June 2nd, 2010 — Company Law
The Ministry of Corporate Affairs has come out again with the much awaited Company Law Settlement Scheme in exercise of its powers under Section 611(2) and 637B (b) of the Companies Act, 1956 “Company Law Settlement Scheme, 2010.
Under the scheme an opportunity is given to the defaulting companies to make their default good by filing belated documents and to become regular compliant in future.
Reliefs provided in scheme are:
- Condoning the delay in filing documents with the Registrar.
- Granting immunity from prosecution and
- Charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act,1956 and the rules made there under.
Defaulting company shall mean a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act, which has made a default in filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under;
The scheme is valid from 30th May, 2010 to 31st August, 2010.
The Scheme shall not apply to following:
- Filing of documents for incorporation or establishment of place of business in India
- Where specific order for condonation of delay or prior approval under the provisions of the Companies Act, 1956 is to be obtained from the Company Law Board or the Central Government or Court or any other Competent Authority is required.
- Companies against which action under sub-section (5) of section 560 of the Act has been initiated by the Registrar of Companies
- Any defaulting private company or public company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as provided in sub section (3) and (4) of section 3 of the Companies Act, 1956.
How the Scheme will function
- The defaulting company shall pay statutory filing fees as prescribed under the Companies Act and rules made there under along with an additional fee of 25 percent of the actual additional fee standardized under sub-section (2) of Section 611 of the companies Act, 1956,payable on the date of filing of each belated document;
- The application for seeking immunity in respect of belated documents shall be made electronically in the Prescribed Form.
October 16th, 2008 — Uncategorized
The Ministry of Corporate Affairs (Ministry) has revised e-form 23AC effective from 28th September 2008 wherein filling in SRN of 23B was made compulsory. In many a cases, it was reported by our members that SRN of form 23B was not available which ultimately resisted to file e-form 23AC required to be filed pursuant to section 220 of the Companies Act, 1956 by the Companies.
The matter was represented by the Institute of Company Secretaries of India before the Ministry. We are pleased to inform you that the Ministry has revised the Instruction Kit in respect of Point No. 10(e) of e-form 23AC which states that:
“Enter the SRN of Form 23B filed in relation to the appointment of the auditor who has audited the attached balance sheet, if available. If the SRN of Form 23B is not available or in case information by auditor to ROC in Form 23B is not required to be filed, you may enter Z99999999”
Accordingly, in case you don’t get SRN of Form 23B, please enter Z99999999 and proceed filing of e-form 23AC.
September 23rd, 2008 — Investment in India
Foreign companies who are engaged in manufacturing and trading activities outside India are allowed, by Indian law, to set up branch offices in India for the following purposes:
- Export/Import of goods
- Rendering professional or consultancy services
- Carrying out research work, in which the parent company is engaged.
- Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
- Representing the parent company in India and acting as buying/selling agents in India.
- Rendering services in Information Technology and development of software in India.
- Rendering technical support to the products supplied by the parent/ group companies.
- Foreign airline/shipping Company.
The branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer.
Branch offices, which are established with the approval of RBI, may remit part of the profit of the branch outside India, after deducting applicable Indian taxes and subject to RBI guidelines. Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
For obtaining approval from RBI and to register with the Registrar of Companies, the following documents are required for opening a branch in India:
- A copy of Board Resolution for opening Branches in India. (Notary and consulate by Indian embassy)
- A copy of Certificate of incorporation of your company abroad
- A copy of Memorandum of the company.
- List of Directors/Key Persons of the company
- List of Branches in other countries if any
- Brief profile of the business activity
- Proposed address of the branch in India.
All the documents are required in duplicate.
New guideline issued by the RBI
September 10th, 2008 — Income Tax, Investment in India, Service Tax, Uncategorized, VAT
There is no formal registration is required for a sole proprietorship. You simply have to open a bank account with the name & style you want to work. But if you are liable for state VAT or service tax registration, then you have to obtain VAT and/or service tax registration. Further, for sole proprietorship, no separate income tax PAN is required. The PAN of the proprietor will be the PAN of the firm and proprietor will have to file income tax return in his personal name.
Now after announcement of KYC norms by RBI, it is mandatory to have at least two registration in the name of sole proprietorship firm. So now you have to submit two documentary proof for the name of sole proprietorship firm. Normally owner can get registration under shop & establishment act and under service tax or VAT.
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August 26th, 2008 — Company Law
Apply for DIN (Director Identification Number) if the directors of
the proposed company do not have this number earlier. Every director has
one unique DIN for all companies.
Documents Required for approval of DIN:
- Identity proof
- Address proof
- One passport size photo of each of the proposed
Apply for the DIN here
Apply for Digital Signature (Class 2), if none of the proposed director
already have it.
Documents Required: Identity and address proof of the proposed
Apply for the availability of the name in Form 1A (Suggest 3-4 names for the new company)
Draft a memorandum and article of association for the new company
Get stamping for State Duty
File the documents for Company Registration (Form 1, Form 18, Form 32, Power of attorney)
Get the Registration Certificate
We can help you in all these steps. For more details visit here – http://www.mukeshraj.com/how-to-open-company-in-india.html