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Legal Opinion

The document provides a legal opinion on the process of incorporating a company under the Companies Act 2013 in response to queries from XYZ Enterprises. It outlines the 5 key steps to incorporate a company including reserving a company name, obtaining digital signatures and director identification numbers. It also lists the typical regulatory approvals required and notes the incorporation process takes approximately 10 days. Finally, it addresses the monetary considerations involved, noting no fees are required if company valuation is below 50,000 INR.

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Abhisek Swain
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297 views3 pages

Legal Opinion

The document provides a legal opinion on the process of incorporating a company under the Companies Act 2013 in response to queries from XYZ Enterprises. It outlines the 5 key steps to incorporate a company including reserving a company name, obtaining digital signatures and director identification numbers. It also lists the typical regulatory approvals required and notes the incorporation process takes approximately 10 days. Finally, it addresses the monetary considerations involved, noting no fees are required if company valuation is below 50,000 INR.

Uploaded by

Abhisek Swain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Mr.

Rajkumar Saluja Via: Courier

XYZ Enterprises 22 March, 2022

Bangalore, Karnataka

Sir,

Sub: Legal Opinion on Incorporation of Company

Ref: abhisek.dc@dreamcatcherllp.com

Background

XYZ Enterprises (“XYZ”), a proprietorship firm, founded by Rajkumar Saluja, is engaged


in the business of providing salon services in Bangalore, Karnataka. Rajkumar has been
successfully running the business for 7 years and is now looking to expand the same. He is
now willing to incorporate a company and wants to understand the compliances involved in
the same.

Queries and Responses:


1. What is the process of incorporation of a company under
Companies Act 2013 (“Act”)?

Chapter II of the Companies Act, 2013 (Section 3 to Section 22) deals with incorporation of
a company.

S.3 – Formation of a company- Which states how may persons are required to form a
company.

S.4- Memorandum of Association

S.5- Articles of Association

S.6- Act to override memorandum, articles, etc.

S.7- Incorporation of Company

Step 1: Reservation of Company’s Name

Step 2: Procuring Digital Signature Certificate

Step 3: Applying for Director Identification Number or DIN

Step 4: Drafting Memorandum of Association and Articles of Association

Step 5: Application for the Incorporation of Company

2. What kind of regulatory approvals will be required for


incorporating a company under the Act?

1) SEBI Approvals
2) Business Registration
3) RBI Approvals
4) IRDA Approvals
5) DOT Licence
6) FSSAI Approvals (For food related business)
7) Pollution Control Board Approval
3. How much time will it take to incorporate a company?

The whole process including approval of DIN, Name, and Incorporation takes around 10
working days. However, now-a-days registering a Company has become a fast process as all
documents are dragged in a single application form with MCA.

4. What will be the monetary considerations involved in incorporating a


company?

According to The Companies Act, 2013, if the valuation of the Company is 50,000 INR or
less no consideration is to be paid.

If the valuation of the Company is more than 50,000 INR, then considerations are to be paid
as per the provisions mentioned in the act.

Assumptions/ Disclaimers

If there are any assumptions or disclaimers based on which you have issued the opinion, e.g.
the assumption that the management has provided correct copies of resolutions, or that certain
Management Representatives (MR) have provided information on telephonic conversations
and you have assumed it to be true, state the same.

We hope that the above shall suffice for your present purposes. We shall be happy to provide
a detailed analysis of the issues considered herein, should you so require. Please do not
hesitate to contact us for any clarifications.

Yours truly,

Signature_______

ABHISEK SWAIN

Junior Associate

Dream Catcher LLP

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