Taking the initiative to put one’s ideas into action can be possible through the formation of a registered and credible company after meeting all legal compliances. There are some general and specific legal requirements for the formation of a company. A competent and experienced corporate lawyer is the one who will not only guide and assists you for the legal formalities pertaining to the commencement of a business but is going to play his role in further business processes too. Here are some facts which clarify why legal assistance in company formation, registration, compliance, and smooth sailing is necessary.
Formation of Company under Section 3 of Companies Act, 2013
Section 3 of the Companies Act, 2013 deals with the formation of a company. It states that:
A company may be formed for any lawful purpose by-
(a) Seven or more persons, where the company to be formed is to be a public company;
(b) two or more persons, where the company to be formed is to be a private company; or
(c) one person, where the company to be formed is to be One Person Company, that is to say, a private company, by subscribing their names or his name to a memorandum and complying with the requirements of this Act in respect of registration.
Conditions for Company Formation under Companies Act, 2013
- Provided that the memorandum of One Person Company shall indicate the name of the other person, with his prior written consent in the prescribed form, who shall, in the event of the subscriber‘s death or his incapacity to contract become the member of the company and the written consent of such person shall also be filed with the Registrar at the time of incorporation of the One Person Company along with its memorandum and articles:
- Provided further that such other person may withdraw his consent in such manner as may be prescribed:
- Provided also that the member of One Person Company may at any time change the name of such other person by giving notice in such manner as may be prescribed:
- Provided also that it shall be the duty of the member of One Person Company to intimate the company the change, if any, in the name of the other person nominated by him by indicating in the memorandum or otherwise within such time and in such manner as may be prescribed, and the company shall intimate the Registrar any such change within such time and in such manner as may be prescribed:
- Provided also that any such change in the name of the person shall not be deemed to be an alteration of the memorandum.
A company formed under subsection (1) may be either-
(a) a company limited by shares; or
(b) a company limited by guarantee; or
(c) an unlimited company.
- Once a company is eligible to be registered as a company, it shall have a memorandum and articles of association in compliance with the provisions of section 3 and section 4 of Companies Act 2013. The incorporation of the company shall be done as per the provisions of section 7 of Companies Act 2013. The documents shall be filed with the Registrar within whose jurisdiction the registered office of a company is proposed to be situated.
- A company shall, on and from the fifteenth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Every company shall have a Board of Directors in accordance with the provisions of section 149, 152 and 154 of Companies Act 2013. The company must have a share capital to run a business.
Active Legal Guidance and Assistance for Startups
Every startup needs the right kind of guidance and legal support in order to achieve success. For every company, it is to be ensured that the memorandum and the Articles of Association are thorough and complete. The laws and regulations must be timely amended based on company evolution. Besides, there should never be any misrepresentation on part of the company, as the directors of the company are held liable for such misrepresentation.
A good and expert corporate lawyer will make sure that the startups get proper direction to be able to establish their business successfully and being on the right side of the law. Besides that, a company law lawyer will provide complete counseling on Startup India Scheme, and on how to seek benefits under the startup India scheme.
Legal Assistance to the Well Established Corporate Companies
A company is an ongoing affair. For the purpose of business, profit, expansion, and continuance, a company takes many decisions on a daily basis. These are the decisions that lead the company to its future. Not to mention, these decisions essentially invite new ties of vivid nature. These ties are nothing but a relation of rights and duties among one another.
Everyone might have heard people distinctly identify the ethical company and unethical company – based on this identification and distinction a company enjoys goodwill or an ill-will. A company that remains on the right side of the law, ethics, and morality, certainly stays for the long run in the hearts and minds of the people it caters to. What makes a company enjoy good reputation has got everything to do with the decisions it is taking and relations it is making
A transparent and forward disclosure of rights and duties, safeguarding against unforeseen circumstances, is the key to a healthy company. At every step, an ethical company needs guidance and support from nothing but the best corporate lawyers who have mastery in the domain and can simplify legalities for the company helping it to attain its maximum potential.
This article is written by Anjali Bisht. The author can be contacted via email at anjali@bnblegal.com
For more information and professional consultation regarding corporate matters, our expert corporate lawyers in Chandigarh can be contacted from Monday to Friday between 10:00 am to 6:00 pm and between 10:00 am to 2:00 pm on Saturdays.
