Companies Act Section 453 — Punishment for improper use of “Limited” or “Private Limited”
CHAPTER XXIX MISCELLANEOUS
Commercial / Corporate
Summary
If a person or group of people carries on business using a name or title where the last word is "Limited" or "Private Limited" (or any shortened or similar version of those words), then that person, or each person in the group, is subject to a penalty. This applies unless the business is properly incorporated as a company with limited liability, or properly incorporated as a private company with limited liability, depending on which term is used.
The fine for this improper use is not less than five hundred rupees, but it can go up to two thousand rupees, and this fine applies for every single day that the name or title was used.
Official Text
If any person or persons trade or carry on business under any name or title, of which the word “Limited” or the words “Private Limited” or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated with limited liability, or unless duly incorporated as a private company with limited liability, as the case may be, 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.