What are the compliance requirements after a company is registered?

After registering a company in India, it is essential to meet specific compliance requirements to remain operational and avoid penalties. Below are the key compliance obligations: Appointment of a Statutory Auditor: A statutory auditor must be appointed within 30 days of incorporation to audit the company's accounts. Filing of Annual Returns: Submit Form MGT-7 annually to the Ministry of Corporate Affairs (MCA) to disclose shareholder and company information. Filing Financial Statement: File Form AOC-4 annually to report the company's financial statements. Conducting Board Meetings: Hold at least four board meetings annually, ensuring compliance with company governance norms. Income Tax Filing: File ITR-6 annually, irrespective of whether the company has income or is non-operational. Maintenance of Books of Accounts: Keep accurate and updated records of all financial transactions as per legal requirements. GST Filing (if applicable): File GST returns (monthly, quarterly, or annually) depending on the company's turnover.

Can a foreign national or NRI be a director in an Indian company?

Yes, foreign nationals and NRIs can be directors of an Indian company if: 1. The company has at least one resident director who has lived in India for at least 182 days in the previous calendar year. 2. They obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). 3. They provide required documents, including a passport, proof of address, and a consent declaration. Note: Ensuring compliance with these requirements is crucial to avoid legal issues. Platforms like IncorpX can help with the documentation and registration process.

How can I conduct a company name search online?

To conduct a company name search: 1. Visit the MCA Name Availability Tool on the MCA website. 2. Enter your proposed company name in the search bar. 3. The system will display names that are identical or similar to your query. 4. Ensure compliance with Companies Act, 2013 naming guidelines: Avoid using restricted or offensive words. Ensure the name reflects the company's objectives. You can use the IncorpX Company Name Search Tool for quick and accurate results. Enter your proposed company name to check for identical or similar names. Ensure your name complies with the Companies Act, 2013, avoiding restricted words and aligning with your company's objectives. Pro Tip: Check the trademark database to ensure the name is not trademarked by another entity.

What is the difference between authorized capital and paid-up capital?

Authorized Capital: The maximum amount of share capital a company is permitted to issue as per its Memorandum of Association (MOA). Paid-Up Capital: The actual amount received by the company from shareholders for the shares issued. Example: If a company's authorized capital is ₹10,00,000, it cannot issue shares exceeding this value. If the paid-up capital is ₹5,00,000, this means shareholders have contributed ₹5,00,000 for the shares issued so far.

How much does it cost to register a company in India?

The cost depends on the type of company. Key expenses include: Government Fees: Name Reservation: ₹1,000 SPICe+ Form Filing: ₹2,000 (for authorized capital up to ₹10 lakh). Professional Fees: ₹5,000-₹20,000 charged by chartered accountants or company secretaries. Additional Costs: Digital Signature Certificate (DSC): ₹500-₹2,000 per director PAN and TAN: Included in SPICe+ filing. Note: Costs are subject to change based on specific requirements and additional compliance needs.

How do I open a current bank account for my company?

To open a current bank account, submit the Certificate of Incorporation, PAN, Memorandum and Articles of Association, Board Resolution authorizing account opening, and KYC documents of directors to the chosen bank.

Does a private limited company have perpetual existence?

Yes, a private limited company has perpetual existence, meaning it continues to exist regardless of changes in ownership or the death of its members.

What are articles of association and memorandum of association?

The Memorandum of Association (MOA) defines a company's objectives, scope, and relationship with external parties. The Articles of Association (AOA) outline the rules and regulations for the company's internal management and governance.

What are the penalties for non-compliance with annual filings?

Penalties for non-compliance with annual filings include: A late filing fee of ₹100 per day, per form. Disqualification of directors for up to 5 years. Fines ranging from ₹50,000 to ₹5,00,000 for the company and responsible officers. In severe cases, the company may be struck off the MCA register. Additionally, non-compliance can result in operational restrictions, making it difficult to secure funding, form partnerships, or work with government agencies. It's very important for companies to adhere to these requirements to avoid both financial penalties and long-term legal consequences.

What happens if my proposed company name is already taken?

If your proposed company name is already taken, you must choose a different name that is unique and complies with the MCA's naming guidelines. You can use the MCA Name Availability Tool to check the availability of a name.

What are the corporate tax rates for companies in India?

Domestic companies are taxed at 30%, or 25% if turnover is up to ₹400 crore, with a concessional rate of 22% (25.17% effective) for companies not claiming exemptions and 15% (17.16% effective) for new manufacturing companies. Foreign companies are taxed at 40%, with surcharge and cess applicable.

