Keep the accounts off the public register, if you accept unlimited liability.

It is a family investment company registered as an unlimited company, not a company limited by shares. It works in the same way day to day, with directors, share classes and investments. The difference is that, if the company cannot pay its debts, its members can be called on to contribute without a cap on the amount. In return, it may be able to keep its accounts off the public register.

Privacy. A limited company must file its accounts at Companies House, where anyone can read them. An unlimited company that meets the conditions in section 448 of the Companies Act 2006 does not have to deliver accounts to Companies House, so the size of the family's portfolio is not on public view. Families who value discretion, particularly with larger sums, sometimes find that worth the trade-off.

Not if it meets the section 448 conditions. The directors need not deliver accounts if, at no time in the period, the company was a subsidiary of a limited undertaking, under the joint rights of two or more limited undertakings, or the parent of a limited undertaking. The exemption doesn't apply to banking or insurance companies, or where every member is a limited company.

When it owns, or is owned by, a limited undertaking. If the unlimited company holds shares in a limited trading company and is its parent, the exemption is lost. It is also lost if it is a subsidiary of a limited company, or if every member is a limited company. A family investment company holding a trading subsidiary through a limited company therefore usually can't use it.

If the company were wound up and its assets did not cover its debts, the members could be required to contribute to the shortfall, with no upper limit in the way a limited company's members are limited to the unpaid amount on their shares. In practice a well-run investment company without borrowing rarely reaches that point, but the exposure is real and must be understood before deciding.

Potentially. A trustee who holds shares in an unlimited company is a member, and the liability that comes with membership can fall on the trustees, with a call on the trust fund. This is a real consideration in a blended structure, where a discretionary trust is a shareholder. We would look at it carefully with you and the trustees before recommending an unlimited company.

Not under section 448. An unlimited company that is the parent of a limited undertaking loses the exemption, so it must deliver accounts. Families who want privacy and a trading subsidiary sometimes keep the trading company separate from the investment company, or look at other ways of holding, such as using a trust. We would map the group before suggesting anything.

No. There is no special tax regime for family investment companies, and an unlimited company is taxed under the ordinary company rules. A company mainly holding a portfolio of investments is normally a close investment-holding company, paying corporation tax at 25% on its taxable profits, and most dividends it receives are exempt. The choice between limited and unlimited is about privacy and liability, not tax.

The section 448 exemption is about delivering accounts. It does not switch off the public register. Information such as the company's name, registered office, directors and people with significant control, and the confirmation statement, are still filed. You should assume the register will show who runs it and who controls it. We help you work out exactly what stays public before you decide.

Yes. Not delivering accounts to Companies House is not the same as not preparing them. The company still needs proper accounting records and accounts for its members and for tax purposes, and its corporation tax return goes to HMRC. The saving is public disclosure, not accounting work. Your accountant still has a role in preparing the company's figures.

In some cases a company can re-register as unlimited, but it generally needs the agreement of all its members, and it changes their liability position permanently. Because a trust or a minor may be among the members, it is usually better to decide at the outset. Ask us before assuming it can be done simply.

Yes, because borrowing and property increase the chance of a shortfall, and members stand behind the company's debts. A family investment company that is funded by shareholder loans and holds a diversified portfolio carries less of this risk than one with a mortgage or a guarantee. We usually advise against combining unlimited liability with significant borrowing.

Many do, but some providers are less familiar with them and ask more questions about the members and the liability position. It is worth confirming with the platform, the custodian or the lender before relying on an unlimited company. If the structure is to hold property, a lender is likely to examine who stands behind the company.

Partly. Shares held by trustees mean the individual children are not shareholders in their own name, but information about the trustees and others can still appear on the PSC register, and the trust must be registered on the Trust Registration Service. A limited company with a trust shareholder still files public accounts. Privacy is a spectrum, and we help you decide what level you need.

Sometimes, but the trustees' exposure needs to be understood. In a blended structure a discretionary trust holds shares alongside the family. If the company is unlimited, the trustees are members and could face a call on the trust fund. Many families decide that is not acceptable and stay with a limited company, and accept the public accounts.

It is the main practical reason. There are few other differences in how the company is used. If your concern is that others can read the size of your portfolio, an unlimited company may help. If your concern is protecting wealth from a child's divorce or bankruptcy, the unlimited status doesn't do that, and the extra liability can work against you.