Definition
What is a Registered Company?
A registered company refers to a business entity that has been incorporated and registered in England, Wales, or Scotland with the Registrar of Companies. This process grants the company a distinct legal identity separate from its owners. A registered company can be structured in various forms, including a limited company (either by shares or by guarantee) or an unlimited company, and can either be private or public.
Examples
- Limited Company (Ltd): This is a common type of registered company where the liability of the shareholders is limited to the capital they invested.
- Public Limited Company (PLC): Here, the company can raise capital by selling shares to the public, and the liabilities of the shareholders are also limited.
- Unlimited Company: This type of registered company does not limit the liability of its members or shareholders.
- Private Company: Such companies are owned by a small group of investors and shares are not available to the general public.
- Public Company: Companies whose shares can be traded publicly on the stock market.
Frequently Asked Questions (FAQs)
Q1: What is the role of the Registrar of Companies?
A1: The Registrar of Companies is a government body responsible for the incorporation, regulation, and dissolution of companies. They maintain a public register of all registered companies.
Q2: Can a registered company be both limited and public?
A2: Yes, a company can be a public limited company (PLC), where it is limited by shares, yet its shares are available to the public.
Q3: Are there any geographic restrictions for a registered company in the UK?
A3: Yes, a registered company is generally required to have an address in England, Wales, or Scotland, where it is registered.
Q4: What are the benefits of having a company registered with the Registrar of Companies?
A4: The benefits include legal recognition, limited liability for owners, access to capital markets, credibility with clients and suppliers, and perpetual succession.
Related Terms
- Limited Company
- Definition: A company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed.
- Unlimited Company
- Definition: A company whose members or shareholders have unlimited liability towards company debts.
- Private Company
- Definition: A company that is not listed on a public exchange and is owned privately by a select group of investors.
- Public Company
- Definition: A company whose shares are traded on public stock exchanges and can be purchased by the general public.
- Incorporation
- Definition: The process of legally declaring a corporate entity as separate from its owners.
- Shareholder
- Definition: An individual or entity that owns shares in a company.
- Registrar of Companies
- Definition: The government authority responsible for maintaining the company register and overseeing company incorporation and dissolution.
Online References
- Companies House (UK)
- GOV.UK: Set Up a Private Limited Company
- The Institute of Directors (IoD): Guide to Company Formation
Suggested Books for Further Studies
- “Company Law” by Alan Dignam and John Lowry - A comprehensive guide to UK company law.
- “Business Law” by James Marson and Katy Ferris - An introduction to business law focusing on UK practices.
- “Mayson, French & Ryan on Company Law” by Derek French, Stephen Mayson, and Christopher Ryan - An authoritative text on company law essential for understanding the complexities of registered companies.
- “Company Law in Practice: The Question & Answer Series” by Stephen Griffin - An excellent resource for practical insights into company law and procedural aspects.
- “Blackstone’s Statutes on Company Law” edited by Derek French - A useful collection of statutory materials for anyone studying or practicing company law.
Accounting Basics: Registered Company Fundamentals Quiz
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