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Business Registrations Articles
16
Oct
17
New Exemptions Granted to Private Limited Companies

Companies Act 2013 which replaced the earlier Companies Act 1956 levied certain Restrictions on the Private Limited Company. Due to which the owners of private limited company raised concerns. Keeping in mind the interest of the private limited company an exemption list provided to the private limited company was released on 5th June 2015. Following exemptions were granted to the private limited company through the notification of 5th June 2015-

  1. Related Party Transactions- With the implementation of companies Act 2013 undertaking the related party transactions required the board approval and in some case, the approval of shareholders is required.

The amendment introduced modified the definition of a 'related party' for private limited companies. Due to which the following were excluded from the definition of related party-

 (a) Holding companies

 (b) Subsidiary companies

 (c) Associate companies

 (d) Subsidiaries of holding companies of the private limited company.

 Thus, transactions of a private company with Exempted Entities will not be considered to be a "related party transaction" and will not require compliance with the provisions of Section 188 of the 2013 Act. Further, the related parties were not permitted to vote at a general meeting of shareholders for a resolution to approve any contract or arrangement between the company and a related party. Through the Exemption Notification, this restriction will also be removed from the private limited company.

  1. Kinds of Share Capital- Companies Act 2013 put forward the restriction on the private limited company that it can issue only two kinds shares i.e equity shares and preference shares. This restriction was removed through the exemption list issued. Thus now private limited companies are free to issue any type of share they desire without any restriction but subject to their charter. This helped the private limited companies to issue any class of shares.
  2. Accepting deposits from members- The companies Act 2013 permits all kinds of companies to accept deposits from their members subject to the fulfillment of certain conditions. After the exemption list was released these restrictions do not apply to the private limited companies accepting deposits from members which are less than 100% of its paid- up share capital and free reserves. However, the private companies are required to file the details of such deposits received from the members with the registrar of companies in the prescribed manner.
  3. Power to purchase own shares- Earlier no private limited company and the public limited company was empowered to purchase its own shares. However now the private limited companies who satisfies the following conditions are empowered to purchase its own shares-
  • No other body corporate has invested any money in share capital of the Company
  • Borrowing from banks, Financial Institutions or Body corporate is less than twice of its paid up capital or ₹ 50 crore, whichever is lower
  • Such a private company should not have defaulted in repayment of borrowings as may be existing on the date of the transaction under the section.
  1. Loan to directors- As per the provision of section 185 of the companies act 2013 no company can advance loan to its directors or any person in which director is interested. Further, it prohibits giving any kind of guarantee or providing any security in connection with any loan that the directors avail in their personal capacity. Now an exemption is being granted to the private limited companies for granting loans if they satisfy the following conditions-
  • There shall be no other body corporate shareholder in the lending company
  • If the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower
  • Such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this Section.
  1. Resolutions and agreements- As per the Companies Act 2013 the private limited companies were required to file the all kinds of resolutions passed and the agreements made with the registrar of companies. However, after the exemption list was released they are no more required to submit the resolution and agreements with the ROC.
  2. Auditors’ Eligibility- The restriction was imposed by section 141 of companies Act 2013 to the auditing firms, partner or the partnership firms. The auditor who is in full time employment elsewhere or in the capacity as auditor of more than 20 companies at the date of appointment or reappointment shall not eligible to be appointed as auditor of the company.

The exemption notification has modified this restriction. Now the appointment of a person as an auditor of one person companies, dormant companies, small companies; and private limited companies having a paid up share capital of less than Rs. 100 Crore may appoint its Auditor irrespective of the limit of 20 audits provided earlier.

  1. Participation of interested directors- Under the Companies Act 2013 the director is required to disclose his interest in the company with whom a contract and arrangement is entered if he is directly or indirectly is in association with that company. Further, he was not allowed to participate in a meeting of the board where discussion of this contract or arrangement is held. This restriction made it difficult to many private companies to comply with companies act provision, particularly in companies having two directors and either one or both of them are interested. Thus through the exemption list, the interested directors were allowed to participate in the meeting where such contracts or agreements are discussed.
  2. Appointment of senior personnel- As per the sections of companies Act any appointment of the Senior Management by the board of directors shall be subject to the approval of shareholders at a general meeting. The companies appointing Senior Management are also required to comply with the prescribed terms and conditions. In case of failure to comply with the terms and conditions specified in Schedule V, the approval of the central government is required to be obtained by the relevant company.

