Glossary definition

What is a limited company?

A limited company is one that’s legally separate from those who own and run it.

Essentially, the company becomes a ‘person’ in its own right, with the ability to hold profit and debt, and to enter contracts.

The owners have limited liability (hence the name) and so can only be responsible for the debts to the amount they’ve invested in the company, or that they guarantee the company.

Limited companies require at least one director and must be registered at Companies House.