Are limited companies incorporated or unincorporated?

• A. Unincorporated
• B. Neither
• C. Both
• D. Incorporated

Answer: (D)

Limited companies are incorporated. This means they have their own legal identity separate from the people who run or own them, created by formal registration. Because they’re a separate legal entity, they can own assets, sign contracts, and sue or be sued in the company’s name. The owners or shareholders have limited liability, so their personal assets aren’t at risk beyond their investment. Unincorporated businesses, like sole traders or traditional partnerships, don’t have this separate legal status and typically expose owners to unlimited personal liability. So, for a limited company, the correct description is that it is incorporated.