.e., contribution of capital) and also act as pass-through or flow-through entities whereby profits are «passed-through» to its members, avoiding double taxation. This type of company is widely used by foreign investors in Mexico because of its «pass-through» modality and its «check the box» capability under the IRC (Internal Revenue Code of the U.S.).^{[citation needed]}

Moldova[edit]

Moldovan legislation contemplates LLCs as Societate cu Răspundere Limitată, abbreviated «S.R.L.», and are regulated member(s)-founder(s), and other non-founder members, minimum one member-founder and maximum total of 50 members, at least one of them must be the founder of the company, but all of the 50 could be also founders.^{[citation needed]}

North Macedonia[edit]

Macedonian legislation contemplates LLCs as Друштво со ограничена одговорност (Drushtvo so ogranichena odgovornost). Companies working under this structure append the abbreviation д.о.о. (d.o.o.) to their name. The minimum required starting capital for a d.o.o. is €5,000.

Norway[edit]

In Norway, the closest to an LLC is probably the kommandittselskap (KS). In a K/S there are two types of participants, one komplementar which is fully liable, and one or more kommandittist, with limited liability. There are minimum capital requirements. The KS is a tax-transparent company, which means the income «passes through» the company directly to the shareholders.

Pakistan[edit]

In Pakistan, LLCs are known as private companies that end (Local Liability Company) with Pvt. Ltd. They should have at least Rs. 100,000 as their minimum paid up capital.

The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for all listed companies to file their documents, returns, accounts and applications through the commission’s eServices online filing facility, earlier, this requirement was only applicable to the companies, which had been incorporated through eServices online filing facility.^[26]

Peru[edit]

There is no direct equivalent of an LLC in Peru, but some similar corporate forms include:

• Sociedad anónima cerrada (S.A.C.), a corporation which must have at least two and not more than twenty shareholders; its shares may not be offered to the public and cannot be traded on the stock exchange.
• Sociedad comercial de responsabilidad limitada (S.R.L.), a commercial partnership divided in equal participations which may not be called «shares». It must have at least two and not more than twenty partners.
• Sociedad civil de responsabilidad limitada (S. Civil de R. L.), a professional partnership of at least two and not more than thirty individuals, with co-owner participation in the form of capital, of professional contribution, or of any combination of both.
• Empresa individual de responsabilidad limitada (E.I.R.L.), a legal entity with one single owner.

The capital for any of the above entities is freely determined by its statutes. There is no minimum requirement except for entities with certain types of activities, mainly in the financial markets, and then irrespective of their type.^[27]

Poland[edit]

In Poland, a limited liability company is referred to literally as “company with limited liability” (spółka z ograniczoną odpowiedzialnością, legally abbreviated as sp. z o.o. (or sometimes Sp. z o.o. in particular names). Informally, in the Polish speaking slang, it is abbreviated as spółka zoo (pronounced with a long «o», as in «tow.»). However, sp. z o.o. has a (separate from its owners) legal personality, which gives it the ability to do certain actions under law, and it is considered a «corporation».

The minimum start capital is 5,000 PLN (since 2009; until then, 50,000 PLN).

Portugal[edit]

In Portugal, LLCs are called «Sociedades de Responsabilidade Limitada«, that is, «company of limited responsibility», usually abbreviated Lda.. They are tax subject, and company shares cannot be sold in a public market, since 2006 the transference of them is not required to be done in the presence of a civil law notary, except if the company owns buildings, in the same way other major properties have to be sold. Nonetheless, the responsibility of the partners is limited to the capital share they hold, and the minimum capital required by law for a Lda. of €5000.
(In 2006 the PS Government, led by José Socrates, did reduce the minimum capital to €1, but in 2011 the new PSD Government, led by Pedro Passos Coelho, reinstated the €5000 minimum capital.)
The capital is not required to be deposited at the time of the registration of the company, instead the share holders have until 31 December of the year the registry was made.^{[citation needed]}

Romania[edit]

Romania recognizes the limited liability company since 1990 under the name of societate cu răspundere limitată (S.R.L.), in which the owners are personally liable for the company obligations within the limit of their contribution to social capital. The minimum start capital is 200 RON which currently amounts to less than €50.^[28]

Russia[edit]

In Russia and certain other former Soviet countries, an entity with a somewhat similar structure is known as Общество с ограниченной ответственностью (Obshchestvo s ogranichennoy otvetstvennost’yu) (lit., «company with limited liability»), usually abbreviated OOO, or in some CIS countries as OcOO.^{[citation needed]}

Although a Russian limited liability company shares the same name with an American LLC, it is different in many ways. Most importantly, a Russian LLC is not tax transparent: the company is taxed at the corporate level, and then, upon distribution of dividends, shareholders pay income tax (personal or corporate).^{[citation needed]}

A limited liability company is the most popular form of legal undertaking in Russia for simple shareholding structures.^[29]

The minimum capital required is 10,000 Russian rubles.

