Do you need to form a limited company? Then you’re probably wondering how many people you’ll need to get that company started.
Let’s take a look.
Depending on the type of company being incorporated, you will need 1 or 2 people
There are a number of company types that sit under the limited company banner:
- Private companies limited by shares (the most common structure)
- Private companies limited by guarantee (typically used by not-for-profits)
- Limited liability partnerships (for partnerships, such as accountants, dentists, etc.)
- Public limited companies (for companies that wish to trade on the stock exchange)
Each structure has slightly different Companies House (the UK’s registrar of companies) requirements when it comes to the necessary appointments.
Private companies limited by shares – 1 person
To form a company limited by shares you need a minimum of one person.
This individual can fill all the necessary roles within the company, this being director (the person in charge of the general running of the business), shareholder (the owner of the company), and person with significant control (PSC – the person who holds ultimate control of the company).
However, more than one person can be involved in the company if you wish. Different individuals can take on different roles, or more than one person can hold each role – it’s totally up to you.
Limited by guarantee companies – 1 person
To form a limited by guarantee company you need a minimum of one person.
This individual can fill all the necessary roles within the company, this being director, member (this is the limited by guarantee version of a shareholder, they are also known as guarantors), and PSC.
Like the limited by shares structure, these roles can be taken on by one person or shared amongst multiple people.
Limited liability partnerships (LLP) – 2 people
To form a limited liability partnership you need a minimum of two people.
These will both need to be designated members. You will also need a PSC – who can be one of the designated members or someone else.
You can also appoint non-designated members in the LLP, provided two designated members are in place. Designated members have extra legal responsivities when compared to non-designated members, such as filing the LLP accounts.
Public limited companies (PLC) – 2 people
To form a public limited company you need a minimum of two people.
These will both need to be directors. You will also need at least one shareholder, this can be one of the directors or someone else.
Ready to form a limited company?
Our company formation process makes setting up your limited company simple, regardless of the structure that you wish to move forward with.
Our online system will guide you through the process and request all the necessary information that’s required to get your application accepted by Companies House.
If you do have any questions, our team will be on hand to help.
Visit the appropriate link below to get started:
Thanks for reading
Please leave a comment if you have any questions on how to form a limited company and we’ll be happy to help.