What is a Private Company Limited by Shares?

A company that has had shares issued but whose shares are not for sale to the general public.

In a UK private company limited by shares, the liability of a shareholder is limited to the amount unpaid on their shares. In other words if a director or shareholder holds 1 share with a value of £1 their financial liability would be  £1.

For a more detailed view of the characteristics of the different types of company that can be formed in the UK take a look at our Basics of Business™ blog article.

Or if you're ready to form a private company limited by shares now you can start your new business journey right now. We'll guide you every step of the way!