What are the compliance requirements after a company is registered?

After registering a company in India, compliance requirements include: Appointment of a Statutory Auditor within 30 days, Filing of Annual Returns (Form MGT-7), Filing Financial Statements (Form AOC-4), Conducting at least four Board Meetings annually, Income Tax Filing (ITR-6), Maintenance of Books of Accounts, and GST Filing if applicable.

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: The company has at least one resident director who has lived in India for at least 182 days in the previous calendar year, they obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC), and they provide required documents including a passport, proof of address, and a consent declaration.

How can I conduct a company name search online?

To conduct a company name search: Visit the MCA Name Availability Tool on the MCA website, enter your proposed company name in the search bar, review similar names displayed, and ensure compliance with Companies Act 2013 naming guidelines. You can also 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 is the maximum amount of share capital a company is permitted to issue as per its Memorandum of Association (MOA). Paid-Up Capital is the actual amount received by the company from shareholders for the shares issued. For example, if authorized capital is ₹10,00,000, shares cannot exceed this value. If paid-up capital is ₹5,00,000, shareholders have contributed that amount.

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

The cost depends on the type of company. Government Fees include Name Reservation (₹1,000) and SPICe+ Form Filing (₹2,000 for authorized capital up to ₹10 lakh). Professional Fees range from ₹5,000-₹20,000. Additional Costs include Digital Signature Certificate (DSC) at ₹500-₹2,000 per director. PAN and TAN are included in SPICe+ filing.

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 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, and in severe cases the company may be struck off the MCA register.

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%.

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?

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

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 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. Using the SPICe+ form can speed up the process since it combines multiple services like PAN, TAN, and GST registration.

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 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 or utility bills for address proof, MOA and AOA, and proof of office address and rent agreement.

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.

What is the process for registering a company in India?

The process includes: 1) Obtain Digital Signature Certificate (DSC) for proposed directors, 2) Obtain Director Identification Number (DIN), 3) Reserve company name through MCA portal, 4) Prepare and file SPICe+ form with required documents, 5) Pay government fees, and 6) Receive Certificate of Incorporation upon approval.

Can I convert my sole proprietorship or partnership into a private limited company?

Yes, you can convert a sole proprietorship or partnership into a private limited company by following the conversion process outlined by the MCA, which includes obtaining DIN for directors, reserving a new company name, and filing the necessary forms along with the required documents.

What are the ongoing compliance requirements after company registration?

Ongoing compliance includes: 1) Annual General Meeting (AGM) within 6 months of financial year-end, 2) Filing of Annual Returns (Form MGT-7) and Financial Statements (Form AOC-4), 3) Income Tax Return filing (ITR-6), 4) GST returns if applicable, 5) Maintaining statutory registers and records, and 6) Complying with labor laws and other applicable regulations.

How can I check the status of my company registration application?

You can check the status of your company registration application by visiting the MCA website, navigating to the 'MCA Services' section, and using the 'Track Application Status' feature by entering your application number or CIN.

What are the common reasons for company registration rejection?

Common reasons for rejection include: 1) Name similarity with existing companies, 2) Incomplete or incorrect documentation, 3) Non-compliance with naming guidelines, 4) Invalid DSC or DIN, and 5) Issues with the proposed registered office address.

Can I register a company without a physical office address?

No, a physical office address is required for company registration in India. However, you can use a virtual office address as long as it is a legally valid address and you have the necessary documentation to verify it.

What is the difference between a private limited company and a public limited company?

A private limited company has restrictions on share transfers and a maximum of 200 shareholders, while a public limited company can offer shares to the public and has no limit on shareholders. Public companies are also subject to more stringent regulatory requirements.

How do I choose a unique name for my company?

To choose a unique name, ensure it is not identical or similar to existing companies by using the MCA Name Availability Tool. Follow naming guidelines such as avoiding offensive words, ensuring it ends with 'Private Limited' for private companies, and considering trademark availability.

What are the tax implications of registering a company in India?

Tax implications include corporate tax rates (30% or concessional rates), Goods and Services Tax (GST) if applicable, Dividend Distribution Tax (DDT) on dividends paid to shareholders, and compliance with transfer pricing regulations for international transactions.

Can I register a one-person company (OPC) instead of a private limited company?

