Companies Act, 2013 B K SHARMA ACA, FCS, LL.B. B K Sharma & Associates Company Secretaries Former Chairman, NIRC of ICSI [email protected] M-9314517929

Under the Companies Act, 2013 & Companies Rules, 2014

Companies Private Company One Person Company Small Company Public Company Limited by Shares/ Guarantee /Unlimited Foreign Co. / Part XXI Co. / Section 8 Co. One Person Company concept has been introduced for the 1 st time.

Private Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 Section: 2(68) Same as previous minimum paid-up capital of one lakh rupees or such higher paid- up share capital as may be prescribed and which by its articles: Same as previous (i ) It also restricts the right to transfer its shares; Section: 3 (1)(iii) means a company which has a minimum paid-up capital of one lakh rupees or such higher paid- up capital as may be prescribed and which by its articles: (a) restricts the right to transfer its shares, if any;

contd Private Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 (ii) except in case of One Person Company, limits the number of its members to 200; In the counting of 200, what shall not be included is: Same as previous (b) limits the number of its members to 50; (It is to be noted here that where 2 or more persons hold one or more shares in a company jointly, they are to be treated as a single member) In the counting of 50, not including (i) persons who are in the employment of the company ; and

contd Private Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 Same as previous (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and

contd Private Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 (iii) prohibits any invitation to: the public to subscribe for any securities of the company; (Mark the word securities) The point of prohibiting invitation or acceptance of deposits is not there (Refer draft rules-Acceptance of Deposits by Companies) (c) Prohibits any invitation to the public to subscribe for any shares in, or debentures of the company. (d) Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives

Public Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 Section 2(71) Means a company which (a) is not a private company (no change) (b) has a minimum paid-up share capital of: Rs. 5 lakhs; or such higher paid-up capital, as may be prescribed Section: 3(1)(iv) Means a company which - (a) is not a private company; (b) has a minimum paid-up share capital of: Rs. 5 lakhs; or such higher paid-up capital, as may be prescribed

contd.Public Company COMPANIES ACT, 2013 COMPANIES ACT, 1956 Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles (c) is a private company which is a subsidiary of a company which is not a private company

Formation of Company[Section 3] A company may be formed for any lawful purpose by- (a) 7 or more persons, in case of public company; (b) 2 or more persons, in case of private company; or (c) 1 person, in case of One Person Company. A company may be either- (a) a company limited by shares; or (b) a company limited by guarantee; or (c) an unlimited company

Definition-A Company which has only ONE person as a member; OPC is a Private Company (section 3(1)(c)); Only natural person, who is an Indian citizen and resident in India can become a member/nominee; No Person can incorporate more than One OPC or become Nominee in more than One OPC. Minor shall not become Member/ Nominee of OPC. OPC can not be Incorporate/converted into Sec. 8 Co. OPC can not carry our NBFC Investment Activities. Name of the person nominated shall be mentioned in MOA. One Person Company(OPC)

Nomination in Form No. INC 2 along with consent of such nominee in Form No. INC 3 submitted at the time of incorporation of OPC. Nominee may withdraw or member nominating may withdraw. New nominee to be nominated within 15 days of the receipt of notice of withdrawal. Company to file the name of new Nominee with the ROC within 30 days of receipt of notice of withdrawal [Form INC 4 ]; Nominee becoming SOLE MEMBER on death of sole member/ incapacity to contract. New Member need to nominate other Person as Nominee within 15 days of becoming a member. The Company shall file with ROC such cessation as well as nomination within 30 days of the change; One Person Company(OPC)

Penalty [Rule 5] If One Person Company or any officer of the OPC contravenes the provisions of the rules, then: OPC or any officer of the OPC shall be punishable with: fine which may extend to Rs.10,000 and with a further fine which may extend to Rs.1000 for every day after the first during which such contravention continues One Person Company (OPC)

Mandatory Conversion of OPC into Pvt. or Public Ltd. Co., if paid-up share capital exceeds Rs.50 lacs; or average annual turnover exceeds Rs. 2 crores (in immediately preceding 3 consecutive FYs) Such OPC shall be mandatorily required to convert itself within 6 months - of the date on which its paid up share capital is increased beyond Rs.50 lacs; or of the last day of the relevant period during which its average annual turnover exceeds Rs.2 crores; or into either a PRIVATE or PUBLIC company; Conversion of OPC (Rule 6)

