company registration in india Archives - Page 6 of 6 - Business , Financial & Legal Consultant In India

March 3, 2019March 3, 2019

What is the commencement of certificate of business?

There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.

Format

I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:

Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
All the requierment attachment have been completely and legibly attached to this form.
Every subscriber to the MOA has paid the values of share agreed to be taken by him.
The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

Documents that have to be attached-

COI of the Company
PAN of the company
List of directors and shareholders of the company
Bnak statements of the Directors and shareholders of the company
ID proofs of the same
Receipt proof (if any)

Fee structure of the share certificate

Share capital involved

Fee to be paid

Less than 1 lakh	Rupees 200
1,00,000- 4,99,999	Rupees 300
5,00,000- 24,99,999	Rupees 400
25,00,000- 99,99,999	Rupees 500
1,00,00,000 or more	Rupees 600

What if you don’t comply with the Declaration

Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.

Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.

Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.

Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.

January 13, 2019

Is Independent Director really an independent person?

In the age of start-ups there are Directors who take up the charge of the company as they manage and controls the whole of the undertaking efficiently.

Directors are the representatives of the investors and ensures that the company is moving inna right direction to achieve its objectives. For every startup Board of Directors takes necessary steps to ensure that there is no mismanagement in the company.

Independent Director

Independent Directors are the Directors who are brought from outside to participate in Board Meeting of a company and must not be having any material or pecuniary interest in the Company. Only those who are not having any material or Pecuniary interest in the Company determined by the Board to Directors to become Independent Director of the Company. He is given sitting fees in the Board meetings of the Company.

Appointment of Independent Directors

Appointment of Independent Directors in a Listed and Unlisted Companies is very easy and the same is approves in the meeting of shareholders and Independent Directors are appointed as per the provisions under Companies Act, 2013 and they are as follows-

For Listed Companies- at least one third of the total Directors should be independent Directors.

For unlisted Companies- At least there should be two Directors who are Independent in case of unlisted companies.

Public companies should be having paid up share capital of 10 crores or more.
Public companies must be having turnover of Rs. 100 crores or more.
And public companies who should be having in aggregate, outstanding loans, debentures, and deposits exceeding 50 crore Rupees or more.

Term of Appointment

The appointment is for a term of 5 years commencing from the date of appointment and ending on 6th Annual general meeting of the company following the date of appointment. Such appointment can be terminated at any point of time according to the Companies Act, 2013.

The time period of the Independent Director must not exceed two consecutive periods of 5 years each and can be extended for a second term only after passing a special resolution.

Re-appointment of Independent director

According to the companies Act, 2013 Independent Directors can be reappointed only after the expiry of the second term but such reappointment can be done only after the expiry of three years.

Independent Directors always makes sure that the affairs of the company are conducted in a best way so that organisational objectives can be achieved easily.

Want to form a company or get appointed in a company as a director , consult BIATConsultant – #1 Business Consultant In India

November 28, 2018

What is the role of Company registrar of Companies in the Incorporation process

The Company Registration process in India includes Companies Secretaries, Chartered accountants and some other individuals. In this blog we will discuss the role of Registrar of Companies in incorporation process.

Role of Company Registrar

Registrar of Companies has very important role to play in Incorporation of Companies. All documents are sent to the Registrar of Companies only. He decides everything like whether Company’s name can be incorporated or not. There are three Categories which are divided in to 3 parts and they are as follows:-

Document Accumulation– Once Registrar receives all the documents and application, then he will cataloguing it responsibly for future assessment.

Document Assessment- Once the Registrar receives all the documents then he will check whether all the documents are in order or not. And for Document assessment he will check whether all documents are present or not. And whether the documents are as per the rule of Ministry of Corporate Affair. And he will check that whether the application is filed right or not.

The certification- Once the Registrar checks every document that whether all the documents are present or not and all the documents are on record or not. And after checking all documents he will decide whether to certify the company or not. After certification of the company, documents are given to the Applicant. Only Chartered Accountant and Companies secretaries and some other people are authorised to apply for Incorporation of the Company. Because they are the experts and will advice you on correct things.

