Private Limited Company

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  • Private Limited Companies (LTD)
    • Companies jointly owned by people who have invested in the business. The people are known as shareholders
      • LTD'S tend to be owned by either family or friends and are quite often not much larger in size than a sole trader or partnership.
    • Advantage
      • Limited Liability
        • This means that the owners (shareholders) of a company are only liable for the debts up to the value they put into the business. E.G. if they put in £10,000 they are only liable to pay £10,000 of the debts.
    • Disadvantages
      • Risk losing control
        • May have to change the companies objectives because shareholders focus on their investment


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