Further, if the shareholders at a general meeting do not approve the appointment of the Senior Management by the board of directors, such disapproval shall not result in the actions of the Senior Management prior to the general meeting becoming invalid.

Through the exemption list, this restriction is not applicable to the private limited companies.

  1. Minimum Capital Requirement- Earlier in order to incorporate the private limited company, it was mandatory for every private limited company to have a minimum paid-up share capital of rupees 1 Lakhs. Through the exemption list, the requirement of minimum share capital has been removed.
13
Sep
17
Need of Agricultural Products License in India

Agriculture is the root of any countries economic development. Agricultural are the key source for primary sector in India and it contributes a significant figure of GDP in India. India is one of the exporters in the world. FSSAI is the organization to legalise, authorize and certify agricultural food products in India.  

India has gone through many revolutions to grow in the agricultural field. Indian government has made special efforts to hike the production of Agricultural products and has made India one of the leading producers of food grain in international market. Import Export Code is the number that should be each and every exporter in India with Director General of Foreign trade.

Exporter should register with an appropriate export promotion agency by obtaining a registration certificate to get enjoy mutual benefits under the export-import policy.

Features of Agriculture License in India

  • All Exporter and Importer need to acquire IEC (Import Export Code) from Government.
  • Every exporter or importer needs to comply with the conditions of License.
  • Inform authorities with regard to every changes or modification in the activities
  • Financial assistance is extended to exporters

All the businesses which expect to do global trading of agricultural goods need to register with a local licensing authorise that gives them an Import Export Code (IEC) Code. Custom authorities won't allow freedom of products unless the merchant gets an Import Export Code (IEC) number from the territorial permitting expert. Executive General of Foreign exchange is the specialist that gives them an Import Export Code (IEC) number.

Indian government has built up a few bodies like APEDA, Spices Board and so on for improvement of agro enterprises and to control the timetable items for trades by settling of benchmarks and details for send out. To get advantages and concessions under the fare import approach, exporters should enlist with a suitable fare advancement office by acquiring an registration cum-participation declaration certificate. There are different enlistments which an element is required to acquire over the span of business, some of them are being talked about here. Notwithstanding, in view of the business exchanges a specific business may require different enlistments, you may please get in touch with us for consultancy on that.

Major agricultural goods are needed to experience quality control and pre-shipment reviews before trade under the Export (Quality Control and Inspection) Act, 1963. Be that as it may, items that have an ISI Certification Mark or Agmark don't should be investigated by any organization. All merchandise ought to be named, bundled, stuffed and set apart before send out.

Imports to India are represented by the Foreign Trade (Development and Regulation) Act 1992. Under this Act, imports of all products are free aside from the things directed by the strategy or some other law in constrain. The things managed by this arrangement is named denied list which can't be foreign made. For import of things that show up in the "Limited" show one have to secure an import License while the things that are counted in the canalized list are allowed to be transported in through canalizing Agencies. Every other item can be unreservedly foreign.

Import of agrarian item was a worry for the fabricates as there was no settled strategy for it. Presently we have import methodology for the greater part of the agrarian items, fisheries segment, agriculture, domesticated animals items. There are diverse offices/offices for advancement of businesses, settling of benchmarks and particulars identifying with the planned items for send out, enlistment of individuals, permitting, and so forth.

12
Sep
17
Tips to Start your Own Company

Company Incorporation is a massive load of work for entrepreneurs those who are fresher with own Business and having professional experience. Business men need to deal with lot of legal formalities to follow rules and regulation according to the Indian company Law. People in India are very talented and hardworking to achieve something they put effortless hard work and cooperating with their social environment.     

There are many ways to start company in India. Private Limited Company is considered the most preferable form of company due to greater flexibility and Limited liability. It is easy to raise funds when company registration is registered as Private limited Company. Private Limited Company in Delhi NCR, Kolkata, Mumbai, Chennai or in electronic capital of India Bangalore are beneficial to start. You will have great Business expansion in India. They are many other forms of that you can register One Person Company, Section 8 Company and Public Limited Company.

