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Why incorporate a GP practice into a limited company?


Incorporating a GP practice or other such medical centre into a Private Limited Company is a popular choice in the modern-day era. The main reasons include the limitation of liability amongst the company’s members and shareholders. One example of this is that shareholders personal assets are protected and in the event of the company falling into financial difficulty, the company’s members liability will be limited hence the name “limited company”. However, there are still risks associated with running a limited company, and it’s essential to take steps to limit these risks as much as possible.

One way to further enhance limitation of liability of the company’s members is to take out a General Practitioner (GP) indemnity insurance policy. This type of insurance can provide additional protection for Private Limited Company’s directors and shareholders against claims of professional negligence, as well as other risks associated with running a business. Another positive of having this policy in place is it helps in regards to legal advice and support in the event of a claim. 

It is worth noting that GP indemnity insurance is not a legal requirement for Limited Companies, but it is strongly recommended for those operating in the healthcare sector. Many GP practices, clinics and other healthcare businesses already have this type of insurance in place to protect themselves against potential claims. 

To conclude, incorporating a business as a Private Limited Company is an excellent way to limit personal liability, but it’s important to take additional steps to protect the company and its directors. Overall, incorporating as a Private Limited Company is a smart choice as it’s down to who wants to protect their personal assets and limit their liability. By taking out GP indemnity insurance, Private Limited Companies can further limit their liability and protect themselves against potential claims, ensuring that they can focus on growing their business without the added stress of potential legal issues.

Need Help Incorporating a GP Practice?

Monarch Solicitors specialist General Practitioner GP Lawyers provide a tailor-made approach to your needs and can help with all aspects of General Practitioner Law. Please contact us by either calling 0330 127 8888 or emailing [email protected] for an initial consultation.


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