Ed V PDF

Presented By :
Dr. Raj Kumar Singh

Professor , Dean (R&D) & Chairperson
Centre for Entrepreneurship ,
Innovation & Skill Development(CEISD)
School of Management Sciences
Varanasi
Launching a New Venture
Steps involved in launching a business
 Scanning of Environment & Market Research
 Information Collection
 Information Organisation
 Acquiring Required Vocational Skill
 Selection of Product & Development
 Market Assessment
 Financial Assessment
 Selection of Site
 Preparation of the Project Report
 Selection of Form of Business Organisation
Dr Raj Kumar Singh, Professor , Dean (R&D) &
Chairperson - Centre For Entrepreneurship,
Innovation & Skill Development (CEISD), SMS,
Varanasi 2
 Clearance form Environmental Regulatory
Authorities
 Registration with State Authorities
 Provision/arrangement of long term fund
 Working Capital Finance from banks
 Statutory licenses and clearances
 Purchase of Land & Building
 Selection of Personnel/Workers
 Installation of Plant & Machinery
 Procurement of Raw Materials
 Power Connection and Water Supply
 Trial Productions
 Launching of final production process
 Marketing of the Product
 Provision forDrCrisis
Raj Kumar Singh, Professor , Dean (R&D) &
Varanasi 3
Various Forms of business ownership
Types of Organization
Sole Proprietorship :
 The enterprise is owned and controlled by one
person.
 Main Features :
 One man ownership
 No separate business entity
 No separation between ownership and
management
 Unlimited liability
 All profit or losses to the proprietor
 Less formalities
Varanasi 4
Advantages :
 Simple form of organization
 Owners freedom to take decisions
 High Secrecy
 Tax advantages
 Easy dissolution
Disadvantages :
 Limited Resources
 Limited Ability
 Unlimited Liability
 Limited life of Enterprise form
Varanasi 5
(2) Partnership
An association of two or more persons who have
agreed to share the profits of a business which they
run together. This business may be carried on by all or
anyone of them acting for all.
Main Features :
 More persons
 Profit and loss sharing
 Contractual relationship
 Existence of lawful business
 Utmost good faith and honesty
 Unlimited liability
 Restrictions on transfer of share
 Principal-Agent Relationship
Varanasi 6
Advantages :
 Easy formation
 More capital available
 Combined talent, judgment and skill
 Diffusion of risk
 Flexibility
 Tax Advantage
Disadvantage :
 Unlimited Liability
 Divided Authority
 Lack of Continuity
 Risk of Implied Authority
Varanasi 7
Joint Stock Company
A Joint Stock Company is a voluntary association
of persons to carry on the business. It is an association
of persons who contribute money which is called
capital for some common purpose. These persons are
members of the company. The proportion of capital to
which each member is entitled is his share and every
member holding such share is called shareholders
and the capital of the company is known as share
capital. The Companies Act 1956 defines a joint stock
company as an artificial person created by law, having
separate legal entity from its owner with perpetual
succession and a common seal. Shareholders of Joint
Stock Company have limited liability i.e liability
limited by guarantee or shares. Shares of such
company are easily transferable. From the above
definition the following characteristics of a Joint
Stock Company can be easily identified:
Varanasi 8
1. Artificial Person : A Joint Stock Company is an artificial person as it does not
possess any physical attributes of a natural person and it is created by law.
Thus it has a legal entity separate from its members.
2. Separate legal Entity : Being an artificial person a company has its own legal
entity separate from its members. It can own assets or property, enter into
contracts, sue or can be sued by anyone in the court of law. Its shareholders can
not be held liable for any conduct of the company.
3. Perpetual Existence : A company once formed continues to exist as long as it
is fulfilling all the conditions prescribed by the law. Its existence is not affected
by the death, insolvency or retirement of its members.
4. Limited liability of shareholders : Shareholders of a joint stock company are
only liable to the extent of shares they hold in a company not more than that.
Their liability is limited by guarantee or shares held by them.
5. Common Seal : Being an artificial person a joint stock company cannot sign
any documents thus this common seal is the company‟s representative while
dealing with the outsiders. Any document having common seal and the
signature of the officer is binding on the company.
6. Transferability of Shares : Members of a joint stock company are free to
transfer their shares to anyone.
Varanasi 9
7. Capital : A joint stock company can raise large amount of
capital by issuing its shares.
8. Management : A joint stock company has a democratic
management which is managed by the elected
representatives of shareholders, known as directors of the
company.
9. Membership : To form a private limited company
minimum number of members prescribed in the companies
Act is 2 and the maximum number is 50. But in the case of
public limited company the minimum limit is 7 and no limit
on maximum number of members.
10. Formation : Generally a company is formed with the
initiative of group of members who are also known as
promoters but it comes into existence after completing all
the formalitiesDrprescribed in Companies Act 1956.
Varanasi 10
Advantages of Joint Stock Company:
1. Limited Liability : Liability of members of Joint Stock Company is limited to the
extent of shares held by them. Hence shareholders assets will not be on stake. This feature
attracts large number of investors to invest in the company.
2. Perpetual Existence : A company is an artificial legal person created by law which has
its own independent legal status. Its existence is not affected by the death or insolvency of
its members.
3. Large Scale Operation : The capacity of the corporate organizations to raise the funds
is comparatively high which provide capital for large scale operations. Hence opens the
scope for expansion.
4. Transferability of Shares : In a joint stock company it is easy to transfer shares to
anyone. But the same is not permitted to private limited company.
5. Raising of Funds : It is easy to raise a large amount of funds as the number of persons
contributing to the capital are more.
6. Social Benefit : It offers employment to a large number of people. It facilitates
promotion of various ancillary industries. It also donates money for education,
community service.
7. Research and Development : It invests a lot of money on research and development for
improved production process, improving quality of product, designing and innovating
new products etc.
Varanasi 11
Disadvantages of Joint Stock Company:
1. Formation is not easy : To act as a legal entity a company has to fulfill various legal
and procedural formalities making it a complicated process.
2. Double Taxation : This is the biggest disadvantage which the company faces. Firstly,
company needs to pay tax for the earned profits and again the shareholders are taxed for
the earned income.
3. Control by Board of Directors : After electing directors of the company which manage
the business for the company the shareholders become ignorant of their responsibilities.
This may be due to lack of interest and lack of proper and timely information.
4. Excessive Government Control : A company has to comply with provisions of several
acts, non-compliance of which can cause a company heavy penalty. This affects the
smooth functioning of a company.
5. Delay in Policy Decisions : All the legal and procedural formalities which are required
to fulfill before making policies of the company delay the policy decisions.
6. Speculation and Manipulation: As the shares of a joint stock company are easily
transferable thus the shares are purchased and sold in the stock exchanges on the value
or price of a share based on the expected dividend and the reputation of the company.

