Removal of Director2021-11-10T13:33:01+05:30

Removal of Director

A Director may voluntarily resign from the Board of Company or be removed from the Board of Directors for different reasons, the company or director can do so by following the provision of Companies Act 2013.

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    Online Company Registration

    A private limited company, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when Online Company Registration happens. Private limited online company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014

    Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. It is one of the most popular legal structure option for businesses in India. A Private limited company registration requires a minimum of two members and a maximum of two hundred members. A director of a private limited company has limited liability to creditors. In case of a default, banks / creditors can sell only company’s assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst the small, medium and the large businesses in India due to its various advantages. Start-ups and growing businesses choose for online company registration in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.

    About Service

    The process for Online Company Registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

    Advantages Of Online Company Registration

    • Limited Liability

      Businesses often need to borrow money. In a General Partnership, partners are personally liable for all this debt. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In an LLP, only the amount invested in starting the business would be lost; all personal property would be safe.

    • No limit on owners of business

      An LLP requires a minimum 2 partners while there is no limit on the maximum number of partners ; this is in contrast to a private limited company wherein there is a restriction of not having more than 200 members.

    • Dividend Distribution Tax (DDT) not applicable

      In the case of a company, if the owners to withdraw profits from company, an additional tax liability in the form of DDT @ 15% (plus surcharge & education cess) is payable by company. However, no such tax is payable in the case of LLP and profits of a LLP can be easily withdrawn by the partners.

    • Reduced Compliance

      An LLP only requires audited annual returns to be filed if it has a turnover of greater than Rs. 40 lakh or capital contribution of over Rs. 25 lakh. It also needs to communicate fewer business transactions and structural changes than a private limited company.

    • Owning Property

      A LLP being an artificial judicial person, can acquire, own, enjoy and sell, property in its name. No Partner can make any claim upon the property of the LLP – so long as the LLP is a going concern.

    Minimum Requirements For Online Company Registration

    • Minimum 2 Shareholders

    • Atleast 1 of the designated partners shall be an Indian Resident

    • Minimum 2 Partners

    • DPIN & DSC’s for all the Designated Partners

    • Minimum Contribution of 2 Rupees

    What Is Included In Our Online Company Registration Package?

    • DIN for 2 Directors

    • Name search & approval

    • Company PAN /TAN Card

    • Company Master File Kit

    • DSC for 2 Directors

    • MOA and AOA

    • Company Registration Certificate

    • Supporting Document for opening Bank Account

    Procedure For Online Company Registration

    • Application of DSC DIN

      First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.

    • Name approval

      You need to provide 2 different options for your company name to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business

    • MOA & AOA drafting & submission of forms

      Once name is approved, one needs to draft Memorandum of association and Articles of Association. All required details are filed to MCA in Spice forms once the drafting is completed.

    • Get incorporation certificate, PAN and TAN

      It typically takes 7-12 days for company registration and get the incorporation certificate. Incorporation certification is a proof that company has been created. PAN and TAN will be received from Income Tax department physically in 15-20 days approximately.

    • Bank Account

      You can submit the Incorporation certificate, MOA, AOA with a bank to open your bank account.

    Documents Required For Online Company Registration

    • Identity and Address Proof

      Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

    • Registered Office Proof

      All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or gas bill or water bill or telephone bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.

    • List of documents to be submitted by the Director and the Shareholders

      Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
      Scanned copy of Voter’s ID/Passport/Driver’s License
      Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
      Scanned passport-sized photograph

    • For the Registered Office

      Scanned copy of Latest Telephone or Electricity or Gas Bill or Water bill
      Scanned copy of Notarized Rental Agreement in English
      Scanned copy of No-objection Certificate from property owner
      Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

      Note: Your registered office need not be a commercial space; it can be your residence, too.

    FAQ

    How much time is needed for setting up a Section 8 company in India?2021-12-07T23:26:09+05:30

    On average it takes 15-20 days for completion of registration, 2 approvals are required from governmental bodies. However, this is dependent on the workload of the Central Registration Centre (CRC), MCA.

    Do I need to be physically present during this process?2021-12-07T23:25:06+05:30

    No, company registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who can be a member of a Section 8 Company?2021-12-07T23:24:30+05:30

    Any individual, organization, company, LLP, corporates, HUF, association of person, partnership firm, etc. can become the member/shareholder of the Section 8 Company. An individual person can also be a foreigner/NRI, but such person must be 18+ above in terms of age and should have a valid PAN card.

    How many directors are required for the formation of a Section 8 Company?2021-12-07T23:23:54+05:30

    There should be a minimum of 2 directors in Section 8 Company, out of which at least 1 director should be a permanent resident of India.

