Archive for year: 2018
Fairly confidential or confidentially fair: IBBI prescribes new rules for valuation of distressed assets
/0 Comments/in Insolvency and Bankruptcy /by Vinod Kothari ConsultantsHelp in the hour of need: RBI relaxes asset classification norms for MSME accounts
/0 Comments/in Financial Services, NBFCs /by Vinod Kothari ConsultantsBy Abhirup Ghosh(finserv@vinodkothari.com)
The Reserve Bank of India (RBI), on 7th February, 2018[1], has come out with a notification to grant relaxation to banks and NBFCs with respect to asset classification in case of MSME accounts. The notification has been released on the pretext that the due to the implementation of Goods and Services Tax, the cashflows of small enterprises have been impacted severely, thereby hampering their ability to honour their financial obligations.
In this write up we have tried to cover the impact of the notification.
DIPP favorably revisits crucial sectors: amends FDI Policy
/0 Comments/in FEMA /by Vinod Kothari ConsultantsDIN application & allotment- the amendments
/3 Comments/in Corporate Laws /by Vinod Kothari ConsultantsBy Smriti Wadehra (corplaw@vinodkothari.com)
DIN application & allotment- the amendments
Introduction
The Ministry of Corporate Affairs is aiming towards ease of doing business and intends to simplify the procedure of incorporation of a company. As per the erstwhile provisions, the in order to incorporate a company the person proposed to hold directorship thereof had to first obtain DIN by filing form DIR-3 as DIN was one of the pre-requisite for making application for reservation of name in Form INC-1. This process was time taking considering separate DIR-3 for the respective directors were involved followed by application for name reservation in form INC-1 and then for incorporation in INC-32. To reduce the hassle of this multi layered incorporation process the Ministry has come up with Companies (Appointment and Qualification of Directors) Rules, 2014.
MCA relaxing Registration offices and Fees Rules – Stepping towards eASE of Business
/0 Comments/in Corporate Laws /by Vinod Kothari ConsultantsBy Chahat Jain (corplaw@vinodkothari.com)
MCA is implementing reforms to make doing business easier, targeting more and more business to register as companies with a vision to make India count in top 50 of World Bank’s Doing Business rankings. The Companies (Amendment) Act, 2017 also mandates revision in fees pursuant to changes proposed in Section 403 of Companies Act, 2013. Accordingly, the first set of amendment has been notified vide notification dated 20th January, 2018 by way of Companies (Registration of Offices and Fees) (Amendment) Rules, 2018[1]. The Amendment Rules were published in Official Gazette on 22nd January, 2018 and are effective from 26th January, 2018.
25th GST Meeting- Making GST Business-compliant
/0 Comments/in Indirect Taxes, Taxation /by Vinod Kothari ConsultantsBy Mayank Agarwal (finserv@vinodkothari.com)
The 25th meeting of the GST Council held on 18th January, 2018 has shown that the Government has not turned a blind eye to the pleas of the industry and is willing to cooperate with them to make GST a more simplified and business-compliant structure of the Indirect Taxation System.
The amount of GST revenue for the month of December reflected a reversal in trend for the first time since its inception, recording an increase in the revenue generated. However, there were still widespread concerns about the alarmingly low collection under the Composition Scheme. Hence, amendments to the Composition Scheme structure and the guidelines relating to the implementation of E-Way Bill took the centre stage during the meeting.
Republic Day Blossom by MCA for Incorporation of Companies in India
/0 Comments/in Corporate Laws /by Vinod Kothari Consultants*Quick Summary by CS Dheeraj Kr. Sharma of:*
*1. Companies Incorporation (Amendment) Rules, 2018*
*2. Companies Appointment and Qualification of Directors (Amendment) Rules, 2018*
*3. Companies Registration Offices and Fees (Amendment) Rules, 2018*
– INC-1 discarded. Now _Registration of Unique Name_*(RUN)* to be used for Reservation of Name and Change of Name of existing companies.
– *CRC will be vested with job of processing RUN applications*.
– *RUN* is half page web form in which one name can be reserved.
– *No resubmission for RUN*. Either approval or rejection.
– *RUN* comes with *_Auto Check_* feature for checking name availability. However, scrutiny of name shall still be done by MCA. Onus to comply with _Name Availability Provisions_ still rests upon applicant. Same is now required to be declared by Applicants in SPICe (INC-32).
– Documents such as NOC for Name, Sectoral Regulator Approval, Self-Declaration, etc. has to be attached to *RUN*. _Though, size of attachments still remian undisclosed_*. We can expect it to be existing 6MB.
– Brief of Main Objects to be entered in *RUN* in comments section.
– Incorporation to be done only through SPICe Route now i.e. INC-32
– SPICe (INC-32) to be now used for Incorporation of Chapter XXI (Part-I) companies i.e. Section 366 companies.
– e-MOA and e-AOA (i.e. INC-33 and INC-34) to be *not applicable* for companies having foreign subscribers or cases where subscribers are more than 7. In both such cases separate MOA-AOA has to be attached.
– Form INC-7 discontinued for Incorporation matters.
– For incorporating companies having less than or equal to Rs.10 lakh nominal capital or companies which are without share capital and have members less than 20 – *_No Incorporation fee._*
– Form DIR-3 (i.e. Application for DIN) to be used only by existing companies for appointment of new Directors not having DIN.
– Declarations in INC-32 come with a major change for Applicants as well as Practicing Professionals. *HelpKit of e-Forms will provide clarifications so let’s wait for this*.
– PAN of Practicing Professional certifying INC-32 to be mandatorily provided.
– SPICe (INC-32) to be now filed with the *concerned ROC where Registered Office is to be situated* _Therefore, CRC not to process Incorporation applications._
– Person not having DIN and wanting to incorporate new company to apply for DIN through SPICe (INC-32).
– Maximum 3 DIN can be applied through SPICe (INC-32), which means for appointment of more directors, separate Form DIR-12 shall be used after incorporation of company.
– DIR-3 for existing companies to be certified by existing company’s Director/CFO/CEO/CS. *Professional certification removed for DIR-3.*
– Board Resolution mandatory to be attached in DIR-3 for person to be appointed as Director in existing company.
