To solve the problem that in a liquid crystal display having a wide visual field angle and using a perpendicular alignment liquid crystal, protrusions using an organic resin are formed on a color filter as an alignment controlling means but it is difficult to avoid increase of manufacturing costs therefor.

The colored layer of the color filter is partially removed to form grooves, a counter electrode is formed so as to cover the grooves and the grooves are made an alignment controlling means instead of the protrusions to avoid increase of costs. Similarly, an insulating layer under a pixel electrode on an active matrix substrate is removed to form a groove, the pixel electrode is formed so as to cover the groove and the groove is made the alignment means instead of a slit. A black level in a black display mode is reduced to enhance a contrast ratio, by imparting a light shielding layer to these grooves. Generation of visual field angle dependence due to the twist of a liquid crystal molecules in a white display mode can be also prevented.