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There are typically 04 ‘standard’ types of companies in the UK, not including some specific types of non-standard, and each operates and serves different purposes. Due to the way they are managed, who owns them, and how much liability they bear, companies are categorized into distinct classes. Some of the common types of companies in the UK include:

  1. Public limited company (PLC)
  2. Company Limited by Guarantee (CLG)
  3. Unlimited Company (Unltd)
  4. Private Company Limited by Shares (LTD)
  5. Limited Liability Partnership (LLP)
  6. Community Interest Company (CIC)
  7. Royal Charter (RC)
  8. Sole Trader

Out of these, Public limited company (PLC) is considered the most common type of company in the UK. PLCs are limited by shares, however the businesses can offer their shares to members of the public, usually through a stock exchange. They have a share capital and their members' liability is only limited to the amount of unpaid share capital.

To become a PLC in the UK, you must have share capital of £50,000 or more, with at least 25% of it pre-paid to officially start a business. The minimum number of directors and company secretaries for PLCs is two.

The reason PLC is the most common type of company in the UK is because of its capabilities of listing in the future, as well the ability to raise capital by issuing public shares.

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