Company Registration compared with birth certificate


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Company Registration compared with birth certificate

  1. 1. Registration of a Companyis like a Birth Certificate of New born Child<br />
  2. 2. Points of Presentation<br /><ul><li> Definition of a Company
  3. 3. Objective of Company Act 1956
  4. 4. Company Registration
  5. 5. Advantages of Registration
  6. 6. Disadvantages of Registration
  7. 7. Registration Process
  8. 8. Modes of Registration
  9. 9. Registration, a birth certificate
  10. 10. Case Study
  11. 11. Conclusion</li></li></ul><li>Definition of a Company<br />Com = Come<br />+<br />Company<br />Pany = Bread<br />Economic<br />Group of individuals formed for purpose<br />Company<br />Non- Economic<br />Created By Law<br />Distinct Name<br />Limited Liability<br />An Artificial Person<br />Perpetual Succession<br />
  12. 12. Objective of Company Act 1956<br /><ul><li> Development of a Company
  13. 13. Protect the interest (Share Holders)
  14. 14. Safe guard the interest (Creditors)
  15. 15. To equip the government with necessary powers
  16. 16. Attain Goal of economic policy</li></li></ul><li>Birth Certificate<br /><ul><li> Identity to child as individual and member of society.
  17. 17. Individual+ Birth and Deaths Act, 1969</li></ul>Both notify legal Existence of a new entity<br />Company Registration<br /><ul><li> Registered identity under the law that governs business and commercial transactions.
  18. 18. Business + Companies Act of 1956</li></li></ul><li>Advantages of Registration<br /><ul><li> Separate legal entity
  19. 19. Limited Liability of members
  20. 20. Perpetual succession
  21. 21. Capacity to Sue and be Sued
  22. 22. Government Subsidiaries & Tax benefits
  23. 23. Joint Ventures
  24. 24. Mergers & Acquisition</li></li></ul><li>Disadvantages of Registration<br /><ul><li> Increased Formalities and Expensive Formation
  25. 25. Loss of Privacy
  26. 26. Control By Few
  27. 27. Unlimited Liability
  28. 28. Long Winding-Up Procedures
  29. 29. Not a Citizen</li></li></ul><li>Registration Process<br />Start<br />Filing of MOA, AOA<br /> & other document<br />Type of Company<br />Loc. Of Registered Office<br />Stamping, D.S & e-filing<br />Selection of Name<br />Payment of Fees<br />Ascertaining of Name<br />Private Company<br />Public Company<br />Approval of Name<br />Cert. of incorporation<br />(ROC)<br />Filing of prospectus<br />DIN<br />Cert. of Commencement<br />Digital Certificate<br />Registered Business Commencement<br />Registered Business Commencement<br />CIN<br />
  30. 30. Modes of Company Registration<br />Apply <br /><ul><li>Offline: Regional “Registrar of Companies” Office.
  31. 31. Online: Submission to “Ministry of Corporate Affairs” (</li></ul>Commencement of MCA<br />Internet Filing<br />Digital Signature<br />PDF of scanned doc<br />Certificate of Commencement<br />Fee Payment<br />Processing by regional Office & Delhi HQ<br />
  32. 32. Registration, a Birth Certificate<br />Legal Identity <br /><ul><li> Name to a Face
  33. 33. Family Relation
  34. 34. Religion</li></li></ul><li>Registration, a Birth Certificate<br />Date of Existence / Birth <br /><ul><li> Experience
  35. 35. Eligibility for an activity</li></li></ul><li>Registration, a Birth Certificate<br />Perpetual Succession<br /><ul><li> “King is dead, long live his kingdom.”
  36. 36. “A company is like River Thames, Though flooded or dried, will always be called Thames”
  37. 37. Meat Supplier Guild-ford Ltd., (1966) 1 WLR 1112 ReCommon Seal</li></li></ul><li>Registration, a Birth Certificate<br />Transfer of Rights<br /><ul><li> Process is simplified.</li></li></ul><li>Registration, a Birth Certificate<br />Separate Legal Entity<br /><ul><li>Members cannot individually or jointly claim ownership rights.
  38. 38. RajendraNathDutta v ShibendraNathMukherjee Calcutta 1982, 52 Comp. Cos 293(Cal)</li></li></ul><li>Registration, a Birth Certificate<br />Impact on Society<br /><ul><li> Development of Country</li></li></ul><li>Registration, a Birth Certificate<br />Government Scheme Benefits<br /><ul><li> Availing Loans, Insurance, etc.</li></li></ul><li>Registration, a Birth Certificate<br />International Assignments<br /><ul><li> Increases scope to international assignments.</li></li></ul><li>Case Study<br />Order of Court<br />Petitioner liable<br />Petitioner<br />Subscribed to MOA & AOA, which does not make him a person in charge of and responsible to the company for conduct of its business.<br />Respondent<br />was not only a promoter but also a Director of the Company.<br />In the High Court of New Delhi – Case no. 1182/2009<br />V.P. Bajpai (Petitioner) Vs. SEBI (Respondent) – Justice V.K.Jain<br />
  39. 39. Conclusion<br /><ul><li> Thus Registration lets people dealing with the company be aware of the constitution & documents of that company.
  40. 40. A Birth certificate cannot stop a child from his right to live but his career path may not be as smooth.
  41. 41. Similarly, a firm without registration can be established. However, difficulties will arise in growth & expansion of the firm in future.</li></ul>Registered<br />Unregistered<br />
  42. 42. Thank You<br />