Companies Act, 1956
Companies registered or incorporated in India are governed by the Companies Act, 1956.
Shareholders & Directors ;
|•||There is no need to appoint local director to register or incorporate a company in India.|
|•||Foreign nationals or Companies can incorporate company in India & hold foreign equity to the extent of 100%, which is dependent upon sector in which company will operate & is subject to approval from either Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB).|
Memorandum and(&) Articles of Association
The Memorandum of Association states the main, ancillary / subsidiary & other objects of the proposed company. The Article of Association contains the rules & procedures for the routine conduct of the proposed company. It also states the authorized share capital of the proposed company & the names of its first / permanent directors. After that Memorandum of Association & Article of Association are required to be stamped.
A stamp duty is required to be paid on Memorandum of Association(MOA) & Article of Association(AOA). The stamp duty depends on the authorized share capital(ASC).
Share must be expressed in a fixed amount.Shares to be subscribed must be expressed in Indian rupees.
Accounts & Auditors
Every company is required to appoint an auditor each year at its Annual General Meeting(AGM). An auditor must be qualified by virtue of the ICAI Act 1949 & completely independent of the company. Audited accounts of the company serve as tool for various stakeholders like creditors, bankers, investors and revenue authorities.
The names & personal particulars of the directors and secretary, register of charges, share capital, registered office address etc. must be filed with the Companies Registry for public inspection upon incorporation & if there is any change thereafter.
An annual general meeting (AGM) must be held once in every financial year & not more than 6 months after the end of financial year. However, a company need not hold its first AGM until eighteen (18) months of its incorporation.
Email : firstname.lastname@example.org