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Understanding Different Company Roles

Learn about directors, shareholders, and other key roles in a limited company.

 Different types of companies have different key roles. Here's a brief outline of these roles in three common company structures:

Companies Limited by Shares

This type of company is owned by shareholders who invest money and own the company.

  • Shareholders: Own all (or part) of the company by holding shares.
  • Directors: Manage the company's daily affairs.
  • Persons with Significant Control (PSCs): Have significant influence over the company, typically owning over 25% of shares or voting rights.
  • Secretaries (optional): Not required, but can help with legal and administrative tasks.
 

Companies Limited by Guarantee

These companies are supported by guarantors rather than shareholders.

  • Guarantors: Pledge to support the company financially up to a specified limit.
  • Directors: Manage the company's daily affairs.
  • Persons with Significant Control (PSCs): Have significant influence over the company
  • Secretaries (Optional): Assist with administrative duties.
 

Limited Liability Partnerships (LLPs)

LLPs are partnerships where some or all partners have limited liabilities.

  • Member: Participates in the business, shares profits, and has limited liability for the company's actions.
  • Designated Member: Holds the same responsibilities as members, plus crucial administrative tasks like legal filings and compliance.
  • PSCs: Individuals or entities with significant control over the partnership.
    • Note: An LLP must have a minimum of two designated members at all times.
 

Each company type has a unique structure with roles that contribute to its management and legal operations.

Specialist Company Types

 

Special Purpose Vehicles (SPVs)
SPVs are companies set up for a specific, limited purpose - often used in property investment or structured finance. They usually require appropriate SIC codes to reflect their activities. These are typically:

  • 68209 - Other letting and operating of own or leased real estate: Primary code for holding buy-to-let properties.

  • 68100 - Buying and selling of own real estate: Ideal for "flipping" properties or property development.

     

  • 8320 - Management of real estate: Often used if the company is managing its own properties or acting on a fee basis.

     

  • 8310 - Real estate agencies: Suitable for property sourcing or deal packaging businesses. 

 

Community Interest Companies (CICs)
CICs are designed to benefit the community rather than private shareholders. We do not assist with CIC formations. More information can be found here.

 

Charities
Charities operate for charitable purposes and must meet specific regulatory requirements. We do not assist with charity registrations. More information can be found here.