Limited company
A limited company is a business structure registered at Companies House that exists as a separate legal person, distinct from the people who own and run it. It can hold assets, enter contracts and owe debts in its own name. Its owners — shareholders — have limited liability, meaning their financial exposure is generally limited to the amount they have agreed to pay for their shares.
- Legal status
- A separate legal person — a body corporate.
- Owners
- Shareholders, whose liability is limited to their share capital.
- Run by
- Directors, who manage the company and owe it statutory duties.
- Registered at
- Companies House, with a unique company number.
Limited liability
The defining feature is limited liability. Because the company is separate from its shareholders, the shareholders are not personally responsible for the company's debts beyond their investment. A creditor of the company contracts with the company, not its owners. This protection can be set aside in defined circumstances — most commonly where a director signs a personal guarantee, or where there has been wrongful trading or fraud.
Private and public limited companies
Most UK companies are private companies limited by shares ("Ltd"). A public limited company ("plc") can offer shares to the public and must meet a higher minimum share capital and stricter reporting requirements. There are also companies limited by guarantee, often used by not-for-profits, where members guarantee a nominal amount rather than holding shares.
Limited companies as borrowers
When a limited company borrows, the borrowing is the company's obligation, not its directors'. This is why lending to a company is treated differently from lending to a consumer, and why it sits outside the consumer-credit regime. A lender can ask a director for a personal guarantee to extend liability, but where none is taken, the debt remains with the company alone.
Limited companies and Credicorp
Credicorp lends to UK limited companies and LLPs — not to consumers or sole traders. We lend to the company, not to its directors: there is no personal guarantee and no director liability on our standard products, and the lending sits outside the consumer-credit regime. Credicorp Limited is itself a UK limited company (Company No. 16093826; ICO ZC157682), and is not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom.
See also
- LLP — limited liability partnership, the other eligible borrower.
- Body corporate — the legal category a company belongs to.
- Companies House — where companies are registered.
- Limited liability — the protection it provides.
- Director liability — when that protection can be set aside.
Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.