corporate law

Nidhi Companies to apply to the Central government for updation of their status in Form NDH-4

Nidhi Companies  to apply to the Central government for updation of their status/ declaration as Nidhi Company in Form NDH-4 in accordance to  amended provisions of the Companies Act and Nidhi Amendment Rules 2019 In order to make regulatory regime for Nidhi Companies more effective and also to accomplish the objectives of transparency & investor friendliness in corporate environment of the country, the Central Government has recently amended the provisions related to NIDHI..

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Income proof becomes mandatory for Rs 10 lakh investments in small savings schemes

The government has now made it mandatory for those investing over Rs 10 lakh in post office schemes to provide proof of source of funds. It has also brought all investments in post office schemes under stricter KYC/PMLA compliance rules to prevent misuse for terrorist financing/money laundering activities. The Department of Posts has directed post office officials to collect income proofs from certain categories of small savings schemes’ investors. The department made this announcement ..

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Adjudication Penalty For Adani Power For Non-Compliance Related Party Transaction

SHORT SUMMARY Every company registered under this statute or any other as prescribed is required to disclose related party transactions, under Sections 188 and 189 of the Company Act 2013. Every business that engages in related party transactions is required by Section 189 of the 2013 Company Act to record the relevant information in the contract register. This is subject to Section 188. Every corporation must comply with the above provision in order to preserve good governance. Many Compa..

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Secretary Auditor penalty for omitting related party information

SHORT SUMMARY This is a classic example of a secretarial auditor being penalized by the Registrar of Companies for failing to report material related party transactions in their secretarial audit report.The practicing company secretaries are no longer hiding behind the argument that the financial statements are solely examined by the statutory auditors and that the PCS are unconcerned about disclosures in financial statements.   The Case is about the listed Company M/s. Sun Pharmac..

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Registering as an Indian Subsidiary Company: Things you should know

Introduction Expanding your business into a new market like India can be an exciting and promising venture. One of the popular methods for establishing a presence in India is by forming a subsidiary company. A subsidiary is a company controlled by another company, known as the parent company. While forming a subsidiary company in India offers numerous advantages, it is essential to be aware of certain key aspects to ensure a smooth and successful entry into the Indian market. In this article,..

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Penalty for non-compliance with companies main objective

SHORT SUMMARY As stated in Section 4 of the 2013 Companies Act when combined with Section 10. The Act's provisions under section 4(1)(c) state, among other things, that the company's memorandum must list the object for which it is intended to be formed as well as any other information deemed relevant to those purposes. The disclosure of the objects and topics linked thereto for that company incorporated need to declare in the object clause of the memorandum of association is a requ..

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MCA proposes higher penalties and wider leniency to combat cartels

Higher penalty for cartels and greater leniency provisions introduced in competition law last month will go hand in hand in tackling cartels which are by nature difficult to prove, the corporate affairs ministry said in a monthly update, indicating what would be the competition watchdog CCI's approach in market correction after it got a new chair this month. The amended competition law that received Presidential ascent last month allows a higher penalty of 10% of global turnover of an err..

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Statutory Auditor can't accept assignment of "Compilation of Financial Statements from Books of Accounts" of Auditee Company

Statutory auditors play a crucial role in upholding the accuracy and reliability of financial statements for companies. To ensure their independence and integrity, the Companies Act, 2013, includes provisions that regulate the activities of statutory auditors. Section 144 of the Act specifically outlines certain assignments that statutory auditors are not permitted to accept. This article explores the provisions of Section 144 and highlights that the assignment of the "Compilation of Financ..

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Process to register Indian Subsidiary Company from France

Introduction Registering a company in India has become a streamlined and efficient process, particularly for foreign entrepreneurs. With India's rapid economic growth and favorable business environment, starting a company in the country presents numerous advantages. In this article, we will provide valuable information on the benefits of registering an Indian Subsidiary Company from France, the entry strategy for company registration, and the process to establish your business successfull..

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Penalty of Rs. 20 lakh on non-appointment of CS

SHORT SUMMARY Section 203 of the Company Act of 2013, as amended by Rule 8 (Appointment and Remuneration of Managerial Personnel) Rule of 2014. Every firm that belongs to the class or classes of companies specified in section 203(1) of the firm Act 2013 must have the following full-time key personnel: (i) Managing Director, or Chief Executive Officer or Manager, and a full-time director in their absence; (ii) Company Secretary; and (iii) Chief Financial Officer However, there are man..

