company registration india
( One person company, private limited company, public limited company, limited liability partnership, FCRA, Nidhi Limited Company)
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This guide is all about two key asset of a company Share & Stock. What is Share and Stock of a company, and what are the main differences between share and stock of a company. It is a Must read while going for Company Registration in India.
Share and Stock are key elements of a company, but in general most people think that there is no difference between Share and Stock, We bring here highlighted differences between these two important key assets of company. Know here what is Share of a company and what Stock of a company is, and Get classified information on differences between Share and Stock.
Share: - A Share is single unit that is used as a measure of various investments in financial markets or a company. Share is used in collective investments such as Mutual Funds, Limited Partnerships, and Real Estate Investment Trusts. Owner of a share is called Shareholder, every share has some face value, and this face value is an agreement to the Shareholder that Company will pay the face value of share to the shareholder when he sells his share.
Stock: - Stock is also a Share; Stock is a share in ownership of a company. If you have a stock of a company means you are one of the many owners of that company. You are the owner of all company assets whether that is furniture, or trademark, or contract of the company. Having a stock of company says that you are a partner of company in all earnings, in all benefits, in voting rights, and in all lost.
Here below are the Major differences between Share and Stock of a Company, check here:
These are the major distinction points that to be considered while studying the differences of Shares and Stocks.
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Paid up capital/turn-over of One Person Company not to exceed prescribed limits
When the paid up share capital of an One Person Company exceeds fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company.
One Person Company to convert itself on exceeding the above limits
One Person Company where the paid up capital/turnover as the case may be exceeds the prescribed limits, shall be required to convert itself, within six months of the date on which its paid up share capital is increased beyond fifty lakh rupees or the last day of the relevant period during which its average annual turnover exceeds two crore rupees as the case may be, into either a private company with minimum of two members and two directors or a public company with at least of seven members and three directors in accordance with the provisions of section 18 of the Act.
Alteration of Memorandum and Articles
The One Person Company shall alter its memorandum and articles by passing a resolution to give effect to the conversion and to make necessary changes incidental thereto.
Notice to Registrar
The One Person Company shall within period of sixty days from the date of applicability, give a notice to the Registrar in Form No.INC.5 informing that it has ceased to be a One Person Company and that it is now required to convert itself into a private company or a public company by virtue of its paid up share capital or average annual turnover, having exceeded the threshold limit.
Penalty for default
If One Person Company or any officer of the One Person Company contravenes the provisions of these rules, One Person Company or any officer of the One Person Company shall be punishable with fine which may extend to ten thousand rupees and with a further fine which may extend to one thousand rupees for every day after the first during which such contravention continues.
Minimum number of members/directors/ capital to be complied on conversation
A One Person company can get itself converted into a Private or Public company after increasing the minimum number of members and directors to two or minimum of seven members and two or three directors as the case may be, and by maintaining the minimum paid-up capital as per requirements of the Act for such class of company and by making due compliance of section 18 of the Act for conversion of companies already registered.
In this illustrated niche given are some terms that used in reference for Company Law. It’s a guide for all Practitioner, Entrepreneurs, Business Persons, and Advocates who are working on Company Law or in Corporate law Sector.
The terms or definitions used for companies in India according to Companies Act, 2013 are: - :
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