Tuesday, 27 August 2019

5 Decisions to be made while doing company registration

Before the promoters start the process of company incorporation, there are certain fundamental decisions to be taken by them, which have long term impact on the company and its functioning. There are many decisions which need to be made, however top five is listed and discussed here.

The company registration is more important before starting any type of business.The name of a company can be adopted only after the approval by the ROC. In specific, a company can be registered with a new and unique name and it should not be same or similar to an already existing company or LLP company or not in violation of any others trademark.

A private limited company must have only two shareholders and two directors since for the beginning and must maintain this minimum statutory number at all the time. The shareholders and directors are collectively known as promoters. The powers and duties of shareholder and directors are different, hence the decision to this effect must be taken carefully.

The shareholders of a company are joint owners of one separate legal entity, their contribution to the capital determines their ratio of sharing the profits in form of dividends or their rights towards rights shares or bonus shares. A company is required to disclose the activities for which it is being formed, the nature of activities is broadly mentioned in the object clause of the MOA of the company. Any act done outside the adopted main object of the company is termed as ultra-virus.

For company registration in Tirupur, please click here.

Tuesday, 20 August 2019

Company registration in Tirupur

The Companies Act, 2013 details the regulations and company registration papers essential for the incorporation of a company. In this article, we will understand all such rules and documents listed in the Act. To begin with, let’s define the promoters of a company.


Section 2(69) of the Companies Act, 2013, defines promoters as an individual:-
·         Is named as promoter in the brochure or in the annual returns of the company.
·         Who Controls the affairs of a company, directly or indirectly.
·         Advises or instructs the Board of Directors.
Hence, promoters are people who originally come up with the idea of the company formation and registering it. However, lawyers, accountants, etc. are not promoters of the company.

Formation of a Company

Section 3 of the Companies Act, 2013, details the basic requirements of forming a company as follows:
·         Formation of a public company involves 7 or more people who subscribe their names to the memorandum and register the company for any lawful purpose.
·         Similarly, 2 or more people can form a private company.
·         One person can form a One-person company.

Issuing the Certificate of Incorporation

Once the Registrar receives the information and company registration papers, he registers all information and documents and issues a Certificate of Incorporation in the prescribed form.

Corporate Identity Number (CIN)

The Registrar also allocates a Corporate Identity Number (CIN) to the company which is a distinct identity for the company. The allotment of CIN is on and from the company’s incorporation date. The certificate carries this date.

For company registration in Tirupur, click here

Tuesday, 13 August 2019

Company registration in Tirupur

There is good news for the start-up fans; Indian government has introduced new amendment in company registration act and it will surely give you a head start in kicking off your own journey towards being your own boss of your company.

Digital India’s RUN (Reserve Unique Name)

Ministry of Corporate Affairs (MCA) have introduced a Web Service named “RUN- Reserve Unique Name” for company name reservation. Government of India (GOI) has introduced RUN in the form of web form which have been replaced INC-1 form or the name incorporation directly through SPICe.

Major Features of RUN

It doesn’t require DIN (Director Identification Number) or DSC (Digital Signature Certificate to initiate the process of name incorporation.
·         Other than name approval, you will have to pay amount for submitting the RUN form.
·         If the name has been approved it will be valid up to 20 days for the new company, starting from the day of approval and for an existing company, it will be valid up to 60 days.
·         RUN only gives you the option of registering only one name while INC-1 had provision for up to 6 names.

No cost for Company Incorporation

Now there won’t be any company incorporation cost under SPICe (Simplified Proforma for Incorporating Company Electronically), e-Memorandum of Association (e-MoA) and e-Articles of Association (e-AoA); which will in turn help start-ups to save the cost and have a formal registration for their company. The stamp duty is still important to pay which will depend on the state of incorporation of the company.

Adding DIN (Director Identification Number)

If you are applying for DIN (Director Identification Number) then you will have to take the SPICe route. As per MCA, the details of the directors along with valid identity and address proof needs to be filled in the SPICe Form.

In case of the existing company, if you are adding a new director then you can use DIR-3 forms. This form provides furnishing the CIN (Corporate Identification Number) and a declaration of DIN for the appointment of the new director.

For company registration in Tirupur,click here.

Tuesday, 6 August 2019

Process to reserve company name

1. Login to MCA portal 
The process for reserving a company name can be filed only through a registered user of MCA. Therefore, you have create an account in the portal. Then you can select the category as “register user” or “business user” and fill all other details to create an account

2. Documentation 
It is not necessary to attach any document along with the application to reserve company name. But if there is a need for document you can attach it in PDF form. It can be any of the following documents:
Business activity of the proposed company in brief. 
If the name is based on trademark then Trademark application details or registered certificate
NOC from the trademark owner.
If the name is based on any other company or LLP then NOC in form of board resolution of that company or LLP.
Approval from any regulatory authority if applicable. 
Any other document requirement to support an application.

3. Filing of web-based application 
Start with filing the name application online on the MCA portal through RUN (Reserve Unique Name) service. The following details must be provided for the application to reserve company name.
Whether it is a new request or a re-submission 
Type of company such as New Company, OPC, Producer Company or others from the drop-down list 
Business activity of the company and other information 
Attach document as mentioned above if required

4. Payment of government fees 
The government fee for the application of reserving a company name is Rs. 1000/-. After submitting an application one has to pay the government fees online through credit/debit card or NEFT. The name application fee is non-refundable.

