Certificate of Incorporation of a Private Limited Company

A company is a separate legal entity governed by the Companies Act, which conducts activities on its own behalf and is distinct from the persons who own and control it. The shareholders are the owners and control the company, but their liability in relation to the company's creditors is limited. Incorporation is the process by which the company is entered on the register at the Companies Registry, and thereby comes into existence as a separate legal person. A Certificate of Incorporation will be sent to the company by the Companies Registry on first incorporation and on any change of name.

Limited Companies - limited by shares.
This is the type of company commonly used for forming a small business. This will have limited liability - if the company fails there is no claim on the assets of the shareholders (beyond their original investment). Shares are issued and directors are appointed by the shareholders (often the same people in a small business).

The purpose of this type of company is to trade and make profits. These profits can be retained in the business to fund future growth or distributed to shareholders as dividends.

Normal commercial trading purposes
Suits the majority of requirements in the UK
Can undertake any nature of business
Can operate anywhere in the world
Members have limited liability
Can have a sole director and sole shareholder
Must also have a company secretary - there must be at least two separate officers (director/secretary)
Can have corporate officers
Recent changes to corporation tax make LTD companies advantageous to most businesses
Own choice of name
Can be incorporated in most circumstances within 24 hours

Read more about Benefits of English Limited Company