If you're weighing up whether to set up a private limited company, it helps to see who else uses the structure. The answer might surprise you. Some of Britain's biggest and best-known businesses are private limited companies, not publicly listed PLCs.
This guide walks through what a private limited company actually is, real UK examples you'll recognise, how it differs from a public limited company, and what it costs to run one in 2025/26. By the end you'll have a clear sense of whether the Ltd structure fits your own plans.
It's written for sole traders thinking about incorporating and for new founders choosing a structure from day one.
What is a private limited company? {#what-is-it}
A private limited company (usually shortened to "Ltd") is a business that's legally separate from the people who own and run it. That separation creates limited liability.
In plain terms: if the company runs into debt, creditors can normally only go after the company's assets, not your personal savings, home or possessions. Your financial exposure is limited to what you've put in for your shares, plus anything you've personally guaranteed.
A private limited company:
- is registered at Companies House and must have "Limited" or "Ltd" in its name
- cannot offer its shares for sale to the general public
- is usually owned by individuals, families or private investors
- must file annual accounts and an annual confirmation statement at Companies House
- is a separate legal entity from its owners
- pays Corporation Tax on its profits rather than the owner paying Income Tax on them directly
It's the most common business structure in the UK by a wide margin. Private limited companies have made up more than 95% of the companies on the register for the past ten years, out of a total register of 5,427,787 at the end of the 2024/25 financial year, according to Companies House. That works out at roughly 5.2 million private limited companies.
The structure scales from one-person consultancies to family businesses employing thousands. Whether you're a contractor or a small business owner, our pages explain how we support each stage.
Why do businesses choose the Ltd structure? {#why-choose-it}
Limited liability is the headline reason, but it isn't the only one.
Limited liability protection. Your personal assets stay separate from the company's debts. That lets you take sensible business risks without putting your home on the line.
Tax efficiency. A limited company pays Corporation Tax on profits, and directors can take a mix of salary and dividends. For the 2025/26 tax year, Corporation Tax is 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief in between. Dividends are taxed at lower rates than salary: 8.75% at the basic rate, 33.75% at the higher rate and 39.35% at the additional rate, after a £500 tax-free dividend allowance. Whether incorporating actually saves you tax depends on your numbers, so it's worth modelling first.
Credibility. "Ltd" after a business name signals permanence, and some larger clients and tenders will only deal with incorporated suppliers.
Continuity. A limited company carries on regardless of who owns or runs it, which makes bringing in partners or selling up far simpler than for a sole trader.
Raising money. You can issue shares in exchange for investment, and lenders often view companies as lower risk.
Name protection. Once your company name is registered, no other company can use the exact same name.
What's the difference between a private and public limited company? {#private-vs-public}
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The simplest distinction is who can own the shares. A private limited company (Ltd) keeps its shares in private hands. A public limited company (PLC) can sell shares to anyone, usually via a stock exchange.
| Feature | Private limited company (Ltd) | Public limited company (PLC) |
|---|---|---|
| Selling shares | Privately held; cannot offer shares to the public | Can offer shares to the public on a stock exchange |
| Minimum share capital | No minimum (can start with £1) | At least £50,000, with at least 25% paid up before trading |
| Reporting burden | Lighter; small companies file simpler accounts | Heavier; detailed reporting and annual general meetings |
| Name ending | "Limited" or "Ltd" | "Public Limited Company" or "PLC" |
| Typical ownership | Founders, families, private investors | Dispersed among public shareholders |
| Financial privacy | Less detail published | Extensive public disclosure |
Most businesses start as a private limited company and only consider going public if they need to raise large sums from the markets or want widely tradable shares for employees.
What are some real examples of UK private limited companies? {#examples}
Here are well-known British brands that are (or were) private limited companies. Note that ownership and structures change over time, so always check a company's current status on the Companies House register before relying on it.
1. JCB. Joseph Cyril Bamford founded JCB in Staffordshire in 1945. The construction and agricultural equipment maker, famous for its yellow diggers, has stayed family owned and privately held for decades, and sells its machines internationally. It shows a private company can reach global scale while keeping control in the founding family.
2. Virgin Atlantic. Sir Richard Branson launched the airline in 1984. Despite flying long-haul routes worldwide, it has remained privately held rather than listing on a stock exchange.
3. IKEA's UK business. The Swedish furniture retailer runs its UK operation through a privately controlled corporate structure rather than a UK public listing. It's an example of a large international retailer trading here without being a PLC.
4. Bet365. Denise Coates co-founded the online betting business in Stoke-on-Trent in 2000, building it from her family's existing betting-shop background. It grew into a major global operator while staying privately owned by the Coates family, which kept strategic control in family hands.
5. Timpson. The high-street shoe-repair, key-cutting and engraving chain has been run by the Timpson family across multiple generations. Being privately held has let it stick with its well-known approach of giving branch staff a lot of autonomy, without pressure from public-market shareholders.
6. Specsavers. Doug and Mary Perkins founded the optician chain in 1984. It operates through a joint-venture partnership model, where local opticians co-own their stores alongside the central group, while the wider group has remained privately owned by the founding family.
7. Gymshark. Ben Francis started the fitness-apparel brand in 2012, aged 19, working from his parents' garage near Birmingham. It grew quickly by building an online following, and the founder retained a controlling stake even after bringing in outside investment. It's a modern, digitally native example of a private limited company scaling fast.
8. Dr. Martens (before 2021). The bootmaker, founded in the UK in 1960, spent decades as a private company, first under family ownership and later private equity, before floating on the London Stock Exchange in 2021. It's a textbook example of the typical path: grow privately, then go public when you want stock-market capital.
Can large international brands really be private limited companies? {#large-brands}
Yes. A common myth is that the Ltd structure is only for small local businesses. The examples above show otherwise.
