Compliance under Companies Act
Companies Act, 2013 is a regulatory act for the governance of the company. It provides rules according to which a company is registered, set up, run, and even closed. Any issues pertaining to the running of a company will be dealt with according to the standards set under this Act. In particular, our firm deals with the following issues.
Annual compliance for private limited company
Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated. Managing the day to day operations of your business while complying with the corporate laws may be a little taxing for any entrepreneur. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfillment of compliances, without any levy of interest or penalty.
Common compliances which a private limited company has to mandatorily ensure are board meetings, annual general body meetings, annual filings, statutory audits among others.
The Limited Liability Partnership Act was published in the official Gazette of India on January 9, 2009 and has been notified with effect from March 31, 2009. LLP is different from Limited partnership. It operates like a limited partnership, but in LLP each member of the firm is protected from personal liability, except to the extent of their capital contribution in the LLP. Like a company LLP also has a separate Legal Entity. So the partners and the LLP in are distinct from each other. This is like a company where members are different from the company.
Addition or removal of Director
Power to remove directors has always been bestowed on shareholders, as we all know that at the end of the day, directors are answerable to shareholders. Nothing has changed in the procedural aspect under Companies Act, 2013 as well. Shareholders can remove any director before the expiry of his tenure, except any director appointed by Tribunal for prevention of oppression and mismanagement u/s 242 and a director appointed under principle of proportional representation u/s 163.
Company Name change
Change in name of the Company involves alteration of Clause I of the Memorandum of Association of the Company. Section 13 of the Companies Act, 2013 regulates the process of alteration of Memorandum of Association of companies. Section 13 of the Companies Act, 2013 says that name of a company may be changed by passing a Special resolution in the general meeting and with the approval of the Central Government. Procedural steps for alteration of name of a Company involve drafting a notice, holding a board meeting and discussing the agenda, obtaining the required permits for name change, allowing time for the notice to take effect and holding a general meeting to acknowledge the motion. Thereafter a eForm No. INC – 24 has to be filed within 30 days of passing special resolution.
LLP Name change
The procedure to change the name for an LLP is different from the process of name change of a company. LLP can change its name by filling the following forms: Form 1 (Application for reservation or change of name) is required to be filled for name approval. After the name gets approved, applicant is required to file Form 5 (Notice for change of name) to intimate the registrar about the name change of LLP.