Can you please give the procedure involved for converting a unlimited company to a limited company.
Though Section 32 of the Companies Act 1952 provides for Registration of unlimited company as limited I could find nothing on procedure involved.
One of our client has sent the following questions, please send your advice:
1. We have taken the resposibility of running and maintenance of
Government hospitals under the public-private partnership concept. All
the required staffs are appointed by us and we receive Grant from
Government towards salary and administrative expenses. Do we need to
register under PF Act? If yes, do we need to pay the employers
contribution also along with employee contributions? Can we deduct
employer contribution from employees? We will not be reimbursed from
the Government towards employer contribution, if we pay and also we do
not have any other sources of funds for payment of employer
contribution. Other important point is that their services will be
discontinued once the Government hospitals are handed over back to
2. Apart from the above staff, there are other staffs who are working
in our NGO in difference projects, do they are also covered under the
PF Act once the registration is taken? All the salary payments are
made out of the budget given by the funding agencies. Once the funds
are utilized or the project in completed, they will not be in the
services of our NGO.
3. We are following cash basis of accounting and paying salary only
when the salary grant is received. The grant may be received monthly
or quarterly etc., Do we need to pay employee and employer
contribution (if applicable) monthly, if the grant is received
Request your expert opinion in the following matter:
- We have employees drawing salaries in the range of Rs 8000/- pm to
Rs 2 lacs PM CTC.
-The break up comprises components like
Basic,HRA,Conveyance,PF,Group Medical Insurance,LTA,Medical
Reimbursement and SPECIAL SALARY.
-On an average ,basic is around 25% of CTC and PF is calculated on
-PF authorities are insisting that special salary too should have
been taken into account while calculating PF and want us to pay 24%
(12%+12%) on this component(ie special salary) for all the employees
who have worked with us for last 10 years.
Query- Is the stand of PF Department legally correct?
Thanks in advance for your responses.
if we amalgamte or merge two pvt. ltd. companies, then what will be consiquenses regarding PF and ESI metters.
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