What is a Digital Signature Certificate?
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Few Examples of physical certificates are drivers’ licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver’s license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally.
Why is Digital Signature Certificate (DSC) required?
Physical documents are signed manually, similarly, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
What type of Digital Signature Certificate (DSC) is to be obtained for e-Filing on the MCA Portal?
DSC of either Class 2 and Class 3 signing certificate category issued by a licensed Certifying Authority (CA) needs to be obtained for e-Filing on the MCA Portal.
What are the Documents Required for Obtaining DSC?
Self Attested PAN Card of the Individual
Self Attested Adhaar Card of the Individual
What is the difference between SPICe and SPICe+?
While SPICe is an eform, SPICe+ is an integrated Web form offering 10 services by 3 Central Govt Ministries & Departments. (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Government (Maharashtra), thereby saving as many procedures, time and cost for Starting a Business in India. SPICe+ is part of various initiatives and commitment of Government of India towards Ease of Doing Business (EODB).
For how many days is a reserved name valid?
An approved name is valid for a period of
(i) 20 days from the date of approval (in case name is being reserved for a new company) or
(ii) 60 days from the date of approval (in case of change of name of an existing company)
Difference between Partnership Firm and Company
- A partnership is an agreement between two or more persons who come together to carry out a business activity and share the outcome of this activity among themselves. A company is an artificial person having the separate identity, common seal and perpetual succession which is formed and governed by a law.
- The registration of the partnership firm is not compulsory whereas a Private Limited Company needs to get Compulsory Registration.
- For the Formation of a partnership, There must be at least two partners. For the Formation of a Private Limited Company, there must be at least 2 members and maximum of 50 in case of private companies.
- The Major difference between the Private Limited Company and Partnership there is no minimum capital requirement for starting a partnership firm and the minimum capital requirement for a private company it is 1 lakh.
- The Partnership Firm is regulated by the Registrar of Firms of the State Government and Private Limited Company is regulated by the Registrar of Companies of the Central Government.
- If a Dissolution of the partnership firm Takes place Then there are no legal formalities that need to be taken care. A Private Limited Company has many legal formalities for winding up that needs to be taken care of.
- A partnership firm can be dissolved by any one or all of the partners and The company cannot be wound up by any one or all of the members of the company.
- A Partnership Firm is not bound to use the word Limited or Pvt Ltd at the end of its name while A Private Limited Company has to add the word Pvt Ltd at the end of its name.
- In the Partnership Firm, a liability of the partners is unlimited whereas In case of Private Limited Company Liability is limited to the extent of shares held by every member.
Differences Between A Public Company Vs Private Company
There’re many differences between a Public Company vs Private Company. Let’s have a look at the top differences between the two –
|Points of Differences between Public Company and Private company||Public Company||Private Company|
|1. Definition||A public company can sell its own registered shares to the general public.||A private company can sell its own, privately held shares to a few willing investors.|
|2. Traded on||The stocks of a public company are traded on stock exchanges.||The stocks of a private company are owned and traded by only a few private investors.|
|3. Regulations||A public company has to adhere to a lot of regulations & reporting standards as per the SEC.||Until the private companies reach $10 million and more than 500 shareholders, it doesn’t have to follow any regulations issued by SEC.|
|4. Advantage||The primary advantage of a publicly-traded company is that it can tap into the market by selling more shares.||The primary advantage of a privately traded company is that it doesn’t need to answer to any stockholders & there’s no need for disclosures as well.|
|5. Size||Publicly traded companies are big companies.||Privately traded companies can also be big companies. The idea that a privately held company is smaller is utterly false.|
|6. Source of funds||For the publicly traded company, the source of funds is selling its shares and bonds.||For the privately traded company, the source of funds is few private investors or venture capitalists.|
What is Separate Legal Entity?
A legal entity, typically a business, that is defined as detached from another business or individual with respect to accountability. A separate legal entity may be set up in the case of a corporation or a limited liability company, to separate the actions of the entity from those of the individual or other company.
Compliances required for Companies Registered
Event Based Compliances :
Even based compliances are those which gets triggered upon happening of certain events like change in directors, change of registered office, change in authorized share capital etc. Hence, it is necessary that the happening of such events get tracked and compliances met with on time in order to avoid penalties or additional fees. Some of the Event based compliances are mentioned below along with the time limit:
|Events||Form No.||Time Limit|
|Change in registered office||
|Within fifteen days from the date of such change|
Change in Directors or KMP
|Within 30 Days of such change|
Increase in Authorized Share capital
|Within 30 days of passing Ordinary Resolution|
Filing of resolution and agreements
|Within 30 days from date of passing resolution|
|Increase in Paid up share capital (Issue of security)||PAS-3||Within fifteen days from the date of the allotment|
|Change in secured borrowing (Creation, modification and satisfaction of charge)||
|All types of Charges within 30 days of its creation|
Application for KYC of Directors
|On or before 30th April of immediate next Financial Year (Annual Compliance)|
|Declaration of Commencement of Business||
|Within a period of 180 days of the date of incorporation of the company. (Applicable to companies incorporated after 2nd November, 2018.)|
Mandatory Compliances :
|Filing of Annual Return (Form MGT-7)||Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.|
Filing of Financial Statements (Form AOC-4)
|Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.|
Statutory Audit of Accounts
|Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.|