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Company Registration FAQs 2021-22 India


Company Registration FAQs 2021 India

Here are some Frequently Asked Company Registration Related Questions With Answers for you, If you haven’t find what you are looking for, Then Please Write your query to support@kanakkupillai.com, We will reply to your question Shortly. Or you also can call us at +91 7305 345 345
Below you’ll find the list of how to apply for company registration and essential documents and other information

Pvt Ltd Company One Person Company Partnership Firm
LLP Company Public Limited Company Producer Company
Nidhi Company Section 8 Company Sole Proprietorship Company

Q) What is a company registration and write in brief?

An association or a formation of a firm with a group of people which might be registered under previous laws or present day act. They hold separate legal entity for shareholders. There differences noted between the controlling person and a owning person.

Q) What are the different types of company registration?

  • Private Limited Company
  • Public Limited Company
  • Limited Liability Company
  • Unlimited Liability Company
  • Non-Profit Organizations / Sec.25 companies

Q) What is MOA?

MOA is the short form of Memorandum of Association,  which reveals the company’s name, registered office address, aim, objective, limited liability related clause, limited paid capital, the share capital of the firm. It is the relationship of the company with the external universe.

Q) What is an AOA?

Incorporation with the company registrar through the submission of the necessary documentation. When AOA is in conjunction, it is called a constitution of the company.

Q) What is DSC?

The digital equivalence of physical papers or certificates is DSC, Digital Signature Certificate. The electronic sign from the concerned department is required to file the form. In major required for a private company.

Q) What are the different classes of DSC?

  • Class-1 DSC: This class of DSCs is issued to private subscribers and individuals to help them in securing their email communications, and authentication of their individual identity.
  • Class-2 DSC: These DSCs are issued to company directors and other signatory authorities of a company/firm/organization.
  • Class-3 DSC: This class of DSC is useful for participation in e-Tenders and e-Auctions, conducted anywhere in entire India.
These are the three different stages of DSC that is worth and beneficial on unavoidable circumstances.

Q) What is DIN?

Directors Identification Number called DIN is the identification number issued to a Director or a prospective Director of a firm through the Ministry of Corporate Affairs managed by the Government of India. This was first categorized under section 266A and 266G were included in the Companies Act.

Q) How to obtain DIN?

First step: Download application from Ministry of Corporate Affairs.
Second step: complete and submit the application with the required documents on address and identity proof.
Third step: verification by Ministry
Fourth step: get the DIN number alloted.

Q) What is OPC?

The concept of One Person Company is the new vehicle of doing business introduced by the Companies Act, 2013. The old Companies Act, 1956, required at least two directors and shareholders to form a private limited company. Only one person will be the Director and a shareholder as well. This can be converted to a Private Limited Company at any time.

Q) What is the minimum and maximum members allowed in a Private Limited Company?

Minimum – Two Directors and Two Members
Maximum- Fifty
Shares form the total company and every shareholder is a partner.

Q) What is the difference from other sectors compared to OPC?

  • Pre-Incorporation expenses
  • Liability
  • Taxation Aspects
  • Future Aspects
  • Flexibility
  • Need of Loan
  • Perpetuity
These are the positive features when compared to all other firms. But more than these Sole Proprietorship is better as it requires less investment and compliance in the start.

Q) What is a DPIN?

Designated Partner Identification Number, DPIN.  helps to find the designed partner in a limited liability Partnership. It equates the DIN of both private or public limited company directors. DPIN and DIN are issued by the Ministry of Corporate Affairs.

Q) What is meant by a Private Limited Company?

It is the type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. When it incorporates legal structure the company becomes independent.

Q) What are the characteristics of a private limited company?

Member: There can be or must be two (2) initially and can be extended to two hundred (200) as it grows.
Limited liability: Each director and shareholder will have to bare the loss when the company faces it. This means that when the loss is minimal or maximum the shareholders are also supposed to pay for the loss by selling or pledging their own belongings.
Perpetual Succession: the company exists at any point in the eyes of the law like it can be any death, insolvency, bankruptcy or anything.
Index of member: no requirement to main index of the company in the private sector while in the public sector it has to maintain.
Number of directors: it can start two
Paid initial capital: a minimum of 1 lakh rupees or more is very essential and can be increased from time to time
Prospectus: Detailed prospectus is essential to start a company
Subscription: no subscription is required to receive share in private limited firms.
Name: unique, mandatory to use following naming, must abide to terms and conditions

Q) What are the requirements of a private limited company?