Serbia[edit]

Serbia legislation contemplates limited company as Друштво са ограниченом одговорношћу but functioning it is more similar to limited partnership. For many other reasons for example as in the Czech Republic, a d.o.o. is not technically comparable to an LLC because the profits are still subject to double taxation. The minimum capital required by law is 100 RSD, which is currently less than €1. ^[30]

Slovakia[edit]

In Slovakia, the law contemplates spoločnosť s ručením obmedzeným (abbreviation spol. s r. o. or s. r. o.) or as the rough equivalent of a limited liability company. It is very popular form of business organization due to ensurance of limited liability in exchange for a relatively small investment into the registered capital. From one to 50 associates can found it through a founding agreement with minimum registered capital of €5000, minimum €750 per person, in money or other property. (§ 105–153 of Act. No 513/1991 Coll. – Commercial Code as amended.)^[31][32]

Slovenia[edit]

Slovenian legislation contemplates LLCs as družba z omejeno odgovornostjo. Companies working under this structure append the abbreviation d. o. o. to their name. The minimum required starting capital for a d. o. o. is €7,500. Due to the high cost and complicated bookkeeping of a real corporation, this is a more widespread form.^{[citation needed]}

Spain[edit]

In Spain, LLCs are called Sociedad de responsabilidad limitada (SRL), «company of limited responsibility», or sociedad limitada (SL), or «limited partnership». They are tax subject, and company shares cannot be sold in a public market, the transference of them having to be done compulsorily in the presence of a civil law notary, in the same way other major properties have to be sold. Nonetheless, the responsibility of the partners is limited to the capital share they hold, and the minimum capital required by law for a S.L. is at least €3,000.

Sweden[edit]

Sweden has no equivalent of an LLC. The closest company form is the handelsbolag (lit.: «trade company»). The Swedish AB (aktiebolag; lit.: «share company»), like the handelsbolag, is a tax subject and is more similar to a US C Corporation than an LLC. The minimum capital required by law in a private company, privat aktiebolag, is SEK 25,000, although this may be in the form of assets as well as capital. The AB structure requires shareholders, a Board of Directors, and regular meetings of both, together with complete accounts once per year. Depending on the size of the AB, the accounts may have to be audited. Creation or purchase «off-the-shelf» of an AB is relatively cheap and tax effective, but liquidation of a created aktiebolag can be an expensive and time-consuming operation.^[33] Creation of public limited liability companies, or publikt aktiebolag, which can raise capital from the public, requires a minimum capitalization of SEK 500,000, however the overall regulation of public companies in Sweden, especially regarding accounting methods and taxes, is thorough and detailed.^[34]

Switzerland[edit]

The Swiss Code of Obligations^[35] provides for different kinds of companies with limited liability, the two most commonly used are:

Swiss Limited Liability Company:^[36][37] The terms for this kind of company used in the three official languages of the Swiss Confederation are as follows: In German Gesellschaft mit beschränkter Haftung (abbreviation: GmbH), in French Société à responsabilité limitée (abbreviation: S.à r.l. or SARL) and in Italian Società a Garanzia Limitata (abbreviation: SaGL). A Swiss LLC is similar to an LLC with respect to various matters, including the following: Members may also be natural persons, corporations, partnerships or other LLCs,^[38] the liability of a member of a Swiss LLC to pay for the LLC’s obligations is limited to its capital contribution,^[39] a Swiss LLC may be either member-managed or manager-managed,^[40] and, unless otherwise provided for in the operating agreement, the members’ right to control or manage a Swiss LLC is proportionate to their individual membership interest.^[41] The membership interests in a Swiss LLC have to be registered^[42] and, thus, they may only be issued in the name of a member but not to the bearer.

