d5nxst8fruw4z
  • +91-8882-580-580
  • support@registrationwala.com
20
Feb
17
Types of Companies under Ministry of Corporate Affairs

Ministry of Corporate affairs is an Indian ministry that is primarily concerned with Companies Act, 2013, Companies Act, 1956, Limited Liability partnership act 2008 and other  rules and regulations. The responsibility of this Ministry is regulation of Indian enterprises in Industrial and Services sector.

Companies can be registered in India

Private Limited Company-It is the type of company recommended for Business. The cost of registration of the private limited company is cheaper than other forms of a company. Private limited should have a minimum of 2 members and can have maximum 200 members. In this company liabilities are limited and it has some features of a partnership.

People mostly prefer this of the company for fundraising. The degree of operation and ownership can easily separate in this type of company. Business can be exited without any hassle. In this members are limited to only contribute towards a number of shares.      

One Person Company-It is the type of company which can be started by a Single member.OPC is the latest form of company in Companies Act, 2013. One person can become the director as well as the shareholder. Similar to the private limited company as the degree of operation and ownership are on the separate basis. 

OPC gives wings in the hand of Sole proprietor to form the company under with full control. It is done without any interference of the third person. This type is easy for an entrepreneur to directly target the market. Fundraising from banks and the financial institution is easy. People who are Indians and resident in India can form OPC.     

Public Limited Company-This is a publicly held company. A large amount of capital investment can easily be obtained. These types companies are considered to be a more transparent business model as compared to other business structures. Investors get the choice of transferring their ownership in the company without any hassle by just selling the shares.

Section 8 Company-These companies are basically formed to encourage arts science, sports, education, research, social welfare, religion, charity, etc. These kinds businesses do not play any vital role in profit. Company Intends to prohibit the payment of any dividend to its members. These companies are the non-profit making company.

Section 8 company was incorporated mainly for welfare purposes. Previously, it was defined as Section-25 Company. Due to commencement of Companies act, 2013 it was called as Section-8 Company

Nidhi Company- Nidhi Company comes from the Hindi word ‘Nidhi’ means fund. These are the  NonBanking financial corporation. These are also known as mutual benefit funds. Nidhi company is known in the corporate scenario is member benefits company. Companies are formed for the welfare of the members and to increase saving habits.  

Other types of Companies

There are some more types companies which can be registered in India.

  • Companies that have unlimited liability
  • Producer Company
  • Joint Venture Company
19
Jan
17
Checklist of the Documents required for the Firm Registration

Firm registration in India is a step-by-step process and every step in this process requires different documents to be submitted.

A standard procedure includes four major steps:

  1. Application for Director Identification Number (DIN) or Designated Partner Identification Number (DPIN)
  2. Register Digital Signature Certificate (DSC)
  3. Account in Ministry of Corporate Affairs (MCA) Portal
  4. Incorporate a LLP

The documents required for the registration of a firm in India include all of the following.

  • While filing for Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) along with form DIR-3, the following documents must be scanned
    • High-resolution photograph
    • PAN card copy
    • Passport copy as an identity proof
    • Proof of father’s name
    • Verification form DIR-4
  • While incorporating a Company name the following documents are to be submitted
    • Form 1 – This application is filled for declaration for incorporation of a company
    • Form 1A – It is the application form to be filled for availability or change of a company name with the ROC. Once you apply for new company name, MCA will suggest four forms of company name as available to be registered; out of which you will have to choose one.
    • Form 18 – This form is filled for the notice of situation of a new company office Form 32 – This form must be filled for notice for appointment of new Directors, Managers and Secretary
  • Other documents that must be scanned and submitted
    • Letter of consent from the Directors of the company
    • Signed and stamped copies of Memorandum of Association (MOA)
    • Signed and stamped copies of Articles of Association (AOA)
    • Power of Attorney

Once the above documents are submitted, the documents are validated for authenticity and the registration process of a firm begins.

07
Nov
16
Removal or Resignation of Partner from LLP

Limited Liability Partnership (LLP), which is limited liability partnership, is a company where all partners have limited liabilities. Here, one partner is not responsible for other partners’ diligence or negligence.

Features of LLP

  • Limited liability protection is one of the main advantages in small and medium sized businesses
  • It forms a simple working condition limiting liability to partners.
  • The existence and running of LLP does not solely depend on either of the partner. For example, with the demise of a partner in Partnership Company may cause the company to disintegrate. Whereas, in LLP, it may not cease to exist in such a case. The partners of an LLP may keep changing from time to time and it will not affect the LLP’s continuity.
  • The liability of partners in LLP is limited to the amount of capital invested and there is no minimum limit to the amount of capital to be invested.
  • In a partnership firm, minimum number of partners is two and maximum is limited to ten. However in LLP, there is no upper limit to number of partners.

