India is one of the fastest growing economies in the world with ample opportunities for business start-ups. Therefore, many new players are always looking at India’s competitive advantage to enter the Indian markets or expand their existing businesses. Whether it is a foreign company looking after a business established in India, or an Indian company wishing to expand, the Companies Act, 2013 operates all such companies and requires them to be registered through Company incorporation in Chennai
Legal documents
Legal documents play an important role in protecting your business from misunderstandings and legal disputes. In addition, they help ensure accountability and transparency whenever disputes arise in the business space. However, many business founders make the common mistake of ignoring legal formalities during their company’s initial development. In this blog we are going to discuss some of the legal documents required for the company incorporation in Chennai
Article of Association
The articles of association (AOA) also considered as “constitution of the company”. It outlines the rules and regulations that determine the company’s internal affairs.
The organization’s articles also considered as a user’s guide for the organization that outlines the organization’s purpose and its strategy for accomplishing its short-term and long-term goals.
Generally, for company incorporation in Chennai AOA includes provisions relating to the legal name, address, purpose, equity capital of the company, organization of the company, financial provisions and shareholder meetings.
These are the Companies required to file articles of association
The following organizations must file their own articles:
1. Unlimited companies
2. Companies limited by guarantee
3. Private companies have the limited by shares
Certificate of Incorporation
Section 7 of the Companies Act 2013 deals with the process for inclusion of a company determining the certificate of the company (issued by the Ministry of Corporate Affairs or the State Government) as a final step for inclusion of the company.
The certificate of establishment of a private limited company includes the following:
Company name and abbreviation
Statement showing the purpose of the business.
Registered .Face address and the name of the registered agent for the address.
A description of the number of shares authorized to be issued and the different types of stock that can be issued if there is more than one type.
Non-disclosure Agreement
In company incorporation in Chennai, a non-disclosure agreement is a legally binding agreement that establishes a confidential relationship. The signatory party or parties agree that the sensitive information they receive will not be made available to anyone else. The NDA also known as the Confidentiality Agreement.
For industries to enter into negotiations with other industries, undisclosed agreements are quite common. They allow parties to share sensitive information without fear that it will fall into the hands of competitors. In this case, known as a mutual non-disclosure agreement.
- The NDA recognizes confidential relations between two or more parties and protects outsiders from the information they disclose.
- The NDA is common before discussions between businesses about potential joint ventures.
- Employees often required to sign an NDA to protect employer confidential business information.
- The NDA also known as the Confidentiality Agreement.
Shareholder Agreement
Shareholders are the true owners of the company. An agreement describing the rights and duties between a company and shareholders known as a shareholder agreement.
The shareholders’ agreement has entered into to resolve any dispute between the shareholders and the company. We are not sure that anything will ever go wrong and in a situation where nothing is certain, such an agreement helps us to distribute disputes if it happens and helps maintain a healthy relationship between shareholders and the company. It also helps protect investments made by shareholders.
The shareholder agreement includes the following basic provisions:
- How many shares does the shareholder own?
- Will there be a different class of shares of different categories of shareholders (including minority, majority and founding shareholders)?
- If a new issue of stocks comes up in the market, should the existing shareholders get the facility to get those shares first?
- Can the board of directors stop issuing such shares or can they stop the transfer of shares?
- What are the rules for transfer of shares?
Business plan
For company incorporation in Chennai a business plan is a written description of the future of your business, a document that tells you what you plan to do and how you plan to do it. If you write a paragraph on the back of an envelope describing your business strategy, you have written a plan, or at least a microcosm.
Business plans are inherently strategic. You start here, today, with some resources and capabilities. And you want to get there, one point in the future (usually three to five years ahead), at which time your business will have different resources and capabilities as well as more profitability and increased wealth. Your plan shows how you get from here to there.
Employment contract
In company incorporation in Chennai- T.Nagar an employment contract otherwise a legally enforced contract that recognizes the rights, expectations and duties of both the employer and the employee, as well as the terms and conditions of employment. An employment contract is a bilateral agreement based on offer, acceptance, consideration, competent parties, legal object budget and free consent. The employment contract has entered into an agreed period in respect of exchange of services and remuneration. There are many rules for managing the relationship between employer and employee that are self-complex
MOA
In company incorporation in Chennai a Memorandum of Association (MoA) represents the company’s charter. This legal document has the preparation during the formation and registration process of a company to determine its relationship with shareholders and clarifies the purposes for which the company has formed. The company can only carry out the activities mentioned in the memorandum of association. As such, the MOA sets a threshold beyond which the company’s actions cannot proceed.
The Memorandum Association helps the association shareholders, creditors and anyone else dealing with the company to know the basic rights and powers of the company. Also, the inclusion of MOA helps future shareholders to make the right decision when considering investing in a company.