Reflections on Companies Act, 2013

What is a Company Formation? What is an Illegal association? Any association or partnership firm registration join together to form a group consisting of more than 50 persons. This form is mainly for the intention of carrying any business objects. The illegal association is a company registration firm which is not yet registered under the companies Act, 2013. Partnership, HUF or any other associations are formed by professionals do not have any special acts under this purview of the illegal association. These are free from the Illegal associations.

One Person Company Formation

One Person Company registration is a new concept under the Companies Act. It has the advantages of a body corporate and limited liabilities. A single shareholder leading the company without any support. Sole proprietorship can act as a company and it takes the advantages of Section 47 (xiii) of the Income Tax Act, 1961. But the woeful condition is if the OPC achieves the paid up capital more than 50 lakh or the average turnover 2 crore, then it will lose the status as an OPC Registration. Let us discuss some important rules relating to the one person Company

Rules in OPC

OPC will have only one shareholder. At the registration itself, there should be a single promoter and he should nominate another individual. Another individual holds the shares after the death or incapacity of the original promoter of the company registration association.

One Person Company should have one Director and he should be resident in India. The residency period should exceed the minimum of 182 days.

Each and every transactions held in the board meeting should transfer to the Minutes of Meeting Book. And it should sign by the director of an OPC Registration.

The provisions relating to the meeting such as notice, explanatory statement, chairman, voting rights, and post ball ballot are not applicable to such one person share holding companies.

Dormant Company & Formation

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This is some variant concept under the Companies Act. The company registration which stays different, that is it does not possess any financial transactions but owns properties but do not carry any kind of business like manufacturing, trading, services etc. under the Companies Act, 2013. It continuous as a company without being under statutory obligations to complying with a lot of requirements. Here in such companies the full-fledged statutory audit also not required. There is no purview in the change of directors of the company registration. Such companies are classified as a dormant company in order to send the details under Registrar of Companies.

Small Companies & Company Formation

The small company is the one other than a public company registration, and its paid up capital should not exceed Rs.50 lakh and the turnover should not higher than Rs. 200 lakh.

Below are the companies which do not comes under the category of small companies

Public company, a Holding company or a subsidiary company of a Public company, the company registered under section 8 company registration and the company or a body corporate governed by any of the special Act.

Publication of important particulars and corporate identity Number

Every types of company registration should get its name, address of registered office, corporate identity number along with telephone number, fax number printed in all of its business letters, letter papers and all the notices and other publications. It is not mandatory that the small companies, dormant companies, and OPC registration to include the cash flow statement as part of the financial statement.

Acceptance of Deposits

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A Private limited Company registration or a public company may accept inter corporate laws or loans from the directors without affecting any company related provisions. In respect of trade advance the company must ensure that the purpose of which trade was accepted. If the trade is not accepted then the amount will treated as a deposit on the validity of 15 days of the relevant period. Likewise, the advance received by the registered company for the purpose of any property under the agreement must be adjusted by regarding the agreement for the property. Neither, the advance will considered as a deposit.

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Application money received towards the allotment of shares cannot exceeds beyond 75 days of receipt. Therefore the maximum validity under the Act for the completion of allotment of share is 60 days. If the procedures is not completed within 60 days the share application money will be refunded to the applicants. The security deposit from the employee cannot exceed more than his annual salary. The Private limited Company registration or a public company may accept deposits from its members. It has the approval to collect deposits from its members by an ordinary resolution duly passed in a general meeting.

Company Deposits

Likewise, there are other conditions too. Those conditions are providing deposit insurance, providing security deposits etc. the private limited company registration should not accept any deposits other than its members. According to the companies Act, a private or public company can raise its paid up capital by issuing share enhancement to peoples via private placement method. It’s not applicable to the persons who are more than the 200 count in a single financial year. The maximum time limit for this allotment is 60 days only. If it is not ready within the mentioned validity period it will returned within the next 15 days.

Sweat Equity Shares

Sweat Equity shares are the class of shares which the company registration already been issued. Under certain conditions and rules the company issues shares from the shareholders following through the special resolutions. The securities and the exchange board of India accepts and possess list of sweat equity issues followed by applicable regulations. The company cannot able to make any private placement by following through the Special resolution only in the below condition. The condition is the company has been approved by the shareholders of the company.

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