Private Limited Companies: Ltd or Limited

Businesses or trades that operate through a private limited company effectively form a separate legal entity in its own right. Private limited companies are separate from its owners, whom are often shareholders owning percentage of the company. The Company and the shareholders are all separate individuals therefore ownership of assets and liabilities also follow this legal representation. 

Private company names will end with Ltd or Limited and no two companies can have the same name. 

There are other types of companies such as public companies (Plc) and limited by guarantee. Each have a different purpose in terms of set up, management, ownership and tax filing requirements. 

Private Limited Companies are required to keep their financial records, produce accounts, maintain company details on Companies House and file a tax return on annual basis. 

Shareholders and/or directors often hire accountants to help meet HMRC requirements such as to produce company accounts and corporation tax returns as well as to assistance with their tax planning, tax savings and general business advice. 

For more information or assistance please get in touch with us.