Types of Private Limited Companies
The types of private limited companies depend on their member’s liabilities, which can be as follows:
Limited by shares: In this case, the liability of the members is limited to the amount unpaid towards the company with regard to the shares held by them.
Limited by guarantee: The liability is limited to the sum of money the members guarantee to pay if the company is wound-up.
Unlimited liability: The liability of members is unlimited, which means that members’ personal assets can be sold when the company is wound-up.
