The most popular form of company running in Great Britain is limited company.
What kind of copartnership is it? Why is is so profitable for entrepreneurs?
What differentiates limited company?
British limited company copartnerships are a little bit similar to Polish copartnerships with limitation of liability. Their basic feature is business entities have their own legal personality. For business associates copartnership’s fortune (their assets) is a protection of company’s obligations. Copartnership limited company which has got its own legal personality takes responsibility for its debts without any pre-established limit. Thanks to that members of copartnership do not take responsibility for its backlog with their private fortune.
What happens in the case of bankruptcy?
Limited responsibility of limited company members does not mean that for unprofitable decisions leading to bankruptcy they will not suffer financial consequences. They will have to pay certain sums. Directors of copartnerships company limited by shares in case of bankruptcy have to pay outstanding sums for shares. Directors of company limited by quarantee will have to pay quarantee sums. This kind of amounts are to be declared at the stage of copartnership establishing.
Difference between limited comapny and self – employed
Directors of copartnership limited company are in better situation than entrepreneurs running their own business in Great Britain called self- employed. Traditional business does not have its own legal personality. Creditors can easily seize his private fortune.
Another difference is in counting and paying taxes. Maintaing limited company taxes is quite complicated. The best solution is to use offer of professional accounting offices which specialises in this kind of accountancy.
You should know that limited companies have to pay taxes depending from company’s income. Separate payroll tax has to be paid by company’s directors. Combined sum of copartnerships’ and directors’ taxes is however lesser than traditional business running tax.
