DIR-3 KYC Complete Guide

DIR 3 KYC: A Director's KYC form Know your client (on the other hand, know your customer or 'KYC') is the procedure of a business distinguishing and confirming the personality of its customers. The term is also used to refer to the bank and anti-money laundering regulations which govern these activities. Now, Central Government has extended the DIR-3 KYC for Directors as well. Just like Bank KYC, where governments want [...]

Nidhi Company

Introduction Nidhi company is a kind of company recognised by the Companies Act, 2005. These companies can have all the transactions with their members only. They are allowed to borrow from or lend money to their members. The capital of a Nidhi company is only from its members Requirements of Nidhi Company  The most significant requirement to incorporate a Nidhi company is the availability of a minimum of 3 directors and [...]

Advantages of One Person Company (OPC)

Advantages of One Person Company Here are the 10 reasons why any entrepreneur or business entity should opt for One Person Company. The Advantages of One Person Company are as follows: A Separate legal entity OPC is a separate legal entity and capable of doing everything that an entrepreneur would do. Easy Funding It is a  company is a private company, OPC can raise funds through venture capital, financial institutions, angel [...]

Procedure of Company Registration in India

Introduction An Entrepreneur always wants to incorporate his own company. Even after coming up with his own idea, selecting the type of business he wants to form (Sole Proprietorship or LLP or Private Limited Company, etc.) and organizing the whole team including the drafting of business plan and raising funds for the company, his company is still not recognized as a company under the law. According to Companies Act 2013, a company [...]

Conversion of Private Limited to Public Limited Company

Introduction Private limited companies and Public limited companies are considered to be separate legal entities with limited liabilities given to their shareholders and members. Both forms of company are incorporated under The Companies Act. Though, both types of companies have a lot of differences. Be it in terms of requirement or legal registrations. To incorporate a public company you require a minimum of seven members and three directors. However, in the [...]

Appointment of Director as per Companies Act 2013

Introduction Appointment of Director proceeds under Companies Act. In accordance with the Companies Act of 2013, every company must have a certain number of directors. The minimum number of directors is fixed according to the different type of companies- a public company must have at least 3 directors, a private company should have 2 and a one person company should have 1 director. The upper limit is fixed at 15. [...]

Documents required for Public Limited Company

The documents required for the incorporation of a public limited company is of extreme importance as proper documentation needs to be done first to stay away from any encumbrances. The documents required for incorporating a Public limited company are discussed in this article. Public Limited Company is a form of company which offers its shares to the general public. It gives limited liability to its owners and shareholders. At least seven [...]

CARO’ 2015 Applicability

Introduction Implementing the Companies act, 2013, the central government made the auditor's report applicable from the financial year beginning on 1st April 2014. Section 227(4A) of the old companies act ceased to be operational from 2014, under the provisions of the Companies Act, 2013. Thus, MCA on 10th April 2015 issued CARO-2015. CARO is applicable only to a specific class of companies. Applicability of Order MCA in notification Published In official [...]

Public Company Registration Requirements

Introduction The pre-requisites for public company registration as follows: Shareholders (Members) There shall be at least 7 members/shareholders in the public company. There is no upper limit for the maximum no. of the shareholder. Any natural, artificial person, LLP, OPC or any other registered public company can become a member of the company. Directors There shall be at least 3 directors in the company. One of the directors must be [...]