Information sharing platform related to Corporate , Taxation & Insolvency Laws.

How to start a new business in India? (Legal Requirement and Documentations)   Proprietorship Firm: - Proprietorship firms  are business entity that are owned, managed and controlled by the single person and person known as Proprietor of the firm. There is no concept of separate legal entity under Proprietorship firm. Thus liability of proprietor is unlimited in proprietorship firm. A sole proprietorship firm does not need any specific registration, but the owner is advised to get some essential registrations for better operational functioning of the firm. Following are the registration required for the proprietorship firm: Ø   Goods and Services Tax (GST) Registration Ø   Shop and Establishment Act License Ø   MSME Registration Partnership Firm:- The partnership is the most common form of business structure in India which is most favourable amongst medium-sized businesses. However partnership registration is not mandatory in India but getting it registered provides the le

  MOA (MEMORANDUM OF ASSOCIATION) What is a MOA (Memorandum of Association)? Section 4 of the Companies Act, 2013 deals with the provisions of Memorandum of Memorandum of Company; The Word Memorandum is define under section 2(56) of the companies Act, 2013 “Memorandum” means the memorandum of association of a Company as originally framed or as altered from time to time in pursuance of any previous company law or of this Act; According to Justice Lord Cairns- “The MOA (Memorandum of Association) of a Company is its charter and defines the limitations of the powers of the company established under this Act.” Thus, the MOA (Memorandum of Association) of a Company is known as constitution documents of that Company. As per Schedule I of the Companies Act, 2013 following tables are prescribed for the Companies on the basis of their classification: TABLE A Memorandum of association of a company limited by shares. TABLE B Memorandu

  [Section 68, 69&70 of the Companies Act, 2013 and read with Rule 17 of (Share Capital and Debentures) Rules, 2014] Meaning of Buy-Back: Buy-Back of shares is a method of financial restructuring. In the case of over-capitalized Company buy-back is a popular route of re- engineering of Capital Structure.   Need of Buy-Back: ü To increase proportionate holding of Promoters ü Reduce the number of shares in circulation in order to improve the share price ü To increase the earning per share (EPS) ü To make the optimum combination of debt-equity ratio ü Return the surplus cash to the shareholders which are not required by business ü To prevent the hostile takeover Pre-Conditions of Buy- Back of Equity Shares: For the purpose of buy- back following conditions must be satisfied: ü Buy-back is authorized by Article of Association of the Company. ü All the shares for buy-back should be fully paid-up. ü 10% of aggregate of paid-up equity capital and free re