In case of Private Company with Minimum of TWO Members and TWO Directors; or In case of Public Company with Minimum of SEVEN Members and THREE Directors OPC shall alter its MoA and AoA by passing Ordinary Resolution/ Special Resolution (also refer section 122(3)). Notice to ROC in Form No. INC.5 within 60 days, informing that It has ceased to be a OPC and that it is now required to convert itself. For conversion to any class of companies-compliance with Section 18 of the Act Conversion of OPC (Rule 6)

Suo-motu conversion : OPC can get itself converted into a Private or Public Company after Increasing the Minimum Number of Members & Directors to TWO in case of Private Company Increasing the Minimum Number of Members SEVEN & Directors to THREE in case of Public Company Maintaining the minimum paid-up capital as per requirements of the Act; OPC has to alter its MoA and AoA by passing Ordinary Resolution/ Special Resolution as per Section 122 (3). For conversion to any class of companies- Compliance with Section 18 of the Act is required. Conversion of OPC [Rule 6 (6)]

Memorandum [Section 4] The memorandum of a company shall state: (a) the Name of the company with the last word- Limited in the case of a public limited company; Private Limited in the case of a private limited co. (b) the State in which the Registered Office of the company is to be situated; (c) the objects of the company:- Main Objects and Incidental objects to attain Main Object. Now there will be no Other Objects in MOA.

Memorandum [Section 4] (d) the LIABILITY of members of the company, whether limited or unlimited, and also state- (i) in the case of a company limited by shares: that liability of its members is limited to the amount unpaid, if any, on the shares held by them; and (ii) in the case of a company limited by guarantee: That liability of its members is limited to the amount up to which each member undertakes to contribute to assets of the company in the event of its winding up To the cost, charges and expense of Winding up

Memorandum [Section 4] (e) in the case of a company having a share capital, (i) the amount of share capital with which the company is to be registered and the division thereof into shares of a fixed amount; and (ii) the number of shares each subscriber to the memorandum intends to take; (f) in the case of OPC, the name of the person who shall become the member of the company in the event of death of the subscriber.

Name of Company [Section 4(2)] The name stated in the memorandum shall not- (a) be identical with or resemble too nearly to the name of an existing company registered under this Act or any previous company law; or (b) be such that its use by the company (i) will constitute an offence under any law; or (ii) is undesirable in the opinion of the CG.

Name of Company [Section 4(3)] A company shall not be registered with a name which contains- (a) any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of: - Central Government (CG); Any State Government; Any local authority; Corporation or Body constituted by the CG or any State Government (b) such word or expression, as may be prescribed; the previous approval of the Central Government is requited to be obtained for the use of any such word or expression.

Undesirable Names (Rule 8) Identical names: In considering whether identical or not, the below mentioned points shall be disregarded: Private, pvt., Pvt, (P), Limited, Ltd., LLP, Limited Liability Partnership; Company, and Company, co., co, corporation, corp, corpn, corp.; Plural version any of the words Type and case of letters, punctuation marks, spacing between letters; Joining words or separating the words Use of different tense or number of the same word

Undesirable Names (Rule 8) Identical names: Using different phonetic spellings of spelling variations (e.g. P.Q. written as Pee Que Industries Limited) Misspelled words (like Concept or Koncept) Addition of internet related designation (like.com,.edu,.net,.gov,.org,.in) Addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. or adding the name of the place (may be allowed if NOC from Existing Co. by way of Board Resolution) Different combination of the same words (e.g. Builders & Contractors Limited/ Contractors & Builders) Hindi or English Translation/ Transliteration of existing Company/ LLP

Undesirable Names (Rule 8) Undesirable names: If it attracts the provisions of sec 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 Includes the name of a registered trade mark Includes any word or words offensive to any Section of People Includes the name of a TM which is the subject matter of application for registration Not in consonance with the principal objects of the Co. Identical or too closely resembles the name of the Company/ LLP incorporated outside India and reserved by such Company ( In case of Subsidiary Co. in India of a Foreign Company, the Original name of Holding Co. with addition of word India may be allowed).

Undesirable Names (Rule 8) Undesirable names: Indicating a separate type of business constitution e.g. sehkari, trust, HUF, society, Plc., Inc, firm etc. Implying connection with embassy or consulate etc. Implying patronage of a national hero/ persons held in high esteem Is vague, e.g. ABC Limited Is abbreviated, e.g. DJMO Limited etc. Subsidiary/ Joint Venture/ Associate company can use but shall carry the object of the Company

Undesirable Names (Rule 8) Undesirable names: A period of 2 years have not elapsed from the date of dissolution of the company If company struck off, then only after an elapse of 20 years Identical with/ too clearly resembles the name of a LLP in liquidation or the LLP which has been struck off upto 5 years) Includes Insurance, Bank Stock Exchange, venture capital etc. unless a declaration that the mandated requirements of the respective Act(s) have been complied with If the name State allowed only in case of Govt. Co.

