Category Archives: Chapter II – CA2013


Starting of a company without capital

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.

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Display of Registered Office Address and Information

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.

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Part – I of Chapter XXI deals with companies authorizes to register under this Companies Act, 2013.

Any company formed under any law for the time being in force duly constituted according to law and consisting of two or more members may at any time register under this Act as a company. This registration shall not be invalid by reason only that it has taken place with a view to the companies being wound up. We have discussed these provisions of Section 366 of the Companies Act, 2013 as amended and updated earlier here.

The Companies (Authorised to Registered) Rules 2014 supplement the provisions of the Companies Act 2014. Till 5th July 2018 with effect from 15th August 2018 these rules had no provision of conversion of society and trust to the company as discussed earlier here.

In this series of posts, we will discuss these rules as amended by the Companies (Authorised to Registered) 2nd Amendment Rules, 2018.

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Option for Verification of Registered Office

What kind of lease deed should I make for a new private limited company before incorporation?

This is one of the practical question, promoters and professionals facing at the time of incorporation.

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Naming of a company – Running of RUN

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.

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Triggering Unlimited Liability for Members

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.

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Associate Company

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

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