Business Registration is a not faint hearted task. It is a mountainous and stressful job. Entrepreneur need to have full focus upon the demands of the market. Here are the points to start your company.

Evaluation of sources and time

Time Management and Sources are the two parallel deeds required to start a Business. What Resources do you have with you and how you will implement them according to the time are the most important aspects that should be followed across to carry business.   

Business Idea development

Person should have unique and impressive idea to start a Business. It should match each reliable criteria so as to be successful. Anyone should not just move into something that is in vogue and you think commercializing it will make money. Be passionate about what you are doing and you are experience about that niche. Develop an Idea that will solve problem of the society integrate it to practically make it real.  

Market identification and Business plan

Business should be planned according to the market in which you will implement it. Target your people to work with whether they are freelancer or solopreneur. Be ready with mission statement, an executive summary, a company summary, a service or product offerings, a description of a target market, cost of the operation and the financial projections. Perform a competitive assessment.  Assess the market, targeting the customers most likely to make a purchase    

Budget

Identification of the capital is an important aspect to manage your business more effectively. Determine money for mandatory compliances to figure with product development. Funding is an important whether it is from your savings, loans, credit cards, grants or venture capitalists. 

Legal Structure and Support system

New venture requires full attention time and resources. There are some of the process for which you need to be aware with should be challenging. Person before starting sure about the form of company a sole proprietorship, a limited liability company, partnership,  corporation, a non profit or a cooperative. Go to web and check online about the domain whether it is available or not in the country.

Business Name Registration

Person need to check company name on MCA portal and before any company registration or firm registration, or Sole proprietorship Registration. Arrangement of Insurance covers theft or damage to business assets, as well as liability for any business-related injuries. Location of the Business should be chosen as per convenience. Place that best fits the needs of your business. Offering opportunity for growth with the right competition and be accessible to customers. Having an Office is the second need and trademark, patent and copyright can wait. Trademark registration can be done afterwards after good business expansion. There are some other forms of registration for intellectual property like patent registration, Copyright registration etc. Since, it cost extra money to invest. 

Flexibility of Business

Original idea is many times modified to succeed more in Business. Things should be known  to the nearest and dearest to honest people who can suggest and advice you for the betterment of the Business. At the same time, there will be some people to criticize the concept try to ignore them in case the idea of being listened and approved by most of the expert. Control your anger towards the interference in the Business this weaker your energy to work for your start-up.

Quick service with motivation

Launch your product or service quickly. Through this business will work in progress. Interaction with people is an important part of Business. Potential customers want to know as much about your business. Keep moral stories your and always remember that success won’t happen overnight. Profit will come day by day as the Business progresses. Listen to failure stories with success stories.

Make more meetings

Prepare more meeting with Business partner and also with the client at the right. Share each and every small about the Business about the industry. There’s no need to become an object of pity. Manners might even focus customers to a competitor who may offer a product or service. Market is one of the knowledge Resource as an inspiration to outperform a rival. Good old-fashioned word-of-mouth marketing cannot be beaten by anything. Reveal yourself and do not be afraid to get out there and show your outside in the market to the public.

Record your payment

Make record of the clients to pay bills and be certain to receive payment for your products or services. You should be sure about the clients to be sure about the activity. Effective management is necessary to deal Business.

01
Sep
17
Partnership firm registration in India

Partnership is a group Business form where people make their put together an idea towards Business with mutual understanding. Partnership can be between individual, Business groups, government and many other organisational bodies. Partnership firm can have limited liability or unlimited liability. It is mainly done to make things achievable in a profitable manner.

Business can be between two companies making joint ventures with consortium. Partners can be for research project and industrial projects. People make partnership firm to have a stronger position on the market and comply with specific regulation. Partnership firm Registration in India makes a firm a legal entity.

Steps of Partnership firm Registration in India

Choose a partnership name

Partners are allowed to pick any name as they want for their firm subject to the accompanying principles. The names must not be excessively indistinguishable or comparative, making it impossible to the name of another current firm doing comparable business, in order to stay away from disarray. The name must not contain words like Crown, Emperor, Empress, Empire or words communicating or inferring the authorize, endorsement or support of the Government, with the exception of when the State Government implies its assent (in composing) to the utilization of such words as a major aspect of the firm name.