Swiss Corporation^[37][43] (in English common law context usually translated as company limited by shares): The terms for this kind of company used in the three official languages of the Swiss Confederation are as follows: In German Aktiengesellschaft (abbreviation: AG), in French Société Anonyme (abbreviation: SA) and in Italian Società Anonima (abbreviation: SA). A Swiss corporation is with respect to various matters different from an LLC (including a Swiss LLC): Most important is that a Swiss corporation may, neither by default nor by exercising any respective option provided by the Swiss law, be member-managed like an LLC, as the respective mandatory provisions of Swiss law provide that the board of directors has certain non-transferable duties.^[44] Furthermore, the shares of a Swiss corporation may also be issued to the bearer (bearer shares)^[45] and, thus, not only in the name of a holder (registered shares), which, however, applies to the membership interests in a Swiss LLC, which may only be registered.

Tajikistan[edit]

In Tajikistan, the same as in Russia, an entity with a somewhat similar structure is known as «Ҷамъияти дорои масъулияти маҳдуд», Chamiyti Doroi Masuliyti Machdud, abbreviated as «ҶДММ».

Thailand[edit]

Most kinds of commercial organisations with an annual turnover of more than ฿1,800,000.00 are supposed to register a Limited Company with verified capital of at least ฿1,800,000.00 and pay VAT sales tax.^[46]
The process of incorporation is however complex and needs to be prepared by an accredited law firm or accountant. It includes the registration for VAT. The company registration number is the same as the Tax ID number which must then figure on all invoices and sales receipts with VAT breakdown shown separately. For most purposes, foreign nationals are not permitted to be share holders or declared board members although there are exceptions for very high level investors.

Turkey[edit]

Minimum capital should be 10,000 TL. That capital could be the minimum total capital of company. Number of founding shareholders (real persons or legal entities) could be minimum 1 and maximum 50. All or some of the shareholders could be foreign nationals. There is no issued stock certificates and all shareholders liability is limited to their registered capital amount. 1/4 of capital should be blocked in a Bank until procedure of registration ends. The equivalent of LLC for Turkish is Ltd. Şti. (Which means Limited Şirketi.)

Ukraine[edit]

This type of entity has existed in Ukraine since the 1990s. LLC is the most common type of business entity in Ukraine.^[47] In Ukrainian, it is spelled «Товариство з обмеженою відповідальністю» (abbreviated – TОВ, TзОВ), in transliteration «Tovarystvo z Obmezhenoyu Vidpovidalnistyu,» that is, «company with limited liability».

By Ukrainian law LLC is a legal person. Authorized capital of LLC is divided into shares (or stakes), the amount of which is determined by the charter. LLC is responsible to the creditors only with its assets. Legal entities (foreign or Ukrainian companies) individuals, regardless of their country of citizenship or residency can be the founders (participants) of LLC. Limited liability company can be formed either by one person or by several individuals or legal entities (corporations). Maximum number of participants (founders) of LLC in Ukraine is 100. Since 2014 registration procedure has been significantly simplified in Ukraine. Minimum amount of authorised capital is 1 (one) hryvnia (less than 0,04 US cents). There is no state fee for LLC formation.

By Ukrainian Law LLC dividend payment is possible after the declaration of company’s income or profit to the fiscal/tax authorities and the approval of the income statement.^[48] Thus, regardless of the tax system, LLC can make dividend payments up to 4 times a year, or one time a quarter.

Taxation. LLC can be registered:

— as corporate/profit tax (18% rate) with or without VAT (up to 20% rate, depends on product or service) tax payer;

— fixed tax rate (in transliteration «yediniy podatok» or «sproschena sistema opodatkuvannia») is a 5% rate from revenue, with or without (on request) VAT registration.

