Details about any penalty or punishment imposed on the company or any of its members along with the appeals made against such penalties.

For registering a company, one needs to name the same.

Registration under Companies act An ARC company needs to be registered under companies act either as Private limited Company or as a Public Limited Company.

The process is also known as Internal reconstruction whereas the company can take up external reconstruction as well for the following reasons: To create and redistribute reserves so that they can enable future dividends to the shareholders So that the company can return the excess capital to the shareholders External reconstruction of the company can also be done for facilitating share buyback Remember:  Reduction of shares involve sensitive issues for the company and hence all the legal aspects of the company must be handled carefully.

A company can issue two different types of shares i.e.

The funds raised by a company in exchange for its shares are known as the share capital of a company.

When a company is controlled and managed by another company, the company that is being managed is termed as subsidiary while the controlling company can either be a parent company or holding company.

A foreign company can be defined under Section 2(42).

What is the procedure of applying for the unique name of the company?

What is a defunct company?

According to the Companies Act 2013, related party in a company refers to as – A director or his relative.

Note: The individual can be acting alone or together or through one or more persons.

Trust is an arrangement where one person gives the ownership of the property to another party (usually a trust) to be taken care of for another party commonly known as a beneficiary.

According to Section 135 of the Companies Act, 2013, all companies whose - Net worth is Rs. 500 Crore or more.

For conversion, a person is required to open a Demat account with depository participant and file a dematerialisation request form along with his share certificates.

According to the size and investment a person can choose between a: Private Limited Company (PVT): A private limited company is an attractive business model as it is a company with a minimum paid-up share capital of 1 lakh.

What companies can be revived?

Purchase and transfer of shares to NRI or person residing outside India A person residing outside India may purchase equity or preference shares or convertible debentures offered on the right basis by a Private Limited Company or Public Limited Company, under specific conditions: The percentage of the Foreign Equity which is already approved or that is permitted under the FDI Scheme should not increase with the purchase of shares by the NRI.

Eligibility for Fast Track Merger (FTM) The applicability of Fast Track merger is only on the following companies: Small Companies As per the companies act the companies that are classified as small companies can perform fast track merger.

Rule 26 Publication by the name of the company Every company has its website is required to notify company’s name, the address of its registered office, the Corporate Identity Number ( CIN), Telephone number, fax number, email and the name of the person who may be contacted on the landing page of the website.

According to rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) act 2013, states that it is mandatory for all the listed companies and public companies having share up capital of INR 10 crore to appoint KMP.

Can a person open a bank account for his proprietorship?

On 8th June 2018, The Securities and Exchange Board of India (SEBI) intimated the companies that physical shares cannot be transferred if not dematerialised before 1st April 2018.

Voting Rights of Equity Shareholder Equity shareholders in a company are the main shareholder of the company but when the distribution of share is done the preference shareholder will be the first one to be distributed the dividend.

Building a company is not a one-man show.

Wholly owned subsidiary Any company which is completely owned by another company such as a parent or holding company is known as a wholly owned subsidiary.

After incorporating a company, the period for issuing a share certificate to the concerned person is two months from the date of incorporation.

In a Private Limited Company, joint shareholders are considered as one/single member since the maximum number of members can not extend 200 in number.

Who is the Promoter of a company?

When a person incorporates a company or is planning to change the name of the company then the person has to file for a name for his company which shall not be similar to any other company’s name.

What is Small Company?

Companies incorporated less than 7 years ago with an annual turnover of less than Rs. 25 Crores can be registered under this scheme.

Every company registered needs to hold a board meeting for its member to discuss the functioning of the company.

This filing of return is applicable for both private and public companies which are to be done in two parts MSME-1 which is for the initial returns and half-yearly return MSME-2.

The person should not be a promoter of the company or any of its holding, subsidiary or associate company.

Appointing an auditor After incorporating a new company, it is mandatory for the Board of Directors to collectively appoint an auditor for the company who is responsible for reviewing and evaluating company’s financial statements for a term of five years. 5.

When a person dies without writing his will, all his assets, funds and investments, bank accounts everything under his name are transferred to a legal heir.

Micro, Small and Medium Enterprises (MSME) Registration provides benefit to the individual/companies who fall under the investment limit decided by the Government.

One can register a company in India in two different ways.

Defunct Company A defunct company can be defined as a company who has not been in business either since one year of its incorporation or has failed to deliver any business in the preceding two financial years.

The company act is clear on the duties and liabilities of directors of the company whether they are managing directors, executive directors or independent director of the company.

Opening a bank account for the company is a much different procedure than normally followed while opening a personal bank account.

Precautions to take before applying for the resignation By agreeing to become a director of a corporation, a person automatically accepts the duties and responsibilities related to that position.

A person can hold only single DIN no matter how many companies he owns.

The person is granted loan from 10 lacs to 1 crore according to their businesses.

SSI is the industrial undertaking which has one time fixed investment in plant, machinery and other equipment required to set up a small scale industry held either on ownership, lease or hire basis.

Shop establishment license is issued by the government which gives permission to carry on a particular trade or business to personal.

What is E-Form Active (INC-22A) The 2019 amendment of company rules has introduced Active company tagging and verification as per the rules.

Board of the company decides on the course of action.

Any member of the company can nominate a person for the role of auditor.