why people use limited or ltd after company names ,,what exactly it means?

Question

for example Rainbow limited

Answer 1

Limited indicates that the company is a limited liability company,as opposed to a partnership or sole trader in which the liability of the body is not limited.Limited liability means that the shareholders investors etc are liable to the limit of the share capital introduced to the company and have no further liability to any creditors the company may incur.

Answer 2

Limited Liability Corporation or LLC

They are incorparated for the legal and financial protection of the individuals who have created the company.