A limited company, under UK company legislation, is a registered legal entity that has limited liability status. That means the company is a legal entity in its own right, meaning directors can not be made personally liable for any financial losses made by the business, assuming no fraud has taken place. In other words, the company is a legal person separate from its owners. It is a status that in addition may provide the directors with certain tax and pension advantages. If directors retire or resign from the company, the company will continue functioning and be operational. If there are employees, this provides a level of security and continuity.