How do I verify if a company is registered in India?

Visit the Ministry of Corporate Affairs (MCA) website, use the 'View Company/LLP Master Data' tool, and enter the company's name or Corporate Identification Number (CIN) to check its registration status.

Is GST registration mandatory during company registration?

GST registration is not mandatory during company registration. However, it is required if the company's turnover exceeds ₹40 lakh for goods or ₹20 lakh for services. It is also mandatory for companies involved in inter-state supply or e-commerce activities.

What is the minimum and maximum number of shareholders allowed for company registration?

A private limited company requires a minimum of 2 shareholders and allows a maximum of 200 shareholders. A public limited company requires a minimum of 7 shareholders, with no limit on the maximum number of shareholders.

Can I register a company using a virtual office address?

Yes, you can register a company using a virtual office address, provided it is a legally valid address and you have the necessary documentation, such as a rental agreement and utility bills, to verify its authenticity.

How can ownership of a private limited company be transferred?

Ownership is transferred by drafting a Share Transfer Agreement, filling Form SH-4, paying stamp duty, updating the Register of Members, and notifying the MCA if necessary.

What are the consequences of not complying with post-registration obligations?

Non-compliance can lead to financial penalties of ₹100 per day per form, disqualification of directors for up to 5 years, legal action, suspension or revocation of the company's registration, and operational restrictions such as difficulty in securing funding or working with government agencies.

What are the differences between a business name and a trade name?

Business name is the official name registered with the MCA for legal purposes, while a trade name is the brand name used for marketing products or services. Multiple trade names can be used under one business name, but trademark laws apply for protection.

How many days does it take to register a company?

Company registration in India usually takes about 7-10 working days if all documents are in order. Delays can happen if there are issues such as name being rejected or mistakes in the documents. Using the SPICe+ form can help speed up the process since it combines multiple services like PAN, TAN, and GST registration. However, the time it takes can vary based on the type of company and any extra steps needed.

Who governs and controls private limited companies in India?

Private limited companies in India are governed by the Companies Act, 2013, regulated by the Ministry of Corporate Affairs (MCA), with day-to-day operations managed by the Board of Directors. Shareholders have the power to appoint or remove directors through voting.

What are the penalties for not complying with post-registration obligations?

Non-compliance can result in financial penalties (₹100 per day), director disqualification for up to 5 years, legal action, and damage to reputation, making it difficult to secure funding or partnerships.

What documents are required for company registration in India?

Required documents include PAN cards for directors and shareholders, passport for foreign nationals, Aadhaar or Voter ID for identity proof, bank statements/ utility bills for address proof, MOA and AOA, and proof of office address and rent agreement.

What are the steps to appoint a statutory auditor?

The Board must pass a resolution to appoint the auditor within 30 days, file Form ADT-1 with the MCA within 15 days, and ensure the auditor meets the eligibility criteria under the Companies Act, 2013.

How can I check if my company is registered?

Visit the MCA website, search using the company's name or CIN, and view the company's registration status, including incorporation date and authorized capital.

What happens if my proposed company name is rejected?

If rejected, review the feedback provided by MCA, submit a new name using the RUN service, and ensure it adheres to naming guidelines under the Companies Act, 2013.

Does a private limited company have perpetual existence?

Yes, a private limited company has perpetual existence, meaning it continues even if directors or shareholders change, ensuring stability and continuity.

What are the tax implications associated with company registration?

Tax implications include corporate tax (22% for regular companies, 15% for new manufacturing companies), GST registration for businesses exceeding ₹20 lakh turnover, and taxes on dividends, which are taxable in shareholders' hands.

What are the benefits of registering a private limited company?

Benefits include limited liability, separate legal entity, ease in fundraising, tax advantages, and a more professional image with clients and partners. It is ideal for startups and SMEs.

Expert MCA Filing Assistance

Object Clause Amendment in India

Change Your Company's Objects with Expert Support - Starting @ ₹4,999 Only

100% Online Process. MoA Amendment. MGT-14 Filing.

Form MGT-14 Filing with MCA
Special Resolution Drafting
Amended MoA Preparation
EGM Notice & Minutes
Object Clause Drafting
Updated Master Data Extract

Expert Consultation in Minutes

What Sets Us Apart

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Siddhu Manoj Founder & CEO of Two-LYP Computations Pvt. Ltd.

“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”

Abhishek Lohani Director at Lohani Learnings

“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”

Chandan Kr. Chaudhary Founder of Creative Minds

“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”

Jayavijaya SJ Founder of Agro Farms

“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”

Anoop Krishnan Founder of EIGHTH DAY FORGE

“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”

Ramesh Lanke Founder of EKnal Technologies

“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”

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We handle all paperwork and ensure full legal compliance.

