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Limited Company Meaning A limited company is a distinct legal entity that exists separately from its owners. In the UK, it is a popular business structure chosen by entrepreneurs for its various benefits. A  limited company  can own assets, enter into contracts, and is responsible for its own debts. The ownership of the company is divided into shares, and its operation and management are governed by its Articles of Association and other legal documents. Types of Limited Companies Private and Limited by Shares (or Private Companies Limited by Shares):  This is the most common type of limited company. It is owned by shareholders whose liability is limited to the value of their shares. These companies can distribute profits among shareholders and are subject to Corporation Tax. Private and Limited by Guarantee (or Private Companies Limited by Guarantee):  Typically used for non-profit organizations, these companies have members rather than shareholders. The members' liability is limit