it means "proprietry limited" it's just means what sort of company it is.
A Proprietary Limited Company is a company that is privately owned and the liability of the owners is limited to any unpaid portion of the face value of their shares.
A company is an entity created under the Corporations Law, and is similar to a person in that it can own assets, and can sue or be sued in its own name. The Australian Securities and Investments Commission (ASIC) administers the incorporation of companies.
The abbreviation â€œPty Ltdâ€ at the end of a company name denotes that the company is a proprietary company limited by shares.
In setting up new ventures to commercialise an idea, one, two or more people set up a Pty Ltd company. They buy a share or shares.
In many cases, the initial shareholders are a husband and wife, or two close friends. They may each own half the shares in the company, often through an initial share offering of $1 each.
The vast majority of incorporated organisations in Australia are such private companies. These companies have shareholders, company directors and managers who are typically the same two or three people.
The advantages of a Pty Ltd arrangement are:
it makes you apply all of the legal, financial and reporting arrangements required of any business
it takes a hobby or good idea into the marketplace
taxation is at the lower company rate
the personal liability of its members is limited
investors prefer a company structure because they can acquire shares or â€œequityâ€ in the company
But the disadvantages are:
the legal and accounting costs in setting up, maintaining and reporting upon the companyâ€™s operations
the possibility of giving up control to others who buy into the company or who sit on the company board