5. Approval or re-submission of name 
After submitting the name application, the MCA will process the application in 2-3 working days. The status of the application can be checked on the MCA portal from MCA services. If MCA finds the name availability then the ministry will approve the name and send the name approval letter. Otherwise, it will send an application for re-submission. In such a case the application status will be “sent for re-submission” and an email will be sent to the registered email id.

For company registration in Tirupur, click here.

Tuesday, 30 July 2019

Most popular types of companies in India

India is one of the largest flourishing economies of the world, the corporate world of India is rather rich and varied with presence of almost all types of companies/firms which are engaged in its various economic sectors. In general, the types of companies active in entire India include the following:

One Person Company (OPC), Sole Proprietorship, Partnership Firms are registrable under the Indian Partnerships Act, 1932, Private Limited Company, Limited Liability Partnership (LLP), Public Limited Company, Unlimited Company, and Section-8 Company. Excepting Sole Proprietorships, Partnership Firms, and the LLP then all the companies are now registered and regulated as per the new Indian Companies Act of 2013.

Today, the sole proprietorship and partnership companies are on decline, constrained by a variety of factors, including the non-availability of the advantages of the limited liability. These discouraging factors have been further averted by introduction of the LLPs and OPCs in India. The LLPs are registered and regulated by the Indian LLP Act of 2008, while the OPCs are registered and controlled under the Companies Act, 2013. The Unlimited Companies are also not very popular and common in India.

Private limited companies, one person companies, public limited companies, limited liability partnership companies, and the section-8 companies. Here, it may be just mentioned that, the Non-Governmental Organizations (NGOs) are registered and regulated under other legal acts and statues. For registration of private limited company, public limited company, one-person company, and the section-8 company, relevant is the Registrar of Companies (RoC) of the concerned State/Union Territory.

Today, online filing of requisite application is also available, along with the same through the traditional process (i.e. offline process). Again, for registration of a limited liability partnership, the legal Act concerned is the LLP Act of 2008, and the appropriate governmental authority for its registration is the Ministry of Corporate Affairs (MCA), Govt of India (website: mca.gov.in). 

For company registration in Tirupur, please click here.

Tuesday, 23 July 2019

How to register your company in Tirupur?

The central government establishes the below rule as Companies Registration Rule
·         Short title and instigation: – These rules are categorized under the company registration Rule, 2014. This rule came in the form on 1srt April 2014.
·         Especially, the definition of this rule includes Act means the Companies Act, 2013.
·         The annexure means annexure to this company rules.
·         Particularly, the Form or e form means it is an electronic or non-electronic form as mentioned in the act under the Act specified by central government Act.
·         Fees mean it is particular fee specified in the Companies Rule, 2014.
·         In fact, the regional director appointed by the Central government in the ministry of corporate affairs as a Regional Director.
·         In particular, the section of the Act defines the section.
·         Especially, the words and expression using in the Rule did not specify in the companies act, 2014 may have the meaning correspondingly assigned to them in the Act and said rules.
One Person Company (OPC):
OPC means a natural person who is the resident or citizen in India.
·         Can be the part to incorporate an OPC 
·         Can be the part as a nominee for the sole associate of an OPC.
Considering, a normal person cannot be a member of more than one OPC and the same one can’t afford as a nominee of more than one OPC. When a natural person becomes the member of one Person Company in accordance with the rule become the member in another company by virtue of his being a nominee in the same OPC. Especially, such a person may meet the criteria in the sub rule within 108 days.
In fact that, no person can be a member or nominee of OPC or can share with beneficial interest. Such a company can’t able to incorporate into such type under section 8 of the company act. Likewise, such a company cannot able to afford non- banking financial investment activities Inc. Investment in securities of anybody corporate.

For company registration in Tirupur, please click here.

Tuesday, 16 July 2019

Incorporation of company in Tirupur

The company is a place where group of people work together. The company are formed and registered under the companies Act, 2013. Company is a legal entity which is separate and capable of surviving beyond the lives of its members. ) Section 2(20) of Companies Act, 2013 states that a company means any association of person registered under the present or the previous companies act. It is called a “body corporate” because the persons composing it are made into one body by incorporating it according to the rules and regulations.

Advantages of company incorporation:
Separate Legal Identity:
Once a company is incorporated, it becomes a separate legal identity. The incorporated company, unlike a partnership firm which has no identity of its own, has a separate legal identity of its own which is independent of its shareholders and its members. The companies can thus own properties in their name, become signatories to contracts etc.
Perpetual Succession:
The term perpetual succession means that the endurance of the company does not depend on its members or their financial status. Even if all the members of the company go bankrupt or all of them die, the company will not dissolve on its own unless it is made to dissolve on grounds which are laid out in the act.
Transferable Shares:
According to Section 82 of the Companies Act of 2013, the shares of a company are deemed to be movable and transferable in the manner provided by the articles of the company.
Capacity to Sue:
An incorporated company is also vested with the power of suing individuals and other companies in its name.
Limited Liability:
The company being a separate entity, leading its own existence, its members are not liable for its debts. The liability of the members is limited to his or her share in the company and the liability ends there. No one is bound to pay more than what he has put in.

For company registration in Tirupur, please click here.