1. Can
same person be a Director as well as Shareholder of the Company?
Shareholders and directors
have two completely different roles in a company. The shareholders (also called
members) own the company and the directors take day to day managerial decisions
including tactical and strategically decision making. However, a single person
can play both the roles and can act as a shareholder as well as a director of
the Company. A person invested (having shares) in the company and also having
proficiency on the responsibility of managing or supervising the corporation
then the person can individually play both the roles.
2. Can I
use my home address as the address of Registered Office of My Company?
All Indian registered
companies are required by law to have a registered office address in India. It
is the address of a company to which all official letters and reminders will be
sent. The registered company address must be in a state in which company is
registered.
Therefore, a home address
can also be used as the Registered Office address of the Company. It is not
compulsorily required that an address where the company is actually situated
can only be used as address of the registered office of that company.
3. Can a
Registered Office and an Administrative Office situated at a different place?
Registered Office is the
location (or merely the address) where the company has registered as a
corporation. All official letters and reminders will be sent at this address
only. On the other hand, an administrative office is the office where the
actual operations are conducted. It is for the convenience of business
activities and infrastructure from where all commercial activities of a company
are undertaken. So, either both can lie at the same address or can be situated
at a different places too. There are no restrictions for the same.
4. Do I need to
contribute my Capital immediately into the bank before Incorporating A Company?
To open a Company’s Bank
Account, it is necessary to have the company PAN Card. Further, PAN can only be
applied for only when the company is incorporated. Thus, capital amount is a
pre-requisite of the company as it needs to be acknowledged in the subscriber’s
sheet, which is required at the time of incorporation. Hence, deposit into the
Bank is not possible, and therefore the initial capital infusion may be in
cash.
5. Can a
Shareholding Ratio be in 99:1 proportion?
The ideal shareholding
pattern of the company is 50:50, for a two shareholder company. But in case you
intend to hold the majority stake of the company you can make the proportion to
60:40, 70:30 etc. In case if the other shareholder focuses on having a
substantial interest in the company then the proportion would, in all general
circumstances be 80:20. Alternatively, to have complete stake of the
company restricted to self, then the proportion has to be 99:1, since there has
to be at least two shareholders of the Pvt. Ltd Company.
6. I am already
employed. Can I still be a Director of the other Company?
It depends on the terms and
conditions of the offer letter which you will receive as an employee of the
Company. If you are not bound to any restrictions or if there is no clause in
your offer letter which prohibits you to take part in some other company
(directly or indirectly), then you can be a Director of other company.
7. I am
already a Director of the Pvt. Ltd. Co and therefore have a DIN. Do I need to
have another DIN to become a Director of another Co.?
A DIN allotted to any
person is valid for the lifetime of the individual like PAN Number and shall
not be allotted to any other person during his lifetime. Since you are the
director of the Pvt. Ltd. Co. and already having DIN, then you are not required
to have another DIN, as the same can be used to become the director of other
Companies or designated partners of other LLPs.
8. Can I
have two Companies at the same Registered Office?
For startup companies, it
is very common to share common workspace to deliver services, thereby sharing
the rent of the premises and minimizing outflows in the initial years. In that
case, the companies, while getting incorporated under MCA, can use the same
registered address proof. On an alternate scenario, an IT professional having
two different private limited companies can use his common residential address
to fit the purpose.
9. Difference between
Authorised and Paid Up Capital of the Company.
Authorised Capital is that
amount of capital with which a company is registered with the registrar of
companies (body responsible for registration of companies). It is the maximum
amount of capital which a company can raise through shares i.e. share capital
can be maximum up to the authorized capital and not beyond. Authorized capital
is also called registered capital or Nominal capital.
On the other hand, the Paid
up Capital is that amount of capital (out of called-up capital) against which
the company has received the payments from the shareholders so far. In other
words, Paid up capital means that capital for which investors have actually
paid money.
10. What is Face
Value per Share?
Face value is the nominal,
or stated, amount of security. The face value of a bond is the amount the
issuer agrees to pay upon maturity. Face value is also the amount upon which
interest payments or discount is determined.
Source:
Taxmantra
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