limited company: meaning, definition, pronunciation and examples
C1Formal, Legal, Business
Quick answer
What does “limited company” mean?
A type of business structure where the company's finances are legally separate from the owners' personal finances, and the owners' financial liability is limited to their investment.
Audio
Pronunciation
Definition
Meaning and Definition
A type of business structure where the company's finances are legally separate from the owners' personal finances, and the owners' financial liability is limited to their investment.
A legal entity registered under companies law, identified by 'Ltd.' or 'Limited' in its name, which can own property, enter contracts, sue and be sued independently of its shareholders, who are not personally responsible for the company's debts beyond their shareholding.
Dialectal Variation
British vs American Usage
Differences
In the UK/Ireland, 'Limited (Ltd.)' is the standard term for a private limited company. In the US, the equivalent is typically a 'corporation' (Inc.) or a 'Limited Liability Company (LLC)'. The term 'limited company' is understood but less commonly used in American legal/business contexts.
Connotations
UK: Standard, conventional business form. US: Can sound slightly British or formal; 'corporation' or 'LLC' are more native terms.
Frequency
Very high frequency in UK business/legal contexts. Moderate frequency in US contexts, usually in international or comparative business discussions.
Grammar
How to Use “limited company” in a Sentence
[Subject] owns/runs a limited company.[Subject] is a director of a limited company.[Subject] was incorporated as a limited company.The limited company [verb: employs, owns, trades].Vocabulary
Collocations
Examples
Examples of “limited company” in a Sentence
adjective
British English
- The limited company structure offers more protection.
- She reviewed the limited company accounts.
American English
- The corporate (limited company) structure offers more protection.
- She reviewed the corporate accounts.
Usage
Meaning in Context
Business
Standard term for discussing business structure, liability, and registration in Commonwealth countries.
Academic
Used in law, economics, and business studies to discuss corporate governance and legal frameworks.
Everyday
Used when discussing someone's job or type of business, e.g., 'He works for a small limited company.'
Technical
Precise legal term in company law, defining specific rights, reporting requirements, and liability structures.
Vocabulary
Synonyms of “limited company”
Strong
Neutral
Weak
Vocabulary
Antonyms of “limited company”
Watch out
Common Mistakes When Using “limited company”
- Using 'limited company' to refer to a publicly traded corporation (use 'public limited company' or 'PLC' in UK).
- Saying 'I work in a limited company' (better: 'I work for a limited company' or 'I work at a limited company').
- Confusing 'Ltd.' with 'PLC'.
FAQ
Frequently Asked Questions
It refers to 'limited liability'. The financial responsibility of the company's owners (shareholders) is limited to the amount they invested. They are not personally liable for the company's debts.
They are functionally very similar, both providing limited liability. 'Limited company' is the standard term in the UK and Commonwealth countries, while 'corporation' (or 'Inc.') is standard in the US. An LLC in the US is a different, hybrid structure.
A limited company is run by its directors, who are appointed by the shareholders (owners). The directors manage the company's day-to-day affairs.
In the UK, it's typically 'Ltd.' or 'Limited'. For a public limited company, it's 'PLC'. In the US, equivalent designations are 'Inc.' (Incorporated) or 'Corp.' (Corporation).
A type of business structure where the company's finances are legally separate from the owners' personal finances, and the owners' financial liability is limited to their investment.
Limited company is usually formal, legal, business in register.
Limited company: in British English it is pronounced /ˌlɪm.ɪ.tɪd ˈkʌm.pə.ni/, and in American English it is pronounced /ˌlɪm.ɪ.t̬ɪd ˈkʌm.pə.ni/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of a 'LIMIT' placed on how much money the owners can lose. Their loss is LIMITED to what they invested in the COMPANY.
Conceptual Metaphor
A COMPANY IS A SHIELD (protecting personal assets from business risks).
Practice
Quiz
In which country is the term 'Limited Company' (Ltd.) most commonly used as the standard legal designation?