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Get professional assistance with object clause amendment including all MCA filings.

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Form MGT-14 Filing
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*Government fees are additional and vary based on company structure

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IncorpX Prime

An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.

Key Benefits

Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.

Important Notes

We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.

Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.

Overview Key Features Why Amend Objects Documents Required Process Penalties FAQs

OBJECT CLAUSE AMENDMENT - AN OVERVIEW

Object Clause in the Memorandum of Association (MoA) defines the scope of business activities that a company can undertake. It specifies the main objects (primary business), ancillary objects (activities incidental to main objects), and other objects (activities the company may pursue in future). A company can only engage in activities covered by its object clause.

Under Section 13 of the Companies Act, 2013, a company can alter its object clause by passing a Special Resolution and filing Form MGT-14 with the Registrar of Companies (ROC) within 30 days. This allows companies to add new business activities, remove obsolete ones, or modify existing objects to reflect their evolving business needs.

Object clause amendment is essential when a company wants to diversify into new industries, pursue new business opportunities, or align its MoA with its actual operations. Operating outside the defined objects can make contracts ultra vires (beyond powers) and potentially void.

At IncorpX, we handle the complete object clause amendment process - from drafting appropriate objects to conducting EGM and filing with MCA. Our expert team ensures that your new object clause properly covers all intended business activities while maintaining compliance.

Understanding the Object Clause in MoA:

The object clause in MoA traditionally consisted of three parts, though this classification is now simplified:

Type of Objects	Description	Examples
Main Objects	The primary business activities the company was incorporated to pursue	Manufacturing of electronics, Software development services
Ancillary Objects	Activities incidental to or necessary for achieving main objects	Importing raw materials, Warehousing, Marketing services
Other Objects	Other activities the company may pursue in addition to main objects	Real estate, Investment activities, Trading

Important Note

Under the Companies Act, 2013, the distinction between main, ancillary, and other objects has been removed. Companies now have a single, unified object clause that lists all permitted business activities. However, older MoAs may still have the three-part structure.

Key Features of Object Clause Amendment:

Understanding the essential aspects of object clause amendment ensures smooth compliance:

1. Special Resolution Required

Alteration of object clause requires a Special Resolution passed by shareholders with at least 75% majority votes.

2. MGT-14 Filing

Form MGT-14 must be filed with ROC within 30 days of passing the Special Resolution along with amended MoA.

3. Comprehensive Drafting

New objects should be drafted carefully to cover all intended activities while complying with industry-specific regulations.

4. No Prior Approval Needed

Unlike earlier, companies don't need prior approval from Central Government to alter objects. Special Resolution suffices.

5. No Stamp Duty

Object clause amendment generally doesn't attract stamp duty (unlike capital increase). Only MCA filing fees apply.

6. License Requirements

Adding certain activities may require obtaining separate licenses or registrations (e.g., NBFC, real estate, etc.).

Reasons to Amend Object Clause:

Companies amend their object clause for various strategic and operational reasons:

Business Diversification

To expand into new industries or verticals that were not covered in the original MoA objects.

New Opportunities

To capitalize on emerging market opportunities that require activities outside current objects.

Remove Obsolete Activities

To delete business activities that the company no longer pursues or intends to pursue.

Regulatory Compliance

Some sectors (NBFC, insurance) require specific object clauses for obtaining licenses.

Investor Requirements

Investors may require the company to include specific objects before making investments.

Avoid Ultra Vires Acts

To legitimize activities being carried on that were not originally in the object clause.

Documents Required for Object Clause Amendment:

The following documents and information are required for amending the object clause:

Existing Memorandum of Association (MoA)

Proposed new/amended object clauses

Board Resolution for calling EGM

Notice of EGM with explanatory statement

Attendance sheet and minutes of EGM

Special Resolution passed by shareholders

Amended MoA with new object clause

DSC of one director and CS (if applicable)

Company's CIN and registration details

Step-by-Step Object Clause Amendment Process:

Our streamlined process ensures smooth and compliant object clause amendment:

Step 1: Identify Required Changes

Review current object clause and identify what needs to be added, modified, or removed. We help draft appropriate wording for new objects.

Step 2: Board Meeting

The Board of Directors convenes a meeting to approve the proposed amendment and authorize calling an EGM for shareholder approval.

Step 3: Issue EGM Notice

Send notice to all shareholders at least 21 clear days before the EGM (can be reduced with shareholder consent). Notice includes proposed resolution and explanatory statement.

