FAQs
Corporate Law
Frequently asked questions about corporate law in India — answered by Corpus Juris Legal.
There is no minimum paid-up capital requirement for a private limited company under the Companies Act 2013. The minimum authorised share capital is ₹1 lakh (₹100,000). In practice, most companies are incorporated with a paid-up capital of ₹1 lakh or more based on the funding structure.
Company incorporation in India typically takes 7-15 working days from the date of complete document submission, subject to ROC processing time. The process involves name approval (SPICe+ Part A), document preparation (SPICe+ Part B), and certificate of incorporation issuance. DIN, PAN, TAN, and GST registration are issued simultaneously with incorporation under the SPICe+ integrated process.
No. CCI merger approval is required only when the transaction crosses the prescribed thresholds. Under the Competition (Amendment) Act 2023, mandatory notification is required when: (a) combined assets in India exceed ₹2,000 crore OR turnover exceeds ₹6,000 crore; OR (b) combined global assets exceed USD 1 billion with India assets exceeding ₹1,000 crore; OR (c) transaction value exceeds ₹2,000 crore AND the target has substantial business operations in India. There are exemptions for transactions where the target's India assets are below ₹350 crore or India turnover is below ₹1,000 crore.
A Managing Director (MD) is an entrusted full-time director of the company. A Whole-Time Director (WTD) is a director in whole-time employment of the company. Both are "officers in default" and attract personal liability under the Companies Act. Key Managerial Personnel (KMP) include the CEO/MD, CFO, Company Secretary, and whole-time director — they have specific statutory obligations and disclosure requirements under the Act. Certain KMP appointments require shareholder approval.
The Companies Act 2013 provides significant minority protection. Shareholders holding 10%+ (or 100 members) can file an oppression and mismanagement petition before NCLT. Shareholders holding 5%+ can call an extraordinary general meeting. Class action suits are available to shareholders under Section 245. Every shareholder has the right to pre-emption in rights issues, audited financial statements, and information access through inspection of registers. For listed companies, SEBI provides additional protection through disclosure obligations and the Takeover Code.