Limited Companies

A limited company is a type of business structure that is registered in a way that makes the company an entity that is separate from the people who run it. This separation primarily provides the benefit of limited liability for its owners, which means that if the company encounters financial difficulties, the personal assets of the shareholders or owners are protected; their liability is limited to the amount they have invested in the company or promised to pay on their shares.

There are different types of limited companies, including:

Private Limited Companies

Private Limited Companies (Ltd): These are privately owned businesses where the shares are not available to the public. Ownership can be by one or more individuals or other entities. The shares cannot be traded publicly.

Public Limited Companies

Public Limited Companies (PLC): These companies have shares that can be bought by the public and traded on the stock market. They have stricter regulations and requirements than private limited companies, such as a minimum share capital and the need to publish their accounts.

Both types of limited companies must be registered with the relevant national authority (such as Companies House in the UK) and are required to follow specific rules and regulations, including the filing of annual accounts, annual reports, and other legal documents. This structure is popular among entrepreneurs and business owners because it offers protection for personal assets while providing a structure for raising capital, transferring ownership, and potentially offering shares to the public or specific investors.