company registration process 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.

March 3, 2019March 3, 2019

What is the commencement of certificate of business?

There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.

Format

I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:

Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
All the requierment attachment have been completely and legibly attached to this form.
Every subscriber to the MOA has paid the values of share agreed to be taken by him.
The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

Documents that have to be attached-

COI of the Company
PAN of the company
List of directors and shareholders of the company
Bnak statements of the Directors and shareholders of the company
ID proofs of the same
Receipt proof (if any)

Fee structure of the share certificate

Share capital involved

Fee to be paid

Less than 1 lakh	Rupees 200
1,00,000- 4,99,999	Rupees 300
5,00,000- 24,99,999	Rupees 400
25,00,000- 99,99,999	Rupees 500
1,00,00,000 or more	Rupees 600

What if you don’t comply with the Declaration

Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.

Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.

Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.

Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.

November 28, 2018

What is the role of Company registrar of Companies in the Incorporation process

The Company Registration process in India includes Companies Secretaries, Chartered accountants and some other individuals. In this blog we will discuss the role of Registrar of Companies in incorporation process.

Role of Company Registrar

Registrar of Companies has very important role to play in Incorporation of Companies. All documents are sent to the Registrar of Companies only. He decides everything like whether Company’s name can be incorporated or not. There are three Categories which are divided in to 3 parts and they are as follows:-

Document Accumulation– Once Registrar receives all the documents and application, then he will cataloguing it responsibly for future assessment.

Document Assessment- Once the Registrar receives all the documents then he will check whether all the documents are in order or not. And for Document assessment he will check whether all documents are present or not. And whether the documents are as per the rule of Ministry of Corporate Affair. And he will check that whether the application is filed right or not.

The certification- Once the Registrar checks every document that whether all the documents are present or not and all the documents are on record or not. And after checking all documents he will decide whether to certify the company or not. After certification of the company, documents are given to the Applicant. Only Chartered Accountant and Companies secretaries and some other people are authorised to apply for Incorporation of the Company. Because they are the experts and will advice you on correct things.

In BIATConsultant there are team of experts which can guide you in Company incorporation process.

September 19, 2018September 19, 2018

Step By Step Procedure to incorporate a company in India

If you are thinking to start a new Company but is confused regarding its procedure then in this blog we will be discussing the procedure for its incorporation. Read our detailed guidelines for company registration procedure in India

Steps for Incorporating the Company-

As we have already told you that there are several things which you are required to follow. So here is the list of things or step by step procedure to be followed while incorporating:

Step 1: Choose the name of the business- This step is perhaps the most important step which is need to be done. Firstly name of the company is t be chosen on which your business will rely, so ame of the company should be unique which gives lasting impression to your consumers. Before applying for the name, the Registrar should check its availability that whether that name is available or not otherwise it can get rejected by the Government after applying for ts name.

This step entails the location of your company- Every sort of Company needs to have its physical location associated with it. It is necessary to identify the location on which you need to do your business. And make sure to check the company incorporation cost, the taxation law and other corporate laws in the place you seek to start your company at.

Select the type of incorporation- It is necessary to decide the kind of company which you need to register. There is Private Limited Company, Limited Liability Partnership, Nidhi Company, Section 8 Company and others. So chose the type of business you do and then decide upon the type of entity that you want.

Name of the Directors of the Company- This step is one of the important step. When you are naming the Directors then make sure that they can manage the affairs of the Company. These Directors are going to be responsible or running the business of the Company.

Decide the tps of shares you need- The type of share depends on how you chose to incorporate your company. But make sure that the share you chose should be right one. You will also need to decide that to who you are assigning the share.

Getting Access to the Certificate of Incorporation- In order to fully incorporate your Company you need to take the certificate of incorporation. Once you get certificate, it will entail Company’s Name, purpose, location and information of the company like about its Director and its Shareholders.

The Last Step- The last step involves filing the Articles of Association and and submitting it to Registrar of Company wit the required fees. Thi can be done either offline or online. For Offline process you need to consult either Chartered Accountant or Companies Secretaries. For offline process, you need to take help of Attorney as well.

August 4, 2018

Legal Advice For Startup Company In India

With the ease in company Registration process more and more aspiring entrepreneurs are motivated to bring their dream of forming a startup into reality. When a startup is being incorporated, it goes through various phases. There are separate legal requirement for every phase like at an initial stage every startup is required to procure the business license, obtain registration, maintain books of accounts, taking care of taxation, drafting vendor contracts etc. the various legal advice that every startup must take include the following:-

Choosing the best legal structure: This is one of the most crucial decisions that must be taken by every startup. While taking this decision multiple factors must be considered such as nature/sector of business operation, business trajectory, regulatory and tax considerations, cost of formation, ongoing administration and many more. However the most preferred entity structures for startups in India are Limited liability partnership and Private Limited Company.
Obtaining Registrations and licenses: Any business entity is mandatorily required to obtain certain registrations as per the applicable law. Some examples are Permanent account Number (PAN), Tax Deduction and Collection account Number (TAN), Goods and service tax (GST)number. Further according to the nature of business entities they are required to obtain he business licenses issued by a Government authorities that allow startup to start/conduct/continue to operate a particular business within its territorial jurisdictions lawfully.
Protecting Intellectual Property rights: In the era of Modernization, one of the most crucial assets for any business entity is its Intellectual Property rights. These assets help the startups to establish a distinct brand image and gain the competitive advantage over others. One significant thing to be noted here is that registration of a company or a business in India does not by itself gives protection against others who might commence using identical or similar marks. A Trademark search should be conducted before deciding on these business names, trade names to prevent any issues in future including potential infringement.
Agreements: In case there is more than one founder of the startup then there is a need to formulate the agreement between them in order to establish the relationship between the founders of a startup. In an agreement the role, responsibilities and rights of each partners shall be specified.
Compliance Management: Just incorporating a startup is not enough. The company once registered are required to fulfill certain annual compliance requirements and other requirements to avoid Government interference and hefty penalties. To manage the compliances of the company it may take some professional guidance.
Third party agreement: Utmost care must be taken by the company while entering into any third party agreements and setting out its terms and conditions. The clauses related to breach, termination and dispute resolution should be well negotiated and captured in all third party agreements.
Contacts with employees: Before employing any person the startup must ensure to enter into clear employment contracts detailing terms and conditions of employment. The contract must specify the details regarding the job profile, compensation, and other associated benefits, a number of clauses must be inserted to safeguard and protect the interest of the startup- such as stopping employees from setting up competing entities, prohibiting employees from exercising any legal right on Intellectual Property Rights on the work done/developed during the course of employment.

This is how Company in India, a Company should get started and in case of any legal or professional advice regarding company registration or related to Intellectual Property rights you can contact us at BIATCONSULTANT.