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There is no single, precise definition, as there are different meanings in drug control law, government regulations, medicine, and colloquial usage.
- > Change is a constant phenomenon that we experience in every sphere we are a part of and business is no exception to that. Private limited companies can have events such as change in director or change of the registered office. The Government of India considers it essential to track such events and has mandated certain event-based compliances for a private limited company which need to be met by a given deadline to avoid penalties.
The event clause of Memorandum of Association states the purpose of incorporation of the company. This is an important clause since any company performing an act beyond the objects makes it ultra vires. The subscribers decide its Event-Based Compliances for Companies while incorporating it. However, the Companies Act, 2013, offers provisions to alter the objects of the company at a later date too. You can check the rules for this alteration in Section 13 of the Act.
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Limited Liability Partnership registrations in India have risen by 55% during the Financial Year 2014-15 and is to set to rise even further with rising awareness about LLP. Most of the people opting for LLP registration are small businesses that do not foresee any requirement for raising equity funds. However, some of the small businesses may at some point have a requirement to convert to a private limited company due to various reasons.
There are largely two types of Companies, One is a Private Limited Company and the other is Public Limited Company. Public Company is defined in S. 2 (68) of the Companies Act, 2013, and Private Company is defined Under S. 2 (69) of the Companies Act, 2013. For our understanding, we can derive that Private Companies are those Companies whose articles of association restrict the transferability of shares and prevent the public at large for subscribing to them. This is the basic and important difference between a Private Company and a Public Company.
Here is the Procedure for conversion of
Sole Proprietorship to Private Limited Company
Step 1: Incorporate a new Private Limited Company through regular procedure.
Step 2: At the time of drafting of Memorandum of Association (MOA) of the new company, one of the objectives should be mentioned as – “The Private Limited Company is formed for takeover of sole proprietorship concern”.
One type of company that has emerged to be a major player in the market is NBFC or Non-Banking Financial companies. NBFCs have been contributing a reported 12.5% rise in the Gross Domestic Product (GDP) and are therefore among one of the institutions with huge potential for changing the landscape of financial services.
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