Private Limited Company Registration

For small businesses, the Private Limited Company is the best way to register as a business entity. Typically, this type of company is owned by a group.

A Private Limited Company can be further classified as:

Company Limited by Shares: There are several types of Private Limited Companies, but this is the most common. Members’ liability is limited to the unpaid amount on their shares, if any, as shown in the memorandum.

Company Limited by Guarantee: If the company goes bankrupt, the members’ liability is limited by the memorandum to the proportion of assets each will contribute to the company’s assets.

Unlimited Company: Unlike other forms of companies, there is no limit on the members’ liability. If a company’s assets fall short of paying off its creditors due to a loss, then the private assets of its members are consumed to settle the debt. Here, the risk factor is extremely high.