Question

QUESTION 2 Discuss the legislative requirements for management of a private business corporation. (20 marks)

Answer 1

According to law, at least two member who are adult are required as directors of a Private Limited company. The maximum limit of directors in such cases is 15. Some documents are required for the registration of a private business corporation which include PAN(for Indian nationals) and passport(For foreign nationals), phone bills, electricity bills, bank statements, the office address, etc. As provided by the Companies Act 2013, firstly the name of the company is approved by the Ministry of Corporate Affairs. Two names can be provided by the concerned company, out of which one name is chosen and in case any of the names are not approved by the Ministry, another set of names are provided by the companies. There is then the requirement of digital signature by the Directors in the incorporation application. An incorporation Application has to be submitted by the company. The private company incorporation certificate and other necessary documents are provided by the Ministry by 1-2 business days, after the submission of the incorporation application by the company. There are many advantages of a private limited companies such as limited liability, its a separate legal entity, attracts funding better, foreign investments, etc.