Overview

Overview

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 Capital
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.

Public Filings
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.

Annual Meetings
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 : info@rkkassociatesinfo.com
Website: www.rkkassociatesinfo.com 
Phone :+91-8829035203,+91-9928399554

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About rrkassociatesinfo

We at R K Kumawat & Associates offer various type of Accounting, Financial, Taxation, Auditing Services. www.rkkassociatesinfo.com

Posted on June 4, 2012, in Company Formation in India and tagged . Bookmark the permalink. Leave a comment.

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