FAQs on Amend Your Business

  • What does Taxmantra-Amend Your Business Service comprise of?

    When a company or LLP operates, there may come lots of situations wherein specific reporting to the various Government Departments are required. For eg: resignation of a director or designated partner, increase of authorized capital, re-issue and re-allotment of shares, transfer of shares, change of registered office, etc. Often businesses are not aware of these reporting formalities and fail to comply with the same. Consequently, they have to bear with undue penalties and additional fees. Taxmantra’s “Amend Your Business” service brings across the entire gamut of such services at the most effective cost in the industry.

  • What are “Event Based Compliances”?

    The above activities are termed as “Event Based Compliances”. Since these do not have any pre-determined frequency or timing of occurrence, hence these are termed as occasional or “Event Based Compliances”.

  • Which compliances can be part of Event Based Compliances?

    The following services can be categorized as Event Based Compliances:

    • Addition/Removal of Director or Shareholder
    • Alteration of Main Objects of the Business
    • Change in Registered Office of the Company
    • Close Your LLP/Company
  • What is Registered Office of a company?

    Registered office of the company is nothing but the place of business through which the company gets registered in a particular state. All official letters and reminders are sent to this address from MCA, Income Tax or any other Government Department.

  • My company was registered in Coimbatore, India. However, my entire business base in US. Can I shift my registered office to US?

    No. An Indian company cannot have its registered office in any other country. That defeats the entire purpose of forming an Indian company. In case you want to shift your base to US, you can operate either by opening a Branch of the Indian company in US or by setting up a subsidiary over there.

  • I cannot afford to get a commercial office right now? Can I use my residential property as the registered office of the company?

    There is no hard and fast rule that a company has to operate through a commercial space. You can very well start the business through your residential house only.

  • How do I change the registered office of the company?

    It depends upon the nature of change, namely:

    • Change within the same village/town/city
    • Change within the same Registrar of Company (ROC) jurisdiction and
    • Change from one ROC to another ROC jurisdiction.
  • Within how many days should such change be intimated to the RoC?

    The RoC should be intimated within 30 days of such change.

  • Can I add a Director in my company?How difficult is it?

    You can definitely add one or more directors in the company at any point of time.However, make sure that the necessary filings are done with the RoC. As long as the current director’s details are not reflected in the MCA,

  • Does the new director I plan to appoint has to obtain a DIN?

    It depends. If the new proposed director of your company already has a DIN number, he does not need to apply for a new DIN. However, if he does not possess a valid DIN as on the date of his appointment, he has to apply for a new DIN.

  • What are the processes involved in appointment of a Director?

    Following are the processes which are involved in appointment of a Director:

    • Obtaining Digital Signature (DSC)
    • Obtaining Director’s Identification Number (DIN)
    • Holding a Board Meeting for appointment of the Director
    • Obtain the consent of the Director in Form DIR-2
    • File the necessary forms (Form DIR 12) with the the RoC with all relevant documents.
  • What should I do if one of my directors wants to resign from the company?

    First of all,have a quick check. How many directors are there in your company in total? Any private limited company should have a minimum of two (2) directors at any point of time.Hence,if there are only two directors in the company and one of them wishes to resign, you first of all have to appoint a new director and then execute the process of resignation.

  • Do I have to inform the RoC about the fact of resignation as well?

    Yes, you very much have to. Whether a Director is appointed or resigned from his office,the RoC has to be intimated of this fact by way of filing of Form DIR 12.

  • I am a Director of a private limited company.I wish to resign from the company.Do I need to intimate the fact to RoC personally?

    Yes.A resigning director has to intimate the RoC about his resignation by filing Form DIR 11. Though this may seem an additional requirement, however, this is meant to safe guard the Director in case company fails to comply with the filing norms.

  • What are the steps to increase the authorized capital of my company?

    • Check if the Articles of Association (AoA) of your company authorizes such increase.
    • Convene a Board Meeting and obtain approval of directors for such increase and alteration of capital clause of the MoA.
    • Fix the date,time and place for holding an Extra-ordinary General Meeting (EGM) to get approval of Shareholders.
    • Hold an EGM on the fixed date and get necessary resolutions passed.
    • File form SH-7 with the RoC along with the copies of Notice of EGM, certified true copy of Ordinary Resolution and altered MoA within 30 days of such meeting.
  • Why do we need to alter the Main Objects of my company?

    There can be various reasons for alteration of main objects of the company.The company might intend to venture into new avenues of business.Further, as per the Companies Act,2013, a company can conduct only those businesses which are included in the Main Objects segment of the business. Prior to the commencement of this Act, the companies were free to carry on the businesses as mentioned in their “Other Objects” alongwith the Main Objects of their Company.Now, this flexibility is no longer there. Hence if you are doing any major business which is not included in your Main Objects of MoA, then it is time to alter the same.

  • What is the procedure for changing the Object Clause?

    • Convene a Board Meeting and obtain approval from Directors.
    • Fix date, time and place for holding Extra-ordinary General meeting (EGM) to get approval of shareholders by way of Special Resolution, for amendment in object clause of Memorandum.
    • Hold Extra-ordinary General meeting (EGM) on due date and pass the necessary Special Resolution.
    • File Form MGT_14 with the ROC Form within 30 days of such meeting along with Notice of EGM; copy of Special Resolution; Altered Memorandum of Association.