What is the difference between ltd and limited in a company name?

Why do some uk companies use 'ltd' or 'limited' in their names?

In the UK, private limited companies are legally required by section 59 of the Companies Act 2006 to end their names with "Limited" or "Ltd" to indicate limited liability status. This suffix signals that the company is its own legal entity, with shareholders protected from personal liability if the business faces financial issues. Welsh companies may use the equivalents "cyfyngedig" or "cyf."

Without one of these suffixes, Companies House will not register the company unless it meets specific exemption criteria.

According to Section 59 of the Companies Act 2006, private limited companies in the UK must end their names with either "Limited" or "Ltd" to indicate their limited liability status. Welsh companies can also use "cyfyngedig" or "cyf." However, if a company name does not contain the appropriate suffix, Companies House will refuse its registration unless it qualifies for an exemption.

Are there companies exempted from using Limited in a company name?

Certain companies— particularly those limited by guarantee —can be exempt from adding "Ltd" or "Limited" to their names. 

To qualify, these companies must operate with specific objectives in their articles of association, such as promoting commerce, education, charity, or other community-benefitting pursuits. Additionally, they must meet several conditions:

1. Income allocation: All profits must be directed toward the company’s stated objectives.
2. Prohibition of payments to members: No dividends or returns of capital can be paid to members.
3. Asset transfer upon dissolution: In the event of winding up, assets must be transferred to an organisation with similar objectives or one that promotes charitable causes.

Other entities may use different suffixes. For example:

• Public Limited Companies use "PLC."
• Limited Liability Partnerships use "LLP."
• Sole traders with trading names do not use a suffix.

These distinctions allow companies to represent their structure and purpose accurately.

What is the difference between LTD and Limited?

The difference between "Ltd" and "Limited" is purely stylistic—“Ltd” is simply an abbreviation of “Limited.” Private limited companies commonly use either of the terms to show limited liability status. The choice depends on the company’s preference and doesn’t affect the company’s legal standing or obligations.

Once you choose your preferred suffix, it will appear at the end of your business name in your certificate of incorporation and on the Companies House register.

How do I determine whether to use Limited or ltd at the end of your company name?

You can use "Limited" or "Ltd", depending on which fits your brand’s style best. Legally, there’s no difference, and both indicate limited liability status. While "Limited" may feel more formal, many formal brands opt for "Ltd" as well—so it comes down to your personal preference!

Are 'ltd' and 'limited' interchangeable?

While “Ltd” and “Limited” can generally be used interchangeably without issue, using the version you registered with Companies House on all official documents and legal correspondence is essential. Consistency with your registered name is required in the following instances:

• Physical signs (e.g., in shops or commercial offices)
• Your registered office address or any operating business location (excluding your home if used privately)
• Stationery, including official documentation and websites
• Promotional materials

Following this practice helps maintain compliance and ensures clarity in all official interactions.