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Company_Structures

Setting up a business

There are many types of business entity defined in the legal systems of various countries. These include partnerships, sole traders, and limited companies.

Many large business in the UK are Public Limited Company.

Public Limited Company

A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares).

Public limited company and its abbreviation Plc are commonly used in the UK in the way that corporation and Inc. is used in the United States.

Sole trader or sole proprietor

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts.

Partnership

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

Private Limited Company

A type of company that offers limited liability to its shareholders but that places certain restrictions on its ownership.