What is a company? Company is an association of persons registered under the Companies Act, 1956. It has a legal personality separate from the persons who own or manage it. What are the different types of companies? A company can be a Private Limited Company, a Public Limited Company, a Unlimited Liability Company or a Non - profit Organizations (section 25 company) What are the salient features of a Private Limited Company? Minimum 2 members and 2 directors are required to form a private company. It can have a Maximum of 50 members and the Name shall end with Private Limited. What are the salient features of a Public Limited Company? Minimum 7 members and 3 directors are required to form a Public Limited Company. There is no restriction on maximum number of members and the name shall end with the word Limited. What is a Non profit Organization (section 25 company)? The Object of a section 25 company is not to make profit. It is formed for the purpose of promoting commerce, art, science, religion, charity, etc. Registration requires prior permission of central government. The words Private Limited or Limited can be dispensed from the name. What is a Foreign company? A foreign company is one that is registered outside India, under a foreign law other than Indian law. How can a Foreign company enter into India? Subject to approval of RBI, a foreign company can open a branch/liaison office in India. Upon receipt of RBI approval, such branch/liaison office has to be registered with the office of Registrar of Companies, New Delhi. What is meant by the phrase limited liability? Limited liability means the Liability of a member is limited to the extent of his shareholding in the company. Shareholder is not personally liable for the liabilities of the company. The member's liability is limited to the unpaid amount on shares registered in his name. What are the main features of the name of a company? Name shall be unique for registration. The name of a Private/Public company shall end with the words Private Limited or Limited respectively. Name shall comply with the guidelines of name availability prescribed by the Ministry of Corporate Affairs. What are the objects of a company? A company is promoted to carry certain activities. Such activities are called objects. The main object of company should be detailed in memorandum of association of company. What is capital of a company? The Contribution of shareholders towards the corpus of the company is called capital of the company. Capital is divided into smaller units called shares. What is Authorized/Registered capital of a company? It is the upper ceiling limit of capital which a company can issue shares and collect money from shareholders. Authorized capital can be enhanced by a resolution at a meeting of the shareholders. What is issued capital? That portion of authorized capital which the company has issued to its shareholders is called issued capital. What is called up capital? That portion of issued capital that the shareholders are requested to pay to the company is called up capital. What is the role of a director in a company? A director is responsible for all legal compliance under various laws and the management of affairs of the company. What is the Memorandum of Association? Memorandum of Association is the Charter document, by which a company is registered. It contains the name of the company, state in which the registered office of the company is situated, objects of the company, Capital and subscribers/promoters/first shareholders of the company What is Articles of Association? The Articles of Association is the bylaws for the internal management of a company which defines the relationship of members and directors and also restricts powers of directors, transfer of shares etc. What is registered office of a company? The Registered office is the principal place of business and is used for all official communication of the company. What is Corporate Identification Number (CIN)? CIN is the unique number issued by the Ministry of Corporate Affairs to a company registered in India.

What is the procedure of obtaining DIN? The process of obtaining DIN consists of following steps: Step I : Obtain provisional DIN. The applicant is required to fill-up and submit form DIN-1 online for obtaining provisional DIN. Step II : Pay Din application fee. The applicant is required to login to the MCA portal and click on 'Pay Miscellaneous fee' and then make the payment of fee after entering the provisional DIN. Form DIN-1 will be processed only after the DIN application fee is paid. Step III : Dispatch of DIN application. After processing of Form DIN-1, the applicant is required to take a print-out of the same. Fill the service Request Number (SRN) of the fee paid. Sign the DIN application form manually and paste a good resolution photograph in the space provided. Attach the photocopies of the 'Proof of Identity' and the 'Proof of Residence' with DIN application form and tick the relevant checkbox against the document name. Get the photograph and the attached supporting documents attested from an approved authority as prescribed in form DIN-1. Complete set of documents is required to be sent to MCA DIN Cell at Noida, within 60 days from the date of generation of provisional DIN online. Step IV : Processing of DIN application MCA DIN Cell will scrutinize the above documents and if found in order, the provisional DIN is approved and activated in the system. If there is any defect in the DIN application, the provisional DIN is rejected. DIN approval/ rejection letter is generated and sent by post to the applicant. Step V : Intimate approved DIN to your Companies On approval of DIN, intimate DIN to all the company (ies). Step VI : Post-approval changes in particulars of DIN-1 If there is any change in the particulars submitted in form DIN-1, File form DIN-4 for intimating the changes in the particulars within 30 days. What things should be taken care of while filling form DIN-1? No prefixes like Mr. / Ms. / Kumari / Shri etc should be used in filling the applicant’s name. Enter the applicant’s name and father’s name in full and do not use abbreviations, even if the ID proof contains the name in abbreviated form. The particulars filled in form DIN-1 should match with the details given in the supporting documents to be submitted along with DIN application. What are the documents required to be filed for allotment of DIN? DIN Form-I (with provisional DIN generated) along with a high resolution photograph of the applicant and his signatures appended at the appropriate place Proof of Identity, Proof of Residence, Certification of the photograph and the photocopies of proofs by an approved authority The particulars of the certifying authority along with his seal must be clearly indicated. What type of information should an ID proof contain? ID proof must be currently valid and issued by the prescribed authorities. It should necessarily contain following information: Applicant's name with photograph, Father's Name, Date of Birth.

