With the launch of Startup India scheme the company can be incorporated in couple of days now. Incorporating a company now requires minimum documentation, 2 directors and a address to register your company.
The authorised share capital of the company is minimum Rs 1 lakh. This means this is the maximum amount of shares a company can issue unless it increases its share capital.
Promoters are the investors in the company. They are the owners of the company and have the right in profits of company.
Promoters hold the shares of a company. Anyone can be a promoter of the company, its not necessary that a
promoter is a directors.
Directors are managers of company who manages the day to day operations of the company. It is not necessary that the directors are the promoters of the company.
A private limited company is a voluntary association of not less than two and not more than 200 members, whose liability is limited, the transfer of whose shares is limited to its members and who is not allowed to invite the general public to subscribe to its shares or debentures.
Indian start-ups such as Flipkart, Snapdeal and Housing.com, are increasingly offering ESOPs as part of their packages, to attract talent. How beneficial is it for startups? What should employees take care of? Lets analyze.
Sweat Equity shares are the shares issued by a company in the form of reward to its directors or employees. Shares are issued at discount or Consideration other than cash for providing knowhow or making any value additions which generates synergy to the company. Sweat Equity shares is the reward given to the directors or employees for their hardwork and dedication towards the Company.
The draft rules under Companies Act, 2013 defines the naming guidelines for companies (i.e., LLP, Private Limited Company, One Person Company and Limited Company). For a name to be approved a new company, it must be both unique and desirable