Corporate Mania

  GENERAL CONDITIONS ON FDI FOR START –UPS   Start-ups can issue equity or equity linked instruments or debt instruments to FVCI (Foreign Venture Capital Investor) against receipt of foreign remittance, as per the Schedule VII of Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.   In addition, start-ups can issue convertible notes to person resident outside India subject to the following conditions:   (i) A person resident outside India (other than citizen of Pakistan or Bangladesh or an entity which is registered/incorporated in Pakistan or Bangladesh), may purchase convertible notes issued by an Indian startup company for an amount of twenty-five lakh rupees or more in a single tranche . Explanation: For the purpose of this Regulation, a ‘startup company’ means a private company incorporated under the Companies Act, 2013 or Companies Act,1956 and recognised as such in accordance with n...

PROCESS FOR CONVERSION OF COMPANY INTO LLP Benefit of the Conversion of company into LLPs is as follows:- Easy to handled in comparison to that of other companies. The maximum limit of shareholders is not limited in an LLP. The LLP can have any desired number of shareholders. However, the maximum number of shareholders is fixed in a private company. Management of funds depends entirely on the members’ wish. LLP doesn’t have to pay the Dividend Distribution Tax which is to be paid by the companies. Also, LLPs save MAT tax and income tax due to interest and remuneration payable to partners. Less compliance than Company. In short, LLPs involve the best practices of private companies and also protect the freedom of partners, giving them the ability to decide the norms of the company. Thus it combines the best features of various kinds of businesses. The Finance Bill 2010 stated that the capital gain tax will not be levied on conversion to an LLP...