If you are to form a limited company in the UK, you have to update yourself with some important information. To begin with, the company should be registered with the Companies House that will set some rules and regulations. The applicant should go through the formalities and benefits of starting a Limited company comply with all the dos and don’ts.
In order to form a limited company, the prospective businessman must state that it is a public ltd. company both in its memorandum and in its name. In this regard, the memorandum must contain a clause stating that it is a public ltd. company. It also says that the name of the company must end with ‘Public Limited Company’ or ‘PLC’. In case it is a Welsh company, the Welsh version ‘Cwmni Cyfyngedig Cyhoeddus’ or ‘CCC’ is to be used.
If the businessman want to form a limited company that is also a community interest company (CIC) then the name of the company must end with ‘community interest public limited company’ or ‘community interest plc’. The Welsh equivalents ‘cwmni buddiant cymunedol cyhoeddus cyfyngedig’ or ‘cwmni buddiant cymunedol c.c.c’ is to be used if the company is incorporated in Ireland.
After you form such a company, you can decide whether its members’ liability will be limited by shares or not. In this regard, the memorandum of association that is one of the documents by which the company is formed states that the amount of share capital the company will have and the division of the share capital into shares of a fixed amount.
Company law concerned with company formation says that the members must agree to take some, or all, of the shares when the company is registered. It is also said that the memorandum of association must show the names of the people who have agreed to take shares and the number of shares a person will take.