Thursday, 6 June 2019

Company Registration in Tirupur - most popular one!!



Company registration is one of the most popular types of legal entity in Tirupur. If you’re starting a new company it is important to fill the company.The filing should be done under the MCA (ministry of Corporate Affairs). According to Section 3 of companies Act, Company is a legal entity formed and registered under Companies Act 1956. Under the ministry of corporate affairs, each and every company is registered by the registrar of companies for the state. This act contains two types of companies called private and public companies. Chiefly, the company is classified into: Statutory Company, registered company, unregistered company. The registered company is further divided into: company limited by shares, company limited by guarantee, unlimited company.

The differences between Private and Public limited companies are:
  •     Minimum number of members required for a private limited company is two and for a public limited company is seven.
  •    Private limited company can have maximum of only 50 members, but a public limited company can have any number of members.
  •    A private limited company can start its business as soon it is registered, but the public limited company shouldn’t start its business until it receives commencement certificate.
  •    Private limited company shouldn’t sell its shares to anyone or should not make any invitation to people regarding a company shares, but a public limited company can invite people to buy its shares by issuing a prospectus.
  •  Private limited company can have two directors, but a public company must have at least three directors.

The company registration can be in done 10-12 working days in Tirupur. For more details, please click here.

Tuesday, 14 May 2019

Company registration – a trendy business entity in Tirupur!!!


Company registration is the most popular type of legal entity. The word company refers to a type of organization that contains separate ownership and management. The capital of the incorporation is provided by the group of people called shareholders who entrust the management of the company in the hands of a person known as the broad of directors.

The company as distinguished from other business enterprises
Though there are a number of similarities between a limited company and other forms of associations, there are a great number of dissimilarities as well. In both the cases individuals are the subjects, and trading is generally the objects.
Section 34(2) of the Companies Act, 1956 provides for a variety of companies of which can be promoted and registered under the act. The three basic types of companies which can be registered under the act are:
·         Private limited
·         Public limited
·         Producer companies ;
Companies can be classified into incorporation, liability, etc. Generally speaking, the companies may also classify as:
·         Associations not for profits having a license under  section 25
·         Government companies
·         Foreign companies
·         Holding and subsidiary companies
·         Investment companies
·         Producer companies
Company filing can be done with Rs.14, 000/- from the initial capital of Rs. 1 lakh; Initially the members may vary according to the type of company.
Documents required for company registration:
  • Passport.
  • Election Card or Voter Identity Card.
  • Ration Card.
  • Driving License.
  • Electricity Bill.
  • Telephone Bill.
  • Aadhaar Card.
We have experts for doing company registration in Tirupur. For further details, please click here.



Tuesday, 7 May 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur


DECLARATION IN RESPECT OF BENEFICIAL INTEREST IN ANY SHARES [Section 89, RULE 9]

A person whose name is entered in the register of members of a company as the holder of shares in that company but who does not hold the beneficial interest in such shares (hereinafter referred to as "the registered owner"), shall file with the company, a declaration to that effect in Form No. MGT. 4., in duplicate, within a period of thirty days from the date on which his name is entered in the register of members of such company. Where any change occurs in the beneficial interest in such shares, the registered owner shall, within a period of thirty days from the date of such change, make a declaration of such change to the company in Form No. MGT 4 in duplicate. Every person holding and exempted from furnishing declaration or acquiring a beneficial interest in shares of a company not registered in his name (hereinafter referred to as "the beneficial owner") shall file with the company, a declaration disclosing such interest in Form No. MGT.5 in duplicate, within thirty days after acquiring such beneficial interest in the shares of the company.
Where any change occurs in the beneficial interest in such shares, the beneficial owner shall, within a period of thirty days from the date of such change, make a declaration of such change to the company in Form No. MGT.5 in duplicate.  Where any declaration under section 89 is received by the company, the company shall make a note of such declaration in the register of members and shall file, within a period of thirty days from the date of receipt of declaration by it, a return in Form No. MGT.6 with the Registrar in respect of such declaration with fee.

