What is the difference between using ‘limited’ and ‘ltd’ with your company name?

In terms of legal structure, there is no difference between the terms “Limited” and “Ltd”. Both indicate that a company is a private limited company.

‘Limited’ or ‘Ltd’ – what is the difference?

“Limited” is the full word, while “Ltd” is an abbreviation. The choice of using “Limited” or “Ltd” in a company’s registered name is largely a matter of personal preference or convention. Some companies choose to use “Limited” for a more formal or traditional image, while others prefer “Ltd” for brevity and simplicity.

It is worth noting that there are some naming rules and restrictions when it comes to choosing a company name. For example, the name cannot be the same as an existing registered company name, certain names that are too similar may be challenged, it cannot be offensive, and some sensitive words or expressions require permission.

A private company limited by shares or guarantee must normally end its registered name with “Limited” or “Ltd”.

The requirement is contained in Section 59 of the Companies Act 2006.

Interestingly, Companies House normally displays company names in CAPITAL LETTERS on the public register.

What about Welsh companies?

The legal structure and requirements for Welsh companies are generally the same as for companies registered elsewhere in the UK.

However, a company registered as a Welsh company can use the Welsh language version of the legal structure identifier. The Welsh version of “Limited” is “Cyfyngedig”, while the Welsh version of “Ltd” is “Cyf”.

Companies House defines a Welsh company as one which stated on incorporation that its registered office would be situated in Wales, rather than simply England and Wales. You can read more in the Companies House guidance on Welsh companies.

Can you remove the ‘Limited’ or ‘Ltd’ suffix from your company name?

In certain circumstances, a private company can be exempt from using “Limited” or “Ltd” at the end of its name.

This mainly applies to certain companies limited by guarantee whose Articles of Association meet specific statutory conditions, including:

• The company’s objects relate to areas such as commerce, art, science, education, religion, charity or a profession.
• Its income must be applied towards promoting those objects.
• Its Articles must prohibit the payment of dividends or a return of capital to members.
• Its assets on winding up must be transferred in accordance with the statutory requirements rather than distributed to members.

Registered charities may also be exempt.

The full details are contained in Section 60 of the Companies Act 2006, and Companies House also provides guidance on applying for the exemption.

Are ‘Limited’ and ‘Ltd’ interchangeable?

In everyday use, the terms are commonly treated as interchangeable because they describe the same type of private limited company.

However, for official paperwork, filings, invoices and contracts, the safest approach is to use the company’s exact registered name.

For example, GOV.UK states that a limited company invoice must include the full company name as it appears on the certificate of incorporation. See our guide to what you must include on a limited company invoice.

So, if the company is registered as “Example Trading Ltd”, use that registered name on formal documents rather than automatically changing it to “Example Trading Limited”.

Can you officially change from ‘Limited’ to ‘Ltd’ or vice versa?

If a company wants to formally change its registered name from “Limited” to “Ltd” or vice versa, it should follow the normal procedure for changing a company name.

This generally involves passing the appropriate company resolution and filing the change with Companies House.