Company Formation

A company registered under the Companies Act has the following features – 1 Separate legal entity; 2 Incorporated body ; 3 Artificial legal person; 4 Perpetual succession; 5 Limited liability; 6 Common seal; 7 Right to own property; 8 Right to sue; 9 Right to enter in to contracts; 10 Flexibility of investment; 11 Separation [...]

1 A company is a legal entity, distinct and independent of those persons who from time to time are its members. 2 The liability of the company’s members can be limited to the extent they have agreed to contribute towards the capital of the company with reference to the number of shares and/or the amount [...]

Companies under the Companies Act, 1956 may be classified on various grounds as under : I. On the basis of business activities undertaken : (1) Manufacturing Activities (2) Service Activities (3) Non-Banking Finance Activities (4) Non-Profit Making (Sec-25) (5) Producer (Sec 581 A) II. On the basis of liabilities of the members and directors : [...]

Section 3(1) (iii) defines a private company as one which:- (a) has a minimum paid-up share capital of Rs.1 Lakh or such higher capital as may be prescribed;and (b) by its Articles Association: 1. restricts the right of transfer of its share; 2. limits the number of its members to 50 which will not include:- [...]

Step by Step Formalities for formation of a new company Persons desirous of forming a company must adhere to the step by step procedure as discussed below :- 1. Selection of type of the company. 2. Selection of name for the proposed company. 3. Apply for Directors Identification Number and Digital Signatures. 4. Drafting of [...]

What is a Digital Signature Certificate (DSC)? Digital Signature Certificates are electronic format of physical signatures. DSC can be presented electronically to access information or services on the Internet, to prove the identity or to sign certain documents digitally. Why is DSC required? W.e.f. 16th September 2006 all the documents required to be filed with [...]

Time Frame in Incorporation   Nature of Activity Time Schedule 1. Allottment of DIN 3 days 2. Acquiring Digital Signature 2 days 3. Name approval 3- 4 days 4. Drafting of MOA & AOA, stamping, digitally signing and filing the documents on MCA portal 3 days 5. Grant of Certificate of Incorporation 4 days  

Procedures for Foreign Investment in India Q:1 What are the forms in which business can be conducted by a foreign company in India? Ans: A foreign company planning to set up business operations in India may: • Incorporate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary. • [...]

Q:1 Who can invest in India? Ans: A non-resident entity (other than a citizen of Pakistan or an entity incorporated in Pakistan) can invest in India, subject to the FDI Policy.  A citizen of Bangladesh or an entity incorporated in Bangladesh can invest in India under the FDI Policy, only after approval from Government of [...]

Liaison, Branch Office Procedures   Q:1 How can foreign companies open Liaison /Branch office in India? Ans: a) With effect from February 1, 2010, foreign companies/entities desirous of  setting up of Liaison Office / Branch Office (LO/BO) are required to submit their application in Form FNC along with the documents mentioned therein to Foreign Investment [...]

Foreign companies Indian has amongst the most 6 liberal and transparent policies on FDI among emerging economies. FDI up to 100% is allowed under almost all activities, except a few.Press Note 7 (2008 Series) further provides that the following sectors are prohibited for FDI: The extant policy does not permit FDI in the following cases: [...]

Companies registered outside India (Foreign Company) can establish their operations in India without registering a subsidiary company. The scope of operation of such offices is limited and is preferred for representative office, sourcing, technical support, market support in India. The steps involved in establishing a branch / liaison office in India are: Obtaining approval from [...]

Andhra Pradesh Sh. M.V. Chakranarayan (In-Charge) 2nd Floor, Cpwd Bldg., Kendriya Sadan, Sultan Bazar, Koti, Hyderabad – 500195 Phone 040-4657937,4652807 Fax: 040-4652807 roc.hyderabad@mca.gov.in Assam , Meghalaya, Manipura, Tripura, Mizoram, Nagaland & Arunachal Pradesh Sh. Gulab Chand Yadav Morello Building , Ground Floor, Shillong – 793001 Phone 0364-2223665 Roc.Shillong@Mca.Gov.in Bihar & Jharkhand Sh. O.P.Sharma Maurya Lok Complex, Block [...]