    How should I choose a name for a Section 8 Company?2021-12-07T23:23:11+05:30

    For incorporation of a Section 8 Company, a unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). Such name shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral trust, and the like, etc. The name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article – https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/

    How many names can I submit for approval?2021-12-07T23:22:27+05:30

    Initially, you can submit 2 names for approval out of which one name will be approved based on priority. If the initial 2 names are rejected then again fresh 2 names can be applied. So, in total 4 names can be applied in a single application

    What is the minimum capital needed to form a Section 8 Company?2021-12-07T23:21:46+05:30

    There is no minimum capital required. However, one needs to start a company with a minimum capital of Rs. 02.00 (In case of Private Limited Company) and Rs. 07.00 (In case of Public Limited Company)

    I am the only director and shareholder; can I form a Section 8 Company alone?2021-12-07T23:21:00+05:30

    No, there should be at least 2 directors/shareholders for incorporation of Section 8 Company.

    Can a person already a director in a private limited company or public limited company become a director of a Section 8 Company?2021-12-07T23:20:16+05:30

    Yes, a person already a director in a private limited company or public limited company can become a director or shareholder in Section 8 Company. Directorship in Section 8 Companies will not be counted for calculating the ceiling with respect to the maximum number of directorships i.e., twenty (20).

    Can a salaried person or a person in employment become director of a Section 8 Company?2021-12-07T23:19:29+05:30

    Yes, a salaried person or person in employment can become director of a Section 8 Company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company. However, if there’s a restriction in becoming a director of a company, one can hold shares in a company and become a shareholder alternatively.

    What is the difference between a director and a shareholder?2021-12-07T23:18:55+05:30

    A shareholder or member is an owner of a company who holds certain shares in the company and his name is entered in the register of members of the company. Whereas Director is a person who manages the day-to-day function of a business. Director and shareholder may or may not be the same person in a company. The appointment of the Director is in hands of the shareholder of the company.

     

    Can a minor person become a director or shareholder of a Section 8 Company?2021-12-07T23:18:15+05:30

    No, a minor cannot become a director or shareholder in a section 8 company. However, a minor can become a member/shareholder of a company through gift and/or inheritance but he cannot buy shares.

    What are the Memorandum of Association (MoA) and Articles of Association (AoA)?2021-12-07T23:17:29+05:30

    The Memorandum of Association is a document that sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world.

    The articles are its bye-laws or rules and regulations that govern the management and internal affairs and the conduct of its business. Both the documents are required to be registered with the Registrar of Companies at the stage of incorporation of the company.

    While incorporating a Section 8 Company, what is the maximum number of shareholders and directors that I can keep?2021-12-07T23:16:42+05:30

    You can incorporate a Section 8 Company with a maximum of 200 shareholders and 20 directors (In the case of Private Limited Section 8). In the case of Public Limited Section 8 Company, there can be upto 20 directors and there is no upper limit on the number of members.

     

    Is Section 8 Company required to have its books audited?2021-12-07T23:16:09+05:30

    Yes, just like any other company, Section 8 Company should also get its books audited and file the same with the Registrar of Companies (ROC) every year.

    Can Section 8 Companies receive contributions from overseas citizens or non-residents?2021-12-07T23:15:37+05:30

    Yes, Section 8 Companies can receive contributions or donations from non-residents, foreigners, overseas citizens. However, there are certain requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 (FCRA) before receiving any such contributions or donations.

     

    Can I register Section 8 Company on my home or residential address?2021-12-07T23:15:03+05:30

    Yes, you can register Section 8 Company at their residential address. You need to submit the utility bill copy of your home address along with the No Objection Certificate from the owner of the premises.

    Can NRIs/Foreign Nationals become Director and Shareholder in a Section 8 Company in India?2021-12-07T22:51:22+05:30

    Yes, NRIs and Foreign National can become directors and shareholders in a Section 8 Company along with the required documents, also they can hold majority shares in the company. However, at least one Director on the Board of Directors should be a permanent resident of India.

    Can a Section 8 Company raise capital through foreign direct investment?2021-12-07T22:50:40+05:30

    Yes, a Section 8 Company can raise capital through FDI, subject to compliance with FEMA Regulations.

    Is Section 8 Company considered as small company?2021-12-07T22:49:58+05:30

    No, a section 8 company cannot be considered as a small company.

    How will I get my Incorporation documents like Certificate of Incorporation, MoA, AoA, License Copy, PAN, TAN, etc.?2021-12-07T22:49:17+05:30

    You will receive these documents in soft copy via email as well as we shall send you a printout of these documents at your address.

