These types of organisations are owned by shareholders and are generally used by larger clubs with external investors.

A company limited by shares is structurally similar to a company limited by guarantee, but with one key difference: ownership is based on shareholding. Each shareholder owns a portion of the company relative to the number of shares they hold.

This model is not commonly used by community sports clubs, but it may be suitable in cases where an investor wishes to retain a degree of ownership—such as in some semi-professional or professional football clubs.

How to File a Company Limited by Shares with Companies House

Considerations Before Choosing This Structure

Company name: Must be unique and comply with naming regulations.

Club rules and trademarks: Check for any existing names, logos, or legal restrictions.

Governance: Decide who will serve as directors, company secretary, and shareholders—and what level of control each will have (usually based on share percentage).
Foundational documents: You'll need to prepare key documents like the Memorandum of Association and Articles of Association, which outline how the company will be run.

Information from the Government of Limited Company formation

Feature	Company Limited by Guarantee	Company Limited by Shares
Ownership	Members (no shares; usually not-for-profit)	Shareholders (own shares proportional to control)
Common Usage	Community clubs, charities, non-profits	Private clubs with investors or commercial goals
Profit Distribution	Surplus reinvested in club (no dividends)	Profits can be distributed as dividends to shareholders
Legal Protection	Limited liability for members	Limited liability for shareholders
Governance	Managed by directors; members vote on key issues	Managed by directors; voting rights based on shareholding
Fundraising	Through grants, donations, memberships	Through share capital (selling shares)
Asset Lock (if added)	Optional—keeps assets within community	No asset lock—owners can benefit from asset sales