Corpdaily by CS Kartik Arora

The definition of MSME has been revised by the government on May 13, 2020 and as per the new definition, distinction between the manufacturing and services sector has been done away with. Further, a new criteria of turnover has been introduced to classify the businesses. As per the new definition: Any Enterprise with Investment in Plant & Machinery of upto INR 1 Crore and Turnover of upto INR 5 Crores shall be classified as a Micro Enterprise . Any Enterprise with Investment in Plant & Machinery greater than INR 1 Crore but less than or equal to INR 10 Crores and Turnover greater than INR 5 Crores but less than or equal to INR 50 Crores shall be classified as a Small Enterprise . Any Enterprise with Investment in Plant & Machinery greater than INR 10 crores but less than or equal to INR 20 Crores and Turnover greater than INR 50 Crores but less than or equal to INR 100 Crores shall be classified as a Medium Enterprise . Classification Micro

The objects clause describes the permissible business activities that a company can undertake to achieve its goals.  The Company can therefore only undertake activities that are mentioned in its object clause and any activity which is not mentioned in the objects clause shall be considered as void-ab-initio (Void from the very beginning). There are two types of objects mentioned in the Memorandum of Association of a Company Main Objects: The Main Objects describe the purpose for which the company has been incorporated.  Ancillary/Incidental Objects: These include incidental activities necessary for the furtherance of main objects of the Company. Procedure for Alteration of object clause of the Memorandum of Association (MOA):   Hold a Board Meeting to consider and approve the agenda of Alteration of the Object Clause of the Memorandum of Association of the Company and to fix the day, date and time to conduct an Extra-Ordinary General Meeting (EGM) for getting the

MCA has issued clarification on dispatch of notice for right issues by listed companies upto July 31st 2020. The same can be accessed through the link below: http://www.mca.gov.in/Ministry/pdf/Circular21_11052020.pdf .

MCA has issued clarification on holding of annual general meeting (AGM) through video conferencing (VC) or other audio visual means (OAVM). The same can viewed on  http://www.mca.gov.in/Ministry/pdf/Circular20_05052020.pdf

The payment of Stamp Duty is a state matter and accordingly before proceeding with the payment of stamp duty on share certificates in Gurgaon, Haryana, one should refer to the relevant provisions of Companies Act, 2013 and Haryana Stamp Act. Given below are the various t imelines to be kept in mind with respect to payment of stamp duty on share certificates: As per the Companies Act, 2013 every Company shall allot equity shares to the subscribers within 60 days of receipt of Share Application Money. The Company shall thereafter issue share certificates to the aforesaid allottees within 2 months from the date of allotment. As per the Indian Stamp Act, Companies shall pay proper stamp duty on share certificates issued by them within 30 days of issuance of Share Certificates.

While receiving additional funds from investors or existing shareholders, a Company may have to increase its Authorized Share Capital so as to ensure that the new capital being brought in the company is within the authorized limit mentioned in the Memorandum of  Association of the Company. Remember the basic rule: The Paid Up Capital of a Company can never exceed its Authorized Share Capital. The procedure to Increase the Authorized Share Capital of the Company is given below: 1) Check the Articles of Association ("AOA") of the Company to ensure that suitable provision/clause with respect to the power to Increase the Authorized Share Capital of the Company is in place, otherwise suitable amendment should be made in the Articles of Association of the Company by passing a Special Resolution. 2) Issue notice for holding Board Meeting to discuss the following matters:     a) Increase in Authorized Share Capital of the Company:     b) To fix the date, place

  Procedure for payment of Stamp Duty in Haryana: 1. Preparation of relevant documents: As a first step, the Company should prepare the following documents for submission to the authority:  Application along with INR 10 Court Fee Stamp; Copy of Share Certificates; Certified copy of Board Resolution; Certified Copy of PAN Card of the Company; Copy of Memorandum and Articles of Association of the Company; Copy of Form PAS-3, as filed with Registrar of Companies; List of Directors of the Company; List of Share Certificate Holders of the Company; Authority Letter in favour of Company Secretary/ Chartered Accountant for submission of documents to the authority. Note: It should further be noted that Every page of above documents should be signed by a Director of the Company and should also be stamped with the Company Stamp. 2. Submission of documents to the “Revenue Department”, Haryana. All the above documents shall thereafter be submitted to the Revenue Department si

Any person who wants to import or export any goods needs to first acquire an Importer and Exporter code before importing or exporting such goods. IEC is issued by Directorate General of Foreign Trade (DGFT) and can be applied online by following this simple procedure. 1)     Visit  https://dgft.gov.in/ 2)     Click on Services 3)     In this section click on “IEC” and thereafter on “ Online IEC Application” 4)     Enter your “PAN Number”, which will be verified with the Income Tax database. 5)     Enter the Name, Date of Incorporation of your company and also the Email ID and Mobile Number for OTP Confirmation. 6)     Thereafter, the Application Form will be displayed  where in you need to enter the following details: a)     General Details of the business like Name, Address, Pan Number, CIN Number. b)     Details of Authorized person like Name, Address, DIN Number. c)      In case, the company is having any Branch Office, enter the details of the Branch office.

Have you ever Invested your money in shares, Deposits, Debentures of any company? If yes, then this information might be of help to you. As per Section 124 of the Companies Act, 2013, in case a company has declared any dividend but the same has not been claimed  within 30 days  from the date of declaration, the company shall transfer the total amount of unclaimed dividend to Unclaimed Dividend Account which is opened specifically for this purpose with a scheduled bank. For the purpose of public dissemination, the company shall within a period of 90 days of such transfer, upload a list containing the names, addresses and amount of unpaid dividend on their website. Thus, an individual who has not been able to claim the amount of dividend for any year may apply to the company to claim the dividend for a year of  7 years  from the date of such transfer by the company to the unpaid dividend account. What happens after 7 years ? After 7 years of such transfer, the Companies Act