image

Ease of doing Business in India help companies to take startup as private companies

The recent relaxations in the Companies Act, 2013, notified by the ministry of corporate affairs (MCA) for private sector, such as issue of share capital to reduced compliance burden, has caught the attention of budding entrepreneurs.

As a minimum share capital is no longer required at the time of incorporation, rather than opting for other legal forms of entities – such as limited liability partnerships. The notification issued by the MCA in early June has been placed before both houses of Parliament for approval.

Since December 2000, the minimum share capital for a private company was Rs 1 lakh; now, there is no such requirement. In fact, this particular amendment was notified earlier on May 26 and the stamp duty burden attached at the inception stage has been done away with. Many young entrepreneurs are showing their interest in incorporating private companies.

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates