LTD vs LIMITED - what is the difference?

Discussion in 'General Business Forum' started by heddwyn, Aug 27, 2013.

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  1. heddwyn

    heddwyn UKBF Newcomer Free Member

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    Hi,

    i have registered my LbS company with the "LIMITED" ending. I am not sure what is the difference between LTD and LIMITED. Some resources say that these are exactly the same and I can interchange between them whenever i please but someone else has told me that if i choose the "LTD" ending i am not legally allowed to use the "LIMITED" ending.

    Does anybody have a definitive answer? :|
     
    Posted: Aug 27, 2013 By: heddwyn Member since: Oct 23, 2012
    #1
  2. Maxwell83

    Maxwell83 UKBF Regular Free Member

    580 140
    You can use either. That's the definitive answer.

    Sent from my GT-N7100 using Tapatalk 4
     
    Posted: Aug 27, 2013 By: Maxwell83 Member since: Aug 4, 2012
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  3. Anna Chandley

    Anna Chandley UKBF Ace Free Member

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    If you incorporate a company as limited you can use limited or Ltd but if you incorporate as Ltd then you can only use Ltd and not Limited.


    Anna
     
    Posted: Aug 27, 2013 By: Anna Chandley Member since: Jun 2, 2008
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  4. heddwyn

    heddwyn UKBF Newcomer Free Member

    38 6
    Haha here we go - 2 different answers again
     
    Posted: Aug 27, 2013 By: heddwyn Member since: Oct 23, 2012
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  5. Maxwell83

    Maxwell83 UKBF Regular Free Member

    580 140
    LTD is a permitted alternative to Limited. In law, its the same word, therefore whichever you register with is irrelevant.

    A company registered as "LTD" has a legal obligation to display its name as "company name LTD" or a permitted alternative e.g. "company name limited". Who do you think will take action against you and on what grounds if you use "limited" instead of "LTD"?

    As you require something definitive, why not read the legislation for yourself:

    http://www.legislation.gov.uk/ukpga/2006/46/contents

    and the Regulations:

    http://www.legislation.gov.uk/uksi/2009/1085/contents/made
     
    Posted: Aug 27, 2013 By: Maxwell83 Member since: Aug 4, 2012
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  6. Anna Chandley

    Anna Chandley UKBF Ace Free Member

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    Despite having always been taught that the treatment quoted above was correct I couldn't find anything in the legislation that supported my view regarding use of Ltd and Limited I decided to give Companies House a call.

    Their response was that for documents submitted to Companies House you must use the name that is shown on the incorporation certificate so if you incorporated as Limited you must show Limited on documents submitted to companies house and cannot use the abbreviation Ltd. I was also told that Companies House will now reject any documents which use the wrong suffix (this may not have happened prior to CA2006).

    Companies House also said that other than Companies House documents, a company is free to use Ltd or Limited regardless of what was used on incorporation.

    Anna
     
    Posted: Aug 27, 2013 By: Anna Chandley Member since: Jun 2, 2008
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  7. Maxwell83

    Maxwell83 UKBF Regular Free Member

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    That was very thorough of you!

    I can see (sort of) why this is. If you incorporate as ME LTD then your official company name is ME LTD, not ME LIMITED. Thats the official name and so I guess must be on companies house official documents.

    But in everyday use, you don't have to give the official company name to the letter, because the law states that you can use permitted variations and gives guidance on what these variations can be - LTD/limited being one such variation that is accepted in law.

    So the bottom line is, don't worry about it. Just get it right on you companies house documents, although with webfiling, its pre-populated for you anyway ;)
     
    Last edited: Aug 27, 2013
    Posted: Aug 27, 2013 By: Maxwell83 Member since: Aug 4, 2012
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  8. Blood Lust

    Blood Lust UKBF Enthusiast Free Member

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    You can legally use either as under law they mean the same thing.
     
    Posted: Aug 27, 2013 By: Blood Lust Member since: Sep 7, 2011
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  9. antropy

    antropy OpenCart Experts Full Member - Verified Business

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    Haha brilliant, I also wondered about this. Thanks for doing that.
     
    Posted: Apr 30, 2015 By: antropy Member since: Aug 2, 2010
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  10. Pish_Pash

    Pish_Pash UKBF Ace Free Member

    2,418 624
    Because I'm lazy & time poor (e.g. I shorten June to Jun) I went for Ltd. ....note the dot...it's important if you're anal about abbreviations!
     
    Posted: Apr 30, 2015 By: Pish_Pash Member since: Feb 1, 2013
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  11. dmckellar

    dmckellar UKBF Contributor Free Member

    80 14
    my full title is Limited but on business cards/van sign writing i have Ltd. as it looks neater

    Why all the fuss i do not know though, unless you or a competitor is at each other for naming rights
     
    Posted: Apr 30, 2015 By: dmckellar Member since: Feb 19, 2013
    #11
  12. antropy

    antropy OpenCart Experts Full Member - Verified Business

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    Because small details matter ;)
     
    Posted: Apr 30, 2015 By: antropy Member since: Aug 2, 2010
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  13. paulears

    paulears UKBF Big Shot Full Member

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    Ltd is an accepted contraction - that's it.
     
    Posted: Apr 30, 2015 By: paulears Member since: Jan 7, 2015
    #13
  14. dmckellar

    dmckellar UKBF Contributor Free Member

    80 14
    wouldn't know mate, i don't deal in small details ;)
     
    Posted: May 1, 2015 By: dmckellar Member since: Feb 19, 2013
    #14
  15. Pish_Pash

    Pish_Pash UKBF Ace Free Member

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    no need to labour the point.
     
    Posted: May 1, 2015 By: Pish_Pash Member since: Feb 1, 2013
    #15
  16. jasion

    jasion UKBF Contributor Free Member

    34 4
    it makes no difference. my company is PJ Worldwide Limited but i am shortcutting it as PJ Worldwide Ltd. nobody can register the second name i have mentioned legally.
    Also i suggest using trading names that do not have to be registered.
     
    Posted: May 6, 2015 By: jasion Member since: Mar 26, 2013
    #16
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