In BIATConsultant there are team of experts which can guide you in Company incorporation process.

November 26, 2018

What Is Said To Be Dormant Status Of The Company

Dormant status of the Company

The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.

Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year. Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.

Here are some Rules regarding Dormant Company

MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.

MSC 2- Certificate of Registrar- Registrar will issue the Certificate.

MSC 3- Return of Dormant Company- By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.

MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.

MSC 5- Certificate of Application status- In this certificate of Application status is being issued.

There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.

And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.

Want to register a company in India ? Hire #1 business consultant in India – BIATConsultant .

August 30, 2018

Process Of Company Registration In India

Steps to form a Private Limited company

A Private Limited company is a Company or a small entity which is held privately. And it limits the liability of the owners to their shares i.e. in case of loss occurred by the company in future then the owners will only liable to their shares. In Private Limited company minimum shareholders should be two and maximum 200 shareholders should be there, and they are restricted to trade their shares publically.

Advantages of Forming Private Limited Company

That forming a private limited company limit the risk to the personal asst of the owner. Therefore if a company is a small entity then it is always recommended to form a Private Limited Company as there is no ris to the personal asset as in case in a Limited Company.
Private Limited Company is a separate legal entity which means that Company is responsible for the management of its assets and liabilities, debtors and creditors.
A company has a Perpetual succession which means that even on the death of the Partner the company continues to exist unless it is legally dissolved.

Also Read : Process Of Trademark Registration In India

Steps for forming a Private Limited Company Registration

First step is to obtain Digital Signature Certificate which is required for filing the forms for company registration. The registration process is online and the forms requires the Digital Signature. You must obtain the digital signature which is certified either by Government or by the Authorized Agencies. The cost of obtaining agencies varies from agencies to agencies. DSC is obtained under class 2 or class 3, under class 2 identity of a person is verified against a pre-verified database, whereas under class 3, person should be present himself before the registering authority to prove their identity.
Next step is to apply for DIN (Director Identification Number) Number, for a Director. DIN Number is basically obtained to be a Director of the following Company .There are three ways for filing DIN and they are as follows:

File form DIN 3- this form requires basic details of the Proposed Directors along with the Documentation Like PAN Card, AAdhar Card etc.
With filing spice in this maximum three Directors can apply for DIN. if a company wants to incorporate with more than 3 Directors and 3 Directors does not have their DIN Number then in that case applicant has to incorporate their company with 3 Directors only and and have to incorporate new Directors later on after incorporation of a company.
If you want to register a company with Biatconsultant then there is no need to apply for separate DIn Number as it is included with the registration process only.

For name approval you have to incorporate your company Via Reserve Unique name (RUN). the Ministry of Corporate Affairs has introduced this RUN facility according to which name for approval is given to the MCA and if Ministry has rejected the name i.e. if the name of the company is not approved then second chance is given. So BiatConsultant helps you to find with the unique name so that there is less chance for approval of a name for incorporaion of a company.

If under spice form, name is not approved by the ministry then no second chance is given and you have to file fresh application and there is no fee.

August 4, 2018

Legal Advice For Startup Company In India

With the ease in company Registration process more and more aspiring entrepreneurs are motivated to bring their dream of forming a startup into reality. When a startup is being incorporated, it goes through various phases. There are separate legal requirement for every phase like at an initial stage every startup is required to procure the business license, obtain registration, maintain books of accounts, taking care of taxation, drafting vendor contracts etc. the various legal advice that every startup must take include the following:-

