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What is an Unlimited Company? Meaning under Companies Act

Definition

As defined under sub-section (92) of section 2 of the Companies Act, 2013 - an unlimited company means a company not having any limit on the liability of its members i.e. shareholders.

Formation

In India, a company can be formed and registered as an unlimited company under the said Act. Ref: Section 3(2)

Conversion of an Unlimited Company into Limited Company

An unlimited company may convert itself into a limited company by alteration of memorandum and articles of the company by following due procedure and applicable provisions under the company law. Ref: Section 18 of the Companies Act.


Memorandum of Association (MoA)

The Memorandum of Association of such an unlimited company can be as per Table D (for companies having no share capital) and as per Table E (for companies having a share capital). Ref: Schedule I of the Companies Act.

Articles of Association (AoA)

The Articles of Association of such an unlimited company can be as per Table I (for companies having a share capital) and Table J (for companies having no share capital). Ref: Schedule I of the Companies Act.

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