Types of Private Limited Companies
Private limited companies can be any of the following, depending on the liabilities of their members:
Limited by Shares: In this instance, the members’ liability is capped at the outstanding balance owed to the company in relation to the shares they own.
Liability is constrained by the amount that the members have agreed to guarantee paying in the event that the company is wound up.
Members are subject to unlimited liability, which permits the sale of their personal assets in the event of a company wind-up.