Please enable JavaScript.
Coggle requires JavaScript to display documents.
I. Basic Concepts about Companies - Coggle Diagram
I. Basic Concepts about Companies
“company” refers to a body incorporated in accordance with the provisions of a specified Act, viewed to be a person created by law – a juridical person. Its legal entity is distinct from its members and independent of even its promoters who give birth to it. Sec 3(1) “A company means a company formed & registered under this Act or an existing company.”
Features of a Company
• Incorporated Association
• Separate Legal Entity [Solomon vs. Solomon & Co. Ltd.]
• Artificial Person
• Perpetual Succession
• Limited Liability
• Capacity to sue
• Transferability of Shares
Supervision and Regulating authorities under the Companies Act MCA, ROC, Tribunal)
MCA
Regulates corporate affairs in India through various Acts and rules
Administers the Competition Act to promote fair competition and protect consumers
Oversees professional bodies like ICAI, ICSI, and ICAI
Responsible for administering other Acts like Partnership Act and Societies Registration Act
Offers important services to stakeholders, including Director Identification Number (DIN)
ROC
Appointed under Section 609 of the Companies Act
• Registers companies and LLPs in respective states and Union Territories
• Ensures compliance with statutory requirements under the Act
• ROC offices function as registry of records and available for public inspection
• Central government exercises administrative control through Regional Directors.
NCLT:
Quasi-judicial body resolving disputes in Indian companies.
Successor to Company Law Board.
Governed by Central Govt rules.
Special court for company cases.
Established under Section 408 of Companies Act, 2013 based on Justice Eradi Committee recommendations.
NCLAT established for hearing appeals against NCLT orders.
Steps to Incorporate a Company:
Public company needs 7+ people, private company needs 2.
Choose name, check availability with Registrar of Companies, pay fee.
Prepare Memorandum & Articles of Association.
Registrar of Companies helps draft and vet Memorandum & Articles, print, sign and stamp.
Attorney can act on behalf of company for legal documentation formalities.
File e-Forms for Consent of Directors, Notice of Registered Address, and Particulars of Directors.
File Statutory Declaration in e-Form No.1.
Pay Registration Fees.
If requirements are met, Registrar will issue Certificate of Incorporation.
Types of companies On the basis of:
Incorporation: Statutory, Registered
Liability: Limited by shares, Limited by guarantee, Unlimited liability
No. of members: Private, Public
Control: Holding, Subsidiary
Ownership: Government, Non-government
Others: Foreign, Investment, Financial, Association not for profit