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You can create any type of product documentation with Fincto
You can create any type of product documentation with Fincto
In the corporate world, the maximum number of shares a private business can issue is defined by its authorised share capital. As per the 2013 New Companies Act, there is no minimum capital increase requirement. To issue additional shares or increase the authorised share capital, the board must approve an ordinary resolution, updating the capital clause of the Memorandum of Association
The sum of authorised share capital can vary from one business to another and can be altered with the consent of shareholders. For instance, if a company has an authorised capital of ₹2 lakhs, it can issue shares up to that amount. However, this permitted capital can be increased or decreased as needed. For example, if a company has ₹1 lakh in allowed capital but an investor wishes to invest ₹1 crore, the company can raise its authorised capital to ₹1 crore. The permitted share capital increase for company registration is covered here
including an increase in capital and issue of new shares, with pricing starting at
Government fees and stamp duty depend on the authorised capital of the company.
Various guidelines dictate the authorised share capital based on specific phrases used in the company name. For instance:
Directors must submit KYC information to MCA if they meet recent updates.
Increasing the authorised share capital is crucial for a company to raise money from the public
It enhances the borrowing capacity of the company and makes it easier to accommodate investments if there is enough authorised capital
To increase the authorised share capital, the following documents must be filed with the MCA within 30 days of obtaining consent from shareholders:
Copy from any authorised director of the company.
A copy of the modified or latest version of the MoA.
A copy of the modified or latest version of the AoA.
A copy of the company’s incorporation certificate.
A copy of the company’s PAN card.
If a director voluntarily tenders their resignation, the following steps are taken:
If a director is absent from all board meetings for 12 consecutive months without seeking leave, they are considered to have vacated their office as per Section 167. The process involves filing Form DIR-12, and the director's name is removed from the MCA database.
The steps for removal of a director by shareholders are as follows:
Private limited companies must prioritize annual compliances, ensuring filings meet due dates and adhering to prescribed guidelines
Review the AoA to ensure it allows for an increase in authorised share capital. If not, amend the AoA as per Section 14 of the Companies Act of 2013
The company's board of directors must discuss and approve the proposal to raise the authorised share capital. Proper notice must be given for the board meeting
The company must call for an EGM of shareholders to approve the increase in authorised share capital. The notice for the EGM should be sent at least 21 days before the meeting
At the EGM, shareholders must pass a special resolution approving the increase. It requires support from at least 75% of shareholders present and voting
Within 30 days of passing the special resolution, file the resolution with the ROC. The ROC will issue a certificate of registration of the resolution after verification
After increasing the authorised share capital, the company can issue new shares to its shareholders following the process outlined in the AoA
Directors must submit KYC information to MCA if they meet recent updates.
Companies may increase authorised share capital for various reasons, including raising more funds, financing new projects, merging with other companies, issuing additional share capital, converting debt to equity capital, and fulfilling legal requirements.
The rules for increasing authorised share capital involve reviewing the AoA, holding board meetings and EGMs, passing special resolutions, filing necessary documents with the ROC, and issuing new shares as required.
The authorised share capital is determined based on the company's future growth plans, capital requirements, and financial projections. The promoters and directors decide on the authorised share capital based on their estimation of the company's future needs.
Increasing the authorised share capital is an important step for companies looking to grow, raise funds, and enhance their borrowing capacity. Fincto offers expert assistance in the entire process, from understanding guidelines and rules to filing the necessary paperwork and issuing new shares. Our team is here to guide you through every step, making the process smooth and efficient.
Businesses must fulfill various compliances, in addition to company compliances.These include:
To become a director in a company in India, individuals must meet the following criteria:
The founders agreement emphasizes confidentiality for co-founders, including:
File within 30 days of financial year completion.
Submit by 30th May, 60 days after financial year end.
Private limited companies must prioritize annual compliances, ensuring filings meet due dates and adhering to prescribed guidelines
Manage company income, expenditure, and monitor managerial policies effectively.
Assess business performance using key metrics like net profit.
Monitor business finances for effective project planning and financial management.
Assess a business's financial health and credibility for investors.
Registrar of Companies mandates income tax compliance, avoiding fines.
