In the ever-changing world of business, if you’ve ever been confused by the English abbreviations for companies, such as “Ltd.”, “LLC”, “PLC”, etc., then this article is for you. We’ll introduce you to how they are used in global business practices, so you can better understand and use this international business language.
General Business Entity: Co., Inc.
Co. is the abbreviation for Company.
Co. is an abbreviation for Company, which translates to “company”. This term can be combined with other terms such as “Co., Ltd.” or “Co., Inc.” to stand for “Limited Company” and “Company Limited by Shares” respectively.
Ltd.” or “Co., Inc.” stand for “Limited” and “Company Limited by Shares” respectively.
Ltd. or LTD are both abbreviations for Limited, which means “limited company”. The liability of shareholders in this type of company is limited to the amount of money they have invested. It is also the most common type of company in Hong Kong.
Inc. is the abbreviation for Incorporated.
Inc. is an abbreviation for Incorporated, which stands for “company limited by shares. This type of company is particularly common in the U.S. The liability of Inc. shareholders is also limited, usually to the amount of shares they invest.
Specialized Corporate Structures
Limited Liability Company (LLC)
LLC is an abbreviation for Limited Liability Company, which means “Limited Liability Company”. This corporate structure is characterized by a combination of the limited liability of a limited liability company and the tax advantages of a partnership.
Public Limited Company is PLC
PLC stands for Public Limited Company. Shares in this type of company can be traded on the open market and are usually found in the UK and some other countries.
Limited Liability Partnership (LLP)
LLP stands for Limited Liability Partnership. This structure gives all partners in a company limited liability.
Limited Partnership is LP
LP stands for Limited Partnership, which translates to “Limited Partnership”. In this structure, some partners have unlimited liability for the debts of the company while others have limited liability.
A proprietary limited company is Pty Ltd.
Pty Ltd. is an abbreviation for Proprietary Limited Company, which is commonly found in Australia and South Africa and stands for “proprietary limited company”. This type of company can only have a certain number of shareholders and the shares cannot be traded publicly.
Related business terms: S Crop, SEM, VC
Beyond the basic corporate structure, there are a few terms you can share, such as S Crop, SEM and VC.
S Crop refers to small businesses in general
S Corp is an abbreviation for Small Business Corporation, which means “small business”. In the U.S., an S Corp is a corporation that meets certain internal tax code requirements, and its gains and losses can be taxed on a shareholder’s personal tax return.
SEM stands for Small and Medium Enterprises
SEM stands for Small and Medium Enterprises. It is a very broad term that is often used to refer to businesses that are relatively small in size, with a certain number of employees and/or annual sales volume. In Hong Kong, the government provides many types of financial assistance and policy incentives to support the development of SMEs.
VC generally refers to Venture Capital / Venture Capital Firms
VC stands for Venture Capital and can also refer to venture capital firms. Venture capital is a type of capital that specializes in investing in start-ups and small companies that have high risk but also high return potential. Venture capital firms usually provide capital and invest in exchange for shares in the company, hoping to make a profit as the company grows in value. The above information is for reference only. If you have any enquiries about tax return (personal tax return, corporate tax return, accountant tax return) or any other information, you are welcome to contact our professional advisors and we will provide you with a free quote and consultation service in due course.