United Arab Emirates[edit]

A Limited Liability Company (LLC) is the most common type of registration in the UAE and is recommended where the purpose of the entity is to make sales within the region. 100% foreign ownership of such an entity is not permitted.
Under the UAE Commercial Companies Law (CCL), foreign investors are permitted to hold up to 49 per cent equity ownership in UAE companies and 51 per cent of the equity must be held at all times by one or more UAE nationals. In accordance with Article (218) of the CCL a Limited Liability Company can be formed by a minimum of 2 and a maximum of 50 shareholders whose liability is limited to their shares in the capital of the company. Recent amendments to Article (217) of the CCL that came into force in June 2009 removed the requirement for minimum share capital (previously AED 300,000 in Dubai and AED 150,000 in other Emirates) allowing founders of a limited liability company the freedom to determine the company’s share capital which could be less than the earlier prescribed bottom line. Shares of an LLC are not open for subscription by the public.^[49] Despite the split in shareholdings, profits may be divided in other ratios agreed upon, taking into consideration efforts of foreign partners in management, provision of technology or expertise. Responsibility for the management of a LLC can be vested in the foreign partner or UAE national partners or a third party. A LLC must appoint a minimum of one manager and up to a maximum of five managers for the business. Managers must be appointed by a Memorandum of Association or by a management contract, for a fixed term or an unlimited term. Unless the Memorandum of Association states otherwise, the manager has full powers of administration and management of the LLC.
LLC is not allowed to practice its activities in the UAE without a Trade License and Commercial Registration Certificate.

^[50]

United Kingdom[edit]

The new form of limited liability partnership (LLP), created in 2000, is similar to a US LLC in being tax neutral: member partners are taxed at the partner level, but the LLP itself pays no tax. It is treated as a body corporate for all other purposes including VAT. Otherwise, all companies, including limited companies and US LLCs, are treated as bodies corporate subject to United Kingdom corporation tax if the profits of the entity belong to the entity and not to its members.

United States[edit]

In the United States, the term «privately held company» can either refer to a limited liability company or a corporation. By default, all corporations are privately held. Corporations have to get permission from the Securities and Exchange Commission (SEC) to offer shares to the public. As a result, all newly formed corporations are automatically classified as privately owned.

One of the big differences between a limited liability company (LLC) and a corporation is that a corporation can issue stock and an LLC cannot.

A limited liability company (LLC) is a relatively new business structure authorized by state statutes.^[51] The LLC is chiefly inspired by the GmbH («Company with limited liability»), a type of business organization in Germany, and by the limitada, a type of business organization available in many Latin American countries.^[16]

In the United States, the first limited liability company act appeared in Wyoming in 1977 as special interest^[52] legislation for an oil company.^[53] In 1980, the Internal Revenue Service issued a private letter ruling to an LLC formed under the Wyoming LLC Act, indicating that the IRS would treat the LLC as a partnership for federal tax purposes.^[54] However, later that year, the IRS proposed regulations that would deny partnership classification to any business entity in which no member bore personal responsibility for the entity’s liabilities.^[55] In 1982, Florida adopted an LLC act modeled on Wyoming’s LLC Act.^[56] Due to uncertainty over the tax treatment of LLCs, no other states introduced LLC legislation until after 1988.^[57] In 1988, the IRS issued a revenue ruling stating that it would treat a Wyoming-style LLC as a partnership for tax purposes.^[58] By 1996, nearly every state had enacted an LLC statute.^[59] The National Conference of Commissioners on Uniform State Laws adopted the Uniform Limited Liability Company Act in 1996 and revised it in 2006.^[60]

A potential disadvantage specific to the United States is that LLCs are not considered to be corporations for the purposes of federal civil procedure; they are instead treated as partnerships. This affects the applicability of diversity jurisdiction in cases involving LLCs, barring application of diversity jurisdiction when even one member of the LLC is a citizen of the same state as one of the opposing parties. Should one member of an LLC be a citizen of a state of which one of the opposing parties is a citizen, any case between the LLC and those parties must be heard in that state’s courts; corporations enjoy a more complete legal personhood that only denies diversity jurisdiction when the opposing party is a citizen of the state in which the corporation is incorporated (most commonly Delaware for large corporations, which has a small population) or has its principal place of business.

AOL was set up as an LLC during its ownership by Time Warner from 2001 to 2008. There is a similar setup for BMW’s American subsidiary, BMW of North America, LLC. Chrysler has been an LLC since restructuring during the auto industry bailout of 2009, owned by Fiat Chrysler Automobiles N.V.

