WHAT ARE THE BUSINESS LAWS IN INDIA?| COMPANY AND BUSINESS LAW IN INDIA
COMPANY AND BUSINESS LAW IN INDIA
Being India a developing nation there is a huge change in mode of doing business, managing the business. And these have especially occurred in the Indian economy during the last 25 years. These changes can be due to many reasons i.e. Can be due to the change in the international business standards, the changing monetary atmosphere, and also the law being implemented in the country or we can say worldwide. Each Country has it’s our rules and regulations which governs the business and its day to day operations.
In India recently, the government of India has made many enactment in the governing laws of business. Highlighting the context the major changes are made in the form of implementation of GST (One Nation One Tax). And so there are many other changes done daily in this field of corporate world.
Companies Act, 2013 which was earlier the Companies Act, 1956 is a piece of law which tells us about how the companies made under the relevant are governed or we can say that how they have to carry their daily affairs. In India, corporate affairs are regulated through various Company Law Acts or business laws in India which are enforced as company laws in India and regulations enforced by the Government of India and administered by the Ministry of Corporate Affairs (MCA).
Enlisted below are few regulations that are available in India to regulate fair and good competition in the market which together can be known as company laws in India or company law act.
- Companies Act, 2013
- Societies Registration Act, 1860
- The Indian Partnership Act, 1932
- The Companies Amendment Act, 2006
- The Limited Liability Partnership
In India, companies are hence incorporated under the Indian Companies Act, 2013 which is the company law or business law in India. A partnership arising from a contract is governed by the general law of contract (also called as company law or business law) in matters where the Partnership Act does not specifically make any provision (i.e rules relating to offer & acceptance, consideration, the legality of an object, etc.)
By registration under the Company Act, or business law in India; a company becomes vested with corporate personality, which is independent of and distinct from its members. A company is a legal person under the company law or business law in India.
Registration of a company is obtained by filing an application with the Registration of Memorandum and articles under Section 33 of the act. The application has to be accompanied by a number of documents like Memorandum of Association (MOA), Article of Association (AOA), a copy of the agreement, and a declaration that all the requirements of the act have complied with the contract made on behalf of a company even before it is duly incorporated.
In this aspect of company laws in India, the decision of House of Lords in Salomon vs Salomon & Co. Ltd (1897 AC 22) is a well-known case in this aspect that though incorporated under the Company Law Act, the company never had an independent existence.
Business law in India provides that when a memorandum is duly signed and registered, the subscribers are a body corporate capable forthwith of existing with all the functions of an incorporated individual as provided in the company law.
The main features of companies are as under:
- Perpetual succession
- Artificial Person
- Limited liability
- Capacity for suits
- Transferable shares
- Access to money market Etc.
In the recent amendments in the company Act, 2013 there was change in the process of incorporation of the companies, new forms were being introduced i.e. SPICE + Form and most recently there are some major changes in the MCA Portal as well.
Winding up is a process by which the life of a company is ending and its property is administered for the benefit of its members and creditors. Winding up of a company is different from the insolvency of an individual because a company can be wound up. The Act provides for three types of winding up:
- Winding up by court
- Voluntary winding up
- Members winding up
- Creditors voluntary winding up
- Voluntary winding up under supervision
In Short terms Company Law / Business Law is a very wide concept. And regulates the whole business atmosphere on the nation. Company may be defined as group of persons associated together to achieve some common objective. A company formed and registered under the Companies Act has certain special features, which reveal the nature of a company. These characteristics are also called the advantages of a company because as compared with other business organizations, these are in fact, beneficial for a company. Companies can be classified into five categories according to the mode of incorporation on the basis of number of members, on the basis of control, on the basis of ownership and on the basis of nationality of the company.
Legal Protection Afforded to Character Merchandising
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