A limited company is a type of business structure where the owners' liability is limited to the amount they invested in the company. This means that if the company faces financial difficulties, the personal assets of the owners, known as shareholders, are protected. Limited companies can be either private or public, with private limited companies often denoted by "Ltd" in their name. In a limited company, the business is considered a separate legal entity from its owners. This allows the company to enter contracts, own property, and incur debts independently. Limited companies must adhere to specific regulations, including filing annual accounts and maintaining proper records, ensuring transparency and accountability in their operations.