See also[edit]

• Besloten vennootschap met beperkte aansprakelijkheid, a Belgian (bvba) and Dutch (bv) private limited company
• Société à responsabilité limitée, LLCs in French speaking countries
• Incorporation (business)
• Limited Liability Partnership (LLP)
• List of company registers
• Types of business entity
• Wholly Foreign-Owned Enterprise

References[edit]

1. Обществом с ограниченной ответственностью (далее — общество) признается созданное одним или несколькими лицами хозяйственное общество, уставный капитал которого разделен на доли; участники общества не отвечают по его обязательствам и несут риск убытков, связанных с деятельностью общества, в пределах стоимости принадлежащих им долей в уставном капитале общества.

Участники общества, не полностью оплатившие доли, несут солидарную ответственность по обязательствам общества в пределах стоимости неоплаченной части принадлежащих им долей в уставном капитале общества.

(п. 1 в ред. Федерального закона от 30.12.2008 N 312-ФЗ)

(см. текст в предыдущей редакции)

2. Общество имеет в собственности обособленное имущество, учитываемое на его самостоятельном балансе, может от своего имени приобретать и осуществлять имущественные и личные неимущественные права, нести обязанности, быть истцом и ответчиком в суде.

Общество может иметь гражданские права и нести гражданские обязанности, необходимые для осуществления любых видов деятельности, не запрещенных федеральными законами, если это не противоречит предмету и целям деятельности, определенно ограниченным уставом общества.

Отдельными видами деятельности, перечень которых определяется федеральным законом, общество может заниматься только на основании специального разрешения (лицензии). Если условиями предоставления специального разрешения (лицензии) на осуществление определенного вида деятельности предусмотрено требование осуществлять такую деятельность как исключительную, общество в течение срока действия специального разрешения (лицензии) вправе осуществлять только виды деятельности, предусмотренные специальным разрешением (лицензией), и сопутствующие виды деятельности.

3. Общество считается созданным как юридическое лицо с момента его государственной регистрации в порядке, установленном федеральным законом о государственной регистрации юридических лиц.

Общество создается без ограничения срока, если иное не установлено его уставом.

4. Общество вправе в установленном порядке открывать банковские счета на территории Российской Федерации и за ее пределами.

5. Общество вправе иметь печать, штампы и бланки со своим наименованием, собственную эмблему, а также зарегистрированный в установленном порядке товарный знак и другие средства индивидуализации. Федеральным законом может быть предусмотрена обязанность общества использовать печать.

Сведения о наличии печати должны содержаться в уставе общества.

(п. 5 в ред. Федерального закона от 06.04.2015 N 82-ФЗ)

(см. текст в предыдущей редакции)

From Wikipedia, the free encyclopedia

A private company limited by shares is a class of private limited company incorporated under the laws of England and Wales, Hong Kong, Northern Ireland, Scotland, certain Commonwealth jurisdictions, and the Republic of Ireland. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company.

«Limited by shares» means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholder’s personal assets are thus protected in the event of the company’s insolvency, but any money invested in the company may be lost.

A limited company may be «private» or «public». A private limited company’s disclosure requirements are lighter, but its shares may not be offered to the general public and therefore cannot be traded on a public stock exchange. This is the major difference between a private limited company and a public limited company. Most companies, particularly small companies, are private.

Company officers[edit]

In the United Kingdom, every company must have formally appointed company officers. By statute, a private company must have at least one director and until April 2008 also had to have a secretary. The company’s articles of association may require more than one director. At least one director must be an individual, not another company.

Anybody can be a director, subject to certain exceptions. A person who is yet to be discharged from bankruptcy^[1] or who has been banned from being a company director by the court will be prohibited, except in certain cases. For example, if the bankrupted person had requested details of share transactions because there was sufficient equity within the business/es that had not been dealt with sufficiently by the court, they are technically not bankrupt and are permitted to start a company. In addition, natural persons must have the legal capacity to consent to their appointment as director of a limited company. As of October 2008, the minimum age required to give this consent is 16 years of age. This change was applied retroactively, with any directors under the age of 16 being removed from the register upon the implementation of the Companies Act 2006. This was already the case in Scotland, under the Age of Legal Capacity (Scotland) Act 1991.

No formal qualifications are required to be a company director or secretary, but the company must comply with many laws and regulations, regardless of such qualifications or the lack of them.

Certain non-British nationals are restricted as to the work they may undertake in the UK, depending upon their visas, work permits, national insurance payments center location and tax details, training, English language and professional indemnity insurances.

