What is Ltd Company?

A private limited company (Ltd) is a legal structure that gives a business a separate legal identity from its owners. Shareholders' liability is limited to the value of their unpaid shares, so personal assets are generally protected if the business fails. Directors must file accounts and a confirmation statement with Companies House each year, and the company pays Corporation Tax on its profits rather than Income Tax. An Ltd structure is often chosen when a business grows beyond sole-trader scale, seeks outside investment, or needs the credibility of a registered company.