Step 4: Conduct EGM

Hold the EGM where shareholders vote on the Special Resolution for object clause amendment. Requires 75% majority approval.

Step 5: Prepare Amended MoA

Prepare the amended Memorandum of Association incorporating the new/modified object clause.

Step 6: File Form MGT-14

File Form MGT-14 on MCA portal within 30 days of passing the Special Resolution, attaching the resolution and amended MoA.

Step 7: Approval & Effect

Upon ROC approval, the amended object clause becomes effective. The company can now pursue the new business activities legally.

Amend your company's objects with proper MCA compliance!

Penalties for Non-Compliance:

Timely filing is essential to avoid penalties. Also, operating outside defined objects has serious consequences:

Type of Non-Compliance	Consequence
Late filing of MGT-14	Additional fee of ₹100 per day of delay (max 10x normal fee)
Operating without amending objects	Contracts may be challenged as ultra vires (void)
Ultra vires transactions	Directors may be personally liable for losses
Regulated sector without proper objects	License/registration may be denied or revoked

Important Warning

Any transaction undertaken by a company outside its object clause is ultra vires and can be challenged. Directors may be held personally liable for any losses. Always ensure your MoA covers all business activities you pursue.

Why Choose IncorpX for Object Clause Amendment?

Expert Team: Qualified CS/CA professionals with extensive MCA filing experience.

Professional Drafting: We draft comprehensive object clauses covering all business needs.

Transparent Pricing: Clear fees with no hidden charges.

Complete Documentation: We prepare all resolutions, notices, and amended MoA.

Dedicated Support: Personal manager to guide you through the process.

Zero Rejection: Quality review ensures accurate, rejection-free filings.

FAQs on Object Clause Amendment

Object clause amendment is important for business expansion. Here are answers to frequently asked questions about object clause amendment:

Ultra vires means "beyond powers." Any act or contract by a company that is outside its defined objects is ultra vires and can be challenged as void. It can expose directors to personal liability.

Form MGT-14 is filed with MCA to register Special Resolutions with ROC. It's required for object clause amendment, name change, and other alterations requiring Special Resolution.

No, under the Companies Act, 2013, Central Government approval is not required for altering object clause. A Special Resolution passed by shareholders is sufficient.

You can add most business activities through object amendment. However, certain regulated activities (NBFC, insurance, real estate, etc.) require separate licenses and specific object clause wording.

Form MGT-14 must be filed within 30 days of passing the Special Resolution. Late filing attracts additional fees of ₹100 per day of delay.

Generally, no stamp duty is applicable on object clause amendment (unlike capital increase). Only MCA filing fees are payable.

The complete process typically takes 15-20 working days including EGM notice period, meeting, and MCA filing and approval.

Yes, the main object can be changed by passing a Special Resolution and filing MGT-14. There are no restrictions on altering any part of the object clause.

If you're adding activities that require licenses (GST for new category, trade license, etc.), those registrations should be updated or obtained after the MCA filing is approved.

Operating outside defined objects is ultra vires. Contracts may be void, directors can be personally liable, and the company may face regulatory action in licensed sectors.

Yes, you can remove or delete object clauses that are no longer relevant through the same Special Resolution and MGT-14 filing process.

There is no statutory limit on the number of objects. However, objects should be clearly defined and relevant. Overly generic objects may be questioned by ROC.

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I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!

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Object Clause Amendment in India

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Need to Change Your Company's Business Objects?

HERE'S HOW IT WORKS

1. Fill the Form

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3. Amend Object Clause of MoA

SIMPLE & TRANSPARENT PRICING

Object Clause Amendment Package

IncorpX Prime

Key Benefits

Important Notes

OBJECT CLAUSE AMENDMENT - AN OVERVIEW

Understanding the Object Clause in MoA:

Important Note

Key Features of Object Clause Amendment:

Reasons to Amend Object Clause:

Business Diversification

New Opportunities

Remove Obsolete Activities

Regulatory Compliance

Investor Requirements

Avoid Ultra Vires Acts

Documents Required for Object Clause Amendment:

Step-by-Step Object Clause Amendment Process:

Step 1: Identify Required Changes

Step 2: Board Meeting

Step 3: Issue EGM Notice

Step 4: Conduct EGM

Step 5: Prepare Amended MoA

Step 6: File Form MGT-14

Step 7: Approval & Effect

Penalties for Non-Compliance:

Important Warning

Why Choose IncorpX for Object Clause Amendment?

FAQs on Object Clause Amendment

Change Business Activity in various States

Change Business Activity in various Cities

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