Calcutta Business

School

LEGAL ASPECT OF BUSINESS LAW

AND CORPORATE SOCIAL
RESPONSIBILITY
Topic:- Authorised dealers of FOREX in
India under FEMA 1999
Different types of companies under
Companies act 2013
Faculty :- Prof. CS (Dr) Santanu Mitra.
By Souma
Das

Roll No.
16034
Acknowledgement
This project consumed huge amount of work, research and
dedication. Still, implementation would not have been possible
if we did not have a support of my Faculty, family and our
college management team and also all non-technical staffs.
Therefore we would like to extend our sincere gratitude to all of
them.
First of all I am thankful to Prof. CS (Dr) Santanu Mitra for
his dedication of giving lecture at a stretch 3 hours and for
providing all necessary guidance and knowledgeable care
concerning projects implementation.
I am also grateful to my parents for affording such huge
expenses which they are lending for my study, The whole team
of management of Calcutta business School for provision of
expertise, and technical support in the implementation. Without
their superior knowledge and experience, the Project would like
in quality of outcomes, and thus their support has been
essential.
We would like to express our sincere thanks towards faculty
who gave his time and knowledge in the implementation of this
project.
Nevertheless, we express our gratitude toward our families and
friends for their kind co-operation and encouragement which
help me in completion of this project.

Date:Place:Signature:-

Contents

Foreign Exchange Management Act

-Definition.......4
-List Of Authorised Dealers...4-15
Kinds of Companies under Companies Act,
2013.915

Foreign Exchange Management Act

The Foreign Exchange Management Act, 1999 (FEMA) is an Act
of the Parliament of India "to consolidate and amend the law
relating to foreign exchange with the objective of facilitating
external trade and payments and for promoting the orderly
development and maintenance of foreign exchange market in
India".[1] It was passed in the winter session of Parliament in
1999, replacing the Foreign Exchange Regulation Act (FERA).
This act makes offences related to foreign exchange civil
offenses. It extends to the whole of India.,[2] replacing FERA,
which had become incompatible with the pro-liberalisation
policies of the Government of India. It enabled a new foreign
exchange management regime consistent with the emerging
framework of the World Trade Organisation (WTO). It also paved
the way for the introduction of the Prevention of Money
Laundering Act, 2002, which came into effect from 1 July 2005.
FEMA permits only authorised person to deal in foreign
exchange or foreign security. Such an authorised person, under
the Act, means authorised dealer, money changer, off-shore
banking unit or any other person for the time being authorised
by Reserve Bank. The Act thus prohibits any person who:-

LIST OF AUTHORISED DEALERS

Abu Dhabi Commercial Bank Ltd.
Allahabad Bank

 American Express Bank Ltd.

Andhra Bank
ANZ Grindlays Bank Ltd.
Arab Bangladesh Bank Ltd.
Bank International Indonesia
Bank of America National Trust and Savings Association
Bank of Bahrain and Kuwait B.S.C.
Bank of Baroda
Bank of Ceylon
Bank of India
Bank of Madura Ltd.
Bank of Maharashtra
Bank of Nova Scotia
Bank of Rajasthan Ltd.
Bank of Tokyo-Mitsubishi Ltd.
Banque Nationale De Paris
Barclays Bank p.l.c.
Benares State Bank Ltd.
Bharat Overseas Bank Ltd.

 Bombay Mercantile Co-operative Bank Ltd.

Canara Bank
Catholic Syrian Bank Ltd.
Central Bank of India
Centurion Bank Ltd.
The Chase Manhattan Bank
Chinatrust Commercial Bank
Cho Hung Bank
Citibank N.A.
City Union Bank Ltd.
Corporation Bank
Credit Lyonnais
Dena Bank
Deutsche Bank
The Development Bank of Singapore Ltd.
Development Credit Bank Ltd.
Dhanalakshmi Bank Ltd.
Federal Bank Ltd.
HDFC Bank Ltd.

 The Hongkong and Shanghai Banking Corporation Ltd.

ICICI Banking Corporation Ltd.
IDBI Bank Ltd.
+
Indian Bank
Indian Overseas Bank
IndusInd Bank Ltd.
Internationale Nederlanden Bank (ING Bank)
Jammu and Kashmir Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Lakshmi Vilas Bank Ltd.
Maharashtra State Co-operative Bank Ltd.
Nedungadi Bank Ltd.
Oman International Bank S.A.O.G.
Oriental Bank of Commerce
Oversea-Chinese Banking Corporation Ltd.
Punjab National Bank
Punjab and Sind Bank
Sangli Bank Ltd.
Saraswat Co-operative Bank Ltd.

 SBI Commercial and International Bank Ltd.

Societe Generale
Sonali Bank
South Indian Bank Ltd.
Standard Chartered Bank
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Indore
State Bank of Mauritius Ltd.
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
Tamilnad Mercantile Bank Ltd.
The Toronto Dominion Bank
UCO Bank
Union Bank of India
United Bank of India
United Western Bank Ltd.