Undesirable Names (Rule 8) Undesirable names: If it only contains the name of a continent, country etc. e.g. Germany Limited The name is only a general one, like Cotton Textile Mills Misleading impression regarding the scope/ scale Name of any foreign country or any city of foreign country (allowed if MOU produced showing business relations) Cannot use name of an enemy country Names combining the name of a foreign country with the use of India, e.g. India Japan (shall be allowed, if government to government participation)

Application for Name Reservation [Section 4 ] A person may make an application, in Form No. INC. 1 along with a fee, to the ROC for the reservation of a name set out in the application (a) the name of the proposed company; or (b) the name to which the company proposes to change its name. Upon receipt of an application the ROC may reserve the name for a period of 60 days from the date of the application No additional 30 days after expiry of its original period.

Effect of wrong/incorrect information in Application After reservation of name, if it is found that name was applied by furnishing wrong or incorrect information, then- (a) if the company has not been incorporated, the reserved name shall be cancelled and the person making application shall be liable to a penalty which may extend to Rs.1 lakh;

Effect of wrong/incorrect information in Application (b) if the company has been incorporated, the ROC may, after giving the company an opportunity of being heard- (i) either direct the company to change its name within a period of 3 months, after passing an Ordinary Resolution; (ii) take action for striking off the name of the company from the register of companies; or (iii) make a petition for winding up of the company.

Section 4(6) 4(6): The memorandum of a company shall be in respective forms specified in Schedule I : Table A : MOA of a Company Limited by Shares Table B : MOA of a Co. Limited by Guarantee and not having share Capital Table C : MOA of a Co. Limited by Guarantee and having share Capital Table D : MOA of an Unlimited Co. and not having share Capital Table E : MOA of an Unlimited Co. and having share Capital

Articles of Association[Section 5] The articles shall contain the regulations for management of the company. The articles shall also contain such matters, as may be prescribed. And of course the company can include such additional matters in its articles as may be considered necessary for its management. The articles may contain provisions for entrenchment to the effect that specified provisions of the articles may be altered only if conditions or procedures as that are more restrictive than those applicable in the case of a SR are met or complied with.

Articles of Association[Section 5] Entrenchment provisions can be made: either at the time of formation; or by an amendment in the AOA For amendments in AOA: in case of private company-the said amendment to be agreed by all the members in case of public company- by Special Resolution

Entrenchment of AOA [Sec. 5 (5)] Entrenchment notice to ROC At the time of Incorporation, the company to give notice to the ROC in Form No. INC. 2 or Form No. INC.7 In case of Amendment, the company to give notice to the ROC in Form No. MGT. 14 within 30 days from the date of entrenchment of Articles.

Formats of AOA [Section 5(6)] Table F : AOA of a Company Limited by Shares Table G : AOA of a Co. Limited by Guarantee and having share Capital Table H : AOA of a Co. Limited by Guarantee and not having share Capital Table I : AOA of an Unlimited Co. and having share Capital Table E : AOA of an Unlimited Co. and not having share Capital. A Company may adopt all or any of Regulations of Model AOA applicable to such Company.

Applicability of Model AOA [Section 5(8)] In case of any company registered after the commencement of this Act and the registered articles of such company do not exclude or modify the regulations contained in the model articles, then those Regulations will apply as Registered Regulations. Nothing in Section 5 shall apply to AOA of Co. registered under any Previous Company Law unless amended under this Act.

Incorporation of Companies [Section 7] Application for Incorporation of Companies: Form No. INC. 2 for OPC Form No. INC. 7 for Cos. Other than OPC Documents to be filed with the ROC for registration : MOA and AOA duly signed by all the Subscribers A Declaration by Professional Affidavit from each of the Subscriber to the MOA and from Persons named as First Directors Address for correspondence till Establishment of Registered Office Particulars of each Subscriber alongwith Proof of Identity Particulars of each Directors alongwith Proof of Identity Particulars of Interests of the First Directors of the Company.

