EquiCorp Associates

It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their vision. But if you don't have the cash in your wallet, what do you do? Luckily, there are still options for funding new companies, but finding and securing the cash will take careful research, good negotiating skills, and, above all, dedicated commitment to launch your business. Few way out for raising funds by startups are provided below: 1.     Family & Friends 2.     Crowd Funding 3.     Preferred Stock & Convertib le Debt 4.     Angel Investment 5.     Venture Capital 1.     Family & Friends - People like to invest not only in the idea but in the person involved in it. However using family and friends as a source of raising money can be risky. It can create a strain that can ruin personal relationships. It is also worth to note ...

With new testament of Corporate law in force has introduced several different types of companies with special features. ONE PERSON COMPANY (OPC) One Person Company is defined in Sub- Section 62 of Section 2 of The Companies Act, 2013, which reads as follows: 'One Person Company means a company which has only one member' It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member. All the provisions related to the private company are applicable to an OPC, unless otherwise expressly excluded. Ø   Only a natural person who is an Indian citizen and resident in India- ü   shall be eligible to incorporate a One Person Company; ü   shall be a nominee for the sole member of a One Person Company. Ø   No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company. Ø   No minor shall become member or nominee of the One...

The ministry has now released rules for ten chapters of the Companies Act. Notifications related to National Financial Reporting Authority (NFRA), Investor and Education Protection Fund, sick companies, special courts and National Company Law Tribunal (NCLT), among others, would come later. The latest rules pertain to registration of charges, management and administration, declaration and payment of dividend, meetings of board and its powers, appointment and qualification of directors. Last week, the ministry had notified more than 180 sections of the new Companies Act. The new law -- Companies Act, 2013 enacted on 29 August 2013 - replaces the nearly 60-year old Companies Act, 1956. The rules have brought clarity on 'related party' transactions, independent directors and imposes stiff norms on companies taking deposit. The "related party" under the Act, which earlier included a number of company executives, now leaves out all the functional heads in a compan...

With the new testament of corporate law, Companies Act, 2013 to be effective from April 01, 2014, NBFC are facing lack of oxygen supply for their survival as to ensure that debenture issuances did not trespass into the domain of public deposits and were beginning to understand that optionally convertible debentures market will die out slowly that the rules have thrown language open to interpretation. Section 71 of the Companies Act, 2013 along with the rules implies that the debenture issuances have to be secured by specific moveable and immoveable properties. NBFCs may face a rocky time in finding these specific moveable and immoveable properties for issue of secured debenture.  Section 71 of the Companies Act, 2013 states that – 1.     A company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption: Provided that the issue of debentures with an option to convert such debentures into s...

Introduction The revolutionary new concept of 'One Person Company' (OPC) has been introduced by the Companies Act, 2013. This concept of OPC was first recommended by the expert committee of Dr. JJ Irani in 2005. OPC provides a whole new bracket of opportunities for those who look forward to start their own ventures with a structure of organized business. OPC will give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc all in the name of a separate legal entity. Though the concept of OPC is new in India but it is a very successful form of business in UK and several European countries since a very long time now. The concept with special features One Person Company is defined in Sub- Section 62 of Section 2 of The Companies Act, 2013, which reads as follows: 'One Person Company means a company which has only one...

The Companies Act, 2013- a new era for corporate India.  This modern legislation is to change the rules of game in Indian corporate law in the context of changing economic and business environment. To help decode the nuances and implications of this 2013 Act, we have analysed the key changes w.r.t. 1956 Act. The 2013 Act is more concise as compared to the 1956 Act, with just 470 sections and 7 schedules. There are over 300 references in the 2013 Act to Rules that may be prescribed to implement and operationalise those sections. Therefore, the full impact of the 2013 Act can only be understood when the related Rules get finalized and two are read together. S.No. Particulars 1956 2013 Comments   Number of members of Private Company Upto 50 Increased upto 200 Allows access to large pool of capital without the need to go public   One Person Company ...