Ltds

Ltds, short for private limited companies, are a common form of business organization in several Commonwealth countries. A company with the designation Ltd is a separate legal entity whose shareholders have limited liability, generally limited to the amount unpaid on their shares. Unlike public companies, private limited companies typically cannot offer shares to the general public and may impose restrictions on share transfers to maintain private ownership.

Formation and structure: Ltds are formed by registering with the national corporate registry (for example, Companies House in the United Kingdom and the Companies Registration Office in Ireland). The registration typically requires a memorandum and articles of association, details of directors and a registered office. Share capital is usually issued and ownership is held by shareholders; transfer of shares is often restricted in private companies.

Governance and liability: The company is a separate legal entity, capable of owning assets, suing and being sued. The liability of shareholders is limited to unpaid shares. Directors are responsible for management and compliance; general meetings, resolutions, and filings govern governance. In many jurisdictions, private companies must file annual accounts and a confirmation statement or annual return.

Tax and reporting: Ltds are subject to corporate taxation on profits; dividends to shareholders may be taxed at personal rates. Annual accounts and tax filings are required; some jurisdictions require audits for larger entities.

Broader context: In the UK and Ireland, Ltd denotes a private limited company; equivalent terms vary by country (for example, Ltd or Limited may be used elsewhere). Publicly traded companies use PLC or Inc., among other designations.