The nature of instrument to be issued by a company depends to a large extent on the valuation of the company obtained through different mechanisms.
On 11th March 2020, World Health Organisation, declared Novel Coronavirus Disease (“COVID-19”) outbreak as a pandemic and reiterated the call for countries to take immediate actions and scale up response to treat, detect and reduce its transmission. The Prime Minister's Office, Group of Ministers, Ministry of Health and Family Welfare and Cabinet Secretary are closely... Continue Reading →
Since our previous posts on Corporate Social Responsibility (CSR) [which can be accessed here, here and here], there have been numerous changes to the governance of CSR in India. Key Changes in 2019 Exemptions to Start-ups: Complying corporations which are freshly incorporated and have not completed 3 years of establishment, the amount to be spend... Continue Reading →
The ECB Circular attempts to overhaul the nature of uses for which borrowers may adopt the ECB route and therefore, avail debt funding from foreign lenders. The relaxation in permitted end uses via the ECB Circular conveys the RBI’s intent to liberalise external debt funding opportunities for Indian entities thereby reducing their dependence on equity based funding.
Introduction Doing business in India has entered an exciting phase owing to the launch of start-ups providing niche services as per their sectoral expertise. In order to encourage the growth of start-ups in the country, the Government has from time to time attempted to simplify the incorporation process and promote ease of doing business in... Continue Reading →
The Department of Industrial Policy and Promotion (“DIPP”) has vide Press Note No. 1 - 2018 Series (“Press Note 1”) sought to review the extant Foreign Direct Investment (“FDI”) policy on various sectors and has sought to incorporate several amendments to the Consolidated FDI Policy Circular of 2017 as amended from time to time (“FDI Policy”). These amendments will come into effect from the date they have been notified under the... Continue Reading →
First published on Lawyered.in Introduction One Person Company (“OPC”) has been conceptualized by the Ministry of Corporate Affairs (“MCA”) to help fill-in the gap between a proprietorship and a private company set-up and was introduced in India through the Companies Act, 2013 (“Act”). This type of entity encourages an individual to start his own business,... Continue Reading →
The Central Government has a few days ago made amendments to the Companies (Incorporation) Rules, 2014, by substituting the extant Rule with the following text in Rule 18: “The Certificate of Incorporation shall be issued by the Registrar in Form No.INC-11 and the Certificate of Incorporation shall mention permanent account number of the company where if it is... Continue Reading →
Further to our Part I, this Part seeks to outline the various fiscal and supportive measures and schemes to unshackle Indian MSMEs from the rigours of the `Inspector Raj' and to promote ease of doing business in the MSME sector by the Government of India. MSME package announced by the Prime Minister in his speech on... Continue Reading →