company

A company is a separate legal entity to its shareholders and directors, and has its own legal personality.

Companies are often by the authority vested in the Registrar of Companies (trading as Companies House) pursuant to the Companies Acts, but also by special Act of Parliament or by Royal Charter.

There are different types of companies, and they are:

1. a private company limited by shares;
2. a private company limited by guarantee;
3. a private company limited by guarantee but also having share capital
4. a public company and
5. an private unlimited company.

Public companies are always limited by shares and may be unlisted or listed. 'Listed' is a reference to a listing on a stock exchange, for instance the London Stock Exchange.

Companies must clearly display their name outside every office or place where it conducts it business, even where it is a director's home.

The company name, including the suffix 'Limited', 'Ltd', 'public limited company', or 'Plc' as the case may be, on letters, notices, publications, cheques, orders, parcels, invoices, receipts, amongst others. As well as this, the address of the registered office and its place of registration must also be shown, such as, 'Registered in England'. 'Limited' is a reference to the limited liability of the company. 

Under UK law, other criterion apply where the company is involved in certain activities, such as investment and charitable companies.

Companies that are not longer in use may be voluntarily struck off the Register of Companies, or placed into voluntary liquidation. The difference is that when a company is struck off the register, the assets of the company are bona vacantia, as opposed to voluntary liquidation, where the proceeds of the assets are distributed to the shareholders.

Usage: The company was formed by the two subscribers.

Related Words: private company; public company; limited liability; separate legal personality; shareholders; directors; company secretary; corporate veil; voluntary liquidation; bona vacantia; subscribers; partnership; sole trader; unincorporated association; limited liability partnership.