LIMITED COMPANY Meaning and
Definition
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A limited company refers to a legal business structure or entity that is separate and distinct from its owners or shareholders. It operates with a system of limited liability, meaning that the owners' personal assets are protected and their liability is limited to the amount they have invested in the company.
A limited company can be either a private limited company (Ltd) or a public limited company (PLC). In the case of a private limited company, the shares are privately held and not traded publicly on the stock exchange. The ownership is typically controlled by a small group of individuals or a family. In contrast, a public limited company offers shares to the general public, allowing them to invest and become shareholders.
Limited companies are formed by registering with the relevant authority in the jurisdiction where they operate. The registration process includes providing essential information about the company, such as its name, registered address, directors, and shareholders. Once formed, limited companies have a legal entity, and can enter into contracts, own assets, and incur liabilities on their own behalf.
The financial and legal aspects of a limited company are governed by specific regulations and corporate laws. These laws mandate the company to maintain proper accounting records, submit annual financial statements, and comply with applicable taxation regulations. Additionally, limited companies have certain responsibilities towards their shareholders, such as holding regular shareholder meetings and ensuring transparency and accountability in corporate governance.
Overall, a limited company is a distinct legal entity that provides its owners with limited liability protection while enabling them to conduct business activities and raise capital from investors.
Common Misspellings for LIMITED COMPANY
- kimited company
- pimited company
- oimited company
- lumited company
- ljmited company
- lkmited company
- lomited company
- l9mited company
- l8mited company
- linited company
- likited company
- lijited company
- limuted company
- limjted company
- limkted company
- lim9ted company
- lim8ted company
- limired company
- limifed company
Etymology of LIMITED COMPANY
The term "limited company" originates from the merger of two words: "limited" and "company".
The word "limited" comes from the Latin "limitare", which means "to limit" or "restrict". In this context, it refers to the limited liability of the company's shareholders or owners. A limited company is a business entity in which the liability of its members or shareholders is limited to their investment or the amount they have agreed to contribute.
The word "company" comes from the Old French "compaignie", which originated from the Late Latin "companio", meaning "companion" or "partner". It originally denoted a group of people who associated together for a common purpose.
Hence, the etymology of "limited company" refers to a business organization that is formed by individuals who join as partners or companions, with a limited liability for each member.
Similar spelling words for LIMITED COMPANY
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