Limited (Ltd.) vs. Incorporated (Inc.) – Indian vs. U.S. Companies

Limited (Ltd.) vs. Incorporated (Inc.) – Indian vs. U.S. Companies


  • India (Ltd.):

    • Indian companies often use “Limited” (Ltd.) at the end of their name.

    • Indicates a private or public company with limited liability, meaning shareholders are only liable up to their share capital.

    • Examples: Tata Steel Ltd., Infosys Ltd.

    • Private companies can also use “Private Limited” (Pvt. Ltd.) to denote restricted shareholding.

  • United States (Inc.):

    • U.S. companies commonly use “Incorporated” (Inc.) at the end of their name.

    • Signifies a company legally incorporated under state law with limited liability for its shareholders.

    • Examples: Apple Inc., Microsoft Corp.

    • Other variants like Corp. or Co. are also used, depending on the state and preference.

  • Key Difference:

    • Both indicate limited liability, but terminology differs due to jurisdictional legal frameworks: India follows the Companies Act, 2013, while the U.S. follows state corporate laws.


Overview of how companies are named in different major countries:


Country

Common Nomenclature

Meaning / Notes

India

Ltd. / Pvt. Ltd.

Limited liability companies (private/public) under Companies Act, 2013

USA

Inc. / Corp.

Incorporated companies under state corporate laws, limited liability

UK

Ltd. / PLC

Ltd. = private limited; PLC = public limited company, limited liability

China

有限公司 (Youxian Gongsi, Ltd.)

Limited liability company; 国有 (State-owned) or 股份有限公司 (Joint-stock)

Japan

株式会社 (Kabushiki Kaisha, KK)

Joint-stock company; equivalent to “Inc.”, limited liability for shareholders

Russia

ООО (OOO)

Limited liability company; equivalent to Ltd.

Germany

GmbH / AG

GmbH = private limited; AG = public limited (Aktiengesellschaft)

France

SARL / SA

SARL = private limited; SA = public limited company (Société Anonyme)

Canada

Ltd. / Inc. / Corp.

Depends on province; limited liability companies, similar to US/UK

Australia

Pty Ltd / Ltd.

Pty Ltd = proprietary private limited; Ltd = public limited


Key takeaway: Most countries have a “limited liability” designation, but the terms differ according to local corporate law and whether the company is private or public.

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