Companies Act

Overview

The Companies Act, 2013 is an Act enacted by the Parliament of India which governs Incorporation of companies in India and monitors the operation of companies. The Companies Act, 2013 has recently replaced Companies Act, 2013 to make the law more contemporary and relevant to corporate, regulators and Stakeholders in India. The companies Act, 2013 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) handles incorporation of new companies and the administration of running companies.

We at S.K Patodia & Associates have a dedicated division for Companies Act Compliances through which following services are being rendered.

Incorporation of Company

In India there are two most common forms of company incorporation and they are-

Private Limited CompanyA private limited company is a company which has minimum paid up capital of INR 1,00,000 or such higher paid up capital as may be prescribed and by its articles restricts the right to transfer its shares, if any.
Public Limited CompanyA public limited company is a company which has minimum paid up capital of INR 5,00,000Or such higher paid up capital as may be prescribed.

Difference between Private limited company and Public limited company-

Private limited company	Public limited company
A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000.	A Public Company must have a minimum paid-up capital of Rs. 5,00,000.
Minimum number of members required to form a private company is 2.	Public Company requires atleast 7 members
Maximum number of members in a Private Company is restricted to 50.	There is no restriction of maximum number of members in a Public Company.
There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association.	There is no restriction on the transferability of the shares of a Public company
A Private Company may have 2 directors.	A Public Company must have atleast 3 directors.
A Private Company can commence its business immediately after its incorporation.	A public company cannot start its business until a Certificate to commencement of business is issued to it.
A Private Company cannot issue Share Warrants against its fully paid shares	A public Company can issue Share Warrants against its fully paid up shares.

S. K Patodia & Associates offers following services related to incorporation of company in India.

Obtaining Director Identification Number (DIN) and Digital Signature Certificate (DSC)

DIN is unique identification number given to a potential director of any company which is incorporated. DIN is issued by Ministry of Corporate Affairs and it is compulsory for every person who intends to become director in the company.

Digital Signature Certificate is electronic certificate which is required to electronically sign various e-forms to be submitted by company to Registrar of companies and other Authorities. Atleast one applicant of the company shall procure DSC.

Search for company name availability

Before making application to ROC for name approval of company, it is always advisable to conduct to name search of the intended name of the company, in order to determine its availability. This leads to selection of available name which is not conflicting with existing companies and reduces time in getting the name of company approved.

Application for name approval of company.

Here we assist our clients in getting the name of the prospective company approved. For the same ROC has prescribed form 1A which needs to be duly filled in and submitted to ROC. The applicant is required to give 6 proposed names in preference along with meaning and significance of each word.

Drafting of Memorandum of Association (MOA) and Article of Association (AOA)

After name approval from ROC, the next step required is drafting of MOU and AOA of the company. MOA is fundamental document of company’s constitution whereas MOA contains bylaws of company which governs internal management of the company. The subscribers, generally applicants need to specify Name, Address, and occupation in their own handwriting & sign the subscription page of MOA & AOA.

Filing e- forms with Registrar of companies
Following forms are required to be filed with ROC
- Form 1 ( For incorporation Documents, including MOA and AOA)
- Form 18 ( For notice of situation of registered office
- Form 32 ( Notice of Directors along with their personal Details)

Representation services before Registrar of companies

Once the documents are submitted to ROC and fees are paid, Documents are verified by ROC before issuing certificate of Incorporation for company. In case, any query is raised by authorities, we represent our client before the authority and get the queries cleared for authorities.