Company name with word Limited at the end

Company name with word Limited at the end - Printable Version

+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4)
+--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=7)
+--- Thread: Company name with word Limited at the end (/showthread.php?tid=5437)

Company name with word Limited at the end - Sh.Mohsin - 02-17-2009

Dear All;

If a company does not register itself as per Companies Ordinance 1984 but it writes at the end of its name Limited or (G) Limited, then as per C.O. 1984 a fine of Rs. 200,000 will be imposed on that company. I personally know about a company which writes at the end of its name "Limited" but no record of this company is available at SECP site and registrar office.

No penalty has been imposed on this company till now for this misconduct. Moreover this company is in existence before the Ordinance of 1984.

What are the provisions regarding this matter in C.O. 1984?
Status of this company as per NTN is AOP but this company has members much more than 20.

Please tell me whether this company is required to be registered and whether this company will be required to pay fine of Rs. 200,000.

Thanks

- Star - 02-19-2009

Dear,

Relevant provisions are availble in the Section 14 of the Companies Ordinance and reproducted below for you;

14. Obligation to register certain associations, partnerships etc., as companies.-

(1) No association partnership or company, consisting of more than twenty persons shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association, partnership or company, or by the individual members thereof, unless it is registered as a company under this Ordinance.

(2) Every person who is a member of any association, partnership of company carrying on business in contravention of the provisions of this section shall be punishable with fine which may extend to five thousand rupees and also be personally liable for all the liabilities incurred in such business.

(3) Nothing in this section shall apply to

(a) any society, body or association, other than a partnership, formed or incorporated under any other Pakistan law; or

(b) a joint family carrying on joint family business; or

© a partnership of two or more joint families where the total number of members of such families, excluding the minor members, does not exceed twenty; or

(d) a partnership formed to carry on practice as lawyers, accountants or any other profession where practice as a limited liability company is not permitted under the relevant laws or regulations for such practice.

There is no need to pay penality of Rupees 200,000. If any AOP is not required to register under above referred provisions, then its name has no legality.

Regards,

*

- Sh.Mohsin - 02-21-2009

but as per C.O. 1984 no company can write at the end of its name the word "Limited" instead of its registeration as per relavent provisions of C.O. 1984.

- awaisaftab - 02-21-2009

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Sh.Mohsin
 Dear All;

If a company does not register itself as per Companies Ordinance 1984 but it writes at the end of its name Limited or (G) Limited, then as per C.O. 1984 a fine of Rs. 200,000 will be imposed on that company. I personally know about a company which writes at the end of its name "Limited" but no record of this company is available at SECP site and registrar office.

No penalty has been imposed on this company till now for this misconduct. Moreover this company is in existence before the Ordinance of 1984.

What are the provisions regarding this matter in C.O. 1984?
Status of this company as per NTN is AOP but this company has members much more than 20.

Please tell me whether this company is required to be registered and whether this company will be required to pay fine of Rs. 200,000.

Thanks
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Mohsin,

According to section 14 of CO,1984 no partnership can be formed with more than 20 members but under sub section 3 of section 14 of companies ordinance expresses the non applicability of sec 14 to some business organization.
Nothing in this section shall apply toâ
(a)
any society, body or association, other than a partnership, formed or
incorporated under any other Pakistan law; or
(b)
a joint family carrying on joint family business; or
©
a partnership of two or more joint families where the total number of
members of such families, excluding the minor members, does not exceed
twenty; or
[(d)
a partnership formed to carry on practice as lawyers, accountants or any
other profession where practice as a limited liability company is not
permitted under the relevant laws or regulations for such practice.]

However no business or firm or joint family can add words limited, private limited or guarantee limited with its name. If any busines,not registered as company under companies ordinance,do so then fine of Rs. 20,000/- shall be imposed.

Regards,

Awais

- Star - 02-23-2009

Mohsin,

Please refer the section of CO 1984 in which penality of Rs. 20,000 is given. I think no penality is imposed on using limited with the name of the business because it carries no legality.

We see many shops use "Company" with its name i.e. "Refique Electric Company" is the name of a shop. Is any penality will be imposed on it. Answer is No. Because, this name is not the name of any legal entity.

Penality is only on the non-registeration of association or firm etc which compulsorily be got registered as required in Section 14.

Regards,

*

- Star - 02-23-2009

Aftab,

Please refer the section of CO 1984 in which penality of Rs. 20,000 is given. I think no penality is imposed on using limited with the name of the business because it carries no legality.

We see many shops use "Company" with its name i.e. "Refique Electric Company" is the name of a shop. Is any penality will be imposed on it. Answer is No. Because, this name is not the name of any legal entity.

Penality is only on the non-registeration of association or firm etc which compulsorily be got registered as required in Section 14.

Regards,

*

- awaisaftab - 03-17-2009

No fine shall be imposed if the word company is included in the name of any organization Sajid and Company. But if the word Ltd used by a company at the end then it will suggest that it is a Public Ltd company. For examaple
Rafiq Brothers Company Ltd

Regards

Awais

- Sh.Mohsin - 03-25-2009

Dear All seniors/semi seniors;

my question is still pending for reply. I have not yet received solid comments of my question.

- Bilal Sulehri - 03-28-2009

you can report this to SECP.