GlossaryUK
What is a private limited company (Ltd)?
UK private company limited by shares
Short answer
A private limited company (Ltd) is a UK company that is legally separate from its owners, whose responsibility for business debts is limited to what they invested. It is formed by registering with Companies House.
Explained
The company must have at least one director, aged 16 or over, and a company limited by shares needs at least one shareholder; there is no maximum number of shareholders, and one person can be both the only shareholder and the only director. A company secretary is not required. The name usually ends with “Limited” or “Ltd”.
On formation Companies House issues a certificate of incorporation confirming that the company exists and showing its company number and date of formation. After that, the company files a confirmation statement and annual accounts with Companies House and a Corporation Tax return with HMRC every year.
Good to know
- Directors do not have to live in the UK, but the company must have a UK registered office address.
- Directors remain legally responsible for the company’s records, accounts and performance even if they hire an accountant.
- Since 18 November 2025, identity verification with Companies House is a legal requirement for directors.
This page is general information, not legal or tax advice. Rules change; check the official source for the latest position or talk to us.
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