Varanasi 12
Cooperative Organization
Co-operative organisation is a voluntary association of
usually economically weaker sections of society; who
join together to achieve a common objective by
fighting against some social evil-through working
collectively according to established principles of co-
operation.
Some of the established principles of co-operation are:
1. Equality of status
2. Democratic management
3. Self – help through mutual help
4. Each for all and all for each‟
5. Collective efforts
Varanasi 13
The notion of a co-operative organisation could
be depicted as follows:

Varanasi 14
“A co-operative society is a form of organisation wherein persons voluntarily
associate together as human beings on the basis of equality for the promotion of
the economic interests of themselves.”
Features of Co-Operative Organisation:
Fundamental features of a co-operative organisation are as follows:
(i) Registration:
A co-operative society must be registered under the Co-operative Societies Act,
1912 or under a State Co-operative Societies Act. On registration, the society
becomes a body corporate, having a separate legal entity of its own, with
perpetual succession and limited liability of its members.
(ii) Voluntary Association:
A co-operative organisation is a voluntary association of persons. Everyone
having a common interest is free to join a co-operative society; irrespective of
caste, creed, religion or political affiliation. No person can be forced to become
the member of a co-operative society or continue as a member.
A member after giving proper notice can leave the society; and will get back his
capital according to the rules of the co-operative. But no member can transfer
his shares to another person.
(iii) Minimum Ten Persons Needed:
A minimum of ten adult persons are needed to form a cooperative
organisation. Maximum number of members is 100, in a co-operative credit
society; with no such limit in non-credit co-operative societies.
Varanasi 15
(iv) Service-Motive:
The primary aim of a co-operative society is to provide some
service or benefit to its members (or even general public‟s) by
fighting against some social evil.
(v) Finance:
The capital of a co-operative is raised from members through
issue of shares. A co-operative can also obtain loans from the
Central or State Co-operative Banks.
(vi) Limited Liability:
The liability of each member of a co-operative is limited to the
extent of the value of shares held by him, in the share capital of
the co-operative.
(vii) Democratic Management:
Business of a co-operative society is managed by a managing
committee; which is elected by the members. The members lay
down the broad policy guidelines within which the managing
committee manages the
Dr Raj Kumar affairs
Singh, of
Professor the
, Dean co-operative
(R&D)
& society.
Varanasi 16
The managing committee usually consists of the following office-bearers:
1. President
2. Vice-president.
3. Secretary
4. Joint Secretary, if any
5. Treasurer.
(viii) „One-Man One-Vote‟ Rule:

