Change in Directorship of company
A company is an artificial person and cannot act by own. It can only act by director. A director is a person who has the responsibility for managing the company’s business activities. The role of a director is to supervise the day to day activities of the company, so there is no requirement to also be an owner of the company before appointed as a director. However, a company can offer the share to the director and the director has a right to avail the same.A company can add or remove a director by various reasons but before removing a director from a company, it is mandatory to ensure that the Company would have the minimum number of Director as per requirement. A Private Limited Company is required to have atleast 2 Directors and a Public Limited Company is required to have ateast 3 Directors.
Director Identification Number (DIN) is mandatory for every person proposed to be appointed as a director. DIN allotment is an online process.
Articles of Association (AOA) of a company determine the procedure by which a director can be appointed or removed. However, in case if provisions are not mentioned in the Articles of association of the company then the provisions of the companies act, 2013 shall apply.
By passing the ordinary resolution in the General Meeting or extra general meeting, a director of the company can be appointed or removed by the shareholder. After the completion the process of change in the directorship, a notice to Registrar of companies (ROC) must be given within the prescribed time limit.
INCREASE IN THE AUTHORIZED SHARE CAPITAL
Increase in the authorized share capital is a major source of funding for the company which can be possible at any time. Generally, the companies registered with a small authorized share capital and increased the same as per the requirements. Authorized share capital means the capital which is authorized by the memorandum of a company issued to shareholders. A company cannot issue shares to its shareholder more than the authorized share capital.
It is the maximum amount that the company is authorized to allocate to its shareholders but when business expands and needs more investment, Increase in authorized share capital is an option. Increase in the authorized share capital is not lawful until it has been approved by the shareholder and prescribed procedure as required by company law is not followed. Authorized share capital can be changed on the extraordinary general meeting with the approval of shareholder by sending a notice with clear agenda, explanatory statements and the resolutions to be passed but before calling extraordinary general meeting, we need to check in the Articles of association of the company whether necessary powers is there to increase company’s authorized share capital if it does not authorize the company by amend its Articles of association.
WHAT IS REGISTERED OFFICE?
Registered office acts as the house for a company which gives legal existence. It is main office of the company where all the documents keep related to the company. A Registered office is a primary source of communication with company for government, shareholder, Investor, Banks, financial institution and general public. Every company has a principal place for business activities which we called registered office. Registered office is the official address of the company. It is very important for general public, shareholders, creditors, government offices and for other purposes.
Reasons of having a registered office -
- To act as source of communication between company and government departments
- Place to inspect the documents of the company
- Provide legal existence to the company
- To maintain all records and returns related to company
The board of director of a company may change the registered office of the company from time to time when it deems necessary for any purpose in any of the following manners:
- Change of registered office within local limit
- Change of registered office outside local limit but within state
- Change of registered office from the jurisdiction of one ROC to another ROC in the same state
- Change of registered office from one state to another
MSME registration can be helpful to get the benefit under various scheme of Central and State government. Now, banks and financial institution also giving loan to these entities at cheaper rates. In today cut throat competition, MSME registration comes as a boon for small and medium enterprises.
MSME stands for Micro, small and medium enterprises. They all are small sized enterprises and backbone of any developing economy like India. These entities provide employment to large section of unskilled and semi skilled workers. To support MSMEs the government through MSMED act provides various subsidies and incentives. Many banks and financial institution have also recognized and created special scheme for MSMEs
The MSME registration is not statutory but to avails benefits under the MSMED act, MSME Registration is required. The benefits include bank loan at lower rates, excise exemption scheme, exemption under various laws and other statutory support.
Classification of MSMEs
- A Micro enterprise is an enterprise where the investment in equipment does not exceed Rs 10 Lakh
- A Small enterprise is an enterprise where the investment in equipment is more than 10 lakhs but does not exceed Rs 2 Crores
- A Medium enterprise is an enterprise where the investment in equipment is more than 2 lakhs but does not exceed Rs 5 Crore
Professional tax is the tax that is levied by the State governments. It is paid by salaried individuals or anyone in a profession like chartered accountant, doctor, lawyer, etc. but in some states; it is applicable only to certain specified professions. Professional tax is just like the income tax but income tax is collected by the Central Government while professional tax is collected by the State Government. Professional tax is imposed at the state level; it tends to differ from one state to another. It is a mandatory to pay professional tax due to source of revenue for the government. However, not all states and union territories impose this tax. Some examples of the state governments which impose professional tax are Karnataka, Maharashtra, West Bengal, Meghalaya, Orissa, Tripura, Tamil Nadu, Gujarat, Assam and Kerala.
It is deduced from the salaries of the employees by the owner of the business on every month and pay the same amount to the prescribed authority. On other hand, professionals need to get a registration themselves in the prescribed form with prescribed department. To making the process of professional tax hassle free, many states like Gujarat, West Bengal, Orissa and Madhya Pradesh are providing the facility of online payment of professional tax. Failure to obtain professional tax registration leads to fines and penalties.
TDS stands for Tax Deducted at Source. It is the amount which is collected at the time of payment like such as salary, interest, brokerage, professional fees, contract payment, royalty etc. The TDS amount collected for specified goods or services is then transferred to Government Account
Who is required to file TDS return?
- All companies
- Government offices
- Individuals and HUF whose accounts are not required to be audited