Question

What is the punishment for improper use of “Limited”

Q: Answer-What is the punishment for improper use of “Limited” or “Private Limited” under the Companies Act?

Section 453. Punishment for improper use of Limited or Private Limited- If any person or persons trade or carry on business under any name or title, of which the word Limited or the words Private Limited or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, punishable with fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been used.

or “Private Limited” under the Companies Act?

A Fine which shall not be less than five hundred rupees but may extend to two thousand rupees for every day for which that name or title has been used

B Fine which shall not be less than ten thousand rupees but may extend to twelve thousand rupees for every day for which that name or title has been used

C Imprisonment of five years and a fine of five thousand rupees, or with both

D Imprisonment of ten years or with fine of fifty thousand rupees, or with both

E As the Central Government may specify from time to time

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