Companies Act Amended: No Need For Mandatory Declaration | SupportBiz

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Companies Act Amended: No Need For Mandatory Declaration

Here are some salient features of Companies Act 2013

Continuing its efforts to improve the ease of doing business, the government has been making solid efforts to attract investors. In the same direction, the Cabinet approved amendments to the Companies Law, thereby doing away with a mandatory declaration by a firm before commencing business.

The changes have also been cleared to fast-track the approval process for draft notifications aimed at granting exemptions from various provisions of the Companies Act, reported PTI.
Besides, they will rationalise "the procedure for laying draft notifications granting exemptions to various classes of companies or modifying provisions of the Act in Parliament, in order to ensure speedier issue of final notifications.
 These Official Amendments will address issues related to ease of doing business and put in place a speedier process for approval of draft notifications for providing exemptions etc from specific provisions of the Act to a class of companies," the Corporate Affairs Ministry said.

The government has said it wants to improve India's position to top-50 in terms of ease of doing business, from 142nd currently, as per the latest World Bank report in this regard.

Salient features of Companies Act 2013
Formation of company: A company may be formed for any lawful purpose. For a public company it has to be formed by seven or more persons, a private company by two or more people and one person can form one person private company.

A company may be either:  limited by shares; or a company limited by guarantee; or an unlimited company.

Incorporation of company: There shall be filed with the Registrar within whose jurisdiction the registered office of a company is proposed to be situated with documents related to the memorandum and articles of the company duly signed by all the subscribers to the memorandum.

Registered office

A company shall, on and from the 15th day of its incorporation should have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.

Conversion of companies already registered
A company of any class registered under this Act may convert itself as a company of other class under this Act by alteration of memorandum and articles of the company.

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