Shareholders
and Directors
•
|
There
is no need to appoint local director to incorporate
a company in India. |
• |
Foreign
nationals can incorporate company in India and
hold foreign equity to the extent of 100%, which
is dependent upon sector in which company will
operate and is subject to approval from either
Reserve Bank of India (RBI) or Foreign Investment
Promotion Board (FIPB). |
Memorandum
& Articles of Association
The Memorandum of Association states the main, ancillary
/ subsidiary and other objects of the proposed company.
The Article of Association contains the rules and procedures
for the routine conduct of the proposed company. It
also states the authorized share capital of the proposed
company and the names of its first / permanent directors.
After that Memorandum of Association and Article of
Association are required to be stamped.
A stamp duty is required to be paid on Memorandum of
Association and Article of Association. The stamp duty
depends on the authorized share capital.
Share Capital
Shares must be expressed in a fixed amount. "No
par value" or "bearer" shares are not
permitted. Shares to be subscribed must be expressed
in Indian rupees.
Accounts
& Auditors
Every company is required to appoint an auditor each
year at its AGM. An auditor must be qualified by virtue
of the Institute of Chartered Accountants of India Act
1949 and completely independent of the company. Audited
accounts of the company serve as tool for various stakeholders
like creditors, bankers, investors and revenue authorities.
Public Filings
The names and personal particulars of the directors
and secretary, register of charges, share capital, registered
office address etc. must be filed with the Companies
Registry for public inspection upon incorporation and
if there is any change thereafter.
Annual Meetings
An annual general meeting (AGM) must be held once in
every financial year and not more than 6 months after
the end of financial year. However, a company need not
hold its first AGM until 18 months of its incorporation.
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a quote |
