The most common form of privately owned companies, basically in Ireland or United Kingdom is a limited company which is actually a corporation whose shares are held responsible for the Liabilities the companies have. The same case would be with Proprietary Company Ltd which works in Australia. But here if a company has Ltd word at the end of the company’s name would represent that the company is a public company and is to be listed in ASX. The reason behind this factor is plc which Australia does not have.
Like every other thing, the limited has its own pros and cons. There are specific advantages for the members, in being a limited company but disadvantages too, over the other kind of business and as a result several factors are responsible for these things. In comparison to partnership or sloe ownership, limited companies have to do much more paperwork. Also, they are governed by several different sets of rules. Also, several times limited companies are considered as investors unless or until members of the limited company participate in different chores of the companies and contribute in the running of the company. Shares of the members of the company are taken and considered as security in case the members are investors. Also, more and more paperwork is required with regulations unless there is some exemption granted to the company. This is because of the Rules of the Securities and Exchange Commission which applied for all the limited companies.
But on the other hand, the liability of the members of the company is limited. Apart from these advantages, members cannot be held responsible for the debts over their limited company because of the rules of SEC which consider it as separate individual with its own right. Limited companies are held responsible for the debts it incurs and are not the liabilities of its members. So, they actually work more or less like corporation. But certain limitations are obligatory.