What is Digital Signature? A digital signature is a type of asymmetric cryptography used to simulate the security properties of a hand written signature on paper. What is Digital Signature Certificate (DSC)? Digital Signature Certificate (DSC) is the digital equivalents of physical or paper certificates. It can be used to sign documents digitally, to access information on internet or to prove identity electronically. A DSC is issued by a certifying authority that has been granted a license to issue a DCS. A DSC is issued with one or two year’s validity. These are renewable on expiry of period of initial issue. Can I do e-filing of documents if I do not possess a DSC? It is mandatory to have a valid Digital Signature Certificate for e-filing the forms on MCA portal. What are the safety precautions to be taken while using a Digital Signature? The media carrying the digital signature should be kept safely and the password should not be disclosed to anybody.

What is Permanent Account Number (PAN)? PAN is a ten-digit alphanumeric identifier, issued by Income Tax Department. The Department allots a unique PAN to every assessee e.g. individual, firm, company etc. Who can apply for PAN? Every person, who is required to file a Return of Income (ROI) must have a PAN. Further, quoting of PAN is mandatory for entering into various economic and financial transactions. Further, a person can for PAN voluntarily also. How can a company apply for PAN? A person can apply for PAN by filling up Form 49A: Application for Allotment of Permanent Account Number (PAN application form). PAN application can also be made online. What are the charges to be paid while submitting Form 49A? A fee of 94 (including service tax) is to be paid to TIN-FCs as processing fees while submitting Form 49A. If address for communication is a foreign address, the fee payable is 744 (including service tax). What are the required documents to be submitted along with the PAN Application Form by a company? The following documents are required to be submitted with the PAN application form: Having office of their own in India: 1. Type of Applicant Documents for Proof of Identity and Proof of Address Company
2. Copy of certificate of registration issued by Registrar of Companies. Having no office of their own in India: 1. Type of Applicant Documents for Proof of Identity and Proof of Address Company
2. Copy of registration certificate of the respective country duly attested by Indian Embassy in the country where applicant is located or Copy of certificate of registration with the competent authority in India or Copy of approval issued by the competent authority in India or Copy of the accompanying documents along with the approval issued by competent authority in India or Copy of the application (duly acknowledged) made by the applicant before the competent authority in India.

What is Limited Liability Partnership (LLP)? LLP is an alternate form of business that offers the benefits of both limited liability of company and flexibility of partnership. Is LLP a totally new concept? No, LLP form of structure is already prevalent in many nations like US, UK, Australia, etc. What is the difference between traditional Partnership Firm and LLP? Under LLP, liability of a Partner is limited to his agreed contribution only and no Partner is liable on account of independent or unauthorized acts of other Partners. However, under traditional Partnership, all Partners are jointly and severally responsible for all claims against the firm and such claim can be enforced against personal assets of the Partner. Which business can be done by LLP? LLP can do any type of business (manufacturing, trading, commercial or professional service) with minimum two Partners. Can LLP be formed for charitable purpose? No, LLP can be formed only for doing business with the objective of earning profit. Which law governs LLP? LLP is governed by Limited Liability Partnership Act, 2008 and Limited Liability Partnership Rules, 2009. Whether Indian Partnership Act, 1932 applies to LLP? No. How many persons can form LLP? Minimum 2 members are required to form LLP. There is no limit on maximum number of Partners. Can body corporate be a Partner in LLP? Yes Who can become a Partner? An individual or a body corporate can be partners in LLP. However following individuals cannot become Partners: Person of unsound mind, Undischarged insolvent, Person who has applied to be adjudicated as insolvent and such application is pending. What are the requirements in respect of Designated Partners (DP)? Minimum 2 DP’s (individuals) required, DP responsible for regulatory and legal compliances besides the liability as Partner What is LLP agreement? LLP agreement governs mutual rights and duties Between Partners inter se Between LLP and its Partners Whether LLP agreement is mandatory? No, LLP agreement is not mandatory. Rather, in the absence of such agreement, the LLP would be governed by the framework provided in Schedule 1 of Limited Liability Partnership Act, 2008 After the incorporation of LLP, is the change in Partners allowed? At the time of incorporation of LLP, persons who subscribed to the 'incorporation document' shall be the Partners. Subsequent to incorporation, as per the conditions and requirements of LLP, new Partners can be admitted. What is the procedure for a Partner to resign from LLP? A Partner can resign as per the LLP agreement and if not provided, by giving notice of 30 days in advance. What are the taxation laws for LLP in India? Rules for taxation of LLPs under the Income Tax Act, 1961 are yet to be notified by the Ministry of Finance. Can an existing company or partnership firm convert into LLP? Yes What is Director Identification Number (DIN)? It is an unique identification number (UIN) allotted by inistry of Corporate Affairs to an individual who is an existing director of a company or intends to be appointed as a director of a company pursuant to section 266A & 266B of the Companies Act, 1956 (as amended vide Act No 23 of 2006).