Types of Companies and Businesses

There are businesses that are registered at Companies House and businesses that are not
Those that are registered are companies and limited liability partnerships
Those that are not registered are sole traders and partnerships that are not limited liability partnerships

People often use the terms 'business' and 'company' as though they mean the same thing, but not all businesses are companies. There are businesses that are registered at Companies House and those that are not
A company is an organisation set up to run a business. It is responsible in its own right for everything it does, and the company's finances are separate from the personal finances of those running the business. If a UK business wants to become a limited company it has to register at Companies House
Companies House incorporates and dissolves limited companies, registers the information companies are legally required to supply, and makes that information available to the public. Companies are legally required to send information about themselves to Companies House and this information is publicly available. See What information do businesses have to make available?
Those that are registered are limited companies and limited liability partnerships. Those that are not registered are sole traders and 'ordinary' business partnerships. For more detailed information, see More Information about Types of Businesses

A company may be a 'private limited company' ('ltd' or 'limited'), a 'public limited company' ('PLC'), a private company limited by guarantee or a private unlimited company
PLCs are companies whose shares are publicly traded on a market, like the London Stock Exchange

A 'limited liability partnership' ('LLP') is a type of business in which partners are not personally liable for debts the business can't pay, and their liability is limited to the money they have invested in the business. It is a partnership that has registered as a 'limited liability partnership at Companies House
It is most often professional service firms, such as lawyers and accountants, that are set up as LLPs.
See What information do businesses have to make available? For more detailed information, see More Information about Types of Businesses

A sole trader is a business owned by one person and not registered at Companies House
A sole trader business does not have to make much, if any, information publicly available.
See What information do businesses have to make available?
For more detailed information, see More Information about Types of Businesses

An 'ordinary' business partnership is a business owned by more than one person (partner), where both partners share responsibility for the business. The partners are legally responsible for the business's costs and losses
An 'ordinary' business partnership is not registered at Companies House and does not have to make much information publicly available.
See What information do businesses have to make available?
For more detailed information, see More Information about Types of Businesses

For a guide to business types see Set up a business on GOV.UK
For detailed information about the main types of company, see the Companies House guide Starting a company

Page last updated: 7th August 2020