company formation in india Archives - Business , Financial & Legal Consultant In India

June 2, 2019June 2, 2019

Companies 2nd Amendment Rules 2019 for Appointment and Qualification of Directors

INC 22A is an active form introduced by MCA as compliance back in January of this year. Under this compliance, every company which is formed or which is registered on or before 31st December, 2017 has to file the e-form active INC-22A. It tags the companies that are active and currently doing business. At the same time MCA takes their eyes on the working of the companies. Cobimining with this rules for Director Qualification and appointment, MCA has released a new notification for companies 2nd amendment of 2019, it states as follows-

“Where a company governed by Rule 25A of Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Identification Number (DIN) allotted to its existing Directors, shall be marked a Director of ACTIVE Non-compliant company.

Let’s talk about Director Disqualification

As per Rules of Companies Act, under certain circumstances, a director of a company can be disqualified by the MCA. when that happens, the Director’s DIN is removed from the registry. As a result, the Director can no longer be associated with the company. Where you can definitely remove the Director disqualification by filing a Petition o the Court, what if the Director of a company is appointed to again goes non-complaint because of Non- filing of INC-22A.

ACTIVE e-form INC 22A

MCA introduced this form back in january. Important and mandatory for companies that were registered before 31st December, 2017, this form’s main reason was to tag companies that are active (Currently doing business), through active tagging and verification it tries to locate shell companies. If the companies does not file INC 22A within the extended period of due date, it is marked in the MCA registry as “ACTIVE non compliant. It means that the company is active but has not filed the ACTIVE e-form.

Director of Non-compliant company

Before the mentioned notification, it was only the company that was marked as non- compliant. However, with the announcement of companies act, 2nd amendment notification, the meaning is this,

“ If the company is marked as Non- compliant in the mCA registry because INC 22a was not filed the DIN of the Director of that company is marked as “ Director of ACTIVE Non- compliant company”.

The notification further states that when the Director’s DIN is marked as Director of ACTIVE Non- compliant company, then they have to take all the necessary steps to file the complaint and to remove this mark. In this case the step would be to file INC 22A.

Further the notification states that once the Director files the Compliance INC-22A their DIN will be marked as Director of ACTIVE Non- compliant company.

April 13, 2019

How To Register A Company In India From USA

In this blog we will discuss that how a Foreigner/ Non resident Indian can register a company easily in India .

An Applicant can apply for Company Registration in India either Online or Virtual , and can easily get its company incorporated in India .

How to register a company in India from USA

The very first step to start with the registration process of company is to decide the name of your business entity i.e. firstly name of the Business Entity is to be chosen before applying for company registration. You can Register Private Limited Company, LLP, Partnership etc in India from USA completely online. According to BIATConsultant , it is advisable to register a LLP or a Private Limited Company in India since these requires very minimal legal requirement in India , and can be carried on in India with minimum requirement .

Conditions for Registration of a Company in India from USA

There are certain conditions which needs to be fulfilled in order to start a Company in India right from sitting in USA:

Firstly you need to make sure that there should be One Indian Resident to be a Director of the said company ( in case you don’t have , don’t worry , BIATConsultant will provide you with sleeping director for the same at initial stages) along with his/her documents and KYC details in order to get DIN Number and DSC (Digital Signature ) Number in India.
Secondly, Foreign Direct Limit is to be checked, as in case of formation of a company. If the sector comes in Automatic routes, it will not require any prior permission of RBI. however, if the sector belongs to 100% FDI route, prior permission of concerned ministry of Central Government or RBI is required to start a business and name application needs to be done for company along with the preparation of MOA, AOA of the company.
Thirdly , you have to make sure that you have all the documents in place for company registration and all documents are notarised from your local country and you must send all the necessary documents in well scanned format to a business consultant who is applying for the same .

