When used after the name of a company or organization, the term "Limited" signifies that the entity has limited liability. Limited liability means that the owners or shareholders of the business are not personally responsible for the debts or obligations of the company beyond the amount they have invested.
In other words, if the business faces financial difficulties, creditors can only seek compensation from the assets of the company itself. The personal assets of the owners or shareholders are protected and cannot be used to settle the debts of the business.
Limited liability is a common feature of corporations and limited liability companies (LLCs). These types of business structures are often used to minimize personal liability and protect the assets of the owners involved in the business.
It's worth noting that the specific legal requirements and implications of using "Limited" in a business name can vary based on the jurisdiction or country where the entity is registered.