Intellectual Property Office
February 3
14:30
2025
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A limited company is a company limited by shares or limited by guarantee.
Limited by shares
Limited by shares companies are usually businesses that make a profit. This means the company:
- is legally separate from the people who run it
- has separate finances from your personal ones
- has shares and shareholders
- can keep any profits it makes after paying tax
Limited by guarantee
Limited by guarantee companies are usually not for profit. This means the company:
- is legally separate from the people who run it
- has separate finances from your personal ones
- has guarantors and a guaranteed amount
- invests profits it makes back into the company