UK Limited Companies for Sale

UK Limited Companies for Sale Through Axis
Axis Partnership assists in the transfer of all types of company, including UK Limited Companies for sale. The majority of businesses on our books will be UK Limited Companies for sale, simply because for a company to have achieved the size and maturity to make it attractive to a buyer, it will almost certainly have become a Limited Company somewhere in its development, as this offers the most protection and benefits to the owners, especially at the point of sale.

UK Limited Companies for Sale - Contact us now to discuss your requirements or click here to register with us.

To see the current businesses for sale through Axis, view our listings here:

For confidentiality reasons we do not reveal the Limited Liability status of our vendors on the website.

It is important for any buyer to understand the implications of acquiring a Limited Company versus other types of business. Here we give a brief overview of the various alternatives available to UK companies.

Sole Traderships
A Sole Trader is not registered with Companies House and the owner will usually be the only person involved in running the business. The owner will be personally legally responsible for all aspects of the business including all debts and liabilities. While this arrangement will suit a single person operating without staff and without significant loans, moving to a Limited Company status is likely to occur as soon as any significant complexity arises in the way the company is managed. A Sole Trader is much less likely to be in a position to sell their business in a way which would attract an investor, especially if it depends on the specific skills or presence of the owner. For this reason, very few businesses sold by Axis are Sole Traderships, although these do sometimes arise.

Limited Companies
UK Limited Companies for sale may be either Private Limited Companies (Ltd) or Public Limited Companies (PLC). Both types of company have shareholders and can issue shares – a public limited company is able to sell its shares to the public.
The word “limited” refers to the limited liability of the company director(s) as a result of forming the company. A Limited Company becomes a legal entity in its own right and there is a separation between personal assets and company assets. This arrangement protects the director(s) from being personally liable for debts or legal action incurred by the company. There are also significant tax advantages available to a Limited Company.

A business owner would typically be advised to form a Limited Company in the following circumstances:

If the business involves loans or operating debts which they could not repay out of their own assets in the event that the company were to fold.
If the business is involved in any activity which might open it up to legal liability which might fall onto the owner (e.g. employing people, having suppliers who supply on credit terms).
If the turnover and/or profits of the company reach a size where it becomes more tax efficient to operate as a company rather than as a private person.
If the owners know at the outset that they plan to sell the business later on.

A Public Limited Company (plc) has the same legal status as a Private Limited Company, but can sell shares to the public and has more costs associated with it, making it more suited to larger organisations.
The typical growth path for a Limited Company is therefore to start as a Private Limited Company (Ltd) and then later become a Public Limited Company (PLC) when it achieves a certain size or wishes to attract external shareholders.

As well as improved legal and tax positions, being a Limited Company is generally seen as more legitimate, as well as being more prestigious, especially by potential buyers. A Limited Company must be registered at Companies House, and various company records, including audited accounts must be made available.

In terms of selling a business there are various implications of being a Limited Company. For the seller there may be tax benefits in the form of entrepreneurial relief. But the Sales Purchase Agreement will need to include warranties and indemnities, which will result in higher legal costs. It is certainly far easier for a buyer to be clear about what is included in the sale of a Limited Company (compared to a Sole Tradership or Partnership). Conducting Due Diligence is significantly easier for buyers and generally increases confidence regarding the business. The vast majority of businesses listed by Axis will tend to be UK Limited Companies for sale.

Partnerships
If two or more people wish to go into business together but without forming a company, they may form a Partnership (as opposed to a Sole Tradership). A Partnership has the same legal status as a Sole Tradership – each partner is liable jointly and severally for any debts or legal actions that may occur, and the business does not need to be registered with Companies House.

Limited Liability Partnership
A Limited Liability Partnership (LLP) is a separate legal entity in a similar way to a Limited Company, but with some differences. A Limited Liability Partnership must be registered with Companies House, but it is not required to make an annual return or file accounts. A Limited Liability Partnership may be a less onerous solution for a Sole Trader who in fact works closely with one other person or a very small number of other people, such as a husband and wife or family business. It is also suitable for businesses where people of similar skill levels have invested similar amounts of money into the business and want to run the business jointly (as opposed to having a single director in charge).

Because Limited Liability Partnerships are not Limited Companies, they do not attract the same tax benefits as a Limited Company. An LLP is therefore subject to a higher rate of tax if it is sold. For this reason, partnerships which intend to sell at some point may be advised to form a Limited Company rather than a Limited Liability Partnership. However, Axis do sometimes become involved in the sale of LLPs.

UK Limited Companies for Sale - Contact us now to discuss your requirements or click here to register with us.