Use of word Limited in company name.
This query is : Resolved
03 June 2009
If a company is using Ltd (not Pvt Ltd) in its name. Its number of diretors are 5, promoters were 8 and no of shaeholders are 13(all are family members and relatives). What is the status of the company? Private Ltd. or Public Ltd.?
03 June 2009
Hi..
You may check the status of the company at MCA portal. In view Master Data segament you may check the status of your company.
In case of any prob plz revert.
Regards
You may check the status of the company at MCA portal. In view Master Data segament you may check the status of your company.
In case of any prob plz revert.
Regards
03 June 2009
Mr. Ankur has given the best solution. I also agree with him.
11 June 2009
But can a company be a Public Ltd co. if it is not registered at stcok exchange or its shares are lying only within the hands of few members say 15-20 relatives.
Does get registered the company's name without word "Private" make it a Public Ltd Co.?
Does get registered the company's name without word "Private" make it a Public Ltd Co.?
02 August 2025
Sure! Here’s a clear explanation regarding the **use of “Limited” and “Private Limited” in company names and their status:**
---
### 1. **Company with “Limited” in its name (without “Private”)**
* It is a **Public Limited Company** by definition under the Companies Act, irrespective of whether its shares are listed on stock exchanges or held by a few people.
* The absence of the word **“Private”** means it’s **not a private limited company**.
* Public Limited Companies must have a minimum of **3 directors** and a minimum of **7 shareholders** (there is no maximum limit).
* Shares can be freely transferable, and there are fewer restrictions on share transfers compared to private companies.
---
### 2. **Company with “Private Limited” (Pvt. Ltd.)**
* It is a **Private Limited Company**.
* It must have a minimum of **2 directors** and **2 shareholders**, with a maximum of **200 shareholders** (excluding employees).
* Share transfers are restricted, and the company cannot invite the public to subscribe to its shares.
* The word **“Private”** must appear in the company’s name.
---
### Regarding your example:
* If the company’s name uses **“Limited”** (without “Private”), then **legally it is a Public Limited Company**, regardless of whether the promoters are only family members or relatives.
* The company is **not a Private Limited Company** just because the shares are held within a close group.
* Registration as a public company can be done without listing on stock exchanges.
---
### Summary Table
| Company Name | Status | Minimum Directors | Shareholders | Share Transferability |
| ------------ | ------------------- | ----------------- | ------------ | --------------------- |
| XYZ Limited | Public Limited Co. | 3 | 7 or more | Freely transferable |
| XYZ Pvt Ltd | Private Limited Co. | 2 | 2 to 200 | Restricted transfer |
---
**Additional Notes:**
* Public Limited Company must comply with additional compliance norms under Companies Act and SEBI if listed.
* Private Limited Company enjoys relaxed compliance but limited capital raising ability.
---
If you want, I can help you check the exact status of a company via MCA or help with compliance!
---
### 1. **Company with “Limited” in its name (without “Private”)**
* It is a **Public Limited Company** by definition under the Companies Act, irrespective of whether its shares are listed on stock exchanges or held by a few people.
* The absence of the word **“Private”** means it’s **not a private limited company**.
* Public Limited Companies must have a minimum of **3 directors** and a minimum of **7 shareholders** (there is no maximum limit).
* Shares can be freely transferable, and there are fewer restrictions on share transfers compared to private companies.
---
### 2. **Company with “Private Limited” (Pvt. Ltd.)**
* It is a **Private Limited Company**.
* It must have a minimum of **2 directors** and **2 shareholders**, with a maximum of **200 shareholders** (excluding employees).
* Share transfers are restricted, and the company cannot invite the public to subscribe to its shares.
* The word **“Private”** must appear in the company’s name.
---
### Regarding your example:
* If the company’s name uses **“Limited”** (without “Private”), then **legally it is a Public Limited Company**, regardless of whether the promoters are only family members or relatives.
* The company is **not a Private Limited Company** just because the shares are held within a close group.
* Registration as a public company can be done without listing on stock exchanges.
---
### Summary Table
| Company Name | Status | Minimum Directors | Shareholders | Share Transferability |
| ------------ | ------------------- | ----------------- | ------------ | --------------------- |
| XYZ Limited | Public Limited Co. | 3 | 7 or more | Freely transferable |
| XYZ Pvt Ltd | Private Limited Co. | 2 | 2 to 200 | Restricted transfer |
---
**Additional Notes:**
* Public Limited Company must comply with additional compliance norms under Companies Act and SEBI if listed.
* Private Limited Company enjoys relaxed compliance but limited capital raising ability.
---
If you want, I can help you check the exact status of a company via MCA or help with compliance!
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