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How do make Trust Deed?

Agreement of Trust This agreement of trust is executed amongst the following persons. No Status of person Name Address Age 1 First Trustee (also mention designation of trustee like President, Secretary, Vice president, etc.)     Adult 2 Second Trustee     Adult &n..

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All you need to know about Filing Form ADT-1

Introduction As per the Companies Act 2013, companies are mandated to inform the ROC (Registrar of Companies) in a specific manner about the appointment of an auditor through Form ADT-1. This article provides detailed information on the filing fees for ADT-1, the process of filing Form ADT-1 with MCA (Ministry of Corporate Affairs), the deadline for submitting ADT-1, and the necessary documents required for ADT-1 filing. When to file Form ADT-1 to MCA? According to the Companies Act 201..

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EPF registration for a Private Limited Company

Introduction If you're looking to provide the best care and benefits to your employees, registering your company for Employee Provident Fund (EPF) is essential. This article will help you in knowing all the requirements for EPF registration for a Private Limited Company, including eligibility criteria, document requirements, and understanding the significance of EPF for your private limited company. EPF registration Registration for the Employee Provident Fund (EPF) is crucial for p..

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Practicing Company Secretary as Trademark Agent

SHORT SUMMARY In this article, the author shall discuss a copy of a letter circulating on the Social Meeting in respect of questioning Practicing Company Secretary to act as Trademark agent. BACKGROUND As per Trademark Rules 2017: "agent" means a person authorized to act as such under section 145 of the Act; Part IV of the Rules states about the Trademark Agent.   LEGAL PROVISIONS Extract of Rule 144 of Trademark Rules 2017 states about Qualifications for r..

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MCA introduces C-PACE initiative to simplify company striking off process

The Ministry of Corporate Affairs (MCA) has moved a step forward by centralising the strike off process of companies with the establishment of the Centre for Processing Accelerated Corporate Exit (C-PACE). The establishment of the C-PACE will help to reduce the stress on the Registry along with keeping the registry clean besides availability of more meaningful data to the stakeholders. The C-PACE will also benefit the stakeholders by providing a hassle-free filing, timely and process-b..

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Big Relief - Strike off of Company without Annual Filing

SHORT SUMMARY Whether Completion of Annual filing is Mandatory for Strike Off of Company through filing of STK-2? There is a difference in the views of professionals, business entities, even authorities on above mentioned question. In below mentioned editorial author will discuss the provision of strike-off in concern to the above question.   BACKGROUND There are four phase in History of Companies Act for "Strike off of Companies". Phase I: Under Companies Ac,..

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Geethanjali Aman Construction Case - RERA

The Real Estate (Regulation and Development) Act 2016 (RERA) came into effect from 1st May, 2016. Purpose of RERA Regulation and promotion of real estate sector. Ensure sale of real estate project in an efficient and transparent manner. Protect the interest of consumers in the real estate sector. Establish an adjudicating mechanism for speedy dispute redressal.   Registration of project RERA obligates every promoter of the project to make an application to the Regu..

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MCA implements stringent norms for closure of firms

Firms applying for removal of their names from the Register of Companies will have to file financial statements and annual returns in order to cease business operations. To this effect, the Ministry of corporate affairs has introduced fresh conditions for companies that wish to de-register with the RoC. According to the changes, a firm cannot file for removal of names unless it has filed overdue financial statements and overdue annual returns up to the end of the financial year in which ..

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Importance of Budgeting and Fund Flow Management for Small Businesses and Startups

Effective budgeting and fund flow management is essential for small businesses and startups. These practices are not only relevant for larger companies with bigger budgets. Small and medium-sized businesses with limited resources need to maximize every penny they have, making budgeting and fund flow management even more critical. A budget is a roadmap that helps you plan and make informed decisions about where to allocate your resources. It enables you to identify your financial goals, set pr..

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FAQs on Transfer Claims For Employees Under EPF

How do I know if I require a PF transfer? Ans: If the member has more than one PF member IDs (MIDs) and the PF amount of these MIDs has not been transferred into the latest MID, member is required to get his PF transferred into his current MID. What is the importance of UAN in online transfer of PF? Ans: Universal Account Number (UAN) acts as an umbrella for the multiple Member IDs allotted to an individual by different employers. UAN enables linking of multiple EPF Accounts (Member Id)..

Posted in articles |   1872 Views

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