The laws under the Companies Act are administered by Ministry of Corporate Affairs or MCA. When starting a business in India, it is important for you to first get your company registered as per the norms of the Companies Act and to do this you may have to decide on the type of business under which you want to incorporate your company. What is Company Law in India?
Company law in India
Every country has an act or laws that define how companies should work. In India, Company Law under the Companies Act has all the laws related to corporations and businesses that work within the country or are related to it. Apart from the Companies Act, there are other acts such as the Societies Registration Act, The Indian Partnership Act and an LLP Act which regulate and ensure fair trade in the market.
The laws under the Companies Act are administered by the Ministry of Corporate Affairs or MCA. When starting a business in India, it is important for you to first get your company registered as per the norms of the Companies Act and to do this you may have to decide on the type of business under which you want to incorporate your company
Company Laws in India – Your Business is a Separate Entity in the Eyes of Law
Once you get your new business registered under the Companies Act, it becomes a separate entity in the eyes of law. A business is distinctive from its members and the assets and liabilities of this entity, therefore are distinguished. Various laws govern how the assets and liabilities of a company should be looked upon or rightly managed.
Company law in India
The Property and the Seal of a Company
As per the Companies Act,
A Business entity can have its own property with no members having any right on the asset.
The business entity is a separate entity in the eyes of the law but it does not have a physical form.
The business entity exercises its authority through the board of directors who make the decisions for the company and the signature of the company is its seal.
Incorporating a Company under Limited Liability Partnership
Limited Liability Partnership is one of the ways your business can be registered in India. For this, you may have to register your business under the Limited Liability Partnership Act 2008. The greatest benefit of LLP is that it reduces the risk and provides the flexibility of a partnership. With an LLP, the liability of each partner is limited to the contribution that is agreed upon by the partner. The rights and duties of partners may be decided through mutual agreements.
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