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F.A.Q

  • Digital Signature" means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3. Digital Signature Certificate" means a Digital Signature Certificate issued under subsection (4) of section 35.

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An issue of bonus shares is referred to as a bonus share issue or bonus issue. A bonus issue is usually based upon the number of shares that shareholders already own. While the issue of bonus shares increases the total number of shares issued and owned, it does not change the value ... Read More

DETAILED NOTE ON BONUS ISSUE DEFINITION

Introduction- What is sweat equity shares?Sweat equity shares refers to equity shares given to the company’s employees on favorable terms, in recognition of their work. Sweat equity shares is one of the modes of making share based payments to employees of the company. The issue of sweat equity... Read More

ISSUUANCE OF EQUITY SHARES THROUGH SWEAT EQUITY

DEFINITIONOF RIGHT ISSUE‘Right Issue’ means offering shares to existing members in proportion to their existing shareholding. The object is, of course, to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares.A rights issue is ... Read More

ISSUE OF SHARES THROUGH RIGHT ISSUE

1.        Ensure that a special notice for the removal of a director is furnished by number of members in accordance with the section 115 of Companies Act, 2013 to the company at least 14 days before the meeting at which it is to be moved.2.        (a) Ensure that the notice for ... Read More

PROCEDURE FOR REMOVAL OF DIRECTOR

INTRODUCTIONPrivate placement can be explained as a means of raising capital by the companies without going for public issues. Public Issues like Initial Public Offering and Further Public Opening are means of raising capital by the companies.DEFINITIONA private placement is a sale of stock s... Read More

PROCEDURE FOR ISSUE OF SHARES THROUGH PRIVATE PLACEMENT

As per proviso to section 152(3) of the Companies Act, 2013 no company shall appoint or re-appoint any individual as director of the company unless he has been allotted a Director Identification Number (DIN) under section 154 or such other identification number as the Central Government may prescrib... Read More

Requirement for Having Director Identification Number

Every Form and return prescribed under the Companies Act, 2013 needs to be filed with the digital signature of the managing director or director or manager or secretary of the Company, therefore, it is compulsorily required to obtain digital signatures of at least one director to digitally sign the ... Read More

Is Digital Signatures Certificates are mandatory in case of Company registration?

The MCA vide the Companies (Amendment) Act, 2017 has inserted new section 3A w.e.f. 9-2-2018, vide Notification No. SO 630(E), dated 9-2-2018 to put liability on all the existing members of the company, in case the company defaults in minimum number of members’ criteria. If at any time the nu... Read More

What are the liabilities on members for having below minimum members’ strength?

The digital signatures are required to be registered at the website of the MCA for various category like director, professionals, etc. and need to fill up particulars online at the MCA portal, called roll check.   Without complying with the requirement of Roll Check, any documents si... Read More

Is roll checks are mandatory for Directors inMinistry of Corporate Affairs website

 There is no pre-condition for foreign promoters to furnish local address in India for seeking registration and incorporation of a limited company in India.   It was held that there was nothing in the Act or the applicable Rules which requires the foreign promoters to provide a l... Read More

No need for address in India of Foreign promoters incorporating company in India

 The liability of the member of the OPC may be limited or unlimited, and the Memorandum of Association of the OPC shall state,—   (i) in the case of a company limited by shares, that liability of its member is limited to the amount unpaid, if any, on the shares held by the... Read More

What are the Liabilities of the subscriber in case of One Person Company?

 It has been provided that the subscriber/member of OPC may at any time change the name of the nominated person by giving notice to the Registrar. It shall be the duty of the subscriber/member of OPC to intimate the company the change, if any, in the name of the person nominated by him by i... Read More

Can we Change in the nominee by the member of OPC?

Any such change in the name of the nominee person in the Memorandum of Association of the OPC shall not be deemed to be an alteration of the memorandum....

Change in the name of person nominated in the Memorandum shall not be deemed to be alteration in the Memorandum of Association

 It has been provided that the subscriber/member of OPC may at any time change the name of the nominated person by giving notice to the Registrar. It shall be the duty of the subscriber/member of OPC to intimate the company the change, if any, in the name of the person nominated by him by in... Read More

Can OPC Change in the nominee by the member of OPC?

By the Companies (Amendment) Act, 2015 effective from 29th May, 2015 the requirement of minimum paid up capital for a private limited company of `1 Lakh and for a public limited company of `5 Lakhs has been removed from the definition of the Companies under section 2(68) and 2(71) of the Companies A... Read More

Requirements of minimum paid-up capital

The objective of section 8 of the Companies Act, 2013 is to provide special benefits and privileges to such organisations, which are formed for the following purposes and where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be regist... Read More

Main condition for Section 8 Company registration

Section 8(4)(a) provides that a company that has received a licence under the section, shall not alter the provisions of its Memorandum as regards its objects except, with the previous approval of the Central Government [Powers delegated to the Registrar of Companies by Notification No. 1353(E), dat... Read More

Restriction on alteration in the Memorandum and Articles of a charitable company licensed u/s 8

Rule 6 of the Companies (Incorporation) Rules, 2014 as amended vide the Companies (Incorporation) Amendment Rules, 2015, w.e.f. 1-5-2015 provides that where the paid up share capital of an OPC exceeds fifty lakh rupees and its average annual turnover during the relevant period exceeds two crore rupe... Read More

Mandatory Conversion of One Person Company into Private Limited or Public Company

 OPC shall be required to convert itself, within six months of the date on which its paid up share capital is increased beyond fifty lakh rupees and the last day of the relevant period during which its average annual turnover exceeds two crore rupees as the case may be, into either a private co... Read More

OPC has to convert into Private or public limited company within 6 months

  The Rajya Sabha  passed the Companies (Amendment) Bill, 2020 on Tuesday. Union corporate-affairs-minister Corporate Affairs Minister Nirmala Sitharaman moved the Bill for passing in the Upper House today stating that the amendments divided into two compartments are focused on decriminalizatio... Read More

Rajya Sabha passes Companies (Amendment) Bill, 2020

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