FAQ - Highlights of Companies (Amendment) Act, 2015
- What are key Highlights of Companies (Amendment) Act, 2015?
To promote ease of doing business and make India an investor-friendly country, the Government of India has amended the old Companies Act and has come up with new Companies (Amendment) Act, 2015. Let's look at the highlights of this new Act.
- No minimum paid-up capital required to start a Private Limited Company in India.
- The need to obtain the Commencement of Business Certificate post registration has been withdrawn in the new Act.
- Common seal has become optional now and signatures of the Directors are acceptable.
- Now there is stringent penalty for Companies that invite or accept deposits from Public with any approval from the Regulatory Authorities.
- The holding Company can provide loans or guarantees to the subsidiary Company.
- Company having losses or negative reserves cannot declare dividends.
- Board Resolutions will be confidential from now.