Ltd. is the abbreviation for limited. The term is designed to advise that the shareholders or owners of this type of enterprise is limited. Specifically, the shareholders or owners have limited responsibility for the debts and obligations of the business enterprise, according to InvestorWords.com.arning. Merely adding ltd. to the end of a business's name does not, in and of itself, limit liability. Rather, the company must appropriately be established in the first place, complying with the organizational laws of the jurisdiction where created.