Signing of MOA by Subscribers Where a subscriber to the MOA is Illiterate:- he shall affix his thumb impression. The number of shares taken by him shall be written against his name (by the person writing for him. Such person shall also read and explain the contents of the MoA/AoA to the subscriber and make an endoresment to that effect on the MoA/AoA

Signing of MOA by Subscribers Where the Subscriber to MOA is Body corporate : The memorandum and articles of association shall be signed by the director, officer or employee of the body corporate duly authorized in this behalf by a resolution of the BOD. Where the Subscriber to MOA is LLP: The memorandum and articles of association shall be signed by the a Partner of LLP duly authorized in this behalf by a resolution approved by all the Partners of LLP.

Witness of MOA and AOA Witness by any Person in whose presence the Subscriber has signed MOA and AOA I witness to subscriber/ subscriber(s) who has/have subscribed and signed in my presence (date and place to be given); further I have verified his or their Identity Details (ID) for their identification and satisfied myself or his/her/their identification particulars as filled in.

Declaration by Professionals/Directors A declaration in Form No. INC.8 by an- advocate; or a chartered accountant; or a cost accountant; or a company secretary in practice, who is engaged in the formation of the company; Declaration also to be given by a person named in the articles as a director; manager, or secretary of the company, Declaration to be made that all the requirements of this Act and the rules have been complied with.

Affidavit by Subscribers and First Directors An affidavit in Form No. INC. 9 be submitted by the Subscribers and First Directors of the Company. Affidavit contains that he :- Has not convicted of any offence in connection with the promotion; formation; or management of any company; has not been found guilty of any fraud or misfeasance or of any breach of duty to any company during the preceding 5 years. All the documents filed with the Registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief.

Particulars of Subscribers [Section 7(1)(e)] Name including Surname or family name, Recent photograph affixed and scan with MoA and AoA Fathers/Mothers/ Spouses name Nationality Date of birth Place of birth (District and State) Occupation Income-tax permanent account number Permanent Residential Address and Present Address Email id of subscriber Phone no. of subscriber Fax no. of subscriber Proof of Identity Residential Proorf such as Bank Statement, Electric Bill, Telephone/ Mobile Bill.

Particulars of Subscribers [Section 7(1)(e)] Proof of Nationality in case Subscriber is a Foreign National. If the Subscriber is aleready a Director or Promoter of a Company (s), the particulars relating to:- Name of Company CIN No. Whether interested as Director of promoter Specimen Signature and latest photograph duly verified by the Banker or Notary in Form No. INC.10.

Particulars of Subscribers [Section 7(1)(e)] If the subscriber is a body corporate, then the following particulars shall be filed with the ROC:- CIN of the Company/ Registration no. of the body corporate GLN, if any Name of the body corporate Registered office address/ principal place of business E-mail Id Certified true Copy of Board Resolution specifying :- Authorization to Subscribe MOA To make investment in Proposed Company No. of shares to be subscribed Name, address and designation of the Person authorized to subscribe MOA.

Particulars of First Directors [Sec. 7(1)(f)] Names, including surname or family names the Director Identification Number residential address nationality and such other particulars and proof of identity Particulars of Interests in other firms or body corporate alongwith consent to act as Director. Particulars shall be filed in Form No. DIR. 12.

Certificate of Incorporation [Sec. 7(2)] The Registrar on the basis of: documents and information filed shall register all the documents and information in the register ; and issue a COI in the prescribed Forn No. INC. 11 ROC shall allot CIN to Company.

False or incorrect particulars If any person furnishes any: false or incorrect particulars of any information and/or suppresses any material information; in any of the documents filed with the ROC in relation to the registration of a company. That Person shall be liable for action under Section 447 (fraud).

Formation of Companies with Charitable Objects, etc. [Section 8] New Activities like Sports, Education, Research, Protection of Environment and Social Welfare added to the Objects. The CG may allow by issuing license for charitable purposes without using the word Limited or Private Limited A firm can be a member of the Company with Charitable Objects. The CG may revoke the license granted :- if the Company contravenes any requirement of Section or specific conditions subject to which a License is issued. Affairs of the company are conducted fraudulently or prejudicial to Public Interest. CG may order that the Co. be wound up under this Act or amalgamated with another Co. registered under this section.

Formation of Companies with Charitable Objects, etc. [Section 8] Application for Registration in Form No. INC.12. The Application shall be accompanied by:- MOA shall be in Form No. INC.13 Declaration in Form No. INC.14 by an Advocate, CA/CS/Cost Accountant in Practice An estimate of future annual income and expenditure for next 3 years (specifying source of income and objects of expenditure) Declaration by Persons making application in Form No. INC.15

Punishment for default u/s 8 The company shall be punishable with fine:- which shall not be less than Rs.10 lakhs But which may extend to Rs.1 crore; or Further the director of the company and every officer of the company who is in default shall be punishable with- imprisonment for a term which may extend to 3 years; or with fine which shall not be less than Rs. 25000/- but which may extend to 25 lakh rupees; or with both.

