Limited Company Registration
A UK limited company is a separate legal entity brought about by the submission and acceptance of a registration application to Companies House.
Once incorporated, Companies House issue a certificate of incorporation and company registration number. These documents signify that the company has been formed in accordance with UK laws and regulations.
The main difference between a limited company and a non limited entity is that the shareholders of the former enjoy limited liability. That is, their personal assets are deemed to be separate from the company and therefore are protected should the company be unable to pay its debts.
Some lenders look to negate this privilege and provide themselves with additional security through insisting that the company's owners sign indemnities which can be exercised in the event of the company defaulting of any amounts due.