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A limited company, also known as a limited liability company or LTD, is a type of business structure that is common in many countries, including the United Kingdom and Ireland.

In a limited company, the liability of the owners, who are called shareholders, is limited to the amount of money they have invested in the company. This means that if the company incurs debt or is sued, the shareholders’ personal assets, such as their homes and savings, are generally not at risk. This is in contrast to a sole proprietorship or partnership, in which the owners are personally liable for the debts and obligations of the business.

Limited companies are also separate legal entities from their owners, which means they can enter into contracts, own property, and incur debt in their own name. They are also required to file annual financial statements and pay corporation tax on their profits.

Overall, limited companies offer the benefits of limited liability protection and the ability to operate as a separate legal entity, making them a popular choice for small businesses and entrepreneurs.