As a company grows, compliance becomes increasingly complex.
Compliance minimizes fines, penalties, lawsuits, and business shutdown risks.
Compliance improves workplace safety and efficiency.
Legal compliance enhances public relations and company image.
A fair, professional, and safe work environment boosts employee retention.
CSR-1 registration is crucial for NGOs seeking corporate social responsibility (CSR) funding from companies with specific net worth, turnover, or net profit. To initiate the process, NGOs must file Form CSR-1 with the Ministry of Corporate Affairs (MCA), which may require additional documentation or clarifications. Approval grants NGOs the CSR-1 registration certificate, paving the way for securing CSR funding from companies. This one-week process is essential for NGOs in the CSR funding realm.
With meticulous adherence to these steps, filing eForm DIR-3 KYC ensures seamless compliance and adherence to regulatory mandates.
The Director Identification Number (DIN) is a crucial identifier for aspiring and current directors in corporate governance. Obtaining a DIN requires a one-time application through eForm DIR-3. An annual requirement has been introduced, requiring directors with DINs to submit KYC details annually through fincto’s expertise.
THIS FOUNDERS’ AGREEMENT (hereinafter referred to as the ‘Agreement’) is executed on [DD/MM/YYYY] by and among [XXXX] (the ‘Company’), and the following founders (the ‘Founders’):
[Insert Founder Name]
[Insert Founder Name]
NOW, WITH DUE CONSIDERATION to the foregoing and the mutual covenants and agreements hereinafter detailed, the parties hereto concur as follows:
[Continuation of the founders agreement template, incorporating company information, initial capital, ownership structure, vesting schedule, intellectual property rights, amendment protocols, resignation procedures, confidentiality commitments, dispute resolution, and more.]
Fincto combines technology and legal expertise for thousands of legal tasks.
Government processes simplified for convenience.
Package includes two iterations for satisfaction.
Fincto simplifies legal processes, making them accessible and accessible.
For comprehensive guidance, expert consultation is recommended.
Draft comprehensive business plan incorporating objectives and co-founder obligations.
Append additional required information to the agreement, as necessary.
Notarize the agreement on a non-judicial stamp paper after unanimous agreement.
Seek expert legal counsel before finalizing the agreement to ensure its robustness.
Validate the draft for inclusion of mandatory provisions, eliminating ambiguities.
Obtain unanimous acknowledgment and approval of the final draft from all co-founders.
Obtain the signature of all co-founders on the notarized agreement.
A founders agreement encompasses several pivotal sections, including:
Identifying co-founders and their roles within the company.
Defining equity ownership distribution and percentage among co-founders.
Potential inclusion of a vesting timetable for equity shares.
Managing intellectual property rights in business ventures.
Outlining decision-making mechanisms, roles, and responsibilities of co-founders.
Describing scenarios leading to termination and exit procedures for co-founders.
Establishing protocols for dispute resolution, including mediation and arbitration.
Customer may receive a refund for product dislike, damaged, incorrect item, or predefined issues upon return.
Refund policy governs online order cancellation process, details, and procedures for refunds.
A Website Disclaimer communicates liabilities to visitors, safeguards intellectual property, discourages unauthorized usage, and prevents misuse accusations. It can be standalone or integrated into legal documents, demonstrating responsible online conduct and promoting responsible behavior.
A Cookie Policy is essential for online transparency and legal compliance, educating visitors about active cookies, their purpose, and user data processing. It is often a legal requirement in many jurisdictions.
E-commerce relies on efficient shipping and delivery; a Shipping Policy provides clear information on fees, timelines, and procedures, improving customer experience.
A well-crafted contract securely stores user data and complies with terms.
Ethical service providers must communicate service conditions to clients.
Policies guide service provider-customer legal framework.
Legal contracts require integrated privacy policies for websites.
Privacy guidelines outline data collection, confidentiality, sharing, and collaboration.
Understanding policies ensures responsible online conduct, legal compliance, and user experience.
GSTR1 is the form used for tax returns on outward supplies, encompassing both interstate and intrastate B2B and B2C sales. It also includes details of purchases under reverse charge and inter-state stock transfers made during the tax period. Late filing of GSTR1 can result in a late fee, which is collected in the subsequent open return, Form GSTR-3B. Since January 1, 2022, taxpayers cannot file Form GSTR-1 if they haven't filed Form GSTR-3B in the preceding month.
