Ltd. and the abbreviation for limited, legal term that refers to the type of company organized by quotas, where each partner has limited liability.
THE limited liability company (Ltda.) is the most common legal entity model in Brazil. It establishes in the articles of association what each share and the participation of each partner is worth. This pre-agreed participation is what limits both what the partner will gain and his liability as well as the company's debts.
The Ltd. protects the partners' personal assets in the event of bankruptcy, closure or termination of the company.
Companies of the limited liability company type must have the abbreviation Ltda. after its corporate name, in order to identify the framework of the legal entity and with this the forecast of responsibility of each partner.
The obligation of Ltda. at the end of the name of the organization is provided for in art. 1158 of the Brazilian Civil Code. If the word limited does not appear in the name of the company, then it is assumed that the liability of the partners is unlimited, and will be treated as such.
In English, the type of limited liability company such as Ltd. Brazilian finds correspondence in Limited Liability Company (LLC).
Learn more about the meaning of Limited society.
Ltd. and SA
The abbreviation Ltd. and the acronym S.A. refer to types of companies in Brazil.
The limited liability company has this name because it provides for the limitation of the partners' liability according to their participation.
S.A. means Corporation, and corresponds to companies whose capital is divided into shares traded on the financial market. S.A. companies can be publicly-held, privately held, or debentures.
Learn more about the meaning of Anonymous society and EIRELI.
Ltd. EPP
Ltd. EPP is a small limited company. The acronym EPP stands for small business.
Ltd. ME
As well as Ltda. EPP, Ltd. ME corresponds to a type of limited partnership. In this case, Ltda. ME is limited company and microenterprise. ME, which means micro-enterprise, is a legal entity in Brazil limited by the annual turnover of the business.
Uppercase LTDA or Lowercase Ltda?
the spelling correct is Ltd.
The norm for abbreviations indicates that they must be written only with the first letter capitalized and the others in lowercase with a period to indicate that it is an abbreviation.
The confusion between capital and small is due to the rule of acronyms. In the case of an acronym composed of letters that do not form a pronounceable word, this acronym must be written with all letters in capital letters. But Ltd. it is not an acronym but an abbreviation of the word limited. Therefore, it must have only the first one in capital, the others in lower case, and the period indicating that it is an abbreviated word.