Unlimited company

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In the United Kingdom, an unlimited company is a company formed by registration under the Companies Act 1985 where the liability of the members is unlimited - that is, they are liable to contribute whatever sums are required to pay the debts of the company should it go into compulsory liquidation. Not surprisingly, this is not a common form of company. One example that was of significant press and political interest when it got into financial difficulties is The Equitable Life Assurance Society (company number 00037038).

An unlimited company is very similar to a partnership and there are only rare occasions when it will be preferred to that alternative business model. Examples are where the company will not trade (e.g. will only be used to hold title to property), is trading but in an area where limited liability is not acceptable, secrecy concerning financial affairs is desired (an unlimited company can have fewer reporting obligations), there is a low risk of insolvency etc. They can be registered online for fees of approximately £250 plus VAT.