Amendments and acts following for the company registration process:
Amendments and acts are following on the base of Companies Act, 2013. Generally, various types of entities come under this term company. The base of the procedures and norms are varying one from every entity. Commonly, Private Limited Company, Public limited Company, Limited Liability Partnership and One Person Company Society and NGO categories all are common in the company registration. Each company is functioning with certain restriction and liberties.
As per the amendments and acts each company has some valid possibility to enjoy the liberties which are not prevailing in other companies. How the amendments and acts are important to run a company and their basic amendments for company formation other need documents for such formalities will enlist in the upcoming context.
Amendments and acts for company formation:
To run a successful business venture, the formation and pillars of the partners are inevitable. Companies Act, 2013 limits certain degree of members to from the company. As per amendments and acts, a public limited company registration requiring seven and more members. For further lawful and legal purposes the amendments and acts prescribing in the mode of Memorandum of Association filing with the process of incorporation.
Subsequently, Private Limited Company registration needs two members as their minimum level of members to form this company. Their names are registering in the Memorandum of Association. For registering company in the allotting jurisdiction gives the legal identity and status as juristic entity. In both public and private limited Company call their subscribers as in the term of “Promoters”. The prescribers of the company for their beneficial needs should have nominees. The nominee is to be a single person and not to be a minor before amendments and acts of companies act.
Amendments and acts on one person Company:
Although, forming of One Person Company, the base of amendments and acts he must be an Indian citizen. The person who residing in India and not less than six months can be the natural person for One Person Company registration. Moreover, minors shall not to form this mode of entity. It is considering as the basic eligibility of forming the OPC. Once this company incorporating as OPC, it will not converting into other mode of company. It is one of the notable restrictions following in the amendments and acts of Companies act 2013. Non-banking financial investment activities and security investments on corporate entities are not permitting in this process.
The authorising capital amount increasing beyond fifty lakhs rupees and average turnover be two crore rupees. Written consent is requiring appointing nominee as usual following in this process. In the event of demise or other causes the nominee will be take charge of business after the natural person. Additionally, he needs to appoint his nominee within 15 days of time. Form no INC no.3 is following to complete the nominee procedure. Suppose they need to change the person form no INC 4 submits within fifteen days of time.
Amendments and acts on Conversion:
There is certain possibility avail on conversion of One Person Company to a Private Limited Company. Moreover, the idea of increasing the share capital and Annual turnover excess may paving the way for conversion of One Person Company registration to the Private Limited Company. A resolution need to pass in their meeting on this modification as per amendments and acts. The memorandum of association is to change with in the sixty day of time from the passing resolution. If the provision of amendments and acts not fulfilled the company need to pay ten thousand rupees as a penalty. It can be extendable thousand rupees every day of delaying such conversion.
Amendments and acts on Private Limited Company:
Private limited Company registration is not held unless the members of the concern registering before law. The registering and getting license is the primary works maintaining in this process. Amendments and acts of Foreign exchange regulation NRI‘s are allowing to build their business in India. Memorandum of Association and Article of Association need to submit for the incorporation purpose. The issuing of face value of shares does not exceed Rs.10, 000.
The issuing shares of the company to NRI not involve with any agriculture and plantation. However, the private limited company is not allowing to sell their shares to the public is the notable restriction. Such operation must undertaking by own financial sources.
Basic amendments and documents need for Private Limited Company:
- Getting Directors’ Identification Number (DIN) for all directors of the company
- Selecting name, Memorandum of Association and Article of association for the business entity
- Governing stamp duties and Digital signature on E-filing
- Acquiring the incorporation certificate, business commencement certificate
As per the amendments and acts the share capital and turnover exceed the certain limit automatically it should be convert into the Public limited Company. There is no minimum amount allotting for the private limited company start-up. One lakh rupees is requiring as the share capital for the Private limited Company. Nominee and other process are common one in the private limited Company registration
Amendments and acts on Public limited Company:
To registering Public Limited Company, there are 7 directors and 3 shareholders are mandatory for this process. Five lakhs rupees are determining as the capital share for the Public limited company as per the amendments and acts of companies Act, 2013. It is one of the higher levels of entity functioning in India. Both One Person Company and Private Limited Company are changeable into the Public limited Company. The basic norm is the share capital exceeds more than fifty lakhs. And also, annual turnover, more than two crores it should be covert into the Public limited company via passing resolutions. Both NRI’s and minimum Indian Citizen need to form a Public Limited Company in India.
The addition of specialisation of the word “Public limited company” is the mandatory for the Public Limited Company. Actually, shareholder is involving in the vocation of buying shares and participating in the progress of profit sharing from the company. The profit making are depending on the share he holding in the Public Limited company.
Share and asset of the Company:
As per the amendments and acts, the shareholder has the right on the asset of the company. Suppose if he does not have any interest on the asset then he not allow to suit on concerning company asset. It is keen to know that the company is totally separate one from the board of directors. The shareholder not allows insuring the company share in his own name. If he has the most of the shares it is not possible. Usually, the company is not an agent for the particular shareholder. These are the main things need to remind at the time of Public Limited Company registration.
The upcoming blog will clearly indicate the additional information on the public limited company registration other essential rules. Hope this blog will be useful one for the business personnel. To face the extend complexities in the company registration process. Before applying or face the legal suits from the tribunal, please consult the lawyers and registering personnel for less complication.
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