The Companies Act,     1956
Limited Liability Partnership Act, 2008
Foreign Exchange Management Act, 1999 (FEMA):
For Bank & Financial     Institutions
The Companies Act 2013 has received the assent of the president on 29th August 2013. Lets gear up for new Rules & Regulations for better corporate environment
  FAQs on LLP FAQs on FEMA  
                                                    FAQs on Company Law
What is an Indian Company?
An Indian Company means a company formed and registered under the Companies Act, 1956 or an existing company i.e. a company formed under any of the previous laws.
What are the types of Companies?
The types of Companies are Public Company, Private Company, Holding & Subsidiary Company, Limited & Unlimited Company, Government Company, Foreign Company etc.
What is a Public Company?
“Public Company” means a company which
a) is not a private company;
b) has minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed;
c) is a private company which is subsidiary of a company which is not a private company.
What do you mean by a Private Company?
“Private Company” means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed and by its articles-
a) restricts the right to transfer its shares, if any;
b) limits the number of its members to fifty not including (i) persons who are in employment of the company and (ii) persons who have been formerly in the employment of the company, while in that employment and have continued to be members after employment ceases;
c) prohibits an invitation to the public to subscribe for any shares in or debentures of the company;
d) prohibits an invitation or acceptance of deposits from persons other than its members, directors or their relatives.
What do you mean by Memorandum of Association?
The Memorandum of Association is a document which contains the fundamental provisions of the company’s constitution. On these fundamental provisions alone the company can be incorporated.
What is Articles of Association?
Articles of Association is the document which contains the rules and regulations relating to the internal management of the company. It constitutes a contract between the company and its members and members inter se defining their respective rights and duties and are binding on the members.
What is the capital requirement for using certain key words in proposed incorporating company?
In case of intention of using certain key words in proposed company, there is minimum capital requirement as per name availability guidelines as follows :
Sr. No. Key words.Required authorized capital (Rs.)
1Corporation5 crores
2.International, Globe, Universal, Continental, Inter-continental, Asiatic, Asia, being the first word of the name1 crores
3.If any of the words at (2) above is used within the name (with or without brackets)50 lacs
4.Hindustan, India, Bharat, being the first word of the name50 lacs
5.If any of the words at (4) above is used within the name (with or without brackets)5 lacs
6.Industries/Udyog1 crores
7.Enterprises, Products, Business, Manufacturing.10 lacs.
What are the Kinds of Share Capital?
The share capital of a company limited by shares shall be of two kinds namely-
a. Equity Share Capital – i. with voting rights or
ii. with differential rights as to dividend, voting etc.
b. Preference Share Capital.
What is meant by Debentures?
Debentures includes debenture stock, bonds and any other securities of a company, Whether constituting a charge on the assets of the company or not.
What are the types of meetings of the Company?
Meetings can be classified as under:-
a) Shareholders’ meetings like Statutory Meeting, Annual General Meeting, class
meeting and any other General Meeting.
b) Board of directors meeting.
What is mean by the Financial Year of the Company?
The Period for which the annual accounts of a Company are prepared, is called a Financial Year. It may be less or more than a calendar year, but it shall not exceed 15 months.
What is Director Identification Number (DIN)?
DIN is an unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 266A & 266B of the Companies Act, 1956 (as amended vide Act No 23 of 2006).
What is Digital Signature Certificates (DSC) & why is it required?
DSC is a certificate in electronic format equivalent to physical or paper certificate. It can be treated as identity proof of any person only in electronic format. Like we have driving licence, passport, PAN as physical identity proofs, one can prove his/her identity through DSC. This is mainly required for certifying, signing forms in electronic format.
What is Common Seal of Company?
A common seal is a mechanical device by which an embossed impression of Company’s name is created on a document to which it is affixed. Affixing common seal is synonymous to signing by a company.
What are the advantages of Limited Company over proprietary or partnership?
Following are the advantages of Private Company over proprietary or partnership:-
a) Legal Entity
b) Perpetual Succession
c) Limited Liability
d) Project Cost and Risk Factors
e) Easy Transferability
Can a act as a Director in an Indian Company?
Yes, a NRI can act as a Director in an Indian Company
Can an Indian company be formed with all foreign nationals or NRIs as its members and directors?
Yes, an Indian company can be formed with all foreign nationals or NRIs as its members or directors.
What is an Annual General Meeting?
Every company is required to hold a general meeting of the shareholders of the company once in every year after finalization of Annual Accounts of the Company is called as Annual General Meeting.
What are the important features of MCA 21?
Following are important features introduced by MCA 21:
a) After introduction of MCA 21, all filing under the Act have been made online without any option of physical filing.
b) Format of all forms under the Act have been changed and new e forms are introduced.
c) Hereafter all communication with Ministry is only through site
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