Yes, you can register an OPC if you are an individual entrepreneur who wants to start a business without partners. An OPC allows for single ownership while providing limited liability protection.

What is the role of directors in a private limited company?

Directors are responsible for managing the company's affairs, making strategic decisions, ensuring compliance with legal requirements, and acting in the best interest of the company and its shareholders.

How do I file annual returns and financial statements after registering my company?

Annual returns and financial statements can be filed through the MCA portal using Form MGT-7 for annual returns and Form AOC-4 for financial statements. Ensure you have all necessary information and documents ready before filing.

What are the advantages of registering a company in India?

Advantages include limited liability protection, separate legal entity status, easier access to funding and investment, tax benefits, enhanced credibility with customers and partners, and perpetual succession.

How can I get a Digital Signature Certificate (DSC) for company registration?

You can obtain a DSC from government-approved certifying authorities in India. The process typically involves submitting an application form along with identity and address proof documents, and paying the required fee.

What is the significance of a Director Identification Number (DIN) in company registration?

A DIN is a unique identification number assigned to individuals who wish to become directors of a company. It is mandatory for all directors and is used to track their involvement in various companies.

Can I register a company in India if I am a foreign national?

Yes, foreign nationals can register a company in India as long as they meet the requirements, such as having at least one resident director and obtaining the necessary documentation like DIN and DSC.

What are the steps involved in registering a private limited company?

Steps include: 1) Obtain DSC for proposed directors, 2) Obtain DIN, 3) Reserve company name, 4) Prepare MOA and AOA, 5) File SPICe+ form with required documents, 6) Pay government fees, and 7) Receive Certificate of Incorporation.

How do I ensure compliance with the Companies Act after registering my company?

Ensure compliance by conducting regular board meetings, maintaining statutory registers, filing annual returns and financial statements on time, adhering to tax regulations, and keeping up-to-date with any changes in laws that may affect your business.

What are the common challenges faced during company registration?

Common challenges include name approval issues, document verification delays, technical glitches on the MCA portal, understanding complex legal requirements, and ensuring all compliance criteria are met.

Can I register a company online without visiting any government office?

Yes, you can register a company online through the MCA portal using the SPICe+ form which allows for digital submission of all required documents and payment of fees without needing to visit any government office.

What is the importance of a registered office address for company registration?

A registered office address is important because it is the official address of the company where all communications and notices from the government and other entities are sent. It must be a physical address in India and cannot be a P.O. Box.

What are the benefits of using a virtual office address for company registration?

Using a virtual office address can provide benefits such as cost savings on physical office space, flexibility in location, and access to professional services like mail handling and call forwarding. However, it is important to ensure that the virtual office address is legally valid and meets the requirements for company registration.

What is the process for reserving a company name?

To reserve a company name, you need to use the MCA Name Availability Tool on the MCA website. Enter your proposed company name and check for availability. If the name is available and complies with naming guidelines, you can proceed to reserve it by filing the necessary form and paying the required fee.

How do I prepare the Memorandum of Association (MOA) and Articles of Association (AOA)?

The MOA should include the company's name, registered office address, objectives, liability of members, share capital details, and subscriber information. The AOA should outline the rules for internal management, including share transfer procedures, meeting protocols, and director responsibilities. You can use templates or seek professional help to ensure they meet legal requirements.

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“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.”

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First-year compliance bundle included: auditor setup, ROC filings, and annual returns.

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 in Hosur:

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 in Hosur:

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 in Hosur:

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 in Hosur:

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 in Hosur:

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 in Hosur?

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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Need to Change Your Company's Business Objects in Hosur?

HERE'S HOW IT WORKS

1. Fill the Form

2. Call to discuss

3. Amend Object Clause of MoA

SIMPLE & TRANSPARENT PRICING

Object Clause Amendment Package in Hosur

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 in Hosur:

Reasons to Amend Object Clause in Hosur:

Business Diversification

New Opportunities

Remove Obsolete Activities

Regulatory Compliance

Investor Requirements

Avoid Ultra Vires Acts

Documents Required for Object Clause Amendment in Hosur:

Step-by-Step Object Clause Amendment Process in Hosur:

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 in Hosur:

Important Warning

Why Choose IncorpX for Object Clause Amendment in Hosur?

FAQs on Object Clause Amendment

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Expert Consultation in Minutes

Expert Consultation in Minutes