As of October 2008 (Companies Act 2006), it is no longer necessary to obtain a court order to withhold a director’s address, as a «service address» can be supplied as well, with the residential address being held as protected information at Companies House.

[edit]

When a limited company is formed it must issue one or more subscriber shares to its initial members. It may increase capitalisation by issue of further shares. The issued share capital of the company is the total number of shares existing in the company multiplied by the nominal value of each share.

A company incorporated in England and Wales can be created with any number of shares of any nominal value, expressed in any currency. For example, there may be 10,000 shares with a nominal value of 1p, or 100 shares of £1 each. In each case the share capital would be £100.

Unissued shares can be issued at any time by the directors using a Form SH01 — Return of Allotment of Shares (Companies Act 2006 § 555) subject to prior authorisation by the shareholders.

Transfers of shares in a private company usually occur by private agreement between the seller and the buyer, as they may not be offered to the general public. A stock transfer form is required to register the transfer with the company. The articles of association of private companies often place restrictions on the transfer of shares.

Company accounts[edit]

A company’s first accounts must start on the day of incorporation. The first financial year must end on the accounting reference date, or a date up to seven days either side of this date. Subsequent accounts start on the day following the year-end date of the previous accounts. They end on the next accounting reference date or a date up to seven days either side.

If a company’s accounts are delivered late there is an automatic penalty which is between £150 and £1,500 for a private company.

The first accounts of a private company must be delivered:

• within nine months of the end of the accounting reference period; or
• if the accounting reference period is more than 12 months, within 22 months of the date of incorporation, or three months from the end of the accounting reference period, whichever is longer.

A company may change its accounting reference date by sending Form 225 to the Registrar.

Confirmation statement (previously the annual return)[edit]

Every limited company must file annually a confirmation statement, which confirms that its information at Companies House is correct. To help companies meet this filing requirement, Companies House may send a pre-printed «shuttle» form to each company’s registered office several weeks before the anniversary of incorporation. The form shows the information that has already been given to Companies House. Companies House may also send an email reminder on the due date (annual review period date). This statement must be filed no later than 14 days after the due date, and can be filed online using a Companies House service.^[2]

Company Tax Return[edit]

A private company limited by shares must also file for every financial year a Tax Return with HMRC. By using a government online service, this can be done at the same time as delivering the accounts to Companies House. The deadline for delivering the return is 12 months after the accounting period ends.^[3]

Registered office[edit]

Every company must have a registered office, which does not need to be its usual business address; it is often the address of the company’s lawyers or accountants. All official letters and documents from government departments (including HMRC and Companies House) will be sent to this address, which must be shown on all official company documents. The registered office can be anywhere in England and Wales, or Scotland if the company is registered there.^[4]

Formation[edit]

To incorporate a company in the UK, the following documents, together with the registration fee (£10–£40^[5]), must be sent to the Registrar of Companies:

• Form IN01
• The articles of association
• The memorandum of association

The memorandum of association states the name of the company, the registered office and the company objectives. The objective of a company may simply be stated as being to carry out business as a general commercial company. The memorandum delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

The articles of association govern the company’s internal affairs. The company’s articles delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

Form IN01 states the first directors, the first secretary, and the address of the registered office. Each director must give his or her name, address, date of birth, and occupation. Each officer appointed, and each subscriber (or their agent), must sign and date the form.

Applications may also be submitted directly to Companies House and HMRC online via the GOV.UK website for £12.^[6]

In other jurisdictions companies must make similar applications to the relevant registrar, such as the Companies Registration Office, Ireland in the Republic of Ireland, or the Registrar of Companies^[7] in India.

Additional information[edit]

Redundant companies[edit]

Private companies that have not traded or otherwise carried on business for at least three months may apply to the Registrar to be struck off the register. Alternatively, the company may be voluntarily liquidated.

Converting to a public limited company[edit]

A private company limited by shares, or an unlimited company with a share capital, may re-register as a public limited company (PLC). A private company must pass a special resolution that it be so re-registered and deliver a copy of the resolution together with an application form 43(3)(e) to the Registrar.

See also[edit]

• Private company limited by guarantee
• Privately held company
• Limited liability company (LLC)
• Gesellschaft mit beschränkter Haftung (GmbH)
• Aktiengesellschaft (AG)/others

References[edit]

External links[edit]

• Companies Act 2006, Office of Public Sector Information.