Create a partnership deed

The record in which the individual rights and commitments of the individuals from an organization is composed is known as the Partnership Deed. An partnership deed understanding might be composed or oral. Nonetheless, for all intents and purposes an oral understanding does not have any an incentive for assess purposes and along these lines the association ought to be composed. The accompanying are the fundamental attributes of an organization deed:

  • Nature of business to be carried on
  • Name and address of the firm as well as all the partners
  • Duration of partnership (whether for a fixed period/project)
  • Capital contribution by each partner
  • Date of commencement of business
  • Profit sharing ratio among the partners

Consider whether extra statements are required

Partners may likewise say any extra statements. A portion of the cases of extra provisions which might be said in the association deed are specified underneath:

  • Salaries, commissions and so forth, assuming any, payable to accomplices
  • Method of getting ready records and game plan for review
  • Interest on the accomplice's capital, compliances' credit, and intrigue, assuming any, to be charged on illustrations.
  • Division of errand and duty, to be specific, the obligations, forces and commitments of the considerable number of accomplices.
  • The principles to be followed if there should be an occurrence of retirement, passing and confirmation of an accomplice.

Do the partnership deed in the fitting structure. The deed so made by the accomplices ought to be on a stamp paper as per the Indian Stamp Act. Each accomplice ought to have a duplicate of the association deed. A Copy of the Partnership Deed

Choose whether or not to enlist the partnership firm

Associations in India are represented by the Indian Partnership Act, 1932. According to the Partnership Act, Registration of organization firms is discretionary and is completely at the carefulness of the accomplices. The Partners could conceivably enlist their Partnership Agreement. In any case, for the situation where the organization deed is not enrolled, the accomplices will be unable to appreciate the advantages which an enlisted association firm appreciates.

Registration of an organization firm might be done before beginning the business or whenever amid the continuation of association. Notwithstanding, where the firm expects to record a case in the court to implement rights emerging from the agreement, the registration ought to be done before documenting the case.

Application for Registration of Partnership in Form No. 1

  • Properly filled example of Affidavit
  • Ensured True Copy of the Partnership Deed
  • Proprietorship verification of the foremost place of business or rental/rent understanding thereof.
  • Sign the application. The application or proclamation must be marked by every one of the accomplices, or by their specialists particularly approved for this benefit.

Anticipate that the registration procedure will continue formally

At the point when the enlistment center is happy with the focuses expressed in the association deed, he or she should record a passage of the announcement in an enlist called the Register of Firms and issue a Certificate of Registration. The Register of Firms kept up at the workplace of the Registrar contains finish and forward data about each enrolled firm.

This Register of Firms is interested in examination by any individual on instalment of the endorsed charges; any individual inspired by review the subtle elements of any firm can ask for the Registrar of Firms for the same and on instalment of the recommended expenses, a duplicate of all points of interest of the firm enlisted with the Registrar will be given to the candidate.

31
Aug
17
Foreign Direct Investment is a boost for Start-Ups in India

Foreign direct investment has been one of the highly considered investments for Business expansion. Indian start-up raises their full capital from foreign ventures. Make in India is a platform set by Indian Government to encourage start-ups in India. The step has given pace to the economic growth in India. Liberalisation is one of key role to play in India boost Business and economic policies. Making India a destination for the investors.SME and other small private limited Company has also got the lamp in their hand to showcase their talent.    

Foreign Direct Investment for Private Limited Company has opened a treasure of more Business in India and has boosted the concept of entrepreneurship. Many companies can activate foreign investment through the issue of convertible preference shares.

FDI also give good bond to good Business relation outside India. According to data from start-up intelligence the deal count for the first half (H1) of 2017 was down by 27 per cent on a year-on-year basis. Many Companies get investment at the crucial time and Indian venture capital funds have not grown which has led the funds to dry up.FDI has encourage the inflow of funds in India as foreign investors are likely to get better returns from Indian start-ups than European ones. According to the policy of FDI separate section and spells out provisions that allow them to raise foreign money from venture capital funds and other investors through instruments such as convertible notes.

Non residential Indian are allowed will be permitted to purchase convertible notes issued by an Indian start-up company. There are certain policies under Goods and service tax for non residential Indian. Consideration of Start-ups in FDI arrangement permitting 100 FVCI is an awesome activity by the administration. This activity will help part many new companies to access genuinely necessary capital which now and again ends up plainly awkward because of procedural issues. The administration has taken proactive measures in supporting new businesses and permitting 100% FVCI is clear sign of significance what new businesses have in government's plan of thing.

