what is a limited company uk

A limited company is a type of business entity recognized by law as a separate legal entity from its owners in the UK. It is a form of business that is legally separate from its owners (typically shareholders) and those appointed to run it (directors) . The companys liability is limited to its assets, which means that the owners potential losses are limited to what they have invested while personal assets and income are off-limits. In the UK, all limited companies must be incorporated at Companies House and given a unique company registration number. It must have either Ltd. or Limited at the end of its company name. There are two main types of limited companies in the UK: private limited companies and public limited companies. Private limited companies are usually businesses that make a profit, while public limited companies are usually larger businesses that are listed on a stock exchange. Limited companies provide numerous benefits, from tax savings to limiting your liability.