Distinction between Partnership and Limited Liability Company
A partnership firm is a business owned by two or more people who have agreed to share profits and act on behalf of the business. The people who own the business are called partners, and the name of the business is the firm name. An LLC is a privately held business that combines the characteristics…
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Classes of Share Capital and illustration of how different type’s shares are issued
The issue of shares refers to the process by which a company raises money by selling ownership stakes in the form of shares of stock to investors for a variety of purposes like expansion plans, repayment of debts, improving liquidity, or a plan to increase the long-term source of capital that helps a company operate…
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Different types of companies and their structures explained
Companies are classified into different types based on the structure of the company such as sole proprietorships, partnerships, and corporations. The ownership of a company may belong to the government, private individuals, or foreign entities. The Companies Act 2013 provides several classifications of companies to suit different business needs. The primary types of the companies…
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Definition of a company
Section 3 (1) (i) of the Companies Act, 1956 defines a company as “a company formed and registered under this Act or an existing company”. In common parlance, a company means an association of two or more persons formed an artificial legal entity for some common object or object such as the economic gain of…
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What is small company?
[This post elucidates the eligibility status of Small Companies and the benefits given to small company promoters and directors.] The Companies Act, 2013 (‘Act’) introduced the concept of small companies to provide advantages for small businesses operating as private limited companies. Small companies do not have any separate procedure to obtain registration under the Act.…
Revision in maintenance of Cash Reserve Ratio (CRR)
In the Statement on Developmental and Regulatory Policies, RBI announced that the cash reserve ratio (CRR) of all banks by 50 bps in two equal tranches of 25 bps each to 4.0 per cent of net demand and time liabilities (NDTL) with effect from the fortnight beginning December 14, 2024, and December 28, 2024, respectively.…
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