For Company Registration in Tirupur -> Click here

Wednesday, 24 April 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur

Person dealing with company in good faith

 A shareholder receiving bonus shares from company has been held to be 'a person dealing with a company' within the ambit of section 35A (1), [English Act, 1985] and accordingly such a shareholder can in principle take advantage of the section which provides that, in favor of a person dealing with a company in good faith, the power of the Board of directors to bind the company, or authorize others to do so, shall be deemed to be free of any limitation under the company's constitution. The court said that the words 'a person dealing with a company' are not expressly fettered in any way. As a matter of ordinary language, a shareholder receiving bonus shares from the company is within the ambit of those wide words, and, in the absence of a powerful reason to the contrary, it is inappropriate to treat naturally wide words in a statute as subject to an implied limitation.
A director-cum-chairman of a company was not allowed to take advantage of this provision. He called a meeting which he alone attended and also presided over it. He executed and approved an assignment of certain of the company's claims to himself. He entertained a mistaken belief that he had the power to act alone under the articles. The court held that the transaction was not proper. He was not a person dealing with the company from the outside. He was responsible to assure that the constitution of the company was properly applied. He could not rely on his own mistake in order to give validity to something which had no validity of any kind under the company's constitution. There was a dissenting judgment also.

A company's property was sold

A unanimous Board resolution authorized an officer of the company to execute the sale deed. It was held to be immaterial that the officer who executed the agreement to sell was declared insolvent. The bona fide purchaser from the officer was entitled to assume that the internal affairs of the company were being conducted properly. The third party who was holding the agreement to sell from the managing director was protected in a pending suit for specific performance. He was not a necessary party to the proceedings.

Internal rules and bye-laws

The rules or bye-laws made by the Board of Directors or committee of the Board or by the company in general meeting have not the same force as the articles. They are only directory and non-compliance with them will not make anything done invalid, and irregularities in administering them can always be regularized.

For Company Registration in Tirupur -> Click here

Monday, 22 April 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur

Repayment of Deposit [Section 73(3) of Companies Act, 2013]

Section 73(3) of the 2013 Act is similar to section 58A(3A) of the 1956 Act except that under the 1956 Act it was permissible to either repay the deposit or renew the deposit while the 2013 Act requires repayment of the deposit to be effected. There is no provision of renewal of deposit and every deposit accepted shall be refunded with interest in accordance with the terms and conditions of deposits. Rule 3(1), 3(3), 3(4), 3(5) and 3(6) of the Companies (Acceptance of Deposits) Rules, 2014 refer to both terms "accept and renew" and hence the intention of the statute appears to be to permit renewal although s. 73(3) of the 2013 Act does not refer to renewal.

Remedy available to the depositor [Section 73(4) of Companies Act, 2013]

Section 73(4) of the 2013 Act is a modification of s. 58A (9) of the 1956 Act. Section 58 A (9) of the 1956 Act contained a provision for suo moto cognizance by the Company Law Board (although s. 58A(9) of the 1956 Act was amended to empower the Tribunal, this amendment was not made effective) while under section 73(4) of the 2013 Act, the Tribunal has authority to pass an order only if an application is made by a depositor. If there is a default in repayment of deposit or part of the deposit or interest on deposits, the depositor may approach the Tribunal for relief. The powers of the Tribunal have been enlarged under the 2013 Act and now in addition to passing an order directing repayment of the amount and such other orders as it may deem fit, the Tribunal may also order the company to pay any sum towards any loss or damage incurred by the depositor due to such non-payment. As per Notification No. SO 1428(E) dated 02-06-2014 issued under section 470(1) of the 2013 Act, the CLB constituted under s. 10E of the 1956 Act shall exercise jurisdiction under section 73(4) of the 2013 Act. The Tribunal has been vested with the following powers under section 73(4) of the 2013 Act:
a) Order the company to pay the sum due;
b) Order the company to pay for any loss or damage incurred by the depositor;
c) Pass any other order as the Tribunal may deem fit.

