Compliances Archives

03 May

What Is The Difference In Regulations When A Private Company Issues Debentures Instead Of Preference Shares?

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Fact is, a private company limited by shares can issue debentures and preference shares to raise capital. There are a quite a number of ventures that happen use this route to raise funds, but the catch is the compliance that follows the two routes. Regulations and compliance for each of these routes are what we would be having a glance at. Please note, these are sensitive compliance works, and we strongly suggest you to hire a well-qualified Lawyer for this work, We can help you 🙂 Situation 1: Raising funds in exchange for debentures. A company may issue debentures with…

02 May

Corporate Insolvency Resolution Process And Liquidation

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The Insolvency and Bankruptcy Code (IBC), based upon the recommendations of the Bankruptcy Law Reform Committee, provides for a single Code to resolve insolvency for all companies, limited liability partnerships, partnership firms and individuals. Initially, India had enacted numerous statutes to punish the defaulters like the Indian Contract Act, the Recovery of debts due to Banks and Financial Institution Act 1993, the Securitizations and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), etc. However, a need was felt for new laws which would take care of the existing…

02 May

Best Practices While Deciding On The Board Of Directors

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When Stakeholders own the ship, the directors appointed by them run the ship. The board of directors stands in a fiduciary relationship with shareholders and is expected to protect their interests. A system should be developed to ensure selection of right individuals as directors. If you are a first-time entrepreneur or a serial one, this blog will guide you deciding Company board. Proven To Be Effective Practices While Deciding On Board Of Directors: Separation Of The Position Of The Chairman And The CEO: The Chairman leads the board, while the CEO leads the executive team. Therefore, governance is likely to…

02 May

Things To Know Before Initiating Winding Up Of A Company

0 CommentsBusiness, Compliances

When over 3L directors faced directorship suspension (which means they cannot be directors in any company for 5 years), entrepreneurs or directors who were lucky enough to have not brought under that radar, are now taking some serious decisions on filings and existence. In this blog, with an attempt help those directors who are considering winding up, we will look into things one must keep in mind in order to windup a Company. Any company (Private Limited Company or One Person Company) continues to be in existence until it is dissolved according to the law. #1. Dissolution Can Be Done…

28 Apr

Service Level Agreement In Vendor Agreement For Startups

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Basically, vendor is someone who provides you with a service or goods. For instance, a person providing house cleaning services is a vendor, a person supplying raw material for renovating your office is a vendor. The Vendor Agreement is therefore an agreement between you and a vendor that you have selected for the services that such vendor has to provide to you or goods that such vendor has to supply to you. An SLA, i.e. service level agreement is a contract between a vendor and the end user that defines the standard level or quality of service expected from such…

28 Apr

How To Manage Contracts Risk In A Startup?

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There are tons of contracts that any startup would come across in its day to day life, to remind a few – Employees contract, Vendor Agreement, Logistics level contract, Service level contracts etc. Alarmingly 2017 has seen a massive increase in startups utilizing the opportunity of free contracts template, and a majority of these contracts are invalid and have opened up doors for legal disputes. Founders and decision makers of startups, areas of contractual control should be a focus for you this year. Why? Well the room for corporate governance has been boundless and the government is not going to…

27 Apr

Everything You Need To Know About Transfer Pricing In India

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When it comes to transfer pricing most of the corporates get confused and have a hard time understanding its requirement and methods of transfer pricing in India. Honestly, transfer pricing is not that of a big deal as it seems to be. Here in this blog, I have answered the 5 basic questions to understand easily about Transfer Pricing in India. 1. What Is Transfer Pricing? In taxation and accounting, transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort…

26 Apr

Registered A Private Limited Company. What Next?

0 CommentsBusiness Incorporation, Compliances

Once you received the certificate of incorporation, it means, all legal formalities required for company registration is completed. There are certain Compliance required to be done after registering the Company. This blog intends to give you some clarity on the famous question 'Registered a private limited company. What next?' Listing down the mandatory legal and accounting compliance for a Private Limited company which are to be done within 100 days of registration. A) Filing Of Form INC-22 For Situation Of Registered Office Address Situation of registered office has to be intimated within 30 days from the date of incorporation…

26 Apr

What If A Firm Takes The Secretly Non – Compliant Path?

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A company being non – compliant, Ooh, that sounds interestingly controversial, doesn’t it? This topic has been among the most sorted topics in debate stages. In fact, there are a number of businesses that have taken the path, and lucky for some doing well. Did you ever feel - heck with compliance works, the firm will just do a minimum of the essentials? Well, hold on, right there. In this blog, we will look into the scary truth of being a non – compliant firm (stressing on Companies). The most common reason for such non-compliance that we found in our…

25 Apr

Foreign Citizens Planning To Incorporate A Private Limited Company In India

0 CommentsBusiness Incorporation, Compliances

Foreign direct investment up to 100% into a private limited company is under the automatic route, wherein no Central Government permission is required. Hence, incorporation of a private limited company as a wholly owned subsidiary of a foreign company or joint venture is allowed in India. This blog is pretty much written with an objective to bring in clarity on exactly what a foreign citizen planning to incorporate a Private Limited Company in India should know. Foreign Direct Investment (FDI) Into An Indian Private Limited Company: FDI is allowed up to 100% in most sectors. Only a very few sectors…