Limited Company Structure: Everything You Need to Know
A limited company structure is a separate legal entity with the authority to run a business and is governed by company law.3 min read
A limited company structure is a separate legal entity with the authority to run a business and is governed by company law. With a limited company, the liability is limited to the company with shareholders liable for their share of capital.
About a Limited Company Structure
Several factors are in place regarding a limited company structure. These are:
- There must be at least two directors. This is in effect for a private limited company. For a limited company, there must be a minimum of three directors. One director is required for a one-person company.
- A company secretary must be selected (this person can be a director or outside agent).
- It can be created from scratch or "off-the-shelf."
- The name of the company must be approved and registered with the Registrar of Companies before doing any business. This requires the filing of the Memorandum of Association and the Articles of Association, which includes a Certificate of Incorporation.