Business Incorporation Glossary
- ADT 1
Form filed to notify the Registrar of Companies regarding the appointment of the Auditor to the company.
- AGILE-PRO-S
Application for Registration of the GSTIN, ESIC, EPFO Profession tax Registration, Opening of bank account and Shops and Establishment Registration
- Angel Investors
Angel investors are private investors focused on financing small business ventures in exchange for equity.
- AoA( Articles of Association)
The firm's rules, bye-laws, and regulations that regulate how its business is conducted and how its internal affairs are managed are contained in the Articles of Association (AoA) of the company.
- Assets
Assets are resources that a company or an individual either controls or possesses and which are anticipated to generate future economic worth.
- Authorised capital
The maximum capital for which shares can be issued by the company.
- Corporate Social Responsibility
A mandatory concept of addressing environmental and social concerns as a part of their business operations. A minimum of 2% of the average net profits of a company must be used according to the CSR policy.
- CRA 2
Form filed to notify the Central Government of the appointment of Cost Auditor to the company.
- CTC of Special Resolution
Certified True Copy of the special resolution passed by the board of directors who have consented to the resolution.
- Digital Signature Certificate
A Digital Signature Certificate is a secure digital key issued by the certifying authorities to validate the identity of the individual holding this certificate.
- DIR 12
Form filed to notify any details regarding the change, appointment, or resignation of the Director from the company.
- DIR 2
Form filed as consent to act as a Director of the proposed company
- DIR 3
Form filed by the Director as a part of KYC for the allotment of Director Identification Number (DIN).
- DIR 8
Form filed to disclose or intimate the disqualification of a Director of the company.
- Double taxation
It refers to paying income taxes twice on the same source of income, which may happen when income is subjected to corporate and individual taxes.
- DPT 3
Form filed to furnish information related to deposits or any outstanding deposits of the company.
- E form 24
Form filed for striking off the name of the LLP, i.e., closure of the LLP.
- EPFO
Employees’ Provident Fund Organisation is a statutory body that manages and regulates the provident funds in India.
- Equity funds
Equity Funds are mutual fund schemes that invest their assets in stocks of different companies based on the investment objective of the underlying scheme.
- ESIC
Employees’ State Insurance Corporation is a statutory body for employee benefits.
- Extra Ordinary meeting
Any meeting held apart from the scheduled Annual meeting is referred to as Extraordinary General Meeting or Extraordinarymeeting.
- FDI
When a firm acquires majority ownership in a company in another nation, this is referred to as foreign direct investment (FDI).
- FEMA
The Foreign Exchange Management Act, 1999 (FEMA), is an Indian Parliament act "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India."
- Form 3
Form filed to disclose information of the LLP Agreement or any changes made in the LLP Agreement.
- Form AOC 4
Form AOC 4 is used to file the financial statements for each financial year with the Registrar of Companies (ROC).
- GST
Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services.
- INC 20A
Also known as the Declaration of the Commencement of the business, it is mandatorily filed within 180 days of the incorporation. The said rule is for businesses incorporated on or after 2018.
- INC 3
Form filed as the consent of the nominee.
- INC 9
A declaration by the directors and subscribers to intimate that they are not guilty of any criminal offence.
- ITR 6
If a company does not claim an exemption under Section 11 of the Income Tax Act, it must submit an ITR 6 Form in order to file its income tax returns digitally.
- Liabilities
Liabilities are mostly financial obligations owed by an individual or a company to other parties.
- MBP 1
Form filed to disclose any personal interest in the company by the Director.
- MGT 14
Form filed for various resolutions in the firm, which can be ordinary or special resolutions. Private companies are now exempt from filing this form.
- MGT 15
Form for filing Annual General Meeting.
- MGT7
Form MGT-7 is the form for filing annual returns by a company.
- Ministry of Corporate Affairs (MCA)
This Ministry of the Indian Government is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act 2008, and the Insolvency and Bankruptcy Code, 2016
- MoA (Memorandum of Association)
Memorandum of Association (MOA), often prepared during the company registration process, is a legal document that outlines the company's corporate objectives as well as shareholder information.
- MSMED Act
The Micro, Small, and Medium Enterprises Development Act of 2006 is a law passed by the Indian Parliament. "Any buyer who fails to make payment to MSMEs within stipulated terms or a maximum of 45 days," according to the act, "would be liable to pay monthly compounded interest at three times the bank rate published by RBI."
- NGOs
A non-government, non-profit entity actively working in humanitarian aspects of society.
- NOC
No Objection Certificate
- Paid-up capital
The amount of capital for which shares are issued by the company and paid for.
- Partnership Agreement
Also an agreement between the partners like a Partnership deed but not officially registered in the court of law.
- Partnership Deed
A partnership deed is a partnership agreement registered in the court of law between the partners of the firm, which outlines the terms and conditions of the partnership between the partners.
- SEBI
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity markets in India under the ownership of the Ministry of Finance, Government of India.
- Shop and Establishment Act
The Act is designed to regulate the payment of wages, hours of work, leave, holidays, terms of service, and other work conditions of people employed in the shop and commercial establishments.
- SPICe+
Stands for Simplified Proforma for Incorporating Company electronically Plus. SPICe+ is an integrated Web form offering multiple Government related services. SPICE+ is an advanced and newly launched version of the e-form SPICe.
- STK 2
Application for the removal of the name from the Registrar of Companies, i.e., typically used in winding up of the company.
- STK 3
Indemnity bond for the closure of the company provided by every director during the closure of the business.
- STK 4
Affidavit for the closure of the business, duly signed by every director.
- STK 6
Public notice to seek objection from the public for striking off the company.
- STK 7
Public notice to intimate the striking off and dissolution of the company.
- STK 8
Form including the statement of accounts (assets and liabilities) and filed during the closure of the business.
- Stock
Stock is the subscribed capital of a corporation or limited-liability company, usually divided into shares and represented by transferable certificates.
- TDS
Tax Deducted at Source, collected from income generated by an individual. The TDS rates can vary for companies and individuals.
- The Companies Act
The Companies Act of 2013 is an Act of the Indian Parliament on Indian company law that governs the formation of a company, its obligations, its directors, and its dissolution.
- The Limited Liability Partnership Act
This act legally governs and regulates the concept of Limited Liability Partnership (LLP).
- URC 1
The MCA eForm URC 1 is required to be filed for the conversion of a Partnership Firm or Limited Liability Partnership (LLP) into a Private Limited company.
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