COMPANIES ACT, 2013-Section 1

COMPANIES ACT, 2013

[18 OF 2013]

An Act to consolidate and amend the law relating to companies

BE it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

How to apply din in india

Din Application procedure in India

DIN is a unique Director identification number allotted by the Central Government to any person intending to be a Director or an existing director of a company. In this article, we will discuss the concept of Director Identification Number (DIN) based on the following topics:

Meaning of Director Identification Number (DIN)

It is an 8-digit unique identification number that has lifetime validity. Through DIN, details of the directors are maintained in a database.

FAQs On PDF Conversion

 

FAQs On PDF Conversion

Annual e-Filing

1

What is the file size restriction for Annual Filing eForm Uploads?

The system does not allow file size of more than 2.5 MB for uploading of eforms, which means that the total size of the eForm including the attachments should be less than 2.5 MB. If it exceeds this size, the Form will not be accepted by the system.

Steps To Be Taken To Incorporate A New Company

 

Steps To Be Taken To Incorporate A New Company

Steps to be taken to get a new company incorporated:

Process of filling an appeal before NCLT?

 

What needs to know about the process of filling an appeal before NCLT?

• MCA has issued 3 notifications dated 01 June 2016 for setting up of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as well as notifying various sections of the Companies Act 2013.

Procedure for Filing an Appeal before the Tribunal (NCLT)

Procedure for Filing an Appeal before the Tribunal (NCLT)

Let’s start with- what is NCLT?

All FAQs On E-Filing

 

All FAQs On E-Filing

Filing

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FAQs On Refund Process

 

FAQs On Refund Process

 

What is refund process?

The user is required to make various payments to avail MCA21 services. A number of instances have been observed where the users make multiple payments or incorrect payment or excess payment while using these services. In order to allow the stakeholders to claim refund of such payments, refund process has been introduced by MCA.Click here to view Approved Refund Process   (1561KB)

 

Help On File Formats

 

Help On File Formats

Viewing Information for Various File Formats

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Help on using the MCA Portal

 Help on using the MCA Portal

FAQs On Cancel SRN Due To Unsuccessful Payment

 

FAQs On Cancel SRN Due To Unsuccessful Payment

 

1

When should I cancel SRN?

You can cancel your SRN if following two conditions are met:
1. In case payment of the uploaded eform was unsuccessful for technical reason and no option is available for making such payment again, then cancel your G and E series SRN.

 

2. If your account is not debited.

How can I cancel my SRN?

1. Login to the MCA21 application.
2. Click the MCA Services tab. The list of MCA Services is displayed.
3. Click the SRN / Transaction Status menu. The Track SRN Status page is displayed.
4. In the SRN field, enter the SRN to be cancelled and click Submit. The SRN details are displayed.
5. Click the Cancel SRN link available for the SRN. The Track SRN page will be displayed with SRN filled in the SRN field.
Note: You can only cancel your SRNs that have G or E as prefix. These SRNs are for eForms/ services and stamp duty payment. The Cancel SRN link is displayed only when SRN status is Not Paid or Pending for Payment.

 

3

I want to cancel my SRN but I do not see the cancel SRN link for my SRN.

 

You can only cancel your SRNs that have G or E as prefix. These SRNs are for eForms/ services and stamp duty payment. The Cancel SRN link is displayed only when SRN status is Not Paid or Pending for Payment.

You can cancel the SRN for the filings done by your user id only.

 

Mandatory Compliances for Private Limited Companies

 

Mandatory Compliances for Private Limited Companies 

Receipt of MBP-1  

As per Section 184(1) of Company Act 2013 Every Director of the Company in First Meeting of the Board of Director in each Financial Year will disclose his interest in other entities under (Form MBP-1)

Receipt of DIR- 8 

As per Section 164(2) of Company Act 2013 Every Director of the Company in each Financial Year will file with the Company disclosure of non-disqualification.

Receipt of MGT-7

As per Section 92 of Company Act 2013, Every Company will file its E-form: Annual Return within 60 daysof holding MGT-7 Annual General Meeting. Annual Return will be for the period 1 st April to 31st March.

Receipt of AOC-4

As per Section 137 of Company Act 2013, Every Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form.

Following Attachment need to attach along with Form AOC-4

Balance Sheet, Statement of Profit & Loss Account (Including Consolidated Financial Statement), Directors’ Report, Auditors’ Report, Cash Flow Statement and Notice of AGM.

Preparation of Director Report

As per Section 134 of Company Act 2013, Directors’ Report will be prepared by mentioning all the information required for Small Company.

Circulation of Financial Statement 

As per Section 136 of Company Act 2013, Company will send to the members of the Company approved Financial Statement (including consolidated Financial Statement), Cash Flow Statement, Directors’ Report and Auditors’ Report at least 21 clear days before the Annual General Meeting. (Except in case of AGM is called on Shorter Notice)

Preparation of Annual General Meeting

As per Section 136 of Company Act 2013, Every Notice of Annual General Meeting will be prepared SS-II as per Section 101 of Companies Act 2013 and Secretarial Standard – II.

