Definition of Inc, Ltd and Co

These three abbreviated forms are commonly used in business-related terminology.

We use abbreviations in written language for one obvious reason: to reduce the length of a text. The use of abbreviations began in the civilization Greek and Roman and has remained to this day. While any word can be shortened, conventional abbreviations are most commonly used.

Inc

It corresponds to the English word incorporated, which means corporation. It is a legal entity that from a legal point of view is separate from the people who are part of it. Thus, a corporation is responsible for its debts and its fiscal or other responsibilities. This legal form of company is advisable for large companies and not for small or medium businesses.

Ltd

It is followed by a trade name that equates to limited or anonymous society from responsibility limited. As the same term indicates, those who are its shareholders or owners have a legal responsibility for the commitments acquired, but not in an absolute but limited way.

Co

It is the abbreviation of company, that is, an association of individuals who share a draft business in any sector. The use of Co has nothing to do with the specific legal form of a company.

Other abbreviations and acronyms related to business and the corporate world

Among the best known, we can highlight the following: S.A (public limited company), p.p (postage paid), ch / (check), cc (checking account), VAT (tax on Added Value), SLL (Limited society Labor), IS (Corporation Tax), PGC (General Plan of Accounting) or IAE (Tax on Economic Activities). All of them are used in the different written documents.

Good use of abbreviations, acronyms and acronyms

Although the different ways of shortening words are useful and effective, it is recommended not to abuse them, since it can make it difficult to understand a text. Saving written characters is effective when used sparingly and having the safety that the recipient of the message knows the meaning of the abbreviations.

In this sense, it is worth remembering that in Ancient Rome the Emperor Justinian even prohibited the use of abbreviations in public documents because they made it difficult to read and understand the documents.

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