Your business becomes a Limited Company if you incorporate (register) it with the authorities. At that time, the business will stand on its own like a separate person from yourself. You will be the shareholder or work for it as a director but in law it is considered as a separate legal entity. That’s why the word ‘Limited’. The company can have it’s own assets and liabilities that will not be counted onto the owners or employees.
Most companies are private companies that have got owners who are allocated shares (shareholders).
To start a company in any country, you just need to look for the registrar of companies then submit the required documentation, company name, address, nature of business, director’s, shareholders etc. Most countries are doing this process online quite very simple. The tax authorities will also need to be notified when the company is formed.