Effect of Registration (Section 9) From the date of incorporation : the subscribers become the members of the company The company shall be a body corporate with a name in MOA Co. shall have perpetual succession Co. shall have a common seal Co. has Power to acquire, hold and dispose of property Co. is capable to contract and to sue or be sued by its name.

Commencement of Business (Section 11 ) Now applicable to Private Limited Company also. As per the Act, for commencement of business by public company, the following documents are required to be submitted with ROC: i. A declaration by Directors in prescribed form providing that the subscribers have paid the value of shares agreed to be taken by them (in Form No. INC. 21 ) ii. A confirmation that the Company has filed with the Registrar, a verification of its registered office. (in Form No. INC. 22 ) Declaration shall be verified by CS in Practice or a CA or a Cost Accountant in Practice.

Commencement of Business (Section 11 ) In case of default in complying with Requirements :- the Company shall be liable to Penalty which may extend to Rs.5000; and every officer who is in default shall be punishable with the fine which may extend to Rs.1000 for every day of continuing default. Removal of Name from Register of Companies Where no declaration is filed with ROC within 180 days of incorporation and the ROC has sufficient reasons to believe that the Company is not carrying any business or operations, ROC may initiate action for removal of the name of the Company from the Register of the Companies.

Registered Office of Company (Sec. 12 ) Verification of Regd. Office in Form No. INC. 22 shall be submitted to ROC within 30 days from Incorporation. Documents to be attached to Form No. INC 22 :- Registered document of title of the Premises in name of Co. or Notarized copy of Lease/ Rent Agreement in name of Co.; The Authorisation form the Owner/Authorised Occupant of the Premises alongwith Proof of Ownership/Occupancy authorisation, to use the Premises by the Company as its Regd.Office; and Proof of evidence of any utility service like telephone, gas, electricity, etc. having address of Premises in the name of Owner

Registered Office of Company (Sec. 12 ) Every company shall :- paint or affix its name and address of its Regd. Office on outside of every office or place of business. Have its name engraved on its Seal. Get its name, address of its Regd. Office, CIN, Telephone no., Fax no. (if any), Email and Website address (if any) printed in all its Business Letters, Billheads, Letter Papers and all its Notices and Other Official Publications. In case of change of name, each company is required to mention its old name for a period of 2 years, at its registered & other offices & other stationery as mentioned above.

Registered Office of Company (Sec. 12 ) Intimation of change of registered office is required to be given to ROC within 15 days of change. In case of default in complying the Section, the company and every officer who is in default shall be liable to a Penalty of Rs.1000/- for every day during which the default continues but not exceeding Rs.1 lakh.

Alteration of Memorandum (Section 13) Change of Name of the Company :- File the Form No. INC. 1 for availability of Name in Part B for change of name after getting approval of Board of Directors. Pass Special Resolution in General Meeting of the Members. File Form No. MGT.14 to ROC for SR File Application in Form No. INC.24 for change of Name. ROC will issue new Certificate of Incorporation in Form No. INC.25.

Alteration of Memorandum (Section 13) Change of Name of the Company :- Change of Name shall not be allowed to a comoany which has defaulted :- In filing its Annual Return or Financial Statement or any document due for filing with ROC; or In repayment of matured Deposits or debentures of interest on deposits/debentures.

Alteration of Memorandum (Section 13) Change of Registered Office from One State to Another : Pass Special Resolution in General Meeting of the Members. File Form No. MGT.14 to ROC for SR File Application in Form No. INC.23 for change of Name Advertise the Application in Form No. INC.26 in Newspapers at least 14 days before the date of Hearing. Serve the individual notice to each Debenture-holder and Creditors of the Co. at least 14 days before the date of Hearing. Order of Central Government approving Alteration in MOA for transfer of Regd. Office shall be filed in Form No. INC.28 with ROC of each of the States within 30 days. ROC of State where Regd. Office is being shifted to, shall issue a fresh COI.