Every member in a co-operative has one vote; irrespective of the number of shares held
by him. „One-man one vote rule‟, as such conveys the idea of equality of status for all
members of the society.
(ix) Limited Return on Capital and Disposal of Surplus:
A limited interest up-to 10% is paid to members on their capital contribution-as an
incentive to invest money in the cooperative society. However, interest is paid only out of
profits. Profits are distributed not in form of dividend but in form of a bonus which
depends on the volume of business done by a member with the co-operative.
For example, in a consumer co-operative this bonus depends on the amount of purchases
made by a member from the co-operative, during the year; and similar other bases in
case of other types of co-operatives.
(x) State Control:
Government exercises control over co-operatives to protect the interests of members of
co-operatives; who, otherwise, are economically quite weak. Every co-operative society
must furnish annual accounts and reports to the Registrar of Co-operatives. Further,
accounts of all co-operatives are subject to compulsory audit.
Varanasi 17
Varanasi 18
Advantages of Co-Operative Organisation:
(i) Easy to Form:
A co-operative society is easy to form. Its registration is very simple and does
not involve many legal formalities.
(ii) Universal Brotherhood:
A co-operative organisation represents universal brotherhood. Membership of
a co-operative is open to all having a common interest; irrespective of caste,
creed, religion and political affiliation. Any member may leave the society, after
giving proper notice. There is no compulsion to stick to the co-operative against
one‟s will.
(iii) Fully Democratic Management:
Managing committee of a co-operative is elected, by members. Further, „one-
man one-vote‟ principle is followed in all co-operatives. As such, each member
has equal rights and equal voice in the management of the co-operative.
(iv) Perpetual Succession:
After registration, a co-operative society acquires a separate legal status with
perpetual succession. Its life is not affected by the death, insolvency or lunacy of
members. Co-operatives exist for long periods-benefiting members and the
community.
(v) Limited Liability:
Liability of members of a co-operative society is limited to the extent of the
value of their shares. Members do not run personal risk; while being members
of the co-operative.DrThis factSingh,
Raj Kumar encourages even(R&D)
Professor , Dean poor& people to join co-operatives.
Varanasi 19
(vi) Governmental Patronage:
As a matter of social welfare policy, Government extends all support to co-
operatives e.g. loans at low rates of interest, relief in taxation etc.
(vii) Internal Financing:
A large part of the profits of a co-operative is transferred to general reserve
every year. Through ploughing back of profits, a co-operative can undertake
schemes for its growth and expansion.
(viii) Lower Operating Costs:
Operating costs of a co-operative are quite low; because:
1. Office bearers offer honorary services.
2. There is no expenditure incurred on advertising and marketing activities.
(ix) Fair Distribution of Surplus:
Surplus of a co-operative is not distributed as dividends are paid in companies.
Rather surplus is given away to members, on the basis of their dealings with
society. This approach to disposal of surplus is called „distributive justice‟.
(x) Social Welfare Aspect:
Co-operatives are non-business organisations. They spread ideals of co-
operation in society. They promote feelings of equality, independence, hard
work among peopleDrin RajaKumar
society and
Singh, help, Dean
Professor them morally
(R&D) & upgrade themselves.
Varanasi 20
Limitations of Co-Operative Organisation:
Following are the limitations of the co-operative organisation:
(i) Limited Capital:
Co-operative organisations have very limited capital; because of the following
reasons:
(a) Members of a co-operative are economically backward, in most of the cases.
(b) Co-operatives do not give more than 10% interest on capital invested. This
provides not much incentive to invest huge amounts in co-operatives.
(c) The principle of „one-man one-vote‟ discourages people to buy a large number
of shares in a co-operative organisation.
All told, limited finances stand in the way of growth of activities indulged in by
a co-operative.
(ii) Inefficient Management:
Management of a co-operative organisation is called inefficient. In fact,
members of managing committee are part-time and inexperienced people.
They usually possess no specialized knowledge of modern management
principles and techniques. Because of limited financial capacity, a co-operative
is unable to hire the services of professional managers; who charge very high
for their services, in the present-day-times.