Salient features of FDI

  • Bonds are expressed in Foreign Currency
  • Principle Amount and interest amount is to be paid in foreign currency.
  • Foreign Capital Equity Bond is issued by the company which is a part of promoter group of a listed company.
  • Foreign Direct Investment hold shares offered in the company
  • FCEB permits for investment in capital market or in real estate in India.
29
Aug
17
Compliance Checklist for Investors

Investment has a key role to play in the Business. Talented Businessmen need investment to expand his/her business to a very good extent. Here Investment refers to the Funding taken from strong angel investor community, venture capital investors and private equity firms. In recent times equity funding has major function to play in any Business. Business type like e-Commerce and other forms of Online Business are the most successful type of entrepreneurship in the current decade. There are some of the due diligence target companies. Here is the checklist of what Investor look at while deal with funding and checking compliance of the Company.        

Business Entity

In case of equity investment there is a requirement of issuance of shares of the company to the investor in return for equity / shares. This is only possible in private limited company or limited company capable of supporting transaction. Company Incorporation should be the first step to raise funds. Memorandum of Association (MoA) and Articles of Association (AoA) of the Company are drafted to handle an equity investment.

ROC Compliance

Statutory register must be maintained by the Company as per the compliance in Companies Act, 2013. After Company Incorporation here is some of the mandatory compliance that are need to be followed by company for e.g. Maintaining Statutory register, Annual filing,   Appointment of Auditor, Conducting of board meetings etc. Above areas pertaining to ROC compliance will be verified during the investment due-diligence.

Tax Compliance

Depending on the nature of business and state of operation tax compliance for a business would vary in Business. Business engaged with selling goods or items would need to consent to state VAT controls, including VAT regulation, VAT regulation and documenting of VAT returns. Not with standing administration duty or VAT directions, salary impose consistence would likewise be checked. TDS return filing and TDS return documenting would be checked to guarantee that the business conformed to the important Income Tax guidelines and directions.

Labour Law Compliance

On the off chance that the investee Company has a worker workforce of more than 20, the business would need to consent to ESI and PF controls. Subsequently, ESI registration records, ESI return documenting, PF return documenting, ESI payments and PF payments would be checked. In the event that the company it is associated with the improvement of protected innovation, at that point due-steadiness will likewise be performed to guarantee that the business has the vital worker non-revelation agreement set up.

 

Intellectual Property

Technology based has many assets and intellectual property is one of them needed to be registered. Intellectual provides exclusive right to the Company, Brand or Individual firm.  Trademark, copyright, patent and design are the forms of intellectual property.

24
Aug
17
How to Close LLP in India

Limited Liability Partnership also abbreviated as LLP is new form business introduced in LLP Act, 2008.Entrepreneur incorporate their business as LLP .Since, there are certain benefits enjoyed by an LLP like lesser compliance, audit exemption as compared with any other type of Business entity. LLP having annual turnover below Rs.40 Lakh and capital contribution is less than Rs 25 Lakh. Here are some points written that why Limited Liability Partnership need to be wind up.

Following are the reasons for Winding up of LLP that can be initiated by a Tribunal.

  • There are conditions in which LLP wants to be wound up.
  • LLP is not in a position to pay its debts.
  • LLP has become bankrupt.
  • LLP has less than two Partners for a period of more than 6 months or LLP has become bankrupt.
  • LLP has hurt sovereignty and integrity of India, by security of state or public order.
  • LLP has not filed with the Registrar Statement of Accounts and Solvency or LLP Annual Returns for any five consecutive financial years.

Closing up of LLP Procedure

To start the procedure for ending up of LLP, a determination for ending up of LLP must be passed and recorded with the Registrar inside 30 days of going of the determination. On the date of going of determination of ending up of LLP, the deliberate twisting up might be esteemed to start.

