Best Corporate Law Firm for Business Law
Find Best Corporate Law Firms for Business Law in Chennai, Tamil Nadu. Mainly, Business Law/Commercial Law is one of the keys – a practice area Rajendra Corporate Law Firm, which mainly requires transactional and legal counsel, including counsel relating to day-to-day business, regulatory issues, corporate and government affairs. Tends to clients, both domestic and international,Rajendra Corporate Law Firm is one of the Corporate legal services firm in India.
Business and Trade in a branch of civil law
Firstly, Commercial law or business law is a legal entity set up of business and trade. It is a branch of civil law and deals with both issues of private law and public law. In the same way, Commercial law governs the contract of service, hiring practices, and the manufacture and sale of consumer goods. In the same fashion, Many countries have adopted civil codes that contain a comprehensive statement of their commercial law.
Private law and public law
It is the body of law that is applicable to the rights, relationships, and conduct of individuals. And also companies engaged in trading, merchandising trade, and sales. It is often popular as a branch of civil law and deals with issues in both private law and public law. On conditions of the Companies Act, 1956, which is the law of the company in India. As a matter of fact, the company means a company registered under this Act to the above operations. Thus, a company comes into existence by registration under the Companies Act or the company law in India.
A company incorporated under the law on Indian companies, 2013
In India, Various Law Govern corporate affairs which entitle companies or trade laws in India by all means. In other words, These are applicable to the laws of society in India, and the Govt imposes the regulation. Moreover, The Ministry of Corporate Affairs (MCA) administers it In India. You can incorporate the companies under the law on Indian companies, 2013. Of course, this is the law of the company or business law in India.
A partnership under a contract is governed by the general law of contract. Uniquely, It is also called corporate law in India or in India Business Law. Identically, These are all in areas where the Partnership Act expressly makes any provision. These are rules on offer and acceptance, consideration, the legality of an object, etc.), legal personality, and nature. There are benefits of a business that can be better understood by looking at the following features of the law corporate and business law in India
Existence of Independent Businesses in India
For registration under the Act on company law or corporate law or business law in India. Meanwhile, a company becomes a corporate personality that is separate and distinct from its members. A company is a legal entity under company law or business law in India.
In this aspect of the laws of the company in India, the decision of the House of Lords in Salomon vs. Salomon & Co. Ltd. (1897 AC 22) is a well-known case in this aspect that although incorporated under the company law Act, the company has never had an independent existence.
Business Law in India provides that when a memorandum is signed and registered, subscribers are immediately legal entities able to exist with all the functions of a person as enshrined in the legislation of the company.
It is difficult to understand how a corporation created by the law can lose its individuality by sending most of its capital to a person. The company’s law defines a company as not a person but a memorandum of subscribers.
Limitation of Liability is another major benefit of the constitution of a company under company law or business law in India. The company, which is a separate entity, with its own work, the members are not liable for its debts under the law of the company or an act of corporate law. If the liability of members is limited by shares, each member is required to pay the nominal value of the share held by him and his responsibility ends there by the law of the company in India. One of the main motivations behind accepting the incorporation of a company under the law of the company in India is to limit personal risks by getting the advantage of limited liability.
In the world of business and according to the law of the company in India, “A society never dies, members can come and go, but a company can continue forever”. The death or insolvency of members does not affect the continued existence of the company. The company remains the same entity in the same way that the river is still the same river, though its parts are changing every moment.
The Public companies established under the laws of the company in India, the big goal was that the shares should be easily transferred. Section 82 of the Company Law Act 1956 expresses this principle by providing that “action or other interests of a member is personal property. The unique advantage of this under the business law in India is a member can sell their shares on the open market and get his money without affecting the capital structure of the company. Section 111 A, of the 1956 Companies Act by the Depositories Act 1996 specifically states that the shares of a public company are freely transferable.
Ownership of a corporation incorporated is vested in the corporation under the Business Law in India. The company is able to contain and enjoy the property in his own name. No member may claim ownership of any part of the assets of the companies. Thus, when a significant shareholder ensures business assets in his own name will not be able to recover compensation when said assets burn in a fire as it had no insurable interest in business ownership.
Capacity for suit
A company can sue in its corporate name as provided in the Business Law in India. The name of his management staff or members should not be questionable. The action against a group of people diminishes to a single action.
Business Law in India provides that a company is able to attract professional managers. It is because being tied to the management of a company gives members the status of a setting.
Access to the money market
Companies are one of the few legal institutions that allow accessing the money market for the training of its shares and the loan principal under the provisions of business law in India. A company can collect shares and preference shares without capital interest on which dividends is payable as and when there are profits. You can do this with the help of a prospectus for a public offering or private placement.
As good as these aspects sound, the Companies Act also has several disadvantages such as:
The lifting of the corporate veil
The lifting of the corporate veil – All of the aforementioned advantages of incorporating follow the principle that for all purposes of the law, a company should be considered a separate entity from its shareholders.
Formality and Capital
Formality and Capital – The formation of a company in India is an expensive affair. The formalities of the company must comply with the rules and regulations of the State where the incorporation happens by the same token.
Registration and constitution
Registration of business obtains by filing an application with the registration of Memorandum and Articles in accordance with Article 33 of the companies act. The application must be accompanied by a number of documents such as a Memorandum of Association (MOA), an Article of Association (AOA), a copy of the agreement, and a declaration that all requirements of the law have respected the contract on behalf of a company even before it was properly constituted.
Types of companies under the Companies Act 2013
The Companies Act defines the different types of companies that can incorporate under this Act. They are:
- Unlimited company
- Warranty company
- Private company
- Foreign company
- Government corporation
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FAQ Companies in Business Law
Unlimited company – A company may consist of unlimited liability of its shareholders who are also responsible for the debts of the company in insolvency
Warranty company – The liability of members of a society can be limited either by shares or by guarantee. In other words, members contribute a fixed amount of money to the company’s assets
Private company – A private company as defined by law, is any company in which the Article of the Association fulfills the mandates to have a minimum capital of one lakh rupees or more. They have certain rights to its members, and a minimum of fifty members and prohibit any invitation to the public to subscribe for its shares or bonds in like manner.
Foreign company – a company that has incorporated outside India
Government corporation – a company having 51% or more of the shares held by the government
The Companies Act defines the different types of companies that can be incorporated under this Act. They are: