- Posted by pbadam
- On March 22, 2016
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- company registration in pune
As a budding entrepreneur, you would be eager to know the steps for Company Registration in Pune, Maharashtra. While the detailed steps can be availed by contacting Envizi Business Solutions, let’s take a look at some historical details of industrial growth in Pune & Pimpri-Chinchwad in Maharashtra.
Growth of Industries in Pune: A Historical Survey
Pune is chiefly known as the Oxford of the East and student community from all parts of the world flocks to Pune for quality education in all streams. Pune is also known as Pensioner’s Paradise. In addition to these two identities of the city, a new identity was established in the decades 1940 to 1950 when industries started being established in and around Pune. Most industries until then were concentrated in Mumbai. The limit of expansion was reached and entrepreneurs looked for new grounds. The city of Pune with its pleasant climate, availability of skill and talent and proximity to Mumbai attracted them. Industries first emerged in Pimpri-Chinchwad area and a number of mechanical engineering units were set up. Giant industrialists like TELCO, Buckau Wolf, KSB Pumps and Hindustan Antibiotics were among the first few to venture followed by Kirloskar Oil Engines Ltd. in Khadki in 1946. With the establishment of KOEL, the process of industrialization of Pune was set in motion and within few years, a number of industrial estates cropped up in the vicinity of the city. Small units emerged as feeders for large companies adding to the industrial expansion. Pimpri-Chinchwad area today is well-known as an important automotive hub nestling local and international auto giants in its radius.
There are certain things that give impetus to industrialization. In the initial stages, substantial support was gained from the Maratha Chamber of Commerce and Industries. This organization encouraged the Bank of Maharashtra to provide finance to local entrepreneurs. The Chamber promoted the establishment of Maharashtra Industrial Development Corporation and an industrial area was developed in Bhosari. The Chamber was also responsible for the establishment of the Pune Stock Exchange, another aspect that added to the growth of industries in Pune. It aided the growth of capital market, contributing indirectly in the expansion of industries. The third source of support was the research institutes in Pune. On account of these three factors, industries grew rapidly in and around Pune and today, there are industrial estates in Hadapsar, Kothrud, Warje-Malwadi, Chakan, Moshi, Bhosari, Pimpri Chinchwad, an electronic estate near Parvati and many more. A large number of IT companies have come up recently in Hinjewadi area. Today, the city of Pune is as much an industrial centre as a centre for education.
Start-Up India Drive:
As mentioned before, certain factors are responsible for promoting the development of industries. Prime Minister Narendra Modi’s ‘Start-up India’ initiative was a welcome move that shook off the apprehension of new investors and encouraged them to become entrepreneurs. A kind of lethargy and fear had taken hold of industrialists for a long period and Modi’s initiative came as a great boon to the industrial sectors all over the nation. The promising nature of the new government policies helped entrepreneurs to take risks that they avoided hitherto. The effect was felt everywhere, including Pune. Start-ups are necessary for private investment. Relaxation of stringent policies, fast approval processes have eased the process of start-ups, providing the necessary motivation and initiative to potential industrialists. The PM’s Action Plan marks the end of ‘license raj’ and focuses on positive steps regarding land permissions, foreign investment and environment clearance. In short, the start-up movement was just the trigger needed by a prospering city like Pune, where one can say that the background is perfectly set for tremendous expansion of industries.
The Companies Act
The Companies Act was enacted in 1946 which enabled companies to be formed by registration. The Act defined the responsibilities of the companies, their directors and secretaries. The Act was administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. Since its commencement, it was amended periodically times, in which amendment of 1988, 1990, 1996, 2000 and 2011 were notable.
Process of Company Registration in Pune, Maharashtra
When a new company is established, it has to be registered with the Registrar of Companies (ROC) which maintains a record of the details of the company. The steps for Company Registration in Pune, Maharashtra is a well-defined process. Most of the procedure has become online nowadays. If the company is a private company, it has to register the names of seven or more members with the memorandum of association. If it is a private limited company, there may be minimum two or more members. The online procedure consists of the following significant steps: Obtaining a director identification number ( DIN), a digital signature certificate, reservation of the company name with ROC, getting the company documents stamped by the superintendent or an authorized bank, present the documents and registration fee to ROC with a request to incorporate the company, procure a certificate of incorporation, make a seal, obtain a tax account number, PAN number, register with office of inspector, Mumbai Shops and Establishment Act, obtain a VAT number from the Sales Tax officer, register for profession tax, register with the Provident Fund Organization and for medical insurance. Each of these steps requires a fixed number of days and the cost for each procedure is different and required to be paid by the company. Certain formalities like registering for medical insurance, profession tax and provident fund are free of cost.
While the above steps are mandatory, some new concepts have been added in the 2015 amendment for company registration, which are as follows:
• One Person Companies (opc) – Only a single person who is a resident and citizen of India is eligible to incorporate a One Person Company.
• Women Directors – The Securities and Exchange Board of India made it compulsory for all listed companies to appoint at least one woman director on the Board, in accordance with the rule of the Company Act, 2013.
• Corporate Social Responsibility – The concept of CSR was also introduced in the 2013 amendment of the Company Act. The company draws resources like raw materials and human resources from the society. Hence, it must give the society something in return through CSR activities.
• Registered Valuers – a registered valuer is a person who is registered as a valuer under Chapter XVII of the Company Act. He can be a chartered accountant, company secretary or cost accountant with a private practice. With the introduction of this act, the mechanism of valuation of a company’s assets and liabilities has been standardized. It has become transparent and crystal clear. It has also opened a new professional opportunity.
• Rotation of Auditors – Every listed company must change the auditor, either individual or firm, after it has completed a term of 10 years.
• Class Action – It implies a lawsuit that allows a group of people with a common interest to sue or to be sued in court. The group has common rights and grievances.
• Dormant Company – The Companies Act, 2013 introduces a concept of a dormant company. It is the first time that such a concept is thought of, i.e. company which is not active. There is no definition of what constitutes a dormant company under the definition clause. A definition appears in section 455 of the Act and here also the concept is defined in a very roundabout manner.
Section 455 states: Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company. A dormant company can apply to revert back to Active Status Company.
• Fast Track Mergers – The Company Act 2013 has simplified the process of merger and amalgamations, unlike the 1956 Act wherein it was a cumbersome procedure.
• Serious Fraud Investigation Office – (SFIO) is a multidisciplinary organisation to investigate serious financial frauds. The organization consists of experts from financial sector, capital market, accountancy, forensic audit, taxation, law, information technology, company law, customs and investigation.
Company Registration in Pune, Maharashtra has to follow all the steps declared in the Company Act 1956, and the changes introduced in eventual amendments from time to time. There is no doubt that the revision of the Act in 2013 has brought about positive amendments that help to maintain proper government control over the activities of private and public companies. The companies have assured benefits by registering with ROC and following all the regulations therein.