New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Can anyone use “Limited” or “Private Limited”

    word as per wish? If no what is the penalty for improper use of “Limited” or “Private Limited” word as per Companies Act, 2013?
    A Yes, No penalty Correct Answer Incorrect Answer
    B No, Not less than Rs. 500/- Correct Answer Incorrect Answer
    C No, Not less than Rs. 1000/- Correct Answer Incorrect Answer
    D No, Not less than Rs 1500/- Correct Answer Incorrect Answer

    Solution

    As per section 453 of the Companies Act, 2013 - Punishment for improper use of “Limited” or “Private Limited”is 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.

    Practice Next