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Yes, relaxation is provided, if anyone Non-Resident Director has not fulfilled

the minimum residency in India for a period of at least 182 days under Section

149(3) which shall not be treated as a non-compliance for the financial year

2019-20 as a relief measure extended for COVID-19 Outbreak.

There are few basic rules that needs to be followed while converting the LLP to Private Limited Companies.

1. The LLP Must have Minimum 7 Partners
2. Approval of all 7 partners is required.
3. Advertisement in the news paper needs to be published (Local and National)
4. NOC is required from the RoC (Registrar of companies)

Once the above requirements are met. the following process needs to be followed for the conversion

1. Name Approval - Name approval for the new private limited company has to be obtained from the ROC.
2. Getting the DSC and DIN for the Directors - The 7 future directors of the company must obtain the DSC and DIN number’
3. Filing form URC-1 - once the name is approved and the DSC and DIN numbers are obtained URC-1 needs to be filed with the required documents.
4. Drafting and Filing of MoA and AoA - Once the URC-1 is filed, MoA and AoA needs to be drafted and filed with the ROC.

If you need any help regarding the conversion and Process write to us at enquire@wazzeer.com 

YES, You can register a Private Limited Company or LLP on your residential home address.

You will require following documents.

1. Rental/Lease Agreement in the name of the Company/Director/Shareholder or if No Rental Agreement, Sale deed conveying the property in the name of the landlord.

2. Utility bill (Telephone Bill/ Electricity Bill/ Gas Receipt/ Water Bill) in the name of the landlord. This document should not be older than 2 months.

3. NOC from the landlord.

If you need any help regarding the same write to us at enquire@wazzeer.com.

Hi,

If your company has Authorized capital as 10 Lakhs and Paid up capital is 1 Lakh, that means you can offer 9 Lakhs of shares to another shareholder or to yourself in future.

Lets say you have authorized capital of 10 lakhs and the share value of the company is 10 rupees per share at the time of incorporation then you can issue maximum of 10,00,000/10=1,00,000. shares. 

In that 10 Lakh authorized capital, the company has paid up capital as 1 Lakh that means you and other co-founder have issued 10,000 (10%) shares of the company. (50-50% each or 10-90% each as per your investment). remaining 90,000 shares can be issued later.

Later on as the company starts business or raises capital, the share value is decided through valuation process. This is the market value of the share that changes. Book value stays as mentioned above.

After valuation the market value of the shares is calculated. Depending on that the shares will be issued, it can be any value (100rs per share or 5000rs per share after valuation)

Lets say an investor is investing 1 Cr rupees, and the market value of the shares is 5000rs then he can isssue 1,00,00,000/5,000=2000 shares of remaining 90,000 shares.

The paid up capital of the company is calculted as investment/share-value. i.e. 1Cr/5000=2000. add this paid up capital to the earlier 1 Lakh, Current paid up capital of the company becomes = 1,02,000.

Now the company has issued 12000 shares and it can still issue 88000 shares.

End of the year dividend is calculated. Assuming initially the co-founders have issued 50-50% shares each, and the company's profilt is 1.2 crore rupees.

0.2 Cr (20 Lakhs) kept as reserves with the company. and remaining 1 Cr rupees will be divided among the shareholders as follows

1crore/12000= 833.33 per share, as the first co-founder has 5000 shares he will get 5000*833.33=41,66,666. 2nd Co-Founder will get the same as per his 5000 shares and the 3rd investor who has 2000 shares he will get 2000*833.33=16,66,666.

Hope this is clear.