Many of the larger businesses in the UK are public limited
companies which means that the public is able to buy and sell
their shares on the Stock Exchange. Such companies have the
letters plc after their name, and examples include Marks and
Spencer, Guinness and the National Westminster Bank. However,
since the minimum share capital for a public limited company is
50000 pounds, this makes it an unsuitable choice for small
businesses, which are more likely to take one of the following
forms:
Sole Trader or Sole Proprietor This is the simplest way of a
starting a business. You are self-employed and entirely
responsible for all aspects of running your own business. This
is especially suitable for small retail businesses.
Partnership When two or more people want to start a business
together they can set up a partnership and agree on how the
business will be operated. All partners are responsiblefor the
debts of the partnership and profits and losses are shared
between them.
Private Limited Company A company can be formed with a minimum
of two people becoming its shareholders. In order to establish
such a company, specific administrative procedures must be
followed. For example, the shareholders must appoint a director
and a company secretary. If the company goes out of business the
responsibility of each shareholder is limited to the amount of
money that they have contributed. A private limited company has
the letters Ltd. (Limited) after its name.
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