Members: it can be two to two hundred
Director: two initially and must posses a DIN number and one among the two must be a resident of India and should have stayed in India for a minimum of 182 days in the previous calendar year.
Name: name is segmented into three parts that is, a name, the function, and private limited company. The company must suggest 4 to 5 names to the registrar of the company and it will choose one among those as it is unique and attractive. As it will stay with the company till the end.
Registered company address: this needs to be registered for the company to run successfully. Before company registration it is a mandatory procedure that needs to be followed.
Digital Signature acquiring:
It is mandatory that the directors digital signature is to be obtained rather than regular visits to sign every paper. Rather it is a rule to attach digital sign on every page of the online documentation to confirm the verification process.
Professional Certificate: it is necessary as incorporating it is very important.

Q) What is a public limited company?

Works by sharing without limitation or restriction on shareholders. The minimum limit is seven members and three directors. The share capital basically requires Rs. 50,000 and this works under the law the Companies Act, 1956.

Q) What is a limited liability company?

A combination of a Company and Partnership where one partner is not liable for misconduct or negligence of another partner and governed as per the Limited Liability Partnership Act, 2008.

Q) What is Section 8 company?

Section 8 company is also known as section 25 company and are incorporated to promote commerce, art, science, research, sports, social welfare, education, charity, religion, protection of the environment or any such object. The condition is that such a Company should use its profits (if any) for promoting its objects and should not pay any dividends to its members. This is based on New Company Act,2013.

Q) What does it mean by Micro Finance Company and register it in India?

Micro Finance Institution (MFI), is a non-deposit taking and non-banking company which provides loans up to Rs. 50,000 to people with low incomes, and residing particularly in rural and semi-urban areas, where the regular banking facilities are not easily available. Farmers, agriculturists, horticulturists, small businesspersons etc. This works under RBI Act of 1934.

Q) Merger and Acquisition is possible only for.

This is the way for strategic management, combination of two firms or individual company. The desired synergy achievement or failure is the destination of merger and acquisition. The major goal of merger and acquisition is generating synergy.

Q) What is company Law Act, 2013?

Indian Parliament consolidates and amends the following through Company Law Act,2013

  • A minimal paid capital is required to start a Private Limited Company in India.
  • The need for the Commencement of Business Certificate post registration is cancelled in the new Act.
  • Common stamp is optional at present and acceptance to the signatures of the Directors is very important.
  • At present, there are strict punishments given for Companies which welcomes or accept stores beginning from the Public with any approval from the Regulatory Authorities.
  • The holding Company can provide loans or guarantees to the subsidiary Company.
  • Company having losses or negative reserves cannot declare dividends.
  • Board Resolutions will be confidential starting from now.

Q) What is an Authorized Capital? What is the minimum authorized capital for registering my company?

While registering a Private Limited Company, your firm promoters are to decide the amount of authorised capital and the share value they get in return as they invest in your Company.
The highest end limit of the capital given to a Company that can issue shares and collect money from its shareholders is said as an Authorised Capital or Registered Capital. The authorised capital are approved through the resolution given in a meeting of the shareholders.
The least Authorised Capital of a Private Limited Company required is Rs. 1 lakh for which the Ministry of Corporate Affairs charges Rs 5,000/- as fee for allotting this minimum authorised capital.

Q) Can foreigners register and become the owners of the Indian registered company?

Yes, foreigners can register as owners of Indian Company. But there must at least be an additional Indian to launch a company.

Q) What do you mean by Start-Up India initiative?

Prime Minister Dr. Narendra Modi proposed a programme known as Start-Up India on 69th Independence Day of India. This program is to encourage entrepreneurship in the nation. On January 16, 2016, the Government of India launched this Start-Up India program to motivate the young spirit’s in the Country. This plan reveals the Start-Up Action Plan which revolutionize the consumer industry through their excelling and innovative ideas promoting Make in India policy of the government.

Q) Is there a need for the physical presence needed for Private Limited Company incorporation?

No , as the process is entirely done online the candidate is not required to be present physically.

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