Formation of Private Limited Company, One Person Company, Creation of Partnership, Proprietorship farm are important activity in a growing economy like India. Apart from Registration of a company or NGO formation, proper Winding-up or Dissolution activities are also important. Concept of Director/Promoter/Shareholder/Trustee/Member and AGM/Resolution/Audit Formalities, Allotment of Share should be clear to an Entrepreneur. Alternate dispute resolution & Arbitration activity reduces a lot of litigation time.
To start any Private Limited company the entrepreneurs need to follow certain steps as per the Company Act and subsequent Rules and processes. Moreover the each steps needs proper documentation and parallel operation so that the Business does not suffer due to lack of Legal Clearance.
It is a new concept in India which has been introduced by the Companies Act 2013. Minimum Share Capital shall be Rs. 1 Lac. It has its own Advantages and Disadvantages.
For budding entrepreneurs with maximum Paid up share capital of Rs.50Lakhs or Turnover of Rs.2 Crores this seems the best options.
Before starting a Company the Roles must be clear. Each role has its own meaning and relevance.
As defined in Company Act 2013, “share” means a share in the share capital of a company and includes stock. By Allotment the ownership is defined. There are certain types of allotment. Any ambiguity and improper allotment will magnify the difficulty in future.
These are certain formalities to be followed as the Business grows. Each has its defined Process as per the Acts and rules.
For small business this is often ignored in haste and creates legal difficulty afterwards.
Alternate dispute resolution has gained widespread acceptance among both the general public and the legal profession in recent years.The process of arbitration can start only if there exists a valid Arbitration Agreement between the parties prior to the emergence of the dispute.Due to extremely slow judicial process, there has been a big thrust on Alternate Dispute Resolution mechanisms in India. While Arbitration and Conciliation Act, 1996 is a fairly standard western approach towards ADR, the LokAdalat system constituted under National Legal Services Authority Act, 1987 is a uniquely Indian approach.
Partnership and Proprietorship are the two most popular forms of business organizations in India. The reason why these two forms of organizations are so popular is because they are relatively easy to set-up and the number of statutory compliance required to be done by these forms of organizations is relatively less.
Company registration has forever been a major part for entrepreneurs looking to set up their businesses in India.Several forms with Mandatory clearances are required to be completed.
NGOs are organizations that usually work towards the promotion of certain causes or the welfare of a target population. Since they function in the non-profit realm, their objectives and modus operandi are often ambiguous compared to for-profit organizations. In order to achieve their objectives, NGOs need to follow a meticulous approach right from the stage of conceptualization.