    Can I do Section 8 Company registration myself?2021-12-07T22:48:25+05:30

    No, you have to take help from a Professional CS/CA/CMA/Advocate/Consulting Firm for registration of the company as it will require certification from these professionals.

     

    What are the exemptions given for Section 8 Company by MCA?2021-12-07T22:47:15+05:30
    • Section 8 Company is not required to appoint a qualified CS professional as its company secretary.
    • It is not required to appoint an Independent Director
    • Directorship in Section 8 Companies will not be counted for calculating the ceiling with respect to maximum number of directorships.
    • Section 8 Companies are not required to have a Nomination and Remuneration Committee nor a Stakeholders Relationship Committee.
    • Secretarial Standards are not applicable on a Section 8 Company
    • Section 8 company can call a General Meeting by giving at least 14 days’ notice as against 21 days’ notice.
    • Section 8 Company can appoint more than 15 Directors without passing a special resolution.
    • Quorum for Board meeting of a Section 8 Company shall be either 8 members or 25% of total strength of the Board, whichever is less.
    Is GST mandatory for a Section 8 Company?2021-12-07T22:46:15+05:30

    GST registration is required for those businesses whose aggregate turnover crosses the prescribed limit or such business that does the inter-state supply of goods/services. So every company has to check whether it supplies goods to different states or qualifies for the prescribed turnover limit or any other conditions as specified under GST laws.

    Is there any renewal process or charge for a Section 8 company?2021-12-07T22:45:19+05:30

    No, there is no renewal of a private limited company, once it’s registered it will be valid for a lifetime. However, you have to do mandatory compliance every year.

    Will there be any physical verification of the registered office address by the Registrar of Companies (ROC)?2021-12-07T22:44:27+05:30

    There is no physical verification of the registered office but if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company.

    Is there any relaxation in the payment of stamp duty during incorporation of a Section 8 Company?2021-12-07T22:39:57+05:30

    Stamp duty is a subject matter of an individual state. Some of the states have provided privileged rates for stamp duty on registration of MOA and AOA and incorporation of Section 8 Company.

    Can a One Person Company (OPC) convert into a Section 8 Company or vice versa ?2021-12-07T22:39:09+05:30

    No, a one person company cannot be converted into Section 8 company and also a Section 8 company cannot be converted into One Person Company (OPC).

    Can a company registered under Section 8 be converted into any other company?2021-12-07T22:38:29+05:30

    Yes, a Section 8 Company can be converted into any other company by following due procedure as per law.

    Whether Section 8 Company can carry out microfinance activities?2021-12-07T22:37:30+05:30

    Yes, Section 8 Companies can carry out microfinance activities. The microfinance activities should be for the promotion of activities as stated in section 8(1)(a) of the Companies Act, 2013.

    How much time is needed for removal of director in a company?2021-11-10T13:30:02+05:30

    On average, it takes 4-5 working days for removal of director by filling Form DIR-12. However, this is also dependent on the approval by government authority.

    Is physical presence of director required during the filing of forms for removal of director?2021-11-10T13:29:39+05:30

    No, the process is a completely online. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who has the authority to accept the resignation of an outgoing director in the company?2021-11-10T13:29:16+05:30

    The Board of Directors shall acknowledge the receipt of resignation of outgoing director and intimate the Registrar of Companies (ROC) in Form DIR-12.

    What shall be the effective date of resignation by the director?2021-11-10T13:28:51+05:30

    The resignation of a director shall take effect from the date on which the notice is received by the company or the date (if any) specified by the director in the resignation notice (whichever is later).

    What is the time limit for filing Form DIR-12?2021-11-10T13:28:30+05:30

    The time limit for filing Form DIR-12 is 30 days from the date of passing resolution in general meeting/board meeting.

    Can a director be liable even after he resigns from the Board of Directors?2021-11-10T13:28:07+05:30

    The director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.

    Is filing of Form DIR-12 mandatory after resignation or removal of director by the company?2021-11-10T13:27:41+05:30

    Yes, filing of form DIR-12 by the company to Registrar of Companies (ROC) is mandatory for resignation or removal of director.

    Is filing of Form DIR-11 mandatory for resignation of director?2021-11-10T13:27:16+05:30

    No, filing of form DIR-11 is voluntary for resignation of director.

    Is Digital Signature Certificate (DSC) mandatory for an outgoing director during the removal?2021-11-10T13:26:49+05:30

    No, Digital Signature Certificate (DSC) of an outgoing director is not required during the removal process.

    Can a Director with Deactivated DIN resign from the company?2021-11-10T13:26:22+05:30

    Yes, a Director with Deactivated DIN can also resign or be removed from the company.

