The majority of companies are those limited by shares, with members or shareholders who hold one or more shares issued to them by the company in return for payment.

Although most shares are fully paid and the shareholder has no liability for the company's debts, a shareholder's liability to the company's creditors is normally limited to the amount of any shares that have been issued to them and which they have not fully paid for.

A guarantee company has members, rather than shareholders, whose liability is limited by an amount, normally less than a £1, guaranteed by each member, which becomes due in the event of the company being wound up.

The Memorandum includes a non-profit distribution clause and these companies are usually formed by professional, trade or research associations.

After incorporation the company can be registered with the Charity Commission.

A limited liability partnership is a new form of legal business entity with limited liability.

The main features of limited liability partnerships are that they have organisational flexibility but are taxed as partnerships. In many other respects they are very similar to companies.

The Limited Liability Partnership Act 2000 generally allows two or more persons carrying on a lawful business with a view to profit to form a limited liability partnership by subscribing to its incorporation document - Form LLP 2. (In law, 'person' includes individuals and companies.) However, limited liability partnerships are not available for all activities such as non profit making activities.