limited company (redirected from Limited liability companies)

Limited company

A form of business commonly used in the U.K. comparable to incorporation in the U.S.

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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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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.