    Who can remove the director of a company?2021-11-10T13:23:44+05:30

    The shareholder of the company can remove the director of a company as per the requirement under the meeting duly held.

    Can a director be removed from the company without his consent?2021-11-10T13:22:30+05:30

    Yes, a director can be removed from the company without his consent, after giving him a reasonable opportunity of being heard.

    Whether shareholders’ approval is required for the removal of a director from the company?2021-11-10T13:21:11+05:30

    Yes, shareholders’ approval under the general meeting is required for the removal of the director from the company.

    What are the grounds for Disqualifications for Appointment of Director under Section 164?2021-11-10T13:18:53+05:30

    A person shall not be eligible for appointment as a director of a company, if –

    1. He is of unsound mind
    2. He is an undischarged insolvent
    3. He is adjudged insolvent/applied to be an insolvent
    4. He is convicted by court for an offence and imprisoned for at least 6 months and post imprisonment 5 years has not been elapsed.
    5. He/she has been convicted of any offence and sentenced in for a period of seven years or more, he shall not be eligible to be appointed as a director in any company.
    6. Court and tribunal has declared him disqualified for appointment of director.
    7. He has not paid any calls on shares of company held by him.
    8. He is convicted of any offence dealing with related party transaction and 5 years has not elapsed
    9. He does not have Director Identification Number (DIN) or holds a Deactivated DIN
    What are the grounds for Vacation of Office of Director under Section 167?2021-11-10T13:18:11+05:30

    A director shall vacate his office as a director of a company in following cases :

    1. He incurs any of the disqualifications specified in section 164
    2. He absents himself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board.
    3. He acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested.
    4. He fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184;
    5. He becomes disqualified by an order of a court or the Tribunal
    6. He is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than six months.
    7. He is removed in pursuance of the provisions of Companies Act 2013
    8. He having been appointed a director by virtue of his holding any office or other employment in the holding, subsidiary or associate company, ceases to hold such office or other employment in that company.
    What is Authorised capital?2021-11-03T13:22:19+05:30

    Authorised share capital is the maximum amount of share capital that a company can issue to its shareholders. The authorised share capital amount is mentioned in the Memorandum of Association (MOA) of the company.

    How much time is required for increasing the authorised capital?2021-11-03T13:21:54+05:30

    The increase of authorised capital transfer process takes approximately 7-10 days based on the availability of the required documents and information, subject to government approval.

    Do I need to be physically present during the filing process?2021-11-03T13:21:08+05:30

    No, all the required forms and returns are filed electronically, so you would not need to be physically present at all for filing purposes.

    Is there any stamp duty to be paid on the increase of authorised capital?2021-11-03T13:20:27+05:30

    Yes, stamp duty at the applicable rate (vary from state to state) has to be paid on the component of increase of authorised capital.

    Is shareholder’s consent required for the increase of authorised capital?2021-11-03T13:19:26+05:30

    Yes, the shareholder’s consent by way of ordinary resolution (if authorised by AOA) is required for the increase of authorised capital.

    What is the due date for filing Form SH-7?2021-11-03T13:18:20+05:30

    The Company must file Form SH-7 within 30 days from the date of passing resolution.

    What is the paid-up capital of the company?2021-11-03T13:17:50+05:30

    Paid-up capital is the actual amount of money that has been received from shareholders of the company.

    Do I need to change the MOA at the time of increase of Authorised Capital?2021-11-03T13:15:54+05:30

    Yes, altered MOA has to be submitted at the time of increase of Authorised Capital while filing Form SH 7.

    What if my company’s Articles of Association (AOA) does not have the necessary powers to increase the authorised share capital?2021-11-03T13:15:13+05:30

    If your Company’s Articles of Association (AOA) does not have the necessary powers to increase the authorised share capital, then the AOA has to be amended to provide for provision relating to the increase of its share capital by passing a special resolution.

    Is it required to file Form MGT-14 for an increase of authorised capital?2021-11-03T13:14:48+05:30

    In case, authorised capital is increased by way of alteration in Articles of Association (AOA), then a special resolution passed shall be filed in Form MGT-14.

    Can Registration Arena help me in increasing authorised capital?2021-11-03T13:14:19+05:30

    Yes, we can provide you with a complete package for increasing the authorised capital of the company as well as other Compliance services

    How much time is needed for sole proprietorship registration in India?2021-11-02T18:02:03+05:30

    On average it takes 7-10 days for completion of sole proprietorship registration. However, this is also dependent on the type of registration sought and processing time by Government Authorities.

    Do I need to be physically present during this process?2021-11-02T18:01:28+05:30

    No, sole proprietorship registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who can be a proprietor of a sole proprietorship firm?2021-11-02T18:00:04+05:30

    Any individual person who is a citizen of India and has the required documents can become a proprietor of a sole proprietorship firm.

