EquiCorp Associates

The Reserve Bank of India has proposed major reforms in banking sector with issue of draft guidelines for setting up “ Small and Payment Banks ” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds. These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others. Ø   The existing non-bank pre-payment instrument issuers, non-banking finance companies (NBFCs), corporate BCs, mobile telephone companies, super-market chains, companies, real sector cooperatives and public sector entities may apply to set ...

In India, where doing welfare of people is one of the core principle of society, there are about one charitable organisation for every 1000 people and we all get phone calls and door-knocks soliciting donations. As a human nature, everyone wants to help or to give for charitable cause, however, have we ever cross check or investigate the money which we have given is been use for the same cause or not? Many of us may argue that- who is going to monitor them or how can they monitor their small contribution towards the larger good of the society or the cause. With enforcement of Corporate Social Responsibility under Companies Act, 2013, many self claimed social organizations have grown up like mushrooms in every corner of the city has caused much confusion in the mind of reasonable donors. This situation has also created problems for genuine charitable organizations, who are actually working for the upliftment and development of society, as people start distrusting them also. On...

Section 35 AC of the Income Tax Act, 1961, is one of the key provision which is relevant for raising funds and resources for NGO’s if understood and used effectively. The objective of Section 35 AC is to encourage business organizations to contribute more in social and economic welfare and upliftment of general public. With the increased emphasis on the corporate social responsibility in the corporate sector and ostentatious display of charity by people like Bill Gates and Warren Buffet, the contribution in the monetary term by the corporate sector in India towards socially relevant project cannot be undermined. NGO’s involved in eligible projects notified by the Central Government for promoting the social and economic welfare can raise resources for eligible project from corporate sector and fulfil their objective of development. Corporates simultaneously can fulfil their corporate social responsibility aspect of the business by contributing towards the eligible projects and ...

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...