Private limited company by shares
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In English Law and in many Commonwealth countries, a limited company by shares (limited or Ltd.) is a type of limited company, with liability limited to the capital invested, i.e. by the sale of shares. In other words the shareholder's personal assets are protected in the event of bankruptcy but they will lose the capital invested in their shares.
They could be Private or Public (Shared Traded on Exchanges). A private limited company's shares are not available to the general public, the major distinguishing feature between a private limited company and a public limited company. Most companies are private.
Most of the companies are incorporated in a way that their owners enjoy limited responsibility. These companies have the suffix "Limited" ("Ltd" or "Ltd.") or "Incorporated" ("Inc." - this cannot be used in the Republic of Ireland) as part of its name. In the Republic of Ireland "Teoranta" ("Teo") may be used instead, though this is limited mainly to Gaeltacht companies. "Cyfyngedig" ("Cyf") may be used by Welsh companies in a similar fashion. Companies must apply to the relevant registrar - Companies House in Great Britain, the Northern Ireland Registrar of Companies in Northern Ireland, or the Companies Registration Office, Ireland in the Republic of Ireland - to be formally incorporated as a company. In India, application needs to be done with Registrar of Companies.
In the Republic of Ireland, a private limited company may have a maximum of fifty shareholders.
A company must have at least one director and a company secretary. They cannot be the same person. The company's Articles of Association may have more specific requirements however.
See also
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