What is Pty Ltd?
Pty Ltd is an abbreviation for ‘proprietary limited’. It is commonly found in company names and indicates the liability scheme adopted by a company. The other liability schemes are Ltd or ‘limited’ which means no liability scheme.
Pty Ltd consists of two parts – ‘proprietary’ and ‘limited’. Proprietary means that the company is private, consisting only of no more than 50 non-employee shareholders. A private company does not offer its shares to the general public; therefore, it cannot list its shares in the Australian Stock Exchange.
PTY LTD Vs. LTD
Advantages of being a Pty Ltd Company
Company Name versus Business Name
A company name is usually followed by Pty Ltd or Ltd to indicate the company’s legal liability structure. Companies are required to be registered with the ASIC.
On the other hand, a business or trading name is the name under which one chooses to conduct business. The business or trading name may be different from the registered company name and in such instance, must also be registered with the ASIC.