Varanasi 21
(iii) Rift among Members:
Co-operatives are started with a sense of lot of enthusiasm about co-operation; but this
enthusiasm disappears very soon. Over a period of time, differences develop among
members as to how to run the society. Selfish interests of dominating members prevail
upon the genuine interests of poor members.
Differences among members usually lead to a decline of co-operative activities; and the
co-operative organisation runs just as a matter of routine to justify its existence among
society.
(iv) Rigid Rules and Regulations:
Co-operatives have to function according to rigid rules and regulations. They are subject
to excessive Governmental control over their functioning. The result is lack of flexibility
of operations in the functioning of co-operatives; which does not permit their growth in
view of environmental opportunities.
(v) Political Interference:
Government also invests in co-operative organisations. There are, then, members in
managing committee, who represent interests of political parties. In fact, members of
political parties dominate the working of the co-operative; and the co-operative
organisation very often turns into a political organisation.
Thus the very purpose and philosophy of co-operation, which is the basis of a co-
operative organisation meets with frustration.
(vi) Lack of Motivation:
The office-bearers of a co-operative are honorary officials. They have no incentive to
work hard for the co-operative. In the absence of remuneration, they just work minimum
and justify their status, in the eyes of the members
Varanasi 22
Registration of business units
Step 1: Incorporate your business

You must first incorporate your business as a Private
Limited Company or a Partnership firm or a Limited
Liability Partnership
You have to follow all the normal procedures for
registration of any business like obtaining the certificate of
Incorporation/Partnership registration, PAN, and other
required compliances.
Step 2: Register with Startup India
Then the business must be registered as a startup. The
entire process is simple and online. All you need to do is log
on to the Startup India website and fill up the form with
details of yourDrbusiness and upload certain documents.
Varanasi 23
Step 3: Documents to be uploaded (in PDF format only)
a) A letter of recommendation/support
A letter of recommendation must be submitted along with the registration
form. Any of the following will be valid-
(i) A recommendation (regarding innovative nature of business) from an Incubator
established in a post-graduate college in India , in a format specified by the
Department of Industrial Policy and Promotion (DIPP); OR
(ii) A letter of support by an incubator, which is funded (in relation to the project) by
Government of India as part of any specified scheme to promote innovation; OR
(iii) A letter of recommendation (regarding innovative nature of business), from an
Incubator, recognized by the Government of India in DIPP specified format; OR
(iv) A letter of funding of not less than 20% in equity, by any Incubation Fund/Angel
Fund/Private Equity Fund/Accelerator/Angel Network, duly registered with SEBI
that endorses innovative nature of the business; OR
(v) A letter of funding by Government of India or any State Government as part of
any specified scheme to promote innovation; OR
(vi) A patent filed and published in the Journal by the Indian Patent Office in areas
affiliated with the nature of the business being promoted.
b) Incorporation/Registration Certificate
You need to upload the certificate of incorporation of your company/LLP
(Registration Certificate in case of partnership)
c) Description of your business in brief
A brief description of the innovative nature of your products/services.
Varanasi 24
Step 4: Answer whether you would like to avail tax benefits
Startups are exempted from income tax for 3 years. But to avail these
benefits, they must be certified by the Inter-Ministerial Board (IMB). Start-ups
recognized by DIPP, Govt. of India can now directly avail IPR related benefits
without requiring any additional certification from IMB.
Step 5: Finally, you must self-certify that you satisfy the following conditions
a) You must register your new company as a Private Limited Company,
Partnership firm or a Limited Liability Partnership
b) Your business must be incorporated/registered in India, not before 5 years.
c) Turnover must be less than 25 crores per year.
d) Innovation is a must– the business must be working towards innovating
something new or significantly improving the existing used technology.
e) Your business must not be as a result of splitting up or reconstruction of an
existing business.
Step 6: Immediately get recognition number
That‟s it! On applying you will immediately get a recognition number for your
startup. The certificate of recognition will be issued after the examination of all
your documents.
However, be careful while uploading the documents. If on subsequent
verification, it is found to be obtained that the required document is not
uploaded/wrong document uploaded or a forged document has been uploaded
then you shall be liable to a fine of 50% of your paid-up capital of the startup
with a minimum fine Dr Raj
of Kumar Singh, Professor , Dean (R&D) &
Rs. 25,000.
Varanasi 25
Step 7: Other areas
a) Patents, trademarks and/or design registration

