Types of Private Limited Companies
Company Limited by Shares: This is the most common form of a private limited company. The liability of its members is limited to the amount unpaid on their shares. In the event of liquidation, shareholders are only liable for the nominal value of their shares.
Company Limited by Guarantee: Unlike a company limited by shares, this type does not have share capital. Instead, members provide a guarantee, specifying the amount they will contribute in the event of winding up. Such companies are often prevalent in non-profit and charitable organizations.
Unlimited Company: In this type, there is no limit on the liability of the members. Each member is personally responsible for the company's debts. While less common due to the increased risk for shareholders, it provides greater flexibility in financial matters.