(The law of limitation applicable to a general guarantee and the guarantee issued by banks and financial institutions are different. This article explains the law of limitation explicitly applicable to bank guarantees, invocation and cancellation of bank guarantees) The law of limitation of time means the time-limit for different suits within which an aggrieved person…
In a rejoinder to widely spread Social media rumours about RBI’s declaration of ₹ 10 coins as invalid, the central bank vide its press release no.RBI/2016-2017/1257 dated Nov 20, 2016, advised members of the public not to give credence to such ill-informed notions as well as ignore them and continue to accept these coins as…
Further to its earlier circulars, Reserve Bank of India has clarified on the provisions of hedging in the ECB framework vide its circular (A.P. (DIR Series) Circular No. 15) dated 07.11.2016. The circular provides clarity on hedging ‘External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency to bring uniformity in hedging practice in…
(This article elucidates the process of registration/incorporation of a private/public limited company under companies’ amendment act 2015.The article also envisages some of the important requirements/common licenses to do business in India ) Where to register a company? As per Rule-12 of Companies (Incorporation) Rules, 2014, application for incorporation of a private limited or a public…
The key differences between a Private Limited Company and a Public Limited company are tabled below. Particulars Public Limited Company Private Limited Company Minimum Number of share holders A Public limited company requires minimum 7 share- holders. A Private Limited Company requires minimum 2 share- holders. Maximum Number of Share Holders There is no limit…
When a Public Limited or a Private Limited Company is to be incorporated, the promoters of the company must decide on the amount of authorized capital for the company. The Authorised Capital of a company means the maximum value of shares a company can allot to its shareholders. The promoters of the proposed company shall…
The Memorandum of Association pronounces the main object and the business activities of the company. The Articles of Association spells the rules and regulations for operations of the company. Process of approval of draft MOA & AOA by MCA: The MOA and AOA shall bear page numbers on all their pages. The photographs of the…
The Ministry of Corporate Affairs (MCA) has introduced Form INC-29, for registration and obtaining the certificate of incorporation that lessens paperwork to a large extent. This 8 pages new form is used as an alternate process to do away with the earlier process of filling out several forms separately for allotment of DIN, Name of the company…
The e-form INC-7 deals with incorporation of the new company (other than OPC) under prevailing customary process. Filing of form INC-7 is not required where the promoters opted for integrated application form INC-29 for registering a company. A prospective director of the proposed company shall possess Digital Signature Certificate, Director Index Number to apply for…
The Ministry of Corporate Affairs (MCA) established a Central Registration Centre (CRC) to process Applications for Reservation of Companies Names across India [25 Jan 2016]. The CRC process the application for reservation of name received by it in e-form INC-1 with the prescribed fee as provided in the companies (registration of offices and fees) Rules,2014.…