Can ‘Limited’ and ‘Ltd’ be used interchangeably?
Most private limited company names must end with ‘Limited’ or ‘Ltd,’ and these terms are generally interchangeable. However, there are important rules and considerations to keep in mind, which we will explore in this article.
What is ‘Limited’ and ‘Ltd’?
First, let’s clarify the meaning of ‘Limited’ and ‘Ltd.’ These suffixes in your company name define its legal status. By ending your company name with ‘Limited’ or ‘Ltd,’ you indicate that it is a private limited company – a separate legal entity where shareholders have limited liability in case of financial difficulties.
The Companies Act 2006 requires nearly all private companies to include “Limited” or “Ltd” in their names, reflecting their legal structure. Only certain private companies that qualify for specific exemptions are not required to include this suffix.
The difference between ‘Limited’ and ‘Ltd’
So, what is the difference between these terms? Generally, there is no difference. ‘Ltd’ is simply an abbreviation of ‘Limited.’ They are just different ways to present the same designation.
The choice between them depends largely on how you want your company name to appear. Some people choose ‘Limited’ for a more formal look, while others prefer the simplicity and style of ‘Ltd.
When selecting your company name, you can choose either suffix, ‘Limited’ or ‘Ltd,’ based on your preference, but you must incorporate your company under one of them as it is a legal requirement.
Once you have chosen a suffix, it will appear on all official documents, such as your company’s Certificate of Incorporation, and on the Companies House public register.
Are ‘Limited’ and ‘Ltd’ interchangeable?
Generally, you can use ‘Limited’ and ‘Ltd’ interchangeably without issues. However, to remain fully compliant and avoid any potential complications, we recommend using the suffix under which your company was registered.
The main situation where you shouldn’t interchange ‘Limited’ and ‘Ltd’ is when filing documents with Companies House. You must use your registered company name, including the correct suffix, exactly as it appears on your Certificate of Incorporation. Otherwise, Companies House will reject your filling.
Another instance where these suffixes are not interchangeable is when displaying your company name in specific places. You are legally required to show your exact registered company name, including ‘Limited’ or ‘Ltd,’ in the following locations:
- Physical signs, such as shops or commercial offices
- The company’s registered office address or any other business address (unless it is your home)
- Stationery, including business letters and websites
- Promotional material
The rules for disclosing company names are outlined in Part 6 of The Company, Limited Liability Partnerships, and Business (Names and Trading Disclosures) Regulations 2015.
In general, ‘Limited’ and ‘Ltd’ can be used interchangeably, except when contacting Companies House or displaying your company name in the above places.
When considering company names and their suffixes, there are additional factors to keep in mind.
Changing your suffix,
If you are dissatisfied with the suffix in your company name, you can easily change it from “Limited” to “Ltd” or vice versa. Companies can change their name at any time by passing a special resolution of the members or by any other method outlined in their articles of association.
To pass a special resolution and change your company name, you’ll need at least a 75% majority vote from the members. This resolution can be passed either through a written resolution or at a general meeting.
For more information on making changes to your private limited company, visit the gov.uk website.
Limited name exemptions
A private company may be exempt from using “Limited” or “Ltd” in its name for several reasons, such as:
- It is a company limited by guarantee.
- Its articles of association include the following provisions:
- An objects clause stating that the purpose of the company is to promote commerce, art, science, education, religion, charity, or any profession.
- A provision that requires all of the company’s profits to be applied to the promotion of its objects.
- A provision preventing any dividends from being paid to its members.
- A provision that, in the event of a wind-up, all assets in the company’s name are to be transferred to a body with similar objects or another body with charitable objects.
For more details on limited name exemptions, refer to section 60 of the Companies Act 2006 and the government website.
Trading names
Some companies use a trading name different from their registered name for general purposes such as marketing or to differentiate between various divisions of the same company.
If you operate under a trading name, it must not include the following suffixes:
- Limited
- Ltd
- Limited Liability Partnership
- LLP
- Public Limited Company
- PLC
- Any Welsh equivalent of these words
Additional rules for trading names require that they must not copy or closely resemble an existing business name or trademark and must not contain offensive or sensitive words. For more details on choosing a trading name, visit the Companies House website.
Do you have any other questions?
We’ve covered the interchangeable use of “Limited” and “Ltd.” Both refer to the legal status of a private limited company, and you can generally use either suffix. However, for legal documents and filings with Companies House, you should use the registered version of your company name exactly as it appears. Changing the suffix is possible if needed, but the proper process must be followed.
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