Business
Business
Business
Industry Commerce
– Similarly, no suit to enforce a right arising from a contract or conferred under the
Partnership Act can be instituted in any court by any person suing a partner in the
firm unless the firm is registered and the person suing is or has been shown in the
register of firms as a partner of the firm.
Domicile clause
The state in which the registered office of company is to be situated is mentioned in this
(
clause )
Objects clause
Liability clause
This clause tells about the duties and responsibilities of the Owners; i.e., whether the share holders are liable
for their share capital or promise.
Capital clause
The amount of share capital with which the company is to be registered divided into shares must be
specified giving details of the number of shares and types of shares. A company cannot issue share
capital greater than the maximum amount of share capital mentioned in this clause without altering
the memorandum.
Association clause
(A declaration by the persons for subscribing to the Memorandum that they desire to form into a
company and agree to take the shares place against their respective name must be given by the
promoters )
Articles of Association
• Not prior to seven years, however for Biotechnology Startups not prior to ten years,
• With annual turnover not exceeding INR 25 crore in any preceding financial year,
and
• Working towards innovation, development or improvement of products or
processes or services, or if it is a scalable business model with a high potential of
employment generation or wealth creation
• Provided that such entity is not formed by splitting up, or reconstruction, of a
business already in existence. Provided also that an entity shall cease to be a
Startup if its turnover for the previous financial years has exceeded INR 25 crore or
it has completed 7 years and for biotechnology startups 10 years from the date of
incorporation/ registration. Provided further that a Startup shall be eligible for tax
benefits only after it has obtained certification from the Inter-Ministerial Board,
setup for such purpose.
Points to be remember :-
A corporation, entity or a business is termed as a start-up if
• The entity is registered under Companies Act, 2013
• It is registered under section 59 of Partnership Act, 1932, as a
partnership firm
• Or registered under Limited Liability Partnership Act, 2002, as a
limited liability partnership
•
Choosing a Form of Business Organisation:
Being the separate legislation (i.e. LLP Act, 2008), the provisions of
Indian Partnership Act, 1932 are not applicable to an LLP and it is
regulated by the contractual agreement between the partners.
a) A letter of recommendation/support