Board Meetings

As Per Section 173 of Company Act 2013 & Secretarial Standard – I, Every Company shall hold a minimum number of FOUR meetings of its Board of Directors every year in such a manner that maximum gap between two meetings should not be more than 120 (One hundred twenty) days. Company should hold at least 1 (one) Board Meeting every quarter of the calendar year.

Receipt of ADT-1

As per Section 139 of Company Act 2013, Every company needs to appoint an Auditor. Auditor will be appointed for the 5 (Five) year and form ADT-1 will be filed for 5-year appointment.

Preparation of Annual Return

As per Section 92 of Company Act 2013, Annual Return of Private Company (Except Small Company) should be signed by Company Secretary in Practice.

If Company fails to file annual forms for a continuous period of 3 years or more then directors become disqualified for appointment in another company and directors turn out to be disqualifying for appointment and appropriate action against the director can be taken.

Please note As per Section 167(1) if a director becomes disqualified then his office vacant as director in all the companies simultaneously vacant.

What is the penalty levy on the directors for non compliance of their duties?

As it is the duty of the directors of the company to act in the best interest of the Company, shareholders etc. It is the duty of the directors to follow and comply with the provisions of Companies Act and other legal compliance.

Consequently, one can opine that, if a director fails to comply with his duties then he is liable for penalty u/s 166(7) i.e. ‘fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.  

Help On File Formats FOR MCA

 

Help On File Formats-MCA

Viewing Information for Various File Formats

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Document Type	Download
PDF content	Adobe Acrobat Reader
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Flash content	Adobe Flash Player
Audio/Video Files	Windows Media Player Windows Media Player RealPlayer

 

 

Do you want to close a company by converting the existing Company to LLP?

 

Do you want to close a company by converting the existing Company to LLP?

In case private company or unlisted public company (incorporated under Companies Act) wants to convert the existing company to LLP, it has to comply with the requirements of LLP Act, 2008 by filing Form 18 under LLP Act, 2008).

Description	e-Form with Instruction kit	e-Form	Form Version updated on
Application by company to ROC for removing its name from register of Companies	Form STK-2 [zip] (635 KB)	Form STK-2 [zip] (208 KB)	06-Dec-2018

 

Close A Company

 

Close A Company

1

Do you want to close a Company ?

A company can be closed by adopting the following ways:-

(A) Strike off a company under Section 560 :

Section 560, of the Companies Act, 1956, deals with strike off provisions of a defunct company. Any defunct company desirous to strike off its name from the register of Registrar of company can apply in Form FTE for strike off its name from the register maintained by ROC as per Guidelines for ‘FAST TRACK EXIT MODE’ issued vide General Circular No. 36/2011 dated 7.6.2011. Similarly, ROC has also power to strike off any defunct company after satisfying himself of the need to strike off a defunct company and has reasonable cause. But before passing any order in this regard, an opportunity of being heard must be provided to the defunct company by following the due procedure u/s 560.

(B) Winding up

Section 425, of Companies Act, 1956, deals with modes of winding up.
The winding up of a company may be either -
(a) By the Tribunal (also known as compulsory winding up)
(b) Voluntary winding up
(c) subject to the supervision of the Court

Voluntary Winding up : You can get a general picture from the following steps of winding up which are summarized below (except Voluntary winding up)
a) Issuing a written demand for debt payments to the target company.
b) Present a winding up petition to the court and the company
c) Court hearing for the petition
d) Granting of winding up order by the court
e) Meeting of creditors and other relevant parties
f) Appointment of liquidator.
g) Realization and distribution of company’s assets to the creditors
h) Realize of duties for liquidator
i) Dissolution of the company.

For more details please visit Company Liquidators website (http://www.companyliquidator.gov.in/)

Overview of Winding up :
Voluntary winding up which may be:
i) Member’s Voluntary winding up.
ii) Creditor’s Voluntary winding up.
In case of voluntary winding up, the entire process is done without court supervision. When the winding up is complete, relevant documents are filed before the court for obtaining the order of dissolution. A Voluntary winding up can be done by members or creditors. The circumstances in which company may be wound up voluntarily are:
a) When the period fixed for the duration of the company in its articles has expired
b) When an event on the happening of which the company is to be dissolved as per its articles happen.
c) The company resolves by special resolution at any general meeting to be voluntary winding up.

 

FAQs On Digital Signature Certificate (DSC)

 

FAQs On Digital Signature Certificate (DSC)

Acquire DSC

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FAQs On Digital Signature Certificate (DSC)

Acquire DSC

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To view the step-by-step videos of frequently used MCA services, refer the Video Based Tutorial

1

What is the process of obtaining DSC from Certifying Authority?

 

Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient in this case
• DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case
• A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such letter/certificate should be certified by the Bank Manager .

2

What is a Digital Signature Certificate?

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Few Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally.

 

3

Why is Digital Signature Certificate (DSC) required?

Physical documents are signed manually, similarly, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.

4

Who issues the Digital Signature Certificate?

A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian IT-Act 2000.

 

5

What are the different types of Digital Signature Certificates valid for MCA21 program?

The different types of Digital Signature Certificates are:

Class 2: Here, the identity of a person is verified against a trusted, pre-verified database.

Class 3: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/ her identity.