Limited Company (Noun)
Meaning
A company that is organized to give its owners limited liability.
Classification
Nouns denoting groupings of people or objects.
Examples
- The entrepreneurs decided to form a limited company to protect their personal assets from business risk.
- A limited company typically has the letters 'Ltd' at the end of its name, indicating its legal status.
- One of the key benefits of setting up a limited company is that the owners' personal wealth is safeguarded in case the business becomes insolvent.
- In the UK, a limited company must register with Companies House and follow strict compliance regulations.
- Some small business owners prefer the simplicity of being self-employed, but establishing a limited company can provide significant tax advantages.