Removal or Resignation of Partner

Removal or resignation of a Partner from an LLP can happen for many reasons. A Partner may cease to exist as Partner in the LLP in the following scenarios:

  • Death of the Partner
  • Dissolution of the LLP
  • If Partner is declared to be of unstable mind
  • If Partner is declared as insolvent

A Partner may be removed from LLP only if the agreement provides such clauses or in the above-mentioned scenarios only. Until then, a majority of Partners cannot vote out a Partner from LLP.

Removal of Partner by majority will require filing a form within 30 days of the decision-making duly signed by a designated Partner and the records being validated by a chartered accountant.

Resignation by a Partner requires a notice of resignation 30 days in advance of the intention by the Partner. Other Partners must accept the resignation and all balances and debts must be settled as per agreement.

The procedure of removal or resignation of Partner from LLP is simple, although one should be prepared for the complexities it involves. Such as:

  • Preparation of financial statements and division of assets among the Partners from the date of resignation
  • Redrafting the LLP agreement
  • Tax compliances applicable to retiring Partner
08
Oct
16
How to Protect Your Business

However the type and size of business, it is valued by its owner(s) and as the business grows, the bigger the value gets and hence higher the protection needed. The owner must understand the vulnerability that comes along with the success of a business, such as with success comes competition, risks, legal obligations, reputation sustenance, vigilant, etc. 

An owner must be prepared to face the difficulties that come in building a successful business. There are no strict rules to be followed, however, certain aspects of protecting ones business remain constant in all cases. 

Protection against legal threats 

  • Physical assets are one of the most important assets of a business as they are worth a lot of money. For example, they not only include the office space but also the things that fill up the office. All physical assets belonging to the business must be insured to avoid any loss in case of any natural disaster or theft.
  • A legal attorney who is well versed with local laws and policies must be hired to handle any legal actions that may arise at any time of the business operation. A legal attorney will also help in foreseeing any potential legal threat and help in implementing the task at hand accordingly.
  • In case of sole proprietorships, it is important that the owner separate its personal assets from that of the business. Any attack on the business finances will directly impact the personal finances in case the separation is not clearly defined and limited. 

Organize your Finances 

  • Finances of a business must be documented and organized time to time to avoid any threats not only from the outside but also from the conflicts that may rise among the stakeholders of the business.
  • Hiring an accountant is a good start to protecting finances.
  • Finances in sole proprietorships must be specially monitored as the finances of the business may be linked with the personal finances. It is preferred and suggested to keep both the finances separate to avoid loss on the other when one is under attack. 

Protection against technological threats 

  • Technology has reached such heights that it is difficult to run a business without a strong technological support. This may include software that is needed in every domain of running a business. For example, a good software system is needed not only for business documentations but also strong software is needed to run a security check in the office space. Considering the high level cyber attacks and crimes in todays’ times,protection of such technology is needed to protect the business.
  • Protection of intellectual property is highly critical to avoid risking any legal action and theft from any seekers. Trademarks and copyrights are also a major part of technological assets and if these are not protected, they can land a business in a lawsuit against their favor. There are experts available to help protect a business trademark, copyrights, and intellectual property.
  • An IT expert must be hired to ensure any technology used and applied in a business is highly protected from hackers and cyber criminals. 

Protection against reputation threats 

  • Running a business successfully requires that it makes its presence felt in the market at almost all times. Offline marketing that includes display of brand on its products or service material and online marketing that includes its presence on social media platforms are one of the most common and beneficial marketing techniques. Hence, the representation of the business on such platforms must be protected. Simply by using the right language favoring in the progress of business is protecting the business.
  • A social media manager or public/business relations’ manager understands the operations of such platforms to help maintain the reputation of the business. Hiring of such an expert will help the business from being attacked by any reputational threats that are sometimes the most probable causes of the downfall of a business. 

Protecting a business can be a task but the efforts will make the success of a business only smoother. If the above major aspects are taken care of, the business is well protected and any hassle on its way of progress can be dealt with ease.

Blog calendar

« May 2017 »
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31        

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
    This email address is being protected from spambots. You need JavaScript enabled to view it.

Payment Method

Registrationwala

Follow Us

Registrationwala support@registrationwala.com