process of company registration in india Archives - Business , Financial & Legal Consultant In India

January 13, 2019

Company Registration is now free of cost

Start ups are the best option for the youngsters to show their talent in the business. India is an exemplary place to start a business with a mob of most business efficient people. India is a country that has become great for investment.

Small business or people with excellent business ideas have many opportunities to incorporate a business with no cost. In this blog we will get to know the process of its incorporation and the step taken by government of India for small enterprise or business to legalise and expand their business.

Free of cost company incorporation

Company registration in India has now become effortless. Here are certain steps which are taken by the Government to make incorporation of companies easy and flexible and they are as follows-

Company can now be registered at zero cost up to an authorized cost of INR 20 Lakhs.
Company name filing will have a procedure.
Digital signature will not be required for company name approval.
Reserve Unique Name (RUN) is a new service that has been launched by the Government.
Director Name Approval (DIN) is not required for company name approval.
Director Identification number (DIN) is required in case of Spice form filing.

Now register all type of companies free of cost

Free incorporation of companies brings transformation that makes things simpler and easy for business in India. All forms of companies i.e. Private Limited company, public Limited Company, One person company etc is free of cost

There are some cost which is required to be paid by people those will register company now. Here are certain points under which some entities will be chargeable with a basic amount and they are follows-

Director Identification Number (DIN) fees of Rs. 500 per Director.
Digital Signature Certificate (DSC) fees of Rs. 600/- per promoter.
State stamp duty which comes around from Rs. 200/- to Rs. 10,000/-.
Professional fees comes around from ( Rs. 5000/- to 14,000/-).
Stamp paper and miscellaneous cost comes around to Rs. 500/- to Rs. 2000/- (depends on the number of members).

Easy steps to claim free of cost company registration

It is very easy to register a company in india if the name chosen by a company is unique and now it is free of cost as well. But you need to follow a basic rule and should hire a professional to guide you in best possible way. Since there is no Direct procedure, therefore it is required for a company or any individual who wants to register its company name should hire a professional as their signatures are required. This process is also less time consuming.

Therefore free of cost company registration is just like a revolutionary step which is taken by Government of India. Business registration is one of the major benefits of country’s wealth. India secures the position in the top 10 economic nation in the world. Things will be built in a better way.

January 13, 2019

Is Independent Director really an independent person?

In the age of start-ups there are Directors who take up the charge of the company as they manage and controls the whole of the undertaking efficiently.

Directors are the representatives of the investors and ensures that the company is moving inna right direction to achieve its objectives. For every startup Board of Directors takes necessary steps to ensure that there is no mismanagement in the company.

Independent Director

Independent Directors are the Directors who are brought from outside to participate in Board Meeting of a company and must not be having any material or pecuniary interest in the Company. Only those who are not having any material or Pecuniary interest in the Company determined by the Board to Directors to become Independent Director of the Company. He is given sitting fees in the Board meetings of the Company.

Appointment of Independent Directors

Appointment of Independent Directors in a Listed and Unlisted Companies is very easy and the same is approves in the meeting of shareholders and Independent Directors are appointed as per the provisions under Companies Act, 2013 and they are as follows-

For Listed Companies- at least one third of the total Directors should be independent Directors.

For unlisted Companies- At least there should be two Directors who are Independent in case of unlisted companies.

Public companies should be having paid up share capital of 10 crores or more.
Public companies must be having turnover of Rs. 100 crores or more.
And public companies who should be having in aggregate, outstanding loans, debentures, and deposits exceeding 50 crore Rupees or more.

Term of Appointment

The appointment is for a term of 5 years commencing from the date of appointment and ending on 6th Annual general meeting of the company following the date of appointment. Such appointment can be terminated at any point of time according to the Companies Act, 2013.

The time period of the Independent Director must not exceed two consecutive periods of 5 years each and can be extended for a second term only after passing a special resolution.

Re-appointment of Independent director

According to the companies Act, 2013 Independent Directors can be reappointed only after the expiry of the second term but such reappointment can be done only after the expiry of three years.

Independent Directors always makes sure that the affairs of the company are conducted in a best way so that organisational objectives can be achieved easily.

Want to form a company or get appointed in a company as a director , consult BIATConsultant – #1 Business Consultant In India

November 26, 2018

What Is Said To Be Dormant Status Of The Company

Dormant status of the Company

The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.

Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year. Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.

Here are some Rules regarding Dormant Company

MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.

MSC 2- Certificate of Registrar- Registrar will issue the Certificate.

MSC 3- Return of Dormant Company- By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.

MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.

MSC 5- Certificate of Application status- In this certificate of Application status is being issued.

There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.

And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.

Want to register a company in India ? Hire #1 business consultant in India – BIATConsultant .

August 30, 2018

Process Of Company Registration In India

Steps to form a Private Limited company

A Private Limited company is a Company or a small entity which is held privately. And it limits the liability of the owners to their shares i.e. in case of loss occurred by the company in future then the owners will only liable to their shares. In Private Limited company minimum shareholders should be two and maximum 200 shareholders should be there, and they are restricted to trade their shares publically.

Advantages of Forming Private Limited Company

That forming a private limited company limit the risk to the personal asst of the owner. Therefore if a company is a small entity then it is always recommended to form a Private Limited Company as there is no ris to the personal asset as in case in a Limited Company.
Private Limited Company is a separate legal entity which means that Company is responsible for the management of its assets and liabilities, debtors and creditors.
A company has a Perpetual succession which means that even on the death of the Partner the company continues to exist unless it is legally dissolved.

Also Read : Process Of Trademark Registration In India

Steps for forming a Private Limited Company Registration

First step is to obtain Digital Signature Certificate which is required for filing the forms for company registration. The registration process is online and the forms requires the Digital Signature. You must obtain the digital signature which is certified either by Government or by the Authorized Agencies. The cost of obtaining agencies varies from agencies to agencies. DSC is obtained under class 2 or class 3, under class 2 identity of a person is verified against a pre-verified database, whereas under class 3, person should be present himself before the registering authority to prove their identity.
Next step is to apply for DIN (Director Identification Number) Number, for a Director. DIN Number is basically obtained to be a Director of the following Company .There are three ways for filing DIN and they are as follows:

File form DIN 3- this form requires basic details of the Proposed Directors along with the Documentation Like PAN Card, AAdhar Card etc.
With filing spice in this maximum three Directors can apply for DIN. if a company wants to incorporate with more than 3 Directors and 3 Directors does not have their DIN Number then in that case applicant has to incorporate their company with 3 Directors only and and have to incorporate new Directors later on after incorporation of a company.
If you want to register a company with Biatconsultant then there is no need to apply for separate DIn Number as it is included with the registration process only.

For name approval you have to incorporate your company Via Reserve Unique name (RUN). the Ministry of Corporate Affairs has introduced this RUN facility according to which name for approval is given to the MCA and if Ministry has rejected the name i.e. if the name of the company is not approved then second chance is given. So BiatConsultant helps you to find with the unique name so that there is less chance for approval of a name for incorporaion of a company.

If under spice form, name is not approved by the ministry then no second chance is given and you have to file fresh application and there is no fee.