
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:
- How many persons required to form OPC?
Ans: Two persons are required to form an OPC, Member and Nominee of OPC,
- 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.
- How will you differentiate OPC from Private Company by its name?
Ans: OPC is required to mention OPC in brackets in its name.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
- 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).
- 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.
- 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.
- For Section 8 Company, Income & Expenditure estimate is required for how many years?
Ans: 3 Years.
- In which form Section 8 licence shall be issued?
Ans: No form is prescribed yet.
- 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.
- 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.
- 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.
- In which form ROC issue COI?
Ans: Form INC-11
- Is there any form to draft MOA of Section 8 company? or It can be in any format?
Ans: Form INC-13
- 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.
- What is the effective period of LLP Settlement Scheme?
Ans: Effective period of LLP Settlement Scheme is 1st April, 2020 to 30th September, 2020.
- 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.
- What are the late fees for immunity form to be filed with ROC?
Ans: No fees applicable.
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