Limited company

A limited company is a special kind of business that is owned by people but is considered a separate legal entity. This means that the company can do things like hold contracts, pay taxes, and make profits just like a person can.

The people who own a limited company are called shareholders, and they own a part of the company based on how many shares they have. These shareholders can also be employees of the company, but they usually do not have a say in the day-to-day operations of the company.

One of the most important things about a limited company is that its owners are not personally responsible for the company's debts. This means that if the company has money problems and owes money to other people or businesses, the shareholders are not required to pay these debts using their own personal money.

Another important thing about limited companies is that they must follow certain rules and regulations set by the government. This includes things like filing annual reports, holding shareholder meetings, and keeping track of financial records.

In summary, a limited company is a special type of business where people can own parts of the company but the company is considered a separate legal entity. This means that the company can do things like make money and sign contracts, and its owners are not personally responsible for the company's debts. However, there are rules and regulations that must be followed to ensure the company is run properly.