Size is not the deciding factor. A UK private limited company can trade internationally, employ people abroad and set up overseas subsidiaries, all while the parent stays a UK Ltd.
What really drives the choice is capital and control. If you need to raise very large sums from public markets, you'll likely need to become a PLC. If you can fund growth from profits, private investors or loans, you can stay private for as long as you like.
For many family and founder-led businesses, staying private is a deliberate advantage. Without public shareholders demanding quarterly results, they can take a longer-term view.
What are the downsides of a private limited company? {#downsides}
The structure isn't free of trade-offs. Compared with being a sole trader, you take on more admin and more rules.
More paperwork. You must file annual accounts and a confirmation statement, keep statutory registers, and comply with the Companies Act 2006. You also have to keep company and personal money strictly separate.
Public disclosure. Your accounts (in some form), registered office, and director details are visible to anyone on the public register. Sole traders keep their finances private.
Running costs. On top of Companies House fees, most owners pay an accountant to prepare accounts and tax returns. See the cost section below.
More complex tax. The company pays Corporation Tax, and then you pay tax personally on the dividends you draw. The combined position is often still efficient, but you need to plan your salary and dividend split with care.
Director duties. Limited liability is not absolute. Directors can be held personally liable for things like wrongful trading, personal guarantees, and certain unpaid taxes, and they have legal duties that sole traders don't.
Less flexibility with profit. You can't just take money out as you please. Salary goes through PAYE, and dividends must be declared formally and only paid from available profits.
For a very small, low-risk venture, that admin can outweigh the benefits. As profits and risk grow, the balance usually tips the other way.
How much does it cost to set up and run one in 2025/26? {#costs}
There are two cost layers: getting set up, and keeping the company compliant each year.
Setting up. You can incorporate directly with Companies House. From 1 February 2026, the digital incorporation fee is £100. Many people instead use an accountant or formation agent, which typically bundles the registration with early advice.
Ongoing Companies House fees. The main recurring charge is the confirmation statement, which from 1 February 2026 costs £50 a year to file digitally. Filing your annual accounts is free, but preparing them is where most of your cost sits.
Accountancy. Fees vary widely with complexity, turnover and whether you have employees. A simple one-director company costs far less to support than a growing business running payroll and VAT.
Whether incorporating saves you money overall depends on your profit level and how you draw income. Illustrative example: Corporation Tax at 19% on £50,000 of profit is £9,500 (£50,000 x 19%), but that's only part of the picture, because you'll also pay personal tax on the salary and dividends you take out. You can sketch your own position with our take-home pay calculator and dividend tax calculator, then we can refine it with you.
Is a private limited company right for you? {#right-for-you}
There's no universal answer, but a few signals point towards incorporating.
A private limited company tends to make sense if you want to protect your personal assets, you're planning real growth, you want to bring in partners or investors, you work with larger clients who prefer Ltd suppliers, or you operate in a higher-risk sector.
It can be overkill if you run a small, low-risk side business with modest profits, you value simplicity, and you've no plans to grow beyond yourself.
In practice, the mistake we most often see is treating incorporation as a default rather than a decision. The right answer depends on your numbers and your goals, not on what a famous brand chose.
Thinking about going limited? Book a free 20-minute call with a Zmartly accountant and we'll model the tax and admin for your situation, then handle the company formation and ongoing compliance if it stacks up. Get in touch.
Frequently asked questions {#faqs}
What are some examples of private limited companies in the UK?
Well-known UK private limited companies include JCB, Virgin Atlantic, Bet365, Timpson, Specsavers and Gymshark, with IKEA running its UK business through a privately controlled structure. They span airlines, construction equipment, opticians, online betting and fitness apparel, which shows how versatile the Ltd structure is. Always confirm a company's current status on the Companies House register, as ownership can change.
What's the difference between a private and public limited company?
A private limited company (Ltd) cannot offer shares to the public, has no minimum share capital and faces lighter reporting. A public limited company (PLC) can sell shares to anyone on a stock exchange, must have at least £50,000 of share capital with 25% paid up before trading, and faces heavier reporting and public disclosure. Private companies end in "Ltd" and public ones in "PLC".
Can a private limited company be very large?
Yes. There's no size limit on the structure. Brands such as JCB and Bet365 operate internationally while remaining privately owned. The deciding factor isn't size but capital: a company can stay private indefinitely as long as it can fund growth from profits, private investment or loans rather than needing public markets.
Do private limited companies pay Corporation Tax?
Yes. For the 2025/26 tax year, Corporation Tax is 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief between those limits. Directors often take a small salary plus dividends. Dividends are taxed at 8.75%, 33.75% or 39.35% depending on your Income Tax band, after a £500 dividend allowance.
How much does it cost to set up a private limited company?
From 1 February 2026, the digital incorporation fee at Companies House is £100, and the annual confirmation statement costs £50 to file digitally. Filing accounts is free, but most owners pay an accountant to prepare them, so total running costs depend on your business's complexity. Many people incorporate through an accountant or formation agent who bundles registration with early advice.
Can a private limited company become a public limited company?
Yes. A private company can convert and float through an initial public offering (IPO). Dr. Martens is a clear example, trading as a private company from 1960 until it listed on the London Stock Exchange in 2021. Companies usually go public to raise large sums, give shareholders a way to sell, or offer tradable employee shares, but they take on far more regulation and public scrutiny.
How do I check if a company is a private limited company?
Use the free Companies House register at find-and-update.company-information.service.gov.uk. Search by name or company number to see the company type, registered office, directors and filing history. A private limited company shows "Ltd" or "Limited" in its name and is classified as a "Private limited company". It's the authoritative source for any UK company's status.
