As we shall see later, the name of a limited company must end with the word ‘limited’ in the case of a public company and with ‘private limited’ in the case of a private limited company (s.13). But. S.25 permits the registration, under a license granted by the Central Government, of association not for profit with limited liability without using the word ‘limited’ or private limited’ to their names on certain conditions. Such a company must have the objects of promoting commerce, arts, science, religion, charity or any other useful object and must apply its profits, if any, or other income in promoting its object and must prohibit payment of any dividend to its members. As soon as it obtains a license and is registered accordingly, it will have the same privileges and obligations that a limited company has under the Act. This license is revocable by the Central Government and on revocation, the Registrar will put ‘limited’ or ‘Private Ltd’ against the company ‘s name in the Register maintained by him. But before taking such a step, the Central Government has to give a written notice of its intention to revoke the license and also an opportunity to be heard in the matter.
It is worth noting that even a partnership firm can be a member of such a company, in its own name. But on dissolution of the partnership, its membership of the company will come to an end [s.25 (4)].
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