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 equity capital of the company is normally calculated through evaluating the company assets whether intangible or tangible through current market evaluation.
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.
In case the member is a company or partnership firm it should not hold less than 10% of the share capital or entitled to not less than 10% of the profits of the partnership.
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.
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.
NRI stands for Non-Resident Indian, but it can be classified into two categories; A person who does not resides in India but holds an Indian passport A Person of Indian Origin (PIO), a non-resident Indian having a foreign passport.
The company law now provides protection to the investors and minorities in a company; this initiative is a bright spot in the history of the corporate initiative as it aims to bring transparency and accountability in the corporate sector.
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.
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.
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.
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.
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.
Post incorporation requirements The first and the foremost requirement after incorporating a company is to hold a Board Meeting of all the directors, shareholders and other concerned board members within 30 days of incorporation. 1.
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.
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.
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.
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.