According to Section 233 of the Companies Act 2013, fast track merger is a simplified and speedy process for effecting mergers and amalgamations by certain classes of companies* without the involvement of NCLT. As part of process, ROC and Official liquidator have to raise objection/suggestion, if any, to the merger scheme with 30 days (from the date … Continue reading Fast track mergers involving Startups or Small companies to be approved by MCA within 60 days
Category: Corporate Laws
Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
On March 1, MCA - RoC Delhi imposed penalties on two startups (refer Order 1 and Order 2) which had raised funds via private placement of Compulsorily Convertible Debentures (CCDs) on a popular fintech platform in violation of Companies Act, 2013. The key rules violated by these startups are: Sec. 42(7) which states that no company issuing … Continue reading Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
MSME benefits to continue for 3 yrs post reclassification
At present MSMEs engaged in manufacturing and services (having Udyam registration) are eligible for various benefits*. Classification of an enterprise into Micro or small or medium category is determined based on level of a) investment in plant and machinery or equipment (other than land and building, furniture and fittings) & b) domestic turnover (i.e. excluding exports) **. For … Continue reading MSME benefits to continue for 3 yrs post reclassification
Small company’s turnover and paid-up capital thresholds are increased
With effect from 15-09-2022, MCA revised definition of Small Company as a company whose turnover is <= 40cr and paid-up capital <=4cr (for the immediately preceding FY). Few benefits/exemptions available to Small Companies under Companies Act, 2013 are: No need to prepare cash flow statement as part of financial statement - Sec. 2(40) Advantage of … Continue reading Small company’s turnover and paid-up capital thresholds are increased