company with multiple objects

A company can be incorporated with various objectives however in the related field of operations and industry and not unrelated fields.

For Example, LegalWiz.in Private Limited is a Company engaged in provision of Legal Services through online mode for setting up Businesses with required registration requirement. Here, LegalWiz.in may engage into activities of providing services through offline mode, representational services for clients, Tax consultancy, management consultancy, etc. However, being in the field of professional services, the company cannot engage into activities of product marketing, portfolio management, IT enabled services, construction services or trading of goods as the activities are not related to each other or of same nature.

The aim behind this restriction is to hold a company and the officers responsible for the specified activities and focus on the same related field only. Where a company is engaged into various different objectives, the investors or the financial institutes may resist providing the funds to the company. The return from two different unrelated activities will be diversified and the same will be difficult for the investors to focus in same field as the rate of growth and rate of return are different for different industries.

If promoters are willing to engage into various activities, a group of companies can be incorporated for different objectives. Another option is to incorporate subsidiary companies under one holding company.

Consult experts at LegalWiz.in at 89806 85509 or drop an e-mail at support @ legalwiz.in, in case of any query or doubt for free consultation regarding Company Incorporation and related services.