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Limited Company
(redirected from Limited liability companies)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 sec.
Limited company
A form of business commonly used in the U.K. comparable to incorporation in the U.S.

Limited Company
In the United Kingdom, a company with limited liability amongst its owners; that is, shareholders who are not liable for more than their investment in case of insolvency. In other words, an owner of a limited company would lose the value of his/her investment if the company declares bankruptcy, but would not be held liable for other outstanding debts. A limited company is the most common corporation structure in the United Kingdom and is designated by "Ltd" after its name.

There are two types of limited companies. A limited company by guarantee has no shareholders but instead contains members who contribute a small amount to cover outstanding debts following a potential liquidation. This structure is common among British charities, and is used by the Financial Services Authority. A public limited company usually (but not always) trades publicly, and shareholders are only liable for the value of their individual investments. These companies are designated by "p.l.c." See also: Limited liability company, U.S. Corporation.

limited company (Ltd.)
A firm registered in such a manner as to give its owners limited liability. Limited companies are most often associated with British registration, much as incorporated firms are primarily associated with U.S. registration.


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The capitals invested in limited liability companies comes to 24.
The fashion for creating businesses as Limited Liability Companies has grown in recent years, as companies prefer to have the element of freedom that they consider an LLC gives them.
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