    Is it mandatory to register a sole proprietorship firm in India?2021-11-02T17:59:30+05:30

    No, registration of sole proprietorship firm is not mandatory in India. However, in order to open a Bank Account or to obtain any kind of finance or to deal with business supplier a sole proprietorship firm should obtain some kind of registration.

    Does a sole proprietorship firm have perpetual succession or continuous existence?2021-11-02T17:58:53+05:30

    No, a sole proprietorship firm shall not have perpetual succession or continuous existence. A sole proprietorship firm shall be dissolved after death of sole proprietor.

    Is sole proprietorship firm a separate legal entity?2021-11-02T17:58:12+05:30

    No, a sole proprietorship firm is not a separate legal entity from its owner. The PAN card of the proprietor and sole proprietorship firm are same and all the Income and losses of the firm are taxed on the individual’s income tax return.

    What is the minimum capital needed to form a sole proprietorship firm?2021-11-02T17:57:07+05:30

    There is no prescribed minimum capital for starting a sole proprietorship firm.

    Can a salaried person or a person in employment form a sole proprietorship firm?2021-11-02T17:55:43+05:30

    Yes, a salaried person or person in employment can form a sole proprietorship firm. However, one needs to check the employment agreement or terms of employment if it has certain restrictions.

    Can a person under employment in PSU or a government servant or a professional carrying on his practice form a sole proprietorship firm?2021-11-02T17:54:56+05:30

    Yes, a person under employment or a government servant or a professional carrying on his practice can form a sole proprietorship firm. However, one needs to check if there’s any restriction from governing body, authority or ministry.

    Can a minor person start a Sole Proprietorship Firm?2021-11-02T17:53:30+05:30

    No, a minor whose age is below 18 cannot start a Sole Proprietorship Firm on his own because the liability of a Sole Proprietor is unlimited.

    Is it required to have a Sole Proprietorship Firm’s book audited?2021-11-02T17:53:03+05:30

    It is not mandatory for a Sole Proprietorship Firm to get its book audited. However, it shall get its book audited as per Income Tax Law / GST Law if its turnover crosses specified threshold.

    Can I register my Sole Proprietorship Firm on my home or residential address?2021-11-02T17:52:33+05:30

    Yes, you can register the company at your residential address.

    Can NRIs start Sole Proprietorship Firm in India?2021-11-02T17:51:41+05:30

    Yes, NRI’s are allowed to start Sole Proprietorship Firm. However, such sole proprietor has to follow the FDI Guidelines and restrictions for same.

    How should I name the Sole Proprietorship Firm?2021-11-02T17:50:53+05:30

    The name of Sole Proprietorship Firm can be any name but shall be unique and should not resemble any established or well-known trademark.

    How can I protect the name of my Sole Proprietorship Firm in India?2021-11-02T17:49:50+05:30

    You can protect the name of your Sole Proprietorship Firm or Brand name by applying for Trademark registration. For more details you can visit – https://registrationarena.com/trademark-registration/

    How will I get my registration documents like Shops and Establishment Act Registration, MSME Registration, GST Registration?2021-11-02T17:44:35+05:30

    You will receive these documents in soft copy via email.

    Can I do multiple businesses in one Sole Proprietorship Firm?2021-11-02T17:44:03+05:30

    Yes, you can do multiple businesses in one Sole Proprietorship Firm

    What documents are required to open bank current account of Sole Proprietorship Firm?2021-11-02T17:43:20+05:30

    The documents required for opening bank current account shall vary from bank to bank. Basically, documents like PAN Card, Aadhaar Card, Shops and Establishment Act Registration, MSME Registration, GST Registration etc. shall be sufficient for the same purpose.

    Do Sole Proprietorship Firm require TAN registration?2021-11-02T17:42:29+05:30

    TAN is Tax Deduction and Collection number which is required by a proprietor for deducting tax at source (TDS) as per Income Tax laws.

    Can I start Food related business / Cafe / Restaurant as a Sole Proprietorship Firm?2021-11-02T17:42:02+05:30

    Yes, you can form a Sole Proprietorship Firm and obtain FSSAI registration/license to start a Food related business / Cafe / Restaurant.

