What is a Private Unlimited Company?
In a Private Unlimited Company in the UK there is no limit to the amount the directors or members need to pay if the company fails and has to be shut down.
This compares to a Private Company Limited by Shares where the liability of a shareholder is limited to the amount unpaid on their shares, and a Private Company Limited by Guarantee where the liability of the guarantors is valued up to the amount they are willing to contribute to the assets.
Private Unlimited Companies also are not bound by law to submit annual accounts to Companies House.
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.