What is a company?
A Company is an association of persons registered under the Companies Act, 1956.It has a legal personality separate from the persons who own or manage it. We are the leading provider of company formation and administration services for small to medium-sized private limited companies in India. We incorporate several companies each year and provide ongoing company administration services to them. Our full line of company formation and administration services is listed below.
What are the different types of companies?
Private Limited Company
Public Limited Company
Unlimited Liability Company
Non - profit Organizations (section 25 company)
What are the salient features of a Private Limited Company?
The maximum number of members is restricted to 50.
The name of the company shall end with ‘Private Limited.’
What are the salient features of a Public Limited Company?
No restriction on maximum number of members.
The name of the company shall end with the word ‘Limited’
What is a Non-profit-Organization (section 25 company)?
It is formed for the purpose of promoting commerce, art, science, religion, charity, etc.
Registration requires the prior permission of the Central Government.
The words ‘Private Limited’ or ‘Limited’ can be dispensed from the name.
What is a Foreign Company?
A foreign company is one that is registered outside India, under a foreign law other than the Indian law.
How can a Foreign Company enter into India?
Subject to the approval of RBI, a foreign company can open a branch/liaison office in India.
Upon receipt of the approval of RBI, such a branch/liaison office has to be registered with the office of Registrar of Companies, New Delhi.
What is meant by the phrase ‘limited liability’?
a. Liability of a member is limited to the extent of his shareholding in the company.
b. Shareholder is not personally liable for the liabilities of the company.
c. The member’s liability is limited to the unpaid amount on shares registered in his name.
What are the main features of the name of a company?
The name of a Private/Public company shall end with the words “Private Limited” or “Limited” respectively.
The name shall comply with the guidelines of name availability prescribed by the Ministry of Corporate Affairs.
What are the ‘objects’ of a company?
The main object of company should be detailed in the memorandum of association of companies.
What is ‘capital’ of a company?
Capital is divided into smaller units called ‘shares’.
What is Authorized/Registered capital of a company?
Authorized capital can be enhanced by a resolution at a meeting of the shareholders.
What is issued capital?
That portion of authorized capital which the company has issued to its shareholders is called issued capital.
What is called up capital?
That portion of issued capital that the shareholders are requested to pay to the company is called the called up capital.
What is the role of a director in a company?
A director is responsible for all legal compliance under various laws and the management of affairs of the company.
What is the ‘Memorandum of Association’?
a. Name of the company.
b. State in which the registered office of the company is situated.
c. Objects of the company.
d. Capital and subscribers/promoters/first shareholders of the company.
What is ‘Articles of Association’?
a. The bylaws for the internal management of a company.
b. Defining the relationship of members and directors.
c. Restricting powers of the directors transfer of shares etc.
What is ‘registered office’ of a company?
Registered office is the principal place of business and is used for all official communication of the company.
What is Corporate Identification Number (CIN)?
CIN is the unique number issued by the Ministry of Corporate Affairs to a company registered in India.