Limited Company

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Limited Company

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A limited company is a structure that you would use to set up a new business. A limited company would generally have a share capital and these shares would be divided amungst the share holders of the company.

The reason it is called a limited company is because the directors / share holders are protected by major financial responsability and their losses / liability are 'limited'.

A limited company also has tax and national insyrence efficiencies and also improves reputation and credability. Such company would also have some kind of business credit rating, much like people do.

Limited Companies can be set up in many different countries and ltd companys in the UK have all their information made publically through companies house.

So there are private limited companies and public limited companies. Public limited companies are usually traded on their countries (or other countries) stock exchange and have a much more complex structure to them.