An unlimited company or private unlimited company is a hybrid company (corporation) incorporated with or without a share capital but where the legal liability of the members or shareholders is not limited: that is, its members or shareholders have a joint, several and non-limited obligation to meet any insufficiency in the assets of the company to enable settlement of any outstanding financial liability in the event of the company's formal liquidation. - wikipedia
An unlimited company has the benefit and status of incorporation, the same as its limited company counterpart. Situations for which an unlimited company will be preferred to an alternative business model or its limited company counterpart include these:
* secrecy concerning financial affairs is desired, effectively shielding and protecting its financial affairs from public, media and competitor analysis, making them non-public information, including shareholder dividend payments: a United Kingdom unlimited company, unlike its limited company counterpart, is by the very nature of its legal liability generally not required to publish or make public its company financial statements (file its annual financial accounts at Companies House). * the company is active or trading in an area where limited liability is not acceptable, vital or practical, but perpetual succession is important. * extending, in general, a greater assurance and confidence to creditors and trade financial transactions, in contrast to its ''limited company'' counterpart. * there is a low risk of insolvency. * the company or its trading activities has or generates sufficient capital, funds or financing without need to approach general lenders such as high-street retail banks. * developing more advantageous company and business capital strategies in an ever-increasing irreversible trend of bank disintermediation by companies and their management. * a focused higher standard of board of directors and senior management|executive management behaviour (or probity) and business model for risk management. * a flow-through entity is required for United States federal tax purposes, under the Corporate tax in the United States#Entity classification|entity classification rules.
Once formed or incorporated, an unlimited company can, in some jurisdictions, also re-register and designate itself to limited company status at any time with few formalities, the same also extending to a limited company, which may at any time re-register and designate itself to unlimited company status.
# Setting up an unlimited company in UK To change from a limited to an unlimeted company first download and fill in an application for re-registration. Your application must also include: - gov.uk - A statement showing all members have agreed to the re-registration (a ‘form of assent’) - you can use the form of assent template - A printed copy of your company’s new articles of association - Send your application form, documents and a cheque for £20 to the address on the application form.
More useful information here - companieshouseonline.com
# See also