Compliance under Companies act
Companies act of 1956, 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.
Change in object clause
After incorporation of a company, it may want to change object clause. This requires alteration in the MOA of the company and section 13 of the Companies Act 2013 covers the same. Ever clause on the MOA can be altered (with the exception of capital clause which requires an ordinary resolution to be passed) by passing a special resolution as mentioned in section 13. We cover the basic process to change the object clause of MOA of a company as per Companies Act 2013.
We also deal with :
• Conversion of sole proprietorship to private limited
• Conversion of sole proprietorship to LLP
• Conversion of partnership to LLP
• Conversion of partnership to private limited
• Conversion of Private limited company to public limited company
• Conversion of Private limited company to one person company
Conversion of Sole Proprietorship to Private Limited Company
As the proprietorship has almost no definition, besides that given to it by one of the many licenses you can take to get one (SSI, VAT or Service Tax registration, for example), transferring the business to a private limited company is easy. All you need to do is go ahead and start a private limited company and submit an agreement between the sole proprietor and the private limited company, declaring that all the assets are to be transferred to the latter.
Conversion of Sole Proprietorship to LLP
Why convert proprietorship into LLP?
Advantages of both a company and a partnership firm are available in a LLP. By converting one’s business into LLP, the sole proprietor will be able to distribute the risks that were earlier borne by him alone with his partners. LLP allows a proprietor to set up a business which has a distinct legal identity and a limited risk.
Procedure for Conversion
A sole proprietorship cannot be converted into a LLP. Therefore, a new LLP has to be incorporated which will take over the sole proprietorship business. Steps to incorporate a LLP are:
• Application for DIN or DPIN: All the partners are required to get DPIN(Designated Partner Identification Number). DIN can be used if a partners possesses DIN.
• Acquire/ Register DSC: Digital Signature Certificate should be obtained and should be registered with the LLP Application.
• Incorporate a LLP: Form1 to be filled for Name confirmation and form 2 should be filed for Incorporating an LLP after the Name is confirmed.
• File LLP Agreement: After incorporation of LLP, an initial LLP agreement is to be filed within 30 days of incorporation of LLP.