If you need a patent for your innovation or a trademark for your business,
you can easily approach any from the list of facilitators issued by the
government. You will need to bear only the statutory fees thus getting an
80% reduction in fees.
b) Funding
One of the key challenges faced by many startups has been accessing to
finance. Due to lack of experience, security or existing cash flows,
entrepreneurs fail to attract investors. Besides, the high-risk nature of
startups, as a significant percentage fail to take-off, puts off many
investors.
In order to provide funding support, Government has set up a fund with an
initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore
over a period 4 years (i.e. INR 2,500 crore per year). The Fund is in the
nature of Fund of Funds, which means that it will not invest directly into
Startups, but shall participate in the capital of SEBI registered Venture
Funds.
Key features of the Fund of Funds-
The Fund of Funds shall be managed by a Board with professionals from
industry bodies, academia, and successful Startups.
Varanasi 26
Start-up to going IPO
It is a matter of great pride for any company to go public. However, there is a
certain process which a company needs to follow in order to come out with an
Initial Public Offering (IPO). This process involves six steps post which a
company can list itself on the exchanges.
Planning for the IPO Process

You need to determine at the beginning whether it's a good time for an IPO.
Choosing the ideal time to go public is very important. Plan in great detail what
you hope to accomplish. Examine your financial needs and wants.
It's helpful for a business to act like a public company even before it goes public.
This can be done a couple of years in advance of the IPO. Develop a business plan
and prepare financial statements.
Choosing Underwriters
Most companies use underwriters to help them with IPOs. Choosing the right
underwriters is key to having a successful offering. They're usually the ones
responsible for buying and selling the securities to the public. They're also
responsible for investigating your business to verify the financial information
given to the investors. You should select the underwriters at least a few months
before the IPO date.
Appointing an Investment Bank

All banks, public or private have an investment division which takes care of the
IPO process. All one needs to do is to fix up a meeting with any of the banks and
pay the required fees. Thereafter, it is the job of the bank to make your company
public. Innovation & Skill Development (CEISD), SMS,
Varanasi 27
Registration Forms to SEBI
Securities Exchange Board of India (SEBI) is an autonomous body
which regulates the entire finance and investment markets in
India. SEBI’s sole purpose is to provide transparency and protect
the investor. Every IPO has to mandatorily register with SEBI and
once it gets the approval, the IPO is ready to get listed on the
exchanges.
Red Herring Prospectus
The Red Herring Prospectus is a document which contains all the
information about the IPO - the size of the IPO, financial
statements, company history and the future plan of the company.
Advertising
Advertising includes everything from putting up hoardings to
giving interviews to news channels and magazines. Basically, the
more your company is talked about and known, the more
demand it will attract from the investors, which in turn will help
in a better listing price on the exchanges. In the past, companies
like Just Dial, Twitter & Facebook have used heavy advertising as
a means to promote and attract investors. A business going
public has to market the IPO. They make numerous
presentations toDrpotential investors.
Varanasi 28
Price Band Set by Investment Bank
The investment bank goes through all the financial statements of the company
and sets a price band for prospective investors to bid within the price band.
However, retail investors are not the only players who participate in the
bidding process. Mutual funds, institutional investors, hedge funds and
insurance companies also participate in the bidding process. The process of
bidding between price bands is called price discovery. The price is set on the
basis of demand and supply. One important thing to note here is that, when you
are bidding for the shares, you cannot bid for one share. If one lot consists of 10
shares, you have to buy the entire lot of 10 shares.
Book Bidding Process
Once the bidding is done, the banks identify if the issue is over-subscribed or
under-subscribed. If the issue is over-subscribed, the banks release the shares at
the highest band and the share is listed.
If you wish to know when the right time to buy a stock is, you can get to know
by calculating the price-to-earnings ratio (P/E ratio). This ratio is calculated by
dividing the share price of the current stock by the earnings per share.
Selling on the Stock Market
The IPO is normally declared effective a few days after the final prospectus is
received by the potential investors. This declaration is usually done after the
stock market has closed. The securities will then be available for trade the next
day. The IPO will hopefully be successful and provide new capital for the
business for their present and future plans.
Varanasi 29
Questions for Your Attorney
What kind of securities can a business sell in an initial public offering?
I believe that a company sent out false information to get investors to
purchase stock. Whom can I bring a lawsuit against?
Where can I go to examine the financial records of a company I want to
invest in?
Revival, Exit and End to a Venture.

