Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Incorporation of companies


Published on

Published in: Business, Economy & Finance
  • Tackle Odds With Lottery Secrets ▲▲▲
    Are you sure you want to  Yes  No
    Your message goes here

Incorporation of companies

  1. 1. <ul><ul><ul><ul><li>G. Priyanga </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Altacit Global </li></ul></ul></ul></ul>INCORPORATION OF COMPANY
  2. 2. TYPES OF BUSINESS ENTITY <ul><li>Sole Proprietorship </li></ul><ul><li>Partnership </li></ul><ul><li>COMPANY </li></ul><ul><li>Charitable organization </li></ul>
  3. 3. <ul><li>SOLE-PROPRIETORSHIP </li></ul><ul><li>PARTNERSHIP </li></ul><ul><li>No registration required </li></ul><ul><li>Unlimited liability </li></ul><ul><li>Used for small business or by professionals </li></ul><ul><li>No separate legal entity </li></ul><ul><li>Registration not compulsory. </li></ul><ul><li>Two types: </li></ul><ul><ul><ul><li>Limited liability </li></ul></ul></ul><ul><ul><ul><li>Unlimited liability </li></ul></ul></ul><ul><li>Sharing of profits by those agreed upon. </li></ul><ul><li>Governed by Indian Partnership Act. </li></ul>BUSINESS ENTITY
  4. 4. Company - Derived from a LATIN word “COM”=“WITH” or “TOGETHER”; “PANIES= BREAD”
  5. 5. COMPANY <ul><li>“ An association of persons who took their meals together” </li></ul><ul><li>Legal Formation </li></ul><ul><li>An Artificial person </li></ul><ul><li>Has a separate legal entity </li></ul><ul><li>Has a Perpetual Succession </li></ul><ul><li>Company seal </li></ul><ul><li>Common capital with transferable shares </li></ul><ul><li>Carries limited liability </li></ul><ul><li>Democratic management </li></ul>
  7. 7. Description Private Limited Public Limited Definition <ul><li>Which by its article restricts: </li></ul><ul><li>Number of members to 50 </li></ul><ul><li>Transfer of shares </li></ul><ul><li>Invitation of public to subscribe its debentures, shares etc. </li></ul><ul><li>Acceptance of deposits from person other than the shareholders and directors. </li></ul>Which is not private Governing Laws Companies Act, 1956 Companies Act, 1956, SEBI Act, 1992 Incorporation time 2-3 weeks 2-3 weeks Minimum no. of shareholders 2 7 Maximum no. of Shareholders 50 (exclusive of employees and ex-employees) Unlimited
  8. 8. Description Private Limited Public Limited Minimum no. of directors 2 3 Minimum paid up capital INR 100000 INR 500000 Transferability of shares Restricted Free to transfer the shares. If the company is listed then through Stock exchange. Foreign Directors Yes Yes Appointment of Whole time director(WTD)/ Managing director(WTMD) Not compulsory and no restriction on appointment <ul><li>Appointment: </li></ul><ul><li>Not compulsory if paid up capital < 5 Cr. </li></ul><ul><li>Compulsory if paid up capital =>5 Cr. </li></ul>Foreigner as WTMD/WTD No restriction With the approval of Central Government
  9. 9. Procedure for Incorporating a Company <ul><li> STAGE I: PRE REGISTRATION PROCEDURE </li></ul><ul><ul><ul><li>Obtain a DIN-Director Identification Number. </li></ul></ul></ul><ul><ul><ul><li>DSC-Digital Signature Certificate. </li></ul></ul></ul><ul><ul><ul><li>STAGE II: NAME AVAILABILITY </li></ul></ul></ul><ul><ul><ul><li>Name approval. </li></ul></ul></ul><ul><ul><ul><li>STAGE III: DOCUMENTATION </li></ul></ul></ul><ul><ul><ul><li>Preparation of Memorandum & Articles of Association </li></ul></ul></ul><ul><ul><ul><li>Vetting of Memorandum & Articles, Printing, Stamping & Signing </li></ul></ul></ul><ul><ul><ul><li>STAGE IV: FILING & REGISTRATION </li></ul></ul></ul><ul><ul><ul><li>Form 1 (Declaration) </li></ul></ul></ul><ul><ul><ul><li>Form 32 (Details of Directors) </li></ul></ul></ul><ul><ul><ul><li>Form 18 (Details of Registered Office of the company). </li></ul></ul></ul>
  10. 10. OTHER COMPANY’S <ul><li>Section 25 Companies. </li></ul><ul><li>Companies deemed to be public limited. </li></ul><ul><li>Holding and subsidiary companies. </li></ul><ul><li>Government companies. </li></ul><ul><li>Foreign Companies. </li></ul>
  11. 11. How a Foreign Company can enter into India? <ul><li>Liaison Office </li></ul><ul><li>Project Office Unincorporated entity </li></ul><ul><li>Branch Office </li></ul><ul><li>Wholly owned subsidiary </li></ul><ul><li>Incorporated entity </li></ul><ul><li>Joint Venture </li></ul>
  12. 12. FOREIGN COMPANY <ul><li>A foreign company planning to set up business operations in India has the following options: </li></ul><ul><ul><li>Investment under automatic route; and </li></ul></ul><ul><ul><ul><ul><li>No prior approval is required for FDI under the Automatic Route. Only information to the RBI within 30days of inward remittances or issue of shares to Non Residents is required. </li></ul></ul></ul></ul><ul><ul><li>Investment through prior approval of Government. </li></ul></ul><ul><ul><ul><ul><li>Foreign Investment proposed not covered under the ‘Automatic Route’ are considered for Governmental Approval on the recommendations of the Foreign Investment Promotion Board (FIPB). </li></ul></ul></ul></ul>
  13. 13. Automatic route for which foreign investment is not available <ul><li>Banking </li></ul><ul><li>NBFC's Activities in Financial Services Sector </li></ul><ul><li>Civil Aviation </li></ul><ul><li>Petroleum Including Exploration/Refinery/Marketing </li></ul><ul><li>Housing & Real Estate Development Sector for Investment from Persons other than NRIs/OCBs. </li></ul><ul><li>Venture Capital Fund and Venture Capital Company </li></ul><ul><li>Investing Companies in Infrastructure & Service Sector </li></ul><ul><li>Atomic Energy & Related Projects </li></ul><ul><li>Defense and Strategic Industries </li></ul><ul><li>Print Media </li></ul><ul><li>Broadcasting </li></ul><ul><li>Postal Services </li></ul>
  14. 14. FDI is Prohibited in <ul><li>Retail Trading </li></ul><ul><li>Atomic Energy </li></ul><ul><li>Lottery Business </li></ul><ul><li>Gambling and Betting </li></ul><ul><li>Housing and Real Estate business </li></ul><ul><li>Agriculture ( excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisiculture and Cultivation of vegetables, mushrooms etc. under controlled conditions and services related to agro and allied sectors) and Plantations (Other than Tea plantations) </li></ul>
  15. 15. <ul><li>THANK YOU </li></ul>