If you have a question “What is a private limited company?” in your mind then the following information will be quite beneficial for you. The private limited company is an option that is provided to you by the government for running your business. Creating a private limited company will mean that you will be able to separate your business legally from the people who are running it and can keep the profit from that business after paying the tax.
Choosing the name of a private limited company:
Now that you know what is a private limited company? The next thing you have to do is to fulfil all the requirements for registering a private company. The first and the most important requirement is selecting the name of your private company. There are certain rules you need to follow when it comes to choosing a name.
- The name of your company needs to be unique i.e. it should not bear any resemblance to the name of any other company. If there is a case of similarity, the other company will have a right to file a complaint against you.
- The name of your company must include “limited: or “ltd” at the end.
- It is better that you avoid the “same as” names. The same as names are the ones in which the names of two companies has only a slight difference between them e.g. difference of a punctuation of a single character.
- The other point you need to avoid is the usage of “too like” names in which the names of two companies are almost like each one e.g. similar in pronunciation.
The selection of the name of your private company must be done with great care to avoid any future issues.