Documents required to Register a Company in India from USA

Here are the list of documents which are required to register a Company in India from USA:-

Valid Passport
Driving License from issuing country
Voter Id of the issuing country.
Social security Number(SSN)
Bank Statement of last 6 month
Photographs
A resident permit issued by an Indian embassy ( in case you want to reside )
Copy of valid business visa issued by foreign national

Documents required if a foreign company is trying to register a company in India ( Subsidiary of Company ) :

If any Foreign Company wants to register a company in India then following documents are required and they are follows:

Certificate of incorporation that proves that a company is legally formed and registered.
Board resolution of foreign company
Copies of valid address proof of foreign company

The process of registration of Company in India from USA :

The Applicant must have a valid account with the MCA portal in India ( It is preferred to get help of business consultant to do the same ). And if you are not having a account with MCA portal then you can easily sign up with the portal in order to process the company registration in India.
Firstly, you need to apply form DSC ( Digital Signature Certificate), for this you can directly approach the certified authorities to get DSC registered or otherwise you can directly take help of a professional like BIATConsultant for the DSC.
Once you have made an account with MCA Portal and also DSC is prepared, then you can visit this link of MCA , after which you can apply for the name of the company through Run Form.
The applicant after logging into the account, by entering the name of the business entity he must check that whether that name is available or not, and after choosing the name it has to be submitted through Run form along with the prescribed fees of Rs. 1000/-, after which MCA or personnel of central registration will check for the name, and if the name is unique then they will sanction through MCA within 1 to 2 weeks.
After the Application for Name approval, applicant must apply for DIN Number or Director Identification Number. In order to obtain the DIN Number, you have to fill SPICE Form, and there you need to submit the details of the Director for whom the DIN Number is to be allotted along with the PAN card and passport.
And after the above steps your company will be incorporated and certificate of Incorporation will be issued to you and your company will be formed in India from USA.

The company registration in India is only possible with the help of CA/CPA in India who is registered with MCA Portal , and can aids you with all the documentation process along with after company formation compliance service at nominal cost . Check BIATConsultant.com to know more about it

April 6, 2019

How To Remove Disqualification Of Directors

Over last few years MCA or Ministry of Corporate Affairs has disqualified many of the Directors for not performing or meeting the compliance i.e. Rules or regulations mentioned under Companies Act, 2013. However, you can obtain you position back as the Director of the Company. MCA has also deactivated their Director Identification number, so to revive back their is one scheme which is introduced by the MCA i.e. “ Condonation of Delay Scheme”, that provides relief to the Directors by aiding them with the provisions to remove Director Disqualification.

Reasons for Director Disqualification

There are two reasons for Director Disqualification and they are as follows-

The Directors haven’t filed the annual return or Financial statements from last three consecutive years.
The Directors have not repaid the debts he has taken or has failed to do so from 1 year.

Once a Director is disqualified, then he won’t be able to become a Director of any company for at least 5 years, however, condonation of delay scheme can help.

What is Condonation of Delay Scheme

According to section 8 of the companies Act, Directors of the company must file annual returns or financial returns every year, and if they fail t do so from the last 3 continuous consecutive years, then they are declared as disqualified Directors. The condonation of delay scheme then became operational courtesy of the appeal of aggrieved Directors. Under this scheme the Directors are given Directors Identification Number (DIN) to file the deferred tax returns over the course of next few months, and after the scheme still they are not able to file the returns then they are declared as disqualified for the next 5 years.

How does scheme work?

When a Director is disqualified, they won’t be able to become Director of any company for the next 5 years. Therefore the company can appoint temporary Directors to execute the resolutions to file and submit the financial statements and annual returns. These Directions are given new DIN and DSC for the time being to file all the annual returns. Furthermore, thees new Directors who shall pass the resolution to pass the resolution to re-hire the disqualified ones and passing the request to the Registrar of companies.

Director disqualification removal process

Drafting a written application
Filing the Director disqualification matter with the High court.
The Advocates appear before the high court regarding Director disqualification.
Obtaining the final order from the High court.
Filing all the financial and annual compliances with the Registrar of companies.
Activation of DIN and removal of director disqualification.

What are the Documents required for Director disqualification?

There is one thing to remember that there is a way to remove Director disqualification

Without the condonation of delay scheme (CODS). However CODS to make the process quite streamlined.

With CODS, documents required are as follows-

Overdue Documents
E-Cods

Without CODS, documents required are as follows-

If company was active

An Application before the National Company Law Tribunal
The documents that are overdue
E-cods on MCA 21 portal.

If company was inactive

Petition to the High court

Overdue documents
E-cods on MCA 21 portal

BIATConsultant.com is #1 business , financial and legal consultant in India who can aids in in company formation in India as well as providing legal consultancy service for removal of disqualification if directors .