Once, the determination for ending up of Limited Liability Partnership is recorded with the Registrar, the lion's share of Partners (at least two) might make a revelation checked by an Affidavit such that the LLP has no obligation or that it will be in a position to pony up all required funds inside a period, as specified in the affirmation, however not surpassing one year from the date of beginning of ending up of LLP. Alongside the Affidavit marked by the lion's share Partners; the accompanying records must be documented with the Registrar inside 15 days of going of the determination for ending up of LLP:

  • Statement of advantages and liabilities for the period from last records conclusion to date of ending up of LLP confirmed by no less than two Partners
  • Report of valuation of the benefits of the LLP arranged by a value, if there are any advantages in the LLP.

Steps to Close a LLP in India

Step 1 - Pass a Resolution once you have decided to close on LLP and it should be passed by 3/4th of the partners.

Step 2 -After the passing a resolution you have to fill Form-1 with the resolution copy within the 30 days.

Step 3 -Declaration of the Debt or if have any then it will be have sufficient amount. They can be paid within the 1 year from the commencement of the winding up. It needs to be prepared according to the majority of the partners (minimum 2).

Step 4 - Form 4 & Value of the Assets with affidavit has to be submitted to the registrar within 15 days of the resolution along with the forms.

Step 5 - Obtain consent from the Creditors given by at least 2/3 of the unpaid creditors.

Step 6 - Filings and Appointment of Liquidator

Step 7 - Finalization of the Accounts of LLP and submit along with the form 9. So once form 9 has been filed, all the formalities have been completed.

Closing of LLP with Creditors

On the off chance that a LLP under twisting up has any secured or unsecured leasers, at that point before making any move for ending up of LLP, the endorsement for ending up of LLP must be asked for from the lenders. Lenders are required to give their conclusion on ending up of LLP inside 30 days of receipt of demand for endorsement for twisting up. In the event that it is in light of a legitimate concern for all accomplices and all banks that the LLP be ended up, at that point the LLP can continue with deliberate twisting up system.

Arrangement of LLP Liquidator

A LLP Liquidator must be delegated inside thirty days of going of determination of ending up through a determination. In the event that there are any lenders, at that point the arrangement of LLP Liquidator should be substantial just in the event that it is endorsed by 66% of the loan bosses in estimation of the LLP.

It is then the obligation of the LLP Liquidator to play out the capacities and obligations for ending up of LLP. The LLP Liquidator would settle the loan bosses and alter the privileges of the accomplices, all things considered. While releasing his obligations, the LLP Liquidator is required to keep up appropriate books of records relating to the ending up of the LLP.

Recording of Winding up Report by LLP Liquidator

Once, the undertakings of the LLP is completely twisted up, the LLP Liquidator would set up a report expressing the way in which the ending up of LLP has been directed and property of the LLP has been arranged off. On the off chance that 66% of the quantity of Partners and Creditors in esteem are happy with the twisting up report arranged by the LLP Liquidator, at that point a determination for ending up of records and clarification for disintegration must be passed by the Partners.

The LLP Liquidator should then send the LLP twisting up report alongside the determination to the Registrar and document an application with the Tribunal.

Disintegration of the LLP

On the off chance that the Tribunal is happy with the process followed closing up of the LLP, at that point all things considered the Tribunal would pass a request that the LLP should stand broke down. The LLP Liquidator is required to document the duplicate of the request from the Tribunal with the Registrar for ending up of LLP. The Registrar on accepting the duplicate of the request go by the Tribunal for ending up of LLP would distribute a notice in the Official Gazette that the LLP stands broke down.

23
Aug
17
Acceptable Name for Company

Company name and acceptable company name are the two different criteria needed to be known to a person while incorporating a company. Company Act, 2013 has all rules and regulation regarding company’s name.   

What is an Acceptable Name?

Under to the law an acceptable name of a Company has three main parts, name, object and constitution. Here is the illustration of the three parts company name.

Name

Companies act, 2013 defines how name of the company is unique or acceptable. Company name should not similar or same as that of existing company. Suppose a Company name is ZZZ Solutions private limited so any cannot have same or similar company name. But can be taken for different industry name like ZZZ Consultant private limited etc. Hence, Person need to be carefully choose company name.        

Object

There are different forms of company that can be incorporated (Private Limited Company, One Person Company, Limited Company) according to the state and nature of business of the entity. Object mainly defines the activity of the company. Here are some illustrations of objects. In case company has similar name and object is different proposed name of the company. Company can be same object and different name and same name but need to have different object.

