Multiple choice

If a company does not want to include in its name the words ‘limited’, it can do so u/s 25 of Companies Act, 1956 after obtaining license from

  1. SEBI

  2. Company Law Board

  3. Registrar of Company

  4. Regional Director

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All companies having limited liability are required to use the term ‘limited’ or ‘private limited’. But under Section 25, companies are allowed to dispense with the use of term ‘limited’ or ‘private limited’ from their names after obtaining license from the Regional Director. This helps the company to enjoy limited liability without disclosing to the public the nature of liability of its members.