Are ‘Limited’ and ‘Ltd’ interchangeable in a limited company name?

Most private limited company names need to end with ‘Limited’ or ‘Ltd’, but can the two be used interchangeably? Generally, yes – but there are a few situations where you’re legally required to stick to your registered version, which we’ll cover below.

What is ‘Limited’ and ‘Ltd’?

First, let’s establish what ‘Limited’ and ‘Ltd’ actually mean.

They’re the suffixes in your company name that define your company’s status. By ending your company name with ‘Limited’ or ‘Ltd’, you’re indicating that it’s a private company that has limited liability.

Using ‘Ltd’ or ‘Limited’ is a signal to everyone who engages with the company that, generally speaking, only the company’s assets are recoverable if the company is unable to pay its debts. The shareholders’ liability is capped at whatever amount, if any, remains unpaid on their shares. The remainder of their own assets is protected, except in specific circumstances.

What’s the difference between ‘Limited’ and ‘Ltd’?

So, how are these terms different? Generally speaking, there is no difference between ‘Limited’ and ‘Ltd’. Stating the obvious, ‘Ltd’ is simply an abbreviation.

By law, your company must end with ‘Ltd’ or ‘Limited’ if it’s a private limited company. That’s what section 59 of the Companies Act 2006 says. Only certain private companies that meet particular exemptions are not required to use this suffix.

Note that once you’ve chosen the preferred suffix, it will appear on all official documents, such as your company’s Certificate of Incorporation, and on the Companies House public register.

Which suffix should you use for your business?

Which one you choose mostly depends on how you want your company name to be presented.

Brand perception

For instance, some people opt for ‘Limited’ to maintain a formal look, while others might prefer the simplicity and style of ‘Ltd’. Some people think that ‘Ltd’ looks a little more modern and concise. The key is to keep it consistent for your brand recognition.

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Personal preference

When choosing your company name, you may choose whichever of these two suffixes you prefer. You can do it based purely on personal preference, but you need to select one when you incorporate your company.

International considerations

‘Ltd’ is generally more recognised as a UK company overseas, whereas ‘Limited’ is not necessarily so easily understood outside of the UK. If you trade internationally, then ‘Ltd’ may be a better choice.

Are ‘Limited’ and ‘Ltd’ interchangeable in a company name?

Broadly speaking, you can interchange between ‘Limited’ and ‘Ltd’. In most cases, you’re probably not going to run into trouble if you switch the two around, and actually, it’s quite common.

For a belt-and-braces approach to compliance, you would stick to the version used when the company was registered.

We’ve listed a couple of these places below where you need to use the correct suffix you registered at Companies House.

Filing at Companies House

The main scenario in which you shouldn’t interchange ‘Limited’ and ‘Ltd’ is when filing documents to Companies House. Here, you must use your registered company name, including the correct suffix, exactly as it appears on your Certificate of Incorporation. Otherwise, your filing will be rejected.

Another instance in which you should not interchange these suffixes is when you display your company name in certain places. The law states that you must show your exact registered company name, including ‘Limited’/’Ltd’, on:

• Stationery (e.g. websites, business letters, emails, or websites)
• Promotional material
• The company’s registered office address, or any other address the business operates from (unless it’s your home)

The rules setting out the disclosure of company names can be found in part 6 of The Company, Limited Liability Partnerships and Business (Names and Trading Disclosures) Regulations 2015.

Changing your company’s suffix

If, for whatever reason, you’re unhappy with the suffix in your company name, you can simply change it from ‘Limited’ to ‘Ltd’ and vice versa.

Companies are permitted to change their name at any time by special resolution of the members, or by any other means provided for in their articles of association.

To pass a special resolution and change your company name, you’ll need a minimum of a 75% majority vote from the members. This resolution can be passed either by a written resolution or at a general meeting.

You can find more information on making changes to your private limited company on our blog about changing your company name.

Limited name exemptions

A private company may be exempt from using ‘Limited’ or ‘Ltd’ in its name for some of the following reasons:

1. It’s a company limited by guarantee.
2. Its articles of association include the following provisions:
   • An objects clause which states that the purpose of the company is to promote commerce, art, science, education, religions, charity, or any profession;
   • A provision that says all of the company’s profits are to be applied for the promotion of its objects;
   • A provision preventing any dividends from being paid to its members; and
   • 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 itself, or another body with charitable objects.

Further details on limited name exemptions are in section 60 of the Companies Act 2006 and on the government website.

Trading names and suffix rules

Some companies trade under a different name from their registered name. This may be for general trading purposes, such as marketing, or to differentiate between multiple businesses within the same company.

If you operate under a trading name, it must not include any of the following suffixes:

• Limited
• Ltd
• Limited Liability Partnership
• LLP
• Public Limited Company
• PLC
• Any Welsh equivalent to the above words

Other rules concerning trading names include that they do not contain any offensive or sensitive words and should not infringe on an existing trademark. You can find more details on choosing a trading name on the Companies House website.

If you’re using a trading name, then the trading name disclosure regulations apply. It’s the same regulations we mentioned earlier: The Companies, Limited Liability Partnerships, The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015. In this context, that means that you have to disclose your actual registered name, with the correct suffix.

So, if you registered your business as ‘Smith Consulting Limited’ and your trading name is ‘Smithies’, then on your website, invoices, letters, and emails, you must say “Smithies is a trading name of Smith Consulting Limited”. You cannot choose to use ‘Ltd’ here if you registered the business with ‘Limited’.

Ready to register your company?

‘Limited’ and ‘Ltd’ are largely the same thing. ‘Ltd’ is simply the short version of ‘Limited’. They both refer to the status of a private limited company. There’s no specific provision for using the terms interchangeably, but in practical terms, companies often do mix and match. However, there are certain places where you must use the suffix that you chose when you registered the company at Companies House. For example, when you’re contacting Companies House or displaying your company name in certain business locations.

However, for compliance purposes, it’s best to stick to your company name as it has been registered, so you don’t run into any unintended problems. If you change your mind about the suffix after incorporation, you can always change it.

If you’re ready to incorporate your business, you can register your company name with 1st Formations, and we’ll handle the admin for you. Or if you’re an existing customer and want to change from ‘Ltd’ to ‘Limited’ (or vice versa), you can make the change through your 1st Formations account.