    Can I start Import Export Business as a Sole Proprietorship Firm?2021-11-02T17:17:53+05:30

    Yes, you can form a Sole Proprietorship Firm and obtain Import Export Code to start Import Export Business in India

    Can I get Startup Registration for my Sole Proprietorship Firm?2021-11-02T17:16:52+05:30

    No, you cannot get Startup Registration for a Sole Proprietorship Firm. Only a Private Limited Company, LLP and a Partnership Firm are eligible for it. You can visit https://registrationarena.com/startup-india-scheme/ for more details

    What are the disadvantages of a sole proprietorship firm?2021-11-02T17:16:22+05:30

    There are few disadvantages sole proprietorship firm such as:

    • Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business.
    • Owners cannot raise capital by selling any share/interest in the business.
    • It is not much preferred by Banks and Financers
    • Sole proprietorships doesn’t survive after the death or incapacity of their owners
    Can I convert my sole proprietorship firm into Private Limited Company?2021-11-02T17:14:48+05:30

    Yes, you can convert my sole proprietorship firm into Private Limited Company

    How much time is required for changing the name of a company?2021-10-31T13:52:33+05:30

    The change of name shall take approximately 15-20 days, subject to ROC approval.

    How many times can I change the name of Company?2021-10-31T13:52:07+05:30

    You can change the name of company multiple times, there is no such restrictions provided in the Companies Act 2013.

    Is shareholder’s consent required for changing the name of company?2021-10-31T13:51:45+05:30

    Yes, the shareholder’s consent by way of special resolution is required for changing the name of company.

    Will I get a new Certificate of Incorporation after the change of name?2021-10-31T13:51:24+05:30

    Yes, the ROC shall issue a fresh certificate of incorporation with the new name and such change in the name shall be complete and effective only on the date of issue of a certificate.

    My company has not filed annual returns and financial statements, will I be able to change the name of the company?2021-10-31T13:51:02+05:30

    No, the company is not eligible to change the name of the company if it has defaulted in filing of annual returns or financial statements or payment or repayment of matured deposits or debentures or interest. However, the change of name shall be allowed upon filing necessary documents or payment or repayment of matured deposits or debentures or interest thereon.

    Do I need to need to write old name of the company on the name board, letterheads, invoices, etc. after changing the name of my company?2021-10-31T13:45:42+05:30

    Yes, you need to mention the old name of company (Ex. Formerly known as …… ) on the name board of the company, letterheads, business letters, invoices, bills of exchange, and other documents wherever the name of the company is mentioned for a period of 2 years of such change.

    Do I need to update the name of my company on various registrations after name change?2021-10-31T13:44:46+05:30

    Yes, you need to update the name of company on various places such as the name board of the company, letterheads, business letters, invoices, bills of exchange and other documents. The name also needs to be updated on PAN, TAN, GST Certificate, MSME certificate, Bank Account etc.

    How should I choose a name for my Company?2021-10-31T13:44:14+05:30

    A unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). The name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article – https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/

    How many names can I submit for name reservation to MCA?2021-10-31T13:43:42+05:30

    Initially, you can submit 2 names for name reservation to MCA out of which 1 name will be approved based on availability. If the initial 2 names are rejected then one more chance of re-submission for applying fresh 2 names is provided. So, in total 4 names can be applied in a single application.

    Can Registration Arena help in changing the name of my company on MCA Portal as well as PAN, TAN, GST, MSME registrations?2021-10-31T13:43:13+05:30

    Yes, we can provide you a complete package for changing the name of your company on MCA Portal, GST Records, PAN, TAN, MSME etc.

    What is a registered office address?2021-10-29T17:48:53+05:30

    The registered office address is a place or official address of a company which is used for receiving the official correspondence, notices, and documents from the government, investors, banks, shareholders, and the public.

    Can I register or shift my company to my home or residential address?2021-10-29T17:48:35+05:30

    Yes, you can register or shift the company to your residential address. You need to submit the utility bill of your home address along with the No Objection Certificate from the owner of the premises.

    Can I keep the virtual office or Co-working space as the registered office address of my company?2021-10-29T17:48:16+05:30

    Yes, you can keep virtual office or co-working space as registered office address of the company by providing utility bill of such office premises along with No Objection Certificate (NOC) from the owner. However, you have to make sure that you have the facility to receive and acknowledge letters, notices, and documents from various authorities at that address. Also, you have to paint or affix the company’s name and address outside the office.

    How many times can I shift the address of my Company?2021-10-29T17:47:58+05:30

    You can shift the office address multiple times, there are no such prescribed limit for shifting the office address.

    I have opened a new branch in a different city or state, do I need to update my registered office address ?2021-10-29T17:47:32+05:30

    No, the branch address is not required to be updated on the MCA portal, however, if you have shifted the registered office address of the company then you have to update the same.

    Is shareholder’s consent required for shifting the office address of the company?2021-10-29T17:47:13+05:30

    The shareholder’s consent is required for shifting the office address of the company where the change is outside the local limits of city, village, town, state, or change of ROC.

