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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Anita Aswal (Company Secretary)
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The privileges and exemptions enjoyed by a one person company or its advantages over other companies are as follows:
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.
The articles set out the rules and regulations framed by the company for its own working. The articles should contain generally the following matters:
Paperwork in small businesses plays a vital role. There are a lot of papers required to fulfill the needs of your business. Expectations associated with business are also a fact for maintaining the Policies and Documents of your business.
We bring here 7 Policies and Documents that every small business needs to involve the expectations from your business. These can be known as effective policies for small business, Legal documents for small business, Policy needed for small business in India, or Documents needed for small business.
1. Contracts: - Creating a contract is good enough for understanding the policy of your business. It’s also good for you if you are going to sign an agreement with another small business, it make you sure that you are going to sign an authenticate policy. Every small business must have their contract. Whether you enter a partnership, work with tenants, provide consulting or freelancing services, or have any other business arrangement, a contract is a good idea.
2. Refund Policy: - Refund Policy is very essential and important thing to create a positive mindset and trust in people for your product and services. In other terms we can say that refund policy can be a thing that can make your small business successful.
4. Non-Disclosure Agreement: - A Non-Disclosure Agreement or Sample Confidentially Agreement is a legal contract between you and another party that ensures that information and data will be keeps in secret by you, you have to promise that you will not disclose the secret and personal information to anyone without proper authorization.
5. Business Plan: - A Business plan is very important if you are running a small business. In some conditions if you need funding, a business plan of your company ensures funders that you have good idea and it can return them best. Another benefit of Business plan is that it will direct you to achieve your business goals; you are running your business right or not, or what you have to do for achieving your business goals. But make sure that what information you have to include in your business plan.
6. HR Policies: Human Resources are the main sources for work in any business. Have you maintained a good HR policy for your employees? What are the plans and Policies you released for your employees? A good HR Policy must have the following points in it:
There are some Regulations & Rules in all companies that has been made for managing the internal affairs of company and for managing the relation between members and company, these rights, duties, regulations and rules shall be in recorded written format, this written document is called Articles of Association (AOA).
What is Articles of Association (AOA) of a company?
--> Articles of Association (AOA) or Prospectus of a Company is a document that has to apply along with the Memorandum of Association (MOA), AOA defines the responsibilities of the directors, the functional area of business, and the means which the shareholders exert control over the board of directors.
What are the focal points you have to keep in mind while going through it?
Here given below are the points you have to know what are the main points while writing an Articles of Association (AOA).
Articles of Association (AOA) Sample: -
Sample 1: Articles of Association of a Company Limited by Guarantee and not Having Share Capital: -
Sample 2: Articles of Association of a Company Limited by Guarantee and Having a Share Capital: -
Sample 3: Articles of Association of a Company Limited by Shares: -
Sample 4: Articles of Association of an Unlimited Company and Having a Share Capital: -
Sample 5: Articles of Association of an Unlimited Company and not Having Share Capital: -
Anita Aswal (Company Secretary)
Ministry of Corporate Affairs (MCA) introduces new e-forms for company incorporation in India based on Companies Act, 2013. Given below are the sample forms with description.
Company Incorporation e-forms are introduced by Ministry of Corporate Affairs (MCA), India. National Companies Act, 2013 is the tag for all the forms introduced. Here below given are the sample forms, their description. Please do not fill and submit these here, these are only sample forms.
In this blog post you will get all the most important information over company registration services and foreign direct investment.