Limited Company
A limited company is a legal corporate structure for a business. The profits of a limited company pass through to you and your shareholders; you are then obligated to report them on your personal income taxes. Shareholders in a limited company have limited liability for the company's actions. For instance, if a bystander is injured on company property, the business may be targeted but the injured party cannot target the company's shareholders in a lawsuit.
The main types of company in the U.K. are the private limited company and the public limited company. Private limited companies can have one or more shareholders but cannot offer shares to members of the public. Public limited companies can issue shares, which are traded on a stock market. A limited company can be set up easily, but it can be tricky to run, as related statutes and laws are constantly changing. Other Commonwealth countries have similar business structures, and the complexity of setting up a company varies. In India, the process is fairly laborious, and foreign firms often hire an intermediary to expedite it.
