Who owns a private limited company? The answer isn’t as straightforward as you might think. There are different roles that can be deemed to have some form of ‘ownership’ of a limited company.
The directors of a private limited company must be appointed by the company’s members or appointed when the private limited company is created. The directors are responsible for running the company.
They make decisions about what the company does and are typically given shares in a company once they’re appointed, therefore giving them a form of ownership.
The shareholders of a private limited company own shares of the company which entitles them to part ownership. How much they own typically depends on how much money they have invested in the company by buying shares.
Shareholders are also entitled to a percentage of their company’s profits (if there is any). How much of the profits depends on how many shares they own.
The Company Secretary
The secretary is the official record keeper of the company. He/she keeps records of the company’s meetings, minutes of those meetings, and other documents related to the company.
A company secretary can also be a shareholder of a company, which means they do own a part of the company, just like any other shareholder.
The Person/People of Significant Control (PSC)
A person, or in some cases people, are knowns as people of significant control, they’re also sometimes known as ‘beneficial owners’. They are a person, people or even another entity who owns or controls more than 25% of shares or voting rights.
They also have the right to appoint or remove the majority of the board of directors too. The information of a person of significant control needs to kept on a PSC register. Companies House have a good explainer video on what a PSC is here if you want learn more about a PSC.
Can one person do everything?
There doesn’t need to be a different person for each role. One person can be a director, shareholder, company secretary and a person of significant control.
It’s very common for start-ups to have just one person carrying out more than one, if not all these roles.
How are owners of a limited company appointed?
If a limited company already exists, and a new part-owner, e.g. a director, is appointed, then Companies House needs to be notified of this change. This can be done through Web filing or via a confirmation statement. Our Pro and Starter formation bundle includes a company secretarial service, which means our experts will file all changes on your behalf to Companies House!
If it’s a brand new limited company, when the company is set up the owners are appointed in the application. There’s a specific section where the owners roles and information are entered.
Now you hopefully have a good understanding of who owns a private limited company, you might be thinking you want to own your own private limited company.
Starting your own private limited company
If you want to start a limited company, these ownership roles are appointed during the application process. We’ve simplified our application process to make it easier and quicker for our customers, plus, our expert customer support team are on hand to answer any questions you might have.
Why not head over to our homepage and check out all our company formation bundles and become the owner of your very own limited company today!