ltd

Ltd is an abbreviation for Limited, used in the names of many companies to indicate limited liability. In these firms, the owners' liability for debts is limited to the amount they have invested or promised to pay on shares, and their personal assets are generally protected from business creditors.

The suffix is common in the United Kingdom and other common-law jurisdictions. In the UK and Ireland, Ltd denotes a private limited company, whose shares are not offered to the general public. Publicly traded companies use PLC (public limited company) instead. In other jurisdictions, including Canada, Australia, New Zealand, and India, the exact meaning and naming rules vary; many private corporations use Ltd or Pvt Ltd, while public ones may use Inc., Ltd., or PLC, depending on the country.

Formation and governance: Ltds are separate legal persons created by registration with the national corporate registry (for example, Companies House in the UK). They require a registered office and governing documents (articles of association; memoranda have largely been replaced). They are managed by directors on behalf of shareholders and can sue or be sued in their own name.

Liability, shares, and transfers: Shareholders' liability is typically limited to unpaid shares. Transfers of shares in private Ltds can be restricted by the articles, unlike in public companies where shares are freely traded.

Regulation and reporting: Private limited companies generally file annual accounts and an annual confirmation statement or return; audit requirements depend on size and jurisdiction. The name suffix Ltd signals limited liability and private status; in some countries it explicitly designates a private company, while in others it may be used alongside other suffixes.