Alteration of Memorandum (Section 13) Change of Object Clause: Pass Special Resolution in General Meeting of the Members. File Form No. MGT.14 to ROC for SR A Co., which has raised money from Public through Prospectus and still has unutilized Amount, shall not change its objects for which it has raised the money unless a SPECIAL RESOLUTION is passed through Postal Ballot and :- Details of SR shall be published in Newspaper for justification of change Dissenting shareholders shall be given Exit Opportunity by the Promoters. ROC shall register any alteration in MOA with respect to object Clause and certify the Registration within 30 days.

Alteration of Memorandum (Section 13) Alteration in Capital Clause : As per Section 61, a Limited Co. having share capital may alter its MOA in its General Meeting to :- Increase its Authorised Capital Consolidate and divide all or any of its share capital Conversion of Share into Stocks or vice versa Sub-division of its shares Cancel the unissued capital of the company. Pass the Special Resolution in General Meeting File the Notice of Alteration in Form No. Sh.7

Alteration of Articles (Section 14) New: Provision of Conversion of Public Company into One Person Company with the approval of the Tribunal has been provided in the Act. No approval is required for conversion of private company into One Person Company or One Person Company into a private company.

Alteration of Articles (Section 14) Key Modifications: In case of alteration of Articles of Association of a Company, the copy of alteration along with the altered Article shall be filed with Registrar of Companies in Form No. INC.27 within 15 days. In case of conversion of Public Company into Private Company, approval of the Tribunal is required. A Copy of the order of the Tribunal shall be filed with ROC in Form No. INC.27 within 15 days.

Alteration of MOA & AOA to be noted in every copy (Sec. 15) Key Modifications :- The penalty provided for not making the alteration in copies of Memorandum & Articles has been increased. In case of such default, the Company and every Officer in default shall be liable to a penalty of Rs.1000 for every copy of MoA/AoA issued without such alteration.

Copies of MOA/AOA to be given to Members (Sec. 17) Key Modifications:- MoA/AoA to be sent within 7 days of request Fees to be charged for sending MoA/AoA, agreement/resolution -to be prescribed. In case of default of the said section, the penalties have been increased and for each default, the Company shall be liable to a penalty of Rs.1000 for every day of continuing default but not exceeding Rs.1 lakh.

Conversion of Companies Already Registered Section 18 New:- Any company of any class registered under this Act, may convert itself into a Co. of other class under this Act by- Alteration of its MOA/ AOA with their respective new sets. The Registration of a Co. under this section shall not affect any debts, liabilities, obligations or contracts or entered into by or on behalf of company before re- registration. ROC will close the former registration and issue new COI as its First registration.

Subsidiary company not to hold shares in its Holding Co. (Sec. 19) Key Modifications: No Subsidiary Company, either by itself or through its nominees, shall hold any shares in its Holding Company. No holding company shall allot or transfer its shares to any of its subsidiary companies. Any such allotment/ transfer of Shares to its Subsidiary Company shall be void.

Authentication of Documents, Proceedings and Contracts (Sec. 21) Any document, proceeding requiring authentication by a Company or contract entered into by or on behalf of a Company may now be signed by any KMP or an officer of the Company Only after having due authorization by the Board of Directors.

Fee for Incorporation of OPC and Small Companies Nominal share capital does not exceeds Rs. 10,00,000. INR 2000/- Nominal share capital exceeds Rs. 10,00,000 and up to Rs. 50,00,000 INR 200 for every Rs. 10000/- or part thereof

Fee for Incorporation of Other Companies Nominal share capital does not exceeds Rs. 1, 00,000. INR 5000/- Nominal share capital after the first Rs. 1,00,000 up to Rs. 5,00,000 INR 400 for every Rs. 10000/- or part thereof Nominal share capital after the first Rs. 5,00,000 up to Rs. 50,00,000 INR 300 for every Rs. 10000/- or part thereof Nominal share capital after the first Rs. 50,00,000 up to Rs. One crore INR 100 for every Rs. 10000/- or part thereof Nominal share capital after the first Rs. One crore: INR 75 for every Rs. 10000/- or part thereof

Filing Fee of Documents to ROC (a) In respect of a company having a nominal share capital of up to Rs. 1, 00,000. INR 200 (b) In respect of a company having a nominal share capital of Rs. 1,00,000 or more but less than Rs. 5,00,000. INR 300 (c) In respect of a company having a nominal share capital of Rs. 5,00,000 or more but less than Rs. 25,00,000 INR 400 (d) In respect of a company having a nominal share capital of Rs. 25, 00,000 or more but less than Rs. 1 crore or more. INR 500 (e) In respect of a company having a nominal share capital of Rs. 1 crore or more. INR 600