For Company Registration in Tirupur -> Click here

Wednesday, 17 April 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur


Companies Act, 1956: Section 62

Section 62 of the 1956 Act provided for a civil liability with more defenses for such a claim. For example, it was open to a person against whom a claim was made to show that upon becoming aware of an untrue statement, he withdrew his consent to issue the prospectus before the allotment could be made. Qualitative defenses were statutorily available under the 1956 Act, to demonstrate reasonable expectations of the person against whom the claim is made. The Companies (Amendment) Act, 1960 amended section 62 of the 1956 Act and accordingly words, brackets and letter "clause (b) of" were omitted from the proviso to sub-section (1) of section 62 of the 1956 Act.
Subsequently, the Companies (Amendment) Act, 2000 empowered SEBI to administer the provisions of section 62 of the 1956 Act in relation to listed companies and those which intended to get listed; however, the provisions relating to all other companies were to be administered by the Central Government. The Companies (Amendment) Act, 2000 also vested in SEBI the power to inspect books of account and other books and papers with respect to listed companies and the companies which intended to get listed. SEBI was also authorized to file complaints under section 621 of the 1956 Act for offences relating to issue and transfer of securities and non-payment of dividend.

Recommendation of Company Law Committee

The amendments made to section 62 of the 1956 Act were explained by the Company Law Committee, thus: "This follows English s. 43 and seeks to amend s. 100 of our Act. Two principal amendments may be noted. Under sub-clause (ii) of clause (d) to sub-section (2), the onus of proving that there was reasonable ground to believe that the expert was competent to make the statement contained in the prospectus has now been shifted from the plaintiff to the defendant. This gives effect to an important recommendation made in paragraph 43 of the Cohen report. The other amendment is contained in sub-section (3) which regulates the expert's liability. Under this sub-section, the expert is label as a  person authorizing the issue of a prospectus, unless he can establish his bona fides under any of the pleas available to him under the sub-section."

For Company Registration in Tirupur -> Click here

Monday, 15 April 2019

Company Registration in Tirupur

Company Registration in Tirupur

Company Registration in Tirupur

This definition, in Section 2(34) of the 2013 Act, substantially differs from the definition of 'director' in section 2(13) of the 1956 Act. As per the 1956 Act, director' included any person occupying the position of director, by whatever name called. As per the 2013 Act, a person appointed to the Board alone will be considered as director. This means that the concept of shadow director will now no longer apply. However ss 2(59) and 2(60) dealing with officer and officer in default do include the concept of shadow director although compliances under the 2013 Act relating to directors is not attracted in case of such shadow directors.

Companies Act, 1956: Section 2(13)

The 1956 Act proceeded not on the basis of a formal appointment of a person to the Board but more by the position or function discharged by him. The main difference is the concept of shadow director which is now not contained in the 2013 Act. Section 386(b) of the 2013 Act also provides that the expression "director", in relation to a foreign company, includes any person in accordance with whose directions or instruction the Board of Directors of the company is accustomed to acting.

Meaning of the term 'Director'

Essentially, it should not be the name by which a person is called but the position he occupies and the functions and duties which he discharges that should determine whether in fact he is a director or not.
So long as a person is duly appointed by the company to control the company's business, and authorized by the articles to contract in the company's name and on its behalf, he functions as a director. While a shadow director was earlier considered as a director, under the 2013 Act he will be an officer and an officer in default. He is not considered as a director under the 2013 Act for the purpose of few other provisions of the Act like remuneration. The Articles of a company may, therefore, designate its directors as governor’s members of the governing council or the board of management, or give them any other title, but so far as the law is concerned they are simply directors. The view that "if a person fulfills the functions of a director (whatever they may be) he is to be treated as a director". Unlike under the 1956 Act. This proposition will not hold good under the 2013 Act. The definition, however, presupposes a lawful occupation of the position. Where a person functions as a director without being lawfully appointed, he cannot be treated as a director.

For Company Registration in Tirupur -> Click here