The words `business’ and `company’ are often misunderstood. Basically if you’re trading as either a sole trader or a partnership, you are a business, and if you have a company you will either have a public company or a limited company.
A public company
A public company will have PLC after its name.
To form a PLC you must have an authorised share capital of at least £50,000 of which at least one quarter must be paid on each share plus any premium. This means you would need a minimum of £12,500 (a quarter of £50,000) to form one.
Every public company must have two directors and a company secretary.
A private company
When you form a private company you do not need to have an authorised share capital of £50,000 to form your company.
Neither do you need to have two directors, but you do need to have a company secretary. If you have only one director this person cannot also act as company secretary. Therefore as a minimum you will need a director and company secretary.
The director and company secretary can be related, for example husband and wife.
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