Choosing the best legal structure: This is one of the most crucial decisions that must be taken by every startup. While taking this decision multiple factors must be considered such as nature/sector of business operation, business trajectory, regulatory and tax considerations, cost of formation, ongoing administration and many more. However the most preferred entity structures for startups in India are Limited liability partnership and Private Limited Company.
Obtaining Registrations and licenses: Any business entity is mandatorily required to obtain certain registrations as per the applicable law. Some examples are Permanent account Number (PAN), Tax Deduction and Collection account Number (TAN), Goods and service tax (GST)number. Further according to the nature of business entities they are required to obtain he business licenses issued by a Government authorities that allow startup to start/conduct/continue to operate a particular business within its territorial jurisdictions lawfully.
Protecting Intellectual Property rights: In the era of Modernization, one of the most crucial assets for any business entity is its Intellectual Property rights. These assets help the startups to establish a distinct brand image and gain the competitive advantage over others. One significant thing to be noted here is that registration of a company or a business in India does not by itself gives protection against others who might commence using identical or similar marks. A Trademark search should be conducted before deciding on these business names, trade names to prevent any issues in future including potential infringement.
Agreements: In case there is more than one founder of the startup then there is a need to formulate the agreement between them in order to establish the relationship between the founders of a startup. In an agreement the role, responsibilities and rights of each partners shall be specified.
Compliance Management: Just incorporating a startup is not enough. The company once registered are required to fulfill certain annual compliance requirements and other requirements to avoid Government interference and hefty penalties. To manage the compliances of the company it may take some professional guidance.
Third party agreement: Utmost care must be taken by the company while entering into any third party agreements and setting out its terms and conditions. The clauses related to breach, termination and dispute resolution should be well negotiated and captured in all third party agreements.
Contacts with employees: Before employing any person the startup must ensure to enter into clear employment contracts detailing terms and conditions of employment. The contract must specify the details regarding the job profile, compensation, and other associated benefits, a number of clauses must be inserted to safeguard and protect the interest of the startup- such as stopping employees from setting up competing entities, prohibiting employees from exercising any legal right on Intellectual Property Rights on the work done/developed during the course of employment.

This is how Company in India, a Company should get started and in case of any legal or professional advice regarding company registration or related to Intellectual Property rights you can contact us at BIATCONSULTANT.

July 15, 2018

COMPANY INCORPORATION – IS IT EXPENSIVE AND DIFFICULT?

Several entrepreneurs ignore the importance and significance of company
incorporation before they even begin. They have heard from uncle’s father’s
brother that the incorporation of a company is very expensive and a very
complicated process. So the question arises-why do the big firms and
companies own corporations if incorporation of company is full of spikes?

What is Company Incorporation?
A company generally comes into existence by a process known as
incorporation. After a company has been incorporated legally, it becomes a
distinct entity for those who invest their labour, assets and capital to run the
company. After promotion, the next stage in the establishment of a company is the incorporation or registration. The promoter of a company must perform
the following functions for getting the company registered under the
Companies Act.
First step is the approval of the proposed name of the company. Next step is
filling up the documents that are required during the registration. The third
step is the payment of the required fees as mentioned in the companies Act
1956. The final step is the registration of company. After these four steps, the
company is incorporated.

Incorporation of company offers something to everyone

Whether it is a well-established company or it is fresh new start-up,
incorporation of company has something to offer to everyone. There are heaps of advantages and benefits of company incorporation. Incorporating a business is like making a new entity inside the eye of legal system. This adds value to the business which is incorporated. General population is worried about the financial security of their money. After a business is incorporated in the company form, security is offered to greater part of population.

For the starters, company incorporation can be a real stress. Even for the
veteran entrepreneurs, incorporation of a company can be a challenging task
because there are certain formalities and paperwork that is required for it.

Help of company registration consultant must be taken to implement company incorporation. Even the highly experienced business associates and investors have no clue when it comes to company incorporation.

Company registration consultant makes incorporation easier

As we saw, how cumbersome and hectic the incorporation of company can be?
However, the incorporation can be made easier with some assistance. There
are company registration consultancy firms that assist in the registration of
company. These firms have in-depth knowledge of the process and the
paperwork that is required for registration. When a company is registered, it
becomes a legal company and follows the rules and regulation established by
the government.

That is the reason why the people take help of these professionals for
company incorporation. By exploiting the services of experts and advocates,
company incorporation will not be tough task for you. If we talk about
management fees for company incorporation, it differs from state to state
depending on the lawful share assets of the company. Likewise, fees charged
by specialists for company registration may vary from place to place.
With the expertise of these professional, the company incorporation can be
done with a blink of an eye.