COMPANIES ACT 2013 – APRIL 2020 FAQ

COMPANIES ACT 2013 – APRIL 2020 FAQ

 

This Month’s FAQs relates to Incorporation of Company under Company Act, 2013

Following are the FAQs and their answers:

1. How many persons required to form OPC?

Ans:    Two persons are required to form an OPC, Member and Nominee of OPC,

2. Maximum no of director in One Person Company?

Ans:    According to section 149(1) of Companies Act, 2013, Maximum number of directors in One Person Company can be 15.

3. How will you differentiate OPC from Private Company by its name?

Ans:    OPC is required to mention OPC in brackets in its name.

4. In OPC, shall nominee become part of MOA?

Ans:    yes,

Section 4 of Companies Act, 2013, provides that Name of nominee shall be mentioned in Nomination Clause of MOA of OPC.

5. X, a German national want to form One Person Company in India with his wife as Member and he will become the Nominee, can he go with it?

Ans:    NO,

As per Rule 3(1) of Companies (Incorporation) Rules, 2014, only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member.

6. X has an OPC with turnover above 2 Cr and paid up capital above 50 Lakh, can he convert it into Section 8 Company?

Ans:    No

As per Rule 3(5) of Companies (Incorporation) Rules, 2014, OPC cannot be incorporated or converted into section 8 company.

7. X wants to carry lending business in OPC with RBI Licence. Can he do?

Ans:    No

As per Rule 3(6) of Companies (Incorporation) Rules, 2014, One Person Company cannot carry out Non-Banking Financial Investment activities including investment in securities of anybody corporates.

8. ABC pvt ltd having paid up capital 55 lakh and turnover 1 crore wants to covert it in OPC. Allowed or not?

Ans:    Not allowed

A private company having paid up capital 50 lakh or less and turnover 2 Cr or less can be converted into One Person Company.

9. Minimum Limit of Capital to form a Public Limited Co?

Ans:    No limit of capital is prescribed under Companies Act, 2013 to form a Public Limited Company.

10. A want to form his company in Maharashtra, what are all registrations he can get with the company incorporation?

Ans:    A can get the following registrations at the time of incorporation of company:

• GST
• PF
• ESI
• Professional Tax

11. Which form needs to filed with ROC for entrenchment of Article at time of Incorporation?

Ans:    No separate form is required for entrenchment of Article at the of Incorporation. There is an option for entrenchment of Article in SPICE+ (Incorporation Form).

12. Which Schedule to be adopted for MOA and AOA of Company having share capital?

Ans:    Schedule 1 of Companies Act, 2013.

13. Do we need to attach Professional declaration in form INC-8 while incorporation of an OPC? 

Ans:    Not Required.

14. What are the words we will have to use with Section 8 Co?

Ans:    With section 8 company, the following words shall be used:

• Foundation
• Forum
• Association
• Federation
• Chambers
• Confederation
• Council
• Electoral trust.

15. For Section 8 Company, Income & Expenditure estimate is required for how many years?

Ans:    3 Years.

16. In which form Section 8 licence shall be issued?

Ans:    No form is prescribed yet.

17. Where a subscriber to MOA of a company is body corporate, can its authorised person subscribe the share of the same company in his name?

Ans:    No

Authorized person is only allowed to Subscribe MOA and AOA on behalf of company. Shares shall be subscribed in the name of the company.

18. Do we need apostille documents for a foreign national who arrived in India on Business Visa?

Ans:    Yes,

In such situation, Address and Identity proof of foreign national is required to be apostille.

19. Who are authorised to sign on behalf of body corporate which is subscriber to MOA of a new company?

Ans:    Director, officer or Employee of the Body Corporate.

20. What are the documents required from a Company incorporated outside India who wants to set                 up a subsidiary company in India?

Ans:    Apostilled Board Resolution, Certificate of Incorporation of company incorporated outside India.

21. In which form ROC issue COI?

Ans:    Form INC-11

22. Is there any form to draft MOA of Section 8 company? or It can be in any format?

Ans:    Form INC-13

23. What is the effective period of Company Fresh Start Scheme?

Ans:    Effective period of Company Fresh Start Scheme is 1st April, 2020 to 30th September, 2020.

24. What is the effective period of LLP Settlement Scheme?

Ans:    Effective period of LLP Settlement Scheme is 1st April, 2020 to 30th September, 2020.

25. What is time period to file declaration for Immunity?

Ans:    Declaration for Immunity is required to be filed within 6 months from expiry of the Scheme.

26. Will declaration for immunity be filed by defaulting LLPs as well?

Ans:    Not required.

27. What are the late fees for immunity form to be filed with ROC?

Ans:    No fees applicable.

 

 

NOTE: Our team of experts can help you in various company law matter. You can reach out to us via Email: info@startup-movers.com, Call: 9953247264, What’s app: 9953247264.