Limited Company is a UK private company limited by shares, the standard incorporation form for British SMEs and the typical "Ltd" suffix.
A Limited Company (Ltd) is a UK private company limited by shares formed under the Companies Act 2006 and registered at Companies House. Shareholder liability is capped at the unpaid amount on their shares. There is no minimum share capital; companies are routinely formed with 1 GBP of issued share capital.
The company is a separate legal person and must include "Limited" or "Ltd" in its name (with Welsh equivalents available).
Incorporation is fully digital and usually completed in 24 hours via Companies House, requiring memorandum, articles of association, a registered office, at least one director, and a Person with Significant Control (PSC) declaration. The company must file annual confirmation statements, annual accounts, and a corporation tax return (CT600) with HMRC.
A UK Ltd pays corporation tax on its profits at the prevailing rate (25 percent main rate from April 2023, with a 19 percent small profits rate up to 50,000 GBP). Directors owe statutory duties under sections 171 to 177 of the Companies Act and must keep statutory registers.
The form is widely used by freelancers, contractor personal-service companies, e-commerce founders, and growth-stage businesses, and is fully compatible with EIS, SEIS, and standard UK venture investment.
You will encounter the UK Ltd whenever you research a British supplier, hire a UK contractor through their personal service company, or look for a UK subsidiary form. Founders building a UK startup default to a Ltd and use SEIS/EIS-eligible share issues to attract early investors. International groups commonly form UK Ltd subsidiaries to handle UK sales, employment, and VAT registration.
See what a company actually costs in year one, and how the jurisdictions compare on tax, capital and timeline.
