Startup Recognition and Registration

A startup is term used to identify and promote entrepreneurs in establishing business undertakings. Several benefits/relaxations are offered to startup entities from compliance’s which would have been otherwise applicable to them. Benefits/Relaxations are offered for the initial period of establishment. Exemptions are granted from complying certain provisions of the Companies Act, 2013 such as minimum number of board meetings to be conducted, signing of annual return etc. Before getting recognition as a startup, an entity should be formed either as a Private Company (including One Person Company) or a Registered Partnership Firm or a Limited Liability  Partnership.

Ministry of Corporate Affairs explained the terms “start-up” or “start-up company” as a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognized as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.” Continue reading

Search Reports of Companies for Banks

Search Report is an important document used by banks and financial institutions as part of determining the viability of granting financial assistance to the companies. Search reports sets out basic details of the company such as the name of the company, address, members, directors of the company, details of existing loans, assets given as security etc.

Is Companies Act, 2013 covers search report

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Register One Person Company

Before the enactment of Companies Act, 2013, minimum two persons were required to register a private company. Companies Act, 2013 introduced the concept of One Person Company (OPC) opened avenues for individual businessman and entrepreneurs to carry out their business as a separate legal entity with the advantages available to a sole proprietary concern and at the same time with limited liability. To form an OPC, only one person is required as a promoter/member.

Following are the advantages which One Person Company offers

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Registration of Society

Societies in Kerala are registered under Societies Registration Act, 1980 and Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955. In Travancore Region, Societies are registered under Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955 and in Malabar Region, societies are registered under Societies Registration Act, 1980. This article is primarily based on Travancore Region, Societies are registered under Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955 Continue reading

Registration of Charge by Bank/Charge holder

Can a bank/charge holder make application for registration of charge?

YES!.

Section 78 of the Companies Act, 2013 allows a bank/charge holder to make application for registration of charge.

Section 77 of the companies act, prescribes registration of charge as a duty of every company within 30 days of its creation, or within a period of 300 days from the creation of charge on reasonable grounds for delay.
In case, the company fails to register the charge within 30 days, section 78 of the Act empowers the charge holder (the person in whose favor the charge is created) to make application for the registration of charge along with the instrument created for the charge. Continue reading

What is entrenchment of Articles of Association

ENTRENCHMENT OF ARTICLES OF ASSOCIATION

Articles of Association contains regulations for management of a company. Company can adopt all or any of the regulations contained in the model articles prescribed in Table F, G, H, I & J of schedule 1 of Companies Act, 2013. Further companies can include additional matters in its articles which are necessary for its management.

In order to alter any regulations contained in the articles of association, special resolution should be passed in a general meeting. ( a special resolution means a resolution which requires at lease 3 times the number of votes, if any, cast against the resolution by members)
for example :- Assume 10 members(having 1 share each) were present in a general meeting of company in which a special resolution is to considered for alteration of a clause in the articles of association. If 2 out of 10 members had cast their votes against the resolution, then at least 6 members (3 times of votes cast against the resolution i.e. 3 X 2) shall cast their vote in favor of the resolution to consider it to be duly passed. Continue reading

How to become Tax Consultant in India?

TAX CONSULTANT

Who is a Tax Consultant?

A financial expert with advanced training and knowledge of tax law.(Investopedia)

A tax advisor or tax consultant is a financial expert specially trained in tax law. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in complicated financial situations themselves, or to learn the details of tax law from a professional advisor(wikipedia)

What are the qualifications required to become a Tax Consultant?

In India, most of the professionals acting as tax consultants are law graduates or persons having professional qualifications. Continue reading

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Resolutions requiring Special Notice

Section 115 of the Companies Act, 2013 requires members to give special notice on certain resolutions/matters prescribed in the act or in articles of association of the company.
Where, by any provision contained in the Act or in the articles of a company, special notice is required of any resolution, notice of the intention to move such resolution shall be given to the company by such number of members holding not less than one per cent of total voting power or holding shares on which such aggregate sum not exceeding five lakh rupees, as may be prescribed, has been paid-up and the company shall give its members notice of the resolution in such manner as may be prescribed.

Following are the matters/resolutions which require special notice by members Continue reading

NCLT and NCLAT – Applicability in CS December 2016 exams

Notifications/Amendments /Changes came into force six months prior to the exams will be applicable for that exam.

National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) were notified by the Ministry of Corporate Affairs vide notification dated 1st June, 2016. Further the NCLT Rules and NCLAT Rules, 2016 were notified by MCA on 21st July, 2016.
In this regard ICSI has issued an announcement Continue reading

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