Constitution Part

This part defines mainly defines what type of entity name represents. Whether the company name is Private Limited Companies are represented by

  • Private Limited Company or Private Limited or Pvt. Ltd Company.
  • Limited Companies are represented by LTD Company or Limited or Limited Company.
  • One Person Companies are represented by OPC or One Person Company.

Some more measure for company name

According to the modern times and technology companies Act, 2013 lays down certain guidelines when it comes to naming a company.

  • Name will not acceptable if name is the Plural Version
  • Company name cannot type in addition with case of letters or the spacing between letters and punctuation marks of an existing name and make it unique.
  • Use of different phonetic spellings or spelling variations does not make a name unique.
  • Also, Company name ZZZ solutions private limited then ZZz solutions private limited will not be acceptable. Features like Z Z Z or ZZZ do not differ both means the same.
  • Company name should not have internet-related designations such as .com, .net, .edu, .gov, .org, .in to make the name unique.

How to search Company name

  • First you need to Visit the website of Ministry of corporate affairs.
  • Enter the proposed company in the section Company and click search.
  • The search will show the company present in the database of the MCA
  • If search shows “No records found”, then there are no similar companies with similar name.

 

21
Aug
17
Promotion and Incorporation of Company

Promotion and Company are the two basic formalities that company that need to face when their Business comes into existence. Business or company need to be promoted through marketing strategies. This makes your company public visible in the market. People invest their initial funds are called the promoters of the company.

There are different forms documents prepared by the promoters to make company according to the need of the market. Documents can be Memorandum of association and Article of association. Promoters also have the right to decide whether the company will be private limited company and public limited company.    

Memorandum of Association

Following are the charter or constitution that provided in MoA

  • Company’s name
  • Company’s Registered Address
  • Activities Company wishes to carry on
  • Amount of Share capital and units

Article of Association

Following are some of the charter or constitution that provided in AoA

  • Set of rules of the internal management of the company.
  • According to the Companies act Article of association can be altered from time to time into pursuance or any previous of this act.
  • AoA are the subordinate and controlled by MoA

Promoter is mainly a person involved in prelimnary work of the company. It can be renumerated for its services. It has its contract before the formation of the company. Promoters are the nominee or first director of the company. They are also required to work compulsorily in the formation of the company. Professionals such as chartered accountant, solicitor also and they are paid for their service. In India promoters generally secure the management of the company.

Functions performed by the Promoters

  • Decision of the name of the company can be accepted by the registrar
  • Arranges printing of MoA and AoA
  • Details of the Company are added such as MoA, AoA, Nomination of the director, Bankers, Auditors and registered office of the company.

Company Incorporation

Company incorporation is a lawful mean forbidden law and contrary to the public policy. Many Companies have Certificate of Incorporation but that does not mean company is lawful. Subscribing names MoA putting their signatures to the memorandum.

Documents to be filed by Registrar

  • Memorandum of Association signed by the subscriber.
  • Articles of Association if any duly signed by the subscribers of the memorandum
  • Statement of the nominal capital   
  • Individual or company proposes to manage whole time director.
  • Notice of the address and registered office of the company.
  • Things can be filed at the time registered.
  • List of the directors and first director of the company.
  • Written consent to be signed by each person.

Certificate of Incorporation

After Company Registration, Registrar will issue whereby he certifies that company is incorporated. Date of incorporation mentioned in the Certificate of the incorporation and company becomes capable of all the functions perpetual, common seal etc. It also shows details about the company are separate from its shareholders. Issued by the registrar all the rules compiled within the rule and regulation.

There are many benefits of company registration or incorporation.

  • Company become legal distinct entity
  • Company acquires perpetual succession
  • Company property is not regarded as the property of shareholder
  • Establishment of Business Account
  • Company can ask ventures to raise funds
  • Employees take interest towards the company

 

 

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Registrationwala
Registrationwala.com is leading company registration consultant in India having strong client base of 10000+.

Member Of

CII

Delhi-NCR

Contact Address

   Monetic Corp Consultants Private Limited
    169, THIRD FLOOR, KAPIL VIHAR
   PITAMPURA, DELHI-110034
  +91-8882-580-580
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Payment Method

Registrationwala

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Registrationwala support@registrationwala.com