The Companies (Amendment) Ordinance 2018 has reintroduced the concept of Certificate of Commencement of Business with effect from 2 November 2018. Under the new Ordinance, no company will be entitled to commence its operations or exercise any borrowing powers unless it has filed within 180 days from its Incorporation a “declaration” stating:
- That the Subscribers to the Memorandum of the company have paid the value of shares agreed to be taken;
- That the Company has filed a verification of its registered office address with the Registrar of Companies.
Continue reading “Certificate of Commencement of Business”
The process of Dematerialization of shares was introduced to convert the whole Capital Market into electronic mode. Dematerialization, in simple terms, is a process of converting physical shares into electronic mode which is maintained in an account with the Depository Participant. The Account in which the shares are maintained is termed as the Demat Account. Continue reading “What is Dematerialization of shares?”
Many small business owners start out as sole proprietors of their firms. Sole proprietorship is the most common and simplest form of business structure. This form of business has its own advantages: easy formation, limited paperwork, small capital requirement, and minimum compliance requirements.
As the business starts spreading its roots, the next logical move would be to expand operations to accommodate large business needs. The experience acquired as a sole proprietor helps the entrepreneur to build a stronger foundation for his business when he chooses to transform it into a Private Limited Company. Continue reading “How to convert Proprietorship to a Private Limited Company”
One of the most important decisions while registering a new company is deciding the Capital of the Company. For taking an informed decision regarding the capital of the company, one should understand two basic concepts relating to capital i.e. Authorized Capital and Paid Up Capital. Continue reading “Authorized Capital and Paid Up Capital”
Startups have set a certain benchmark when it comes to providing employees with more than just a salary. One such policy that has caught the attention of all is ESOP or the Employee Stock Option Plans. Continue reading “Understanding Employee Stock Option Plans (ESOP)”