Company registration and cancellation

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Company formation and its registration are more important aspects, because it ensures uniformity and clarity. The entities can be registered under Companies Act 2013. Company Registration in Chennai says following are the types of companies that can be registered.

They are: Private limited, Partnership, OPC, Section 8. Private limited firm is something special and the most popular type of corporate firms . The main advantage is the business and personal assets are separated. If there happens any loss, then the investment made is liable and not the personal assets. And this private limited firm can be of three types.

Company limited by shares, company limited by guarantee and unlimited company. Partnership firm can be described by the name itself. Company Registration in Chennai says that here at least two persons needed to start a firm. So two persons agree upon sharing both the profits and losses. Another kind of partnership firm is LLP. It was introduced in 2009 as a business model. OPC was introduced in Companies Act 2013. As the name implies only one person is needed to form an entity. You don’t need to search for another person. You may stand on your legs. Section8 is a non-profit organisation. Its main objective is to promote arts, commerce, charity, education etc.

Registration and cancellation policy

Company Registration in Chennai states that company is referred as an artificial person. So incorporation of a entity gives full protection to your firm under the laws. The pre and post incorporation contracts are needed. The promotors actually enter into various types of contracts. And these contracts are made in their own names. So it is called as promoter’s contract or pre incorporation contract. The promoters enter into contracts on behalf of the entity.

The company should ratify the contracts only then the benefits can be consumed. So to ratify the pre incorporation contracts two methods are needed. Company Registration says that firstly accept the contracts through passing a resolution and by novation of the contract. Novation of the contract means that substituting the existing contract with new one. This substitution can be done either between same parties or between different parties. So the old contract will be dissolved. Mostly in India private limited company rely on pre incorporation contract.

Post Incorporation Contract

Company Registration says about post incorporation contract. The post incorporation formality needs corporate stationary, applying for company PAN, opening a bank account for the company, appointment of auditor and the commencement of the business certificate. Readers may also have a question; these much of formalities needed to run the company and whether the company registration would be cancelled? Yes. The Company Registration in Chennai says that the entity can also be removed from MCA.

First method is FTE mode. It is called as Fast Track Exit. If you have to quickly exit from the MCA you may use this option. This can be mentioned in Section 560of Companies Act 1956. To exit under FTE you have to fill the form of FTE in MCA website. On receiving the application the company’s name will be displayed on the website. It is available for a specific time of 30 days. It is allowed to be in the website for 30 days to see whether there are any objections for the revoke of the firm. After 30 days the registrar will give the certificate for the closure.

Documents required for the closure of the company

Company Registration & Cancellation | company incorporation

Company Registration in Chennai states that following documents are required to the closure of the company. Approval letter from the board of directors should be given. All bank account details are needed, affidavit on a stamp paper should be given with all details like the entity has nil assets and liability, and it has no legal dues, the director’s vow on the closure of the company. After this the directors should provide indemnity bond. And it must be witnessed by two people. The legal claims should be resolved. The other method is because of dormant status. A company is said to be dormant if there are no financial transactions, no functional operations and not filled financial statements and annual returns. So it in short means that only if a entity is registered it can be cancelled.

Company Registration in Chennai states that any company is not begun to get closure. It should always have good foresight of growth. Hence wrong people should not be included for the business, there must be enough funding, and you should be aware of the legal rules which save you from all type of problems. So right from trademark registration to the firm registrations you should be aware of all these rules. You should also analyse the competitors and should have consistent growth. Most importantly you should be updated with latest technologies and also you should make a visible and flexible plan. By conducting meetings you may know the requirements of the employees; because the employees are the basis of an organisation.