A UK limited company is a type of business structure commonly used in the United Kingdom. It is a legal entity that is separate from its owners, known as shareholders. The liability of the shareholders is limited to the amount of money they have invested in the company, which means their personal assets are protected in case the company faces financial difficulties.

In a UK limited company:

1. Limited liability: Shareholders are not personally liable for the company’s debts beyond the amount they have invested.
2. Legal entity: The company has its own legal identity, separate from its owners.
3. Ownership: Ownership of the company is divided into shares, which are owned by shareholders.
4. Management: The company is managed by directors who are appointed by the shareholders to run the day-to-day operations.
5. Financial reporting: Limited companies are required to file annual financial statements with the government, providing transparency about their financial activities.
6. Taxation: Limited companies are subject to corporation tax on their profits. Shareholders may also be liable for income tax on any dividends they receive from the company.