Private Limited Company Examples
6 practical UK examples of private limited companies: PSC contractor firms, multi-shareholder SMEs, property SPVs, holding structures, companies limited by guarantee, and dormant companies.
In one sentence
A private limited company (Ltd) is a legal entity separate from its owners, protecting shareholders through limited liability while structuring tax under UK Corporation Tax rules.
Quick answer
- Protects personal assets through limited liability
- Types include PSC contractor firms, trading SMEs, property SPVs, and group holding companies
- Taxed via UK Corporation Tax (19% to 25%) rather than personal Income Tax
What is a private limited company in the UK?
A private limited company (usually ending in "Ltd" or "Limited") is a separate legal entity from the people who own and manage it. Under the Companies Act 2006, the company can own assets, enter into contracts, sue and be sued, and take on debt in its own name.
The defining feature is limited liability. If the business encounters financial difficulty, the personal assets of the shareholders are protected. A shareholder is generally only liable for the unpaid amount on their shares, provided the directors have acted legally and within their statutory duties.
6 common examples of private limited companies
Private limited companies take several structural forms depending on their commercial purpose, ownership setup, and tax strategy. Here are six practical UK examples.
1. Single-director contractor PSC (Personal Service Company)
A software developer or IT consultant operating through their own limited company. The company has one director and one shareholder (holding 1 ordinary share of £1).
Key features: Direct contract with clients or agencies, IR35 status determinations per contract, low capital requirements, salary and dividend tax extraction.
2. Multi-shareholder trading SME
An e-commerce business, marketing agency, or engineering firm run by two business partners. The company has 2 directors and 100 issued ordinary shares split 50/50.
Key features:Employs staff under PAYE, registered for VAT, quarterly MTD submissions, dividend distributions governed by shareholders' agreement.
3. Property Investment SPV (Special Purpose Vehicle)
A buy-to-let landlord who forms a private limited company specifically to hold residential rental properties (SIC code 68209).
Key features: Mortgage interest is fully deductible against rental income for Corporation Tax (bypassing personal Section 24 restrictions), profits reinvested at 19% to 25% tax rates.
4. Holding company and subsidiary group structure
An established business owner who creates a parent holding company (Holding Ltd) that owns 100% of the shares in two operating trading subsidiaries (Trading A Ltd and Trading B Ltd).
Key features: Ring-fences valuable assets (e.g. intellectual property or commercial premises) from operational trading risk, facilitates tax-free dividend transfers between group companies under group relief.
5. Company limited by guarantee (Non-profit or Residents' Management)
A sports club, charity, trade association, or property flat management company. It does not have share capital or shareholders; instead, it has members who guarantee a nominal sum (usually £1).
Key features: Profits are retained within the organization to further its objects rather than distributed as dividends to owners.
6. Dormant limited company
A registered private company that has had no significant accounting transactions during the financial year.
Key features: Used to reserve a commercial business name before launch or hold intellectual property. Must still file annual dormant accounts and a confirmation statement with Companies House.
Private limited company vs other UK business structures
| Feature | Private Limited (Ltd) | Sole Trader | Public Limited (PLC) |
|---|---|---|---|
| Legal identity | Separate legal entity | Same as individual owner | Separate legal entity |
| Liability | Limited to share capital | Unlimited personal liability | Limited to share capital |
| Taxation | Corporation Tax (19% to 25%) | Income Tax (20% to 45%) + NI | Corporation Tax (19% to 25%) |
| Public shares | No (private sales only) | Not applicable | Yes (traded on stock exchange) |
| Min share capital | £1 (1 share) | None | £50,000 (£12,500 paid up) |
Statutory duties for private limited company directors
Running a private limited company comes with formal compliance obligations enforced by Companies House and HMRC:
- Annual statutory accounts: Filed with Companies House within 9 months of the financial year-end.
- Company Tax Return (CT600): Filed with HMRC within 12 months, with Corporation Tax paid within 9 months and 1 day.
- Confirmation statement: Filed annually with Companies House to confirm registered details, PSCs, and shareholders.
- Director duties: Act within powers, promote the success of the company, and exercise independent judgment under the Companies Act 2006.
Read our guide on limited company accounting services or see how our Compliance Vault™ system keeps your statutory deadlines and records audit-ready year-round.
Planning to set up or restructure a private limited company?
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