STEPS – REVIVAL OF STRUCK COMPANY
FIRST STEP – Preparation of Petition: (Rule 87A (1))
The petition under Section 252(3) for the restoration of name of struck
Company shall be filed with the Tribunal (NCLT). The petition shall be
filed in Form No. NCLT-9.
Second Step – Submission of Petition with ROC: (Rule 87A(2))
A copy of the application shall be served on the Registrar of Companies
and on such other persons as the Tribunal may direct, not less than 14
days before the date fixed for hearing of the application.
Varanasi 30
Third Step – List of Documents Attach with application in NCLT-9:-
Annexure B of NCLT Rules, 2016 provide the list of documents required to be
filed with NCLT while filing application in different-2 sections. The said
Annexure not providing any separate list of documents for filing of application
with NCLT u/s 252. Therefore, as per Point NO. 13 of Annexure B “Wherever
no document is prescribed to be attached with the application or petition,
documents as mentioned below may be attached, as applicable.”
a) Document and/or other evidence in support of the statement made in the
application or appeal or petition, as are reasonably open to the petitioner(s);
b) Affidavit verifying the petition;
c) Evidence regarding payment of fee of INR 2,500/- (Rupees Twenty Five
Hundred Only)
d) Memorandum of appearance with copy of the Board Resolution or the
vakalatnama, as the case may be;
e) Three copies of the petition; and
f) Any other documents in support of the case.
Fourth Step: Hearing by Tribunal: (Rule 87A(3))
Tribunal shall hear the Petitioner and Respondent (ROC). It will also take note of
the observations/ objections, if any, received.
After hearing Both the Parties, if it is satisfied, it can order the restoration of
name of company in the record of the ROC.

Varanasi 31
Fifth Step: directions by Tribunal (Rule 87A(4))
Where the Tribunal makes an order restoring the name of a company in the
register of companies, the order shall direct that-
(a) the appellant or applicant shall deliver a certified copy to the Registrar of
Companies within thirty days from the date of the order;
(b) on such delivery, the Registrar of Companies do, in his official name and seal,
publish the order in the Official Gazette;
(c) the appellant or applicant do pay to the Registrar of Companies his costs of,
and occasioned by, the appeal or application, unless the Tribunal directs
otherwise; and
(d) the company shall file pending financial statements and annual returns with
the Registrar and comply with the requirements of the Companies Act, 2013
and rules made there under within such time as may be directed by the
Tribunal.
SIXTH STEP – FILING OF ORDER WITH ROC
The Company shall file the copy of order with Registrar of Companies with in
period of 30 days from the date of the order.
SEVENTH STEP – PUBLICATION OF ORDER IN GAZETTE
The Registrar of Companies do, in his official name and seal, publish the order in
the Official Gazette.
EIGHTH STEP – Compliance
The company shall file pending financial statements and annual returns with the
Registrar and complyDr Raj Kumar
with Singh,
the Professor , Dean (R&D)
requirements & Companies Act, 2013.
of the
Varanasi 32
Exit and End to a Venture
Procedure for striking off of name under Fast Track Exit mode The procedure
for getting the name of a Company struck off under Fast Track Exit mode is as
follows:-
• A Company eligible to apply for striking off its name needs to apply to Registrar
of Companies in Form STK-2
• The Form STK-2, should be filed electronically on the Ministry of Corporate
Affairs portal namely www.mca.gov.inand by making payment of Rs. 5000/- as
the ROC fees;
• In case, the digital signature of any of the director or Manager or Secretary is not
available for affixing to Form STK-2, a physical copy of the Form duly filled in,
shall be signed manually by a director authorised by the Board of Directors of
the company and shall be attached with the application Form at the time of its
filing electronically;
• E-form STK-2, shall be certified by a Chartered Accountant in whole time
practice or Company Secretary in whole time practice or Cost Accountant in
whole time practice;
• If the applicant‟s name doesn‟t match with the database of directors maintained
by the Ministry, the application shall be accompanied by the certificate from
the practicing CA/CS/CWA certifying that the applicants are present directors
of the Company;
• Any pending litigations involving
Dr Raj Kumar the, Dean
Singh, Professor company
(R&D) & should be disclosed while
applying under thisChairperson
Scheme;- Centre For Entrepreneurship,
Varanasi 33
The attachments to E-form STK-2are as follows:-
• An affidavit in Form STK -4 sworn by each of the existing
director(s) of the company to the effect that the company has not
carried on any business since incorporation or that the company
did some business for a period up to a date (which should be
specified) and then discontinued its operations and has not
carried on any business since last one year, as the case may be
• An Indemnity Bond in Form STK -3, duly notarized, to be given
by every director individually or collectively, to the effect that
any losses, claim and liabilities on the company, will be met in
full by every direct or individually or collectively, even after the
name of the company is struck off the register of Companies
• Statement of Account made up to a day, not more than thirty days
preceding the date of filing of application in Form STK-2 duly
certified by a statutory auditor or Chartered Accountant in
whole time practice, as the case maybe.

