This was an interesting question which I received on Quora here. How can I start a company with no capital? We will have a detailed discussion here.
Category Archives: Chapter II – CA2013
Sub-section (3) of Section 12 of the Companies Act, 2013 is one of the most non-compliant sub-sections of section 12 if not of the Companies Act, 2013. It may be noticed that most medium and small size companies do not comply with this important provision.
A company shall display its name and other information in accordance with this subsection. This non-compliance may attract penalty up to one lakh rupees.
This is one of the practical question, promoters and professionals facing at the time of incorporation.
Seemingly, ease of doing business become a childish target for the Government of India. There is a practical gap of only 60 days between the Companies (Incorporation) Amendment Rules, 2018 and the Companies (Incorporation) 2nd Amendment Rules, 2018. The hardship caused by the earlier amendment is not attempted to cure by this amendment. Once again, there is a half-hearted effort lacking full automation of name approval. We discuss Rule 9 of the Companies (Incorporation) Rules, 2014 amended twice in a single calendar quarter.
The Companies Amendment Act, 2017 read with notification S. O. 630(E) dated 9th February 2018 reintroduced unlimited liability for members in certain cases. A similar provision was there earlier in the companies Act, 1956.we have no intention to go into history, but to examine this provision in light of justice and equity.
The Companies Amendment Act, 2017 proposed to amend the definition of Associate Company with effect from the date of notification of section 2(i) of the Amendment Act.
UPDATE: Notification S.O. 1833(E) dated 7th May notified this amendment with effect from 7th May 2018