This amendment form corrects any discrepancies between the GSTR-1 of a taxpayer and the GSTR-2 of their customers. The filing window for GSTR1A is between the 15th and 17th of the following month.
Monthly GST returns for inward supplies are filed using this form. It contains taxpayer information, return period, and detailed invoice-level purchase information related to goods and services separately.
This auto-generated tax return compiles purchases and inward supplies made by a taxpayer based on the information from their suppliers GSTR-1.
An auto-generated document that acts as an Input Tax Credit (ITC) statement for taxpayers, facilitating faster return filing, minimizing errors, easing reconciliation, and simplifying compliance.
This form is used to file consolidated monthly tax returns. It contains the taxpayers basic information, turnover details, final aggregate-level inward and outward supply details, tax liability under CGST, SGST, IGST, additional tax (+1% tax), ITC, cash, liability ledgers, and details of other payments like interests, penalties, and fees.
This is a tax notice issued by the tax authority to a defaulter who has failed to file monthly GST returns on time.
It is a temporary consolidated summary GST return for inward and outward supplies, introduced as a relaxation for recently registered businesses.
This quarterly GST return is filed by compounding vendors. It includes the total value of supplies made during the covered period and details of tax paid at the compounding rate (not exceeding 1% of aggregate turnover) along with invoice details for inward supplies.
The Quarterly purchase-related tax return filed by composition dealers, automatically generated by the GSTN portal based on information from the suppliers GSTR-1, GSTR-5, and GSTR-7.
Variable return for Non-resident foreign taxpayers, containing details of the taxpayer, return period, and invoice details of all goods and services sold and purchased. It also includes imports on Indian soil for the registered period/month.
This monthly GST return is for ISDs (Input Service Distributors), containing details of invoice-level supply from the GSTR-1 of counterparties, credit for ITC services received, debit for ITC reversed or distributed, and closing balance.
It is a monthly return for TDS (Tax Deducted at Source) transactions, containing the taxpayers basic information, return period, supplier's GSTIN, and invoices against which the tax has been deducted, categorized under SGST, CGST, and IGST. It also includes details of other payments like interests and penalties.
This is the monthly return for e-commerce operators. It contains the taxpayers basic information, return period, details of supplies made to customers through the e-commerce portal, tax collected at source, tax payable, and tax paid.
The annual consolidated tax return, comprising detailed income and expenditure, regrouped according to the monthly GST returns filed by the taxpayer.
The annual composition return form to be filed by every taxpayer enrolled in the composition scheme.
This Audit form is filed by taxpayers liable to get their annual reports audited when their aggregate turnover exceeds ₹2 crores in a financial year.
Filed before cancelling GST registration, this final GST return contains the details of all supplies, liabilities, tax collected, and tax payable.
Variable tax return for taxpayers with UIN (Unique Identification Number), containing details of purchases made by foreign embassies and diplomatic missions for self-consumption during a particular month.
Staying compliant with GST due dates is vital to avoid late payment charges and interests. Fincto provides updated information on due dates for the financial years 2021-2022 and 2022-2023. Keeping clients informed of these updates can help taxpayers stay on top of their compliance requirements and ensure timely filing of GST returns.
Taxpayers registered under the Composition Scheme must file taxes using CMP-08 every quarter and file GSTR-4 annually. The due date for the GST return for Composition Scheme registrants is the 18th of the month following each quarter.
Fincto provides a hassle-free GST return filing experience with the support of a team of dedicated experts. Fincto offers a seamless GST compliance journey. It's commendable to see such dedication to assisting taxpayers in their GST return filing processes.
A GST Certificate is an important document issued by the Indian government which proves that a business is registered under GST. The certificate contains crucial information like the GST identification number, name, and address of the business. With a GST Certificate on hand, businesses can easily charge and collect GST, apply for loans, and participate in tenders.
Choose Fincto for a seamless and efficient director removal process. Let our experts take care of the complexities while you focus on running your business smoothly.
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