 UTI Bank Ltd.

Vijaya Bank
Vysya Bank Ltd.

Kinds of Companies under Companies Act,

2013
According to sec 2(20) of the companies act, 2013 A
company is a company formed under the companies Act 2013
or under any of the previous acts relating to companies.
A company may be defined as an incorporated association
which is an artificial person, having a separate legal entity, with
a perpetual succession, a common seal, a common capital
compromised of transferable shares and limited liability.

Royal Chartered Company These are companies formed

under the Royal Charter of a company or by a special order of
king or queen.
Eg. East India Company formed by the Royal Charter of Great
Britain. Such a company derives its nature on the basis of the
charter under which they are formed.
Statutory Company It is incorporated by a special Act
passed either by the Central or State legislature. Companies
intended to carry on some business of national importance are

formed this way to provide a service to its citizens. Eg. RBI

formed under RBI Act 1934.
Registered Companies A company registered under the
companies Act 2013 or any other existing Act. It is governed by
the companies Act 2013.
Company limited by shares It is a company in which the
liability of the members (shareholders) limited i.e. they are only
liable for the unpaid value of shares held by the member. The
unpaid amount can be called upon any time
during the life time or winding up of the company. If the shares
of a member are fully paid up then his liability will be nil.
Company limited by Guarantee In such a company the
Liability of shareholders is limited up to the amount guaranteed
or invested by the shareholder towards the assets of the
company in the event of its being wound up. The amount
guaranteed can be only demanded at the time of
its wound up, hence it is a reserve capital. Such companies are
generally formed to promote art, science, commerce, sports
etc. and are not for profit making.

Unlimited companies A company having no limit on the

liability of its Shareholders is an unlimited company. Thus the
liability mayextend to the personal property of the
Shareholders in case the company is not able to
satisfy its claims at the time of winding up. This liability of
members is like a partnership where they have to contribute
according to the ratio of amount invested in the company.

Holding and Subsidiary company Where one company

controls the management of another company, the former is

called the holding company and the later over which the control
is exercised is termed as a subsidiary company.
1. A company shall deemed to be a holding company of
another, if that other is a subsidiary.
2. A company shall be deemed to be subsidiary of another
company if the other company.
o Controls the composition of its Board of Directors.
o Holds more than half of nominal value of equity share
capital.
o It is a subsidiary of another company which is another
companys subsidiary.
o If it holds more than 50% of the total voting rights of the
company.
Private Company The term private company has been de
ned under section 2(68) of Companies act 2013. A private
company means a company, which has a minimum paid up
share capital of Rs. 1 lakh and which provides the following
restrictions through its Articles of Association and Memorandum

o
o
o
o

Restricts the transfer of shares by its members

Limits the maximum number of members to 200
Prohibits any invitation or acceptance of public deposits
Prohibits invitation to public for debentures of the
company
It enjoys special privileges also-

o It can be started with only 2 members

o It is not required to prepare a prospectus and it can start
its operations immediately after receiving the certificate of
incorporation.

Public company The term public company has

been de ned under section 2(71)of Companies act 2013. A
public company means a company which has minimum paid
up share capital of Rs. 5 lakh and which is not a private
company. It has the following features

It does not restrict transferability of shares

It does not limit maximum members to 50
At least 7 members are required to form a public company
It has at least 3 directors
Its name end with the word limited
It can accept public deposits and invite public for
subscription of its shares and debentures
A private company which is a subsidiary of a public company
will also be considered a public company under this Act
o
o
o
o
o
o

Domestic company A company which is based in India

registered under the Companies Act 2013. The head Office and
its business operations are conducted within the country. It can
either be private or public.
Foreign company A Foreign Company is a company
incorporated outside India which establishes its business
operations within India under the Companies Act 2013. Within
30 days of its establishment, it has to furnish important
documents to the registrar as per Sec 380. They are:

o
o
o
o
o
o

A certified copy of the charter of the company

Memorandum and Articles of Association of the company
Address of the registered office
List of directors and secretary
Full address of the principle place of business in India
Name and address of the authorised person to do business
on behalf of the company in India.

One Man Company Where one man holds practically the

whole of the share capital of a company and takes a few more
dummy members simply to meet the statutory requirements of
the minimum number of persons such a company is one man
company. A one man company can be incorporated under sec
2(62) of the Companies Act, 2013. In such a company the
principle shareholder is the virtual owner running the business
with limited liability and other members may have even one
share.
Companies not for profit These companies must obtain a
license from the central government before they are registered.
They are limited liability but are not required to use the word
Limited or private with their names.

They are formed promoting art, science, commerce, sports etc.

Profits are applied towards its objective and cannot be
distributed among its members.

1. It enjoys various exemptions on registration.

2. It does not pay stamp duty for registration of Memorandum
and Articles of Association.
3. It can be formed without share capital
4. Government can revoke license any time by giving a notice

References

All the details are taken from secondary sources

(Internet).

Thank You..!!