Ltd. (Limited)

Limited (Ltd.) is a term used in the United Kingdom, Ireland, and other Commonwealth countries to designate a company that has limited liability. This means that the shareholders of the company are not personally liable for the debts of the company. In the United States, a similar term is "corporation."

There are two main types of limited companies: private limited companies and public limited companies. Private limited companies are limited to a maximum of 50 shareholders, and their shares cannot be traded on the stock market. Public limited companies can have any number of shareholders, and their shares can be traded on the stock market.

The process of forming a limited company is relatively simple. The first step is to prepare the company's constitution, which sets out the company's name, registered office, and objects. The constitution must be signed by all of the company's shareholders.

The next step is to file the company's memorandum and articles of association with the Companies House. The memorandum of association is a public document that sets out the company's name, registered office, and objects. The articles of association are a private document that set out the company's internal rules and regulations.

Once the company's documents have been filed with the Companies House, the company is officially incorporated. The company is then issued a certificate of incorporation, which is a legal document that proves that the company exists.

Limited companies are a popular choice for businesses because they offer a number of advantages over other business structures. For example, limited companies are relatively easy to set up and operate, and they offer limited liability protection for their shareholders.

However, there are also some disadvantages to limited companies. For example, limited companies are subject to more regulations than other business structures. Additionally, limited companies may be subject to higher taxes than other business structures.

Overall, limited companies are a good choice for businesses that want to enjoy the benefits of limited liability protection while still maintaining a relatively simple and affordable business structure.