    When do I have to give a newspaper advertisement for shifting the office address?2021-10-29T17:46:55+05:30

    The Company has to issue an advertisement in a vernacular newspaper and an English newspaper, if it shifts the office address from one state to another.

    Will there be any physical verification of the registered office address by the Registrar of Companies (ROC)?2021-10-29T17:46:34+05:30

    There is no physical verification of the registered office, but if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company.

    Do I need to update the office address on my various registrations and name board after shifting the office?2021-10-29T17:46:14+05:30

    Yes, you need to update the office address on various places such as name board of the company, letterheads, business letters, invoices, bills of exchange and other documents wherever the registered office address is mentioned. The address also needs to be updated on PAN, TAN, GST Certificate, MSME certificate, Bank Account etc.

    Can Registration Arena help in updating the registered office on MCA Portal as well as PAN, TAN, GST, MSME registrations?2021-10-29T17:45:40+05:30

    Yes, we can provide you a complete package for updating the registered office address from one place to another including MCA Portal, GST Records, PAN, TAN, MSME etc.

    Whether annual compliance is mandatory for all OPC’s?2021-10-28T10:05:55+05:30

    Yes, the annual compliance requirement is mandatory for all the One Person Company (OPC) registered. The annual compliance requirement does not depend upon the total turnover, profit/loss, or capital amount of the company. It is required to be done every year irrespective of turnover, profit/loss, or capital.

    What are the annual compliances for a One Person Company (OPC)?2021-10-28T10:05:38+05:30

    The annual compliances for One Person Company (OPC) shall include book-keeping and accounting, finalisation of accounts, preparation, and audit of financial statements, filing of income-tax returns, maintaining statutory registers, drafting of various forms, notices, and such other documents, filing of various forms to ROC, and such other event-based compliances as are required from time to time.

    Do I need to be physically present during this process?2021-10-28T10:05:18+05:30

    No, the process of annual compliance is a completely online process. All the required forms and returns are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents and information.

    My OPC has not done any business during the year, do I still need to file the annual returns?2021-10-28T10:04:57+05:30

    Yes, even if there is loss / no business in the company during the year, the filing of annual returns along with Income Tax Return (NIL) and such other applicable compliances are required to be filled by the OPC.

    What is a financial year in terms of annual compliance?2021-10-28T10:04:37+05:30

    The financial year shall mean the period ending on 31st March of the year. For Example, if a company is registered on 22nd April 2020, then its first financial year will end on 31st March 2021 (i.e., FY 2020-2021). For companies registered on or after 1st January onwards, then its first financial year will end on 31st March of the subsequent financial year. For Example, if a company is registered on 22nd January 2020, then its first financial year will end on 31st March 2021.

    Is the appointment of an auditor mandatory for OPC?2021-10-28T10:04:14+05:30

    Yes, every OPC is mandatorily required to appoint an Auditor within 30 days from the date of company registration. The company may appoint an auditor at the Annual General Meeting (AGM) for a period of 5 years.

    What are audited financial statements?2021-10-28T10:03:51+05:30

    Financial statements show the financial position of an enterprise. It consists of a Balance Sheet, Statement of Profit and Loss, etc. When these documents are audited by an independent auditor, it is known as audited financial statements.

    Are audited financial statements mandatory for annual filling?2021-10-28T10:03:02+05:30

    Yes, the OPC has to file audited financial statements with the government authorities.

    I have not filed annual ROC returns for the past financial year, whether my company is eligible to file annual returns in the current financial year?2021-10-28T09:55:45+05:30

    Yes, the company can file the pending annual returns in the current financial years with payment of applicable additional fees and penalties.

    Whether board meetings and annual general meetings are mandatorily required to be held by the OPC?2021-10-28T09:55:20+05:30

    Yes, as per the Companies Act 2013 and other applicable rules, there must be atleast one board meeting conducted in each half of the calendar year and the gap between 2 meetings should be atleast 90 days. However, it is not mandatory for the OPC to conduct Annual General Meeting (AGM).

    What is the purpose of Form ADT-1, Form AOC-4, and Form MGT-7A?2021-10-28T09:54:46+05:30

    Form ADT- 1 is an E-Form that is used by the company to intimate the Registrar of Companies (ROC) about the appointment of an auditor. Form AOC-4 is used for filing financial statements, board report, and other documents with ROC. Whereas, Form MGT-7A is used for filing annual return details to the ROC.

    Is Income Tax Return (ITR) mandatory to be filed every year by Companies?2021-10-28T09:54:21+05:30

    Yes, Income Tax Return (ITR) is mandatory to be filed by every company, irrespective of income or loss during the financial year.

