Corpdaily by CS Kartik Arora

With effect from February 15, 2020, new companies are allotted Employer Code under the Employees State Insurance Act, 1948, and Establishment ID under the  Employee Provident Fund and Miscellaneous Provision Act, 1952,  upon incorporation only and the provision for registration under the said acts post-incorporation have been done away with. This has been a major step towards Ease of Doing business and has been widely appreciated by stakeholders. However, sometimes professionals and companies are unable to find their Employer Code under the Employees State Insurance Act, 1948, and Establishment ID under the  Employee Provident Fund and Miscellaneous Provision Act, 1952, because the incorporation was done by the professional using their MCA Account.  In this blog, we will help you with the procedure to find your company's PF Establishment ID and ESI Employer code. How to know your ESI Employer Code? 1) Click on the following Link  Index - Employer Searc...

The Companies Act, 2013, prescribes the necessity to take different types of approval for different kinds of matters.  In this blog, we have discussed the types of resolutions that are required for approving various matters in the case of Private Companies. Matters that require the approval of the Board of Directors: S. No. Matter Gover.  Section          Remarks 1 Appointment of Additional Director 2 Specified Related party Transactions (Not on Arms Length Basis) The matters that have been specified are:   (a) sale, purchase,   or supply of any goods or materials; (b) selling or otherwise disposing of, or buying, property of any kind; (c) leasing of property of any kind; (d) availing or rendering of any services; (e) appointment of any agent for purchase or sale of goods, materials, services, or property; (f) such...

As per the provisions of Section 96 of the Companies Act, 2013, every Company, except a One Person Company, needs to hold its Annual General Meeting ("AGM") for a financial year within a period of 6 months from the date of closing of the financial year subject to a maximum gap of 15 months between two consecutive AGMs.  Note: It may be noted that the First Annual General Meeting can be held within a period of 9 months from the date of closing of the financial year. However, circumstances may arise that necessitates a Company to delay holding its Annual General Meeting for a specific financial year. Taking this into consideration, proviso to Section 96 states that  "the Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months." Thus, adequate provisions are in place so as to facilitate companies to apply for an extension of the tim...

 Hi Everyone, Given below are the links to download the excel sheet containing the AO Codes for PAN and TAN for your ready reference.  These codes are required to be mentioned in Spice+ form while incorporating a Company in India for the purpose of allotment of PAN and TAN to the Company. Links: AO Codes for PAN AO Codes for TAN

Foreign entities looking to set up their business in India are generally confused regarding the type of business vehicle they should choose to start their operations in India.  There are majorly three alternatives available in the form of: 1) Branch office 2) Liaison office 3) Wholly owned subsidiary. Given below is a detailed comparison between the different types of business vehicles available in India for foreign entities:   Branch Office Liaison Office Private Limited Company Applicable Thresholds 1) Profit Making Track Record during the last five financial years in the home country; And 2)  Net Worth of not less than USD 100,000 as per or its equivalent.   Note: An applicant that is not financially sound and is a subsidiary of another company may submit a Letter of Comfort (“LOC”) from its parent/ group company, subject to the condition that the parent/ group compan...