Varanasi 34
Copy of Board resolution showing authorization for filing the
application.
• a copy of the special resolution duly certified by each of the
directors of the company or copies of consent of seventy five per
cent of the members of the company in terms of paid up share
capital as on the date of application;
• a statement regarding pending litigations, if any, involving the
company.
• NOC from appropriate authority required, if any
• Copy of order of the concerned regulatory authority, if any,
approving the filing of this application; if any
• Copy of relevant order for delisting, if any, from the concerned
Stock Exchange; if any
•Physical Copy of Form STK-2 duly signed by
Director/MD/Manager/ Secretary if no DSC is available.
• The Registrar of Companies shall examine the same and if found
in order, shall give a notice to the Company under section
248(2)of the Companies Act, 2013by e-mail on its email address
intimated in the Form, giving thirty days time, stating that unless
cause is shown to the contrary, its name be struck off from the
Register and theDrcompany
Raj Kumar Singh,will be, Dean
Professor dissolved;
(R&D) &
Varanasi 35
• The Registrar of companies shall put the name of applicant(s)and date of
making the application(s) under Fast Track Exit mode, on the MCA
portal www.mca.gov.in, giving thirty days time for raising objection, if
any, by the stakeholders to the concerned Registrar;
• The Registrar of Companies shall, simultaneously intimate the
concerned regulatory authorities regulating the company, viz, the
Income-tax authorities, central excise authorities and service-tax
authorities having jurisdiction over the company, about the proposed
action of removal or striking off the names of such companies and seek
objections, if any, to be furnished within a period of thirty days from
the date of issue of the letter of intimation and if no objections are
received within thirty days from the respective authority, it shall be
presumed that they have no objections to the proposed action of
striking off or removal of name.
• The Registrar of Companies immediately after passing of time given in
above sub-paras and on being satisfied that the case is otherwise in
order, shall strike its name off the Register and shall send notice under
Section 248(5) of the Companies Act, 2013 for publication in the
Official Gazette and the applicant company under this Scheme shall
stand dissolved from the date of publication of the notice in the Official
Gazette.
Varanasi 36

Ed V PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ed V PDF

Uploaded by

Copyright:

Available Formats

Presented By :

Dr. Raj Kumar Singh

Dr Raj Kumar Singh, Professor , Dean (R&D) &

Dr Raj Kumar Singh, Professor , Dean (R&D) &

(viii) „One-Man One-Vote‟ Rule:

Dr Raj Kumar Singh, Professor , Dean (R&D) &

Step 1: Incorporate your business

a) Patents, trademarks and/or design registration

Planning for the IPO Process

Appointing an Investment Bank

Revival, Exit and End to a Venture.

Dr Raj Kumar Singh, Professor , Dean (R&D) &

Dr Raj Kumar Singh, Professor , Dean (R&D) &

You might also like