Ltd. is an abbreviation of the term ‘Limited’ = ‘Private Limited Company’. In the UK, the abbreviation Ltd indicates a private limited company whose shareholders or members are liable to the extent of their capital share in case of the company’s debts or bankruptcy. In the United States, the term 'Corporation' is preferred to 'Limited Company', but these are equivalent entity types regardless of differences in namings. In the UK, the abbreviation ‘Ltd’ following the company name does make a reference to the legal entity type.