    Is DIR-3-KYC form to be filed every year?2021-10-28T09:53:49+05:30

    Yes, DIR-3-KYC has to be filed every financial year by 30th September of next financial year, and it is valid till 31st March of such financial year

    What is Form DPT-3?2021-10-28T09:53:18+05:30

    DPT-3 is a Return of deposits is required to be filed every year by companies furnishing information about outstanding deposits and/or particulars of transactions not considered as deposits to the Registrar of Companies (ROC)

    Whether Registration Arena help me in Income Tax Return Filing services and paying the income tax to the Government?2021-10-28T09:47:30+05:30

    Yes, filing of regular income tax return, assessment of income tax payable, and payment of income tax is a part of annual compliance. We shall provide you a customized package with Income Tax related service.

    Whether Registration Arena can provide me Income Tax Audit services?2021-10-28T09:47:01+05:30

    Yes, we can provide you Income Tax Audit and Assessment services. We shall provide you a customized package with Income Tax Audit Service.

    Whether Registration Arena can provide me GST services like GST return filing, GST Advisory, GST Audit, and payment of GST to the Government?2021-10-28T09:46:36+05:30

    Yes, we can provide you various GST services like filing of regular GST Returns, assessment, and payment of GST, Claiming of Input tax credit, GST Audit, GST Advisory, etc. We shall provide you a customized package with GST related service.

    Whether Registration Arena can provide me TDS return filing services and payment of TDS to the Government?2021-10-28T09:45:58+05:30

    Yes, we can provide you various TDS related services like filing of regular TDS Returns, assessment, and payment of TDS amount, issuance of TDS Certificate, etc. We shall provide you a customized package with TDS related service.

    Whether Registration Arena can provide me Professional Tax Return filing services and payment of Professional tax to the Government?2021-10-27T16:41:23+05:30

    Yes, we can provide you various Professional Tax related services like filing of regular Professional tax returns, assessment, and payment of Professional tax amount etc. We shall provide you a customized package with TDS related service.

    Is a digital signature required for this process?2021-10-27T16:40:13+05:30

    Yes, a digital signature of the authorized director of the company is required for filling various forms to the Registrar of companies.

    What do transfer of shares mean?2021-10-20T11:41:19+05:30

    The transfer of shares shall mean the process of transferring the ownership or right in shares in a company from one person to another.

    When is the share transfer required in a company?2021-10-20T11:40:53+05:30

    The company may undergo share transfer process in cases when the shareholders want to change their shareholding pattern/structure, or when new investors or shareholders are inducted in the company.

    How much time is required for the share transfer process?2021-10-20T11:40:32+05:30

    The share transfer process takes approximately 7-8 days based on availability of the required documents and information.

    Can I transfer a certain portion of my shares i.e., partial transfer ?2021-10-20T11:40:05+05:30

    Yes, you can do partial transfer of shares.

    Is the physical presence of shareholder required during the process?2021-10-20T11:39:31+05:30

    The physical presence of shareholders may not be required during the process, however signature of transferring shareholders is required on the share transfer form.

    Can I transfer the shares to a Foreign or Non-resident shareholder?2021-10-20T11:39:09+05:30

    Yes, you can transfer the shares to a Foreign or Non-resident shareholder by complying with the FEMA Guidelines.

    I’m a director in a Company, if I transfer my shares will I still remain director in the company?2021-10-20T11:38:47+05:30

    Yes, you will still remain a director in the company. In the share transfer process only the shares of a company is transferred. A Director can exit a company by way of resignation from Board of Director (BOD) and complying with the resignation guidelines.

    Can a minor person become a shareholder of a Company?2021-10-20T11:38:22+05:30

    A minor can become a member/shareholder of a company only through gift and/or inheritance but he cannot enter into agreement to buy shares. Further, minor shall hold shares through his guardian and his guardian will act as a member on behalf of minor.

    Can a person under job or employment in Private Company or PSU or a government servant carrying on his practice be a shareholder in a company?2021-10-20T11:38:00+05:30

    Yes, a person under employment/job or a government servant carrying on his practice can be a shareholder in a company. However, one needs to check if there’s any restriction from employer, governing body, authority or ministry.

    Can I transfer shares to a Company / LLP / Body Corporate?2021-10-20T11:37:31+05:30

    Yes, you can transfer shares to any other Private Limited Company, Public Company, LLP, and Registered Society. However, Partnership firm cannot hold shares in any Company.

    Is there any stamp duty to be paid on the share transfer deed?2021-10-20T11:36:59+05:30

    Yes, stamp duty at the rate of 0.015% on the total value of consideration has to be paid on share transfer deed.

    Is there any stamp duty to be paid on the share certificates?2021-10-20T11:36