Kapeesh Law Chambers

Introduction Incorporating a company is a critical step for anyone looking to formalize their business operations in India. The process is governed by the Companies Act, 2013, which outlines the necessary procedures, legal requirements, and compliance measures to establish a company as a legal entity. This article explores the various facets of incorporating a company, highlighting the relevant sections of the Companies Act, key Supreme Court rulings, and practical steps for entrepreneurs.    Types of Companies to Incorporate   Before initiating the incorporation process, it is essential to determine the type of company you wish to establish. Different types of companies exist under the Companies Act, 2013, and each type has specific legal implications and compliance requirements. The most common types are:   1. Private Limited Company: Suitable for small and medium-sized businesses, it restricts the transferability of shares and limits the number of shareholders to ...

Introduction In the realm of business partnerships, a "sleeping partner," also known as a "silent partner," refers to an individual who invests capital into a partnership but does not take an active role in managing the business. Unlike active partners who are involved in the daily operations and decision-making processes, a sleeping partner's involvement is primarily financial. Despite their lack of participation in the day-to-day running of the business, sleeping partners play a crucial role by providing the necessary capital, which can be vital for the growth and stability of the partnership. Rights of a Sleeping Partner 1. Right to Profits: A sleeping partner is entitled to a share of the profits generated by the business. This share is typically proportional to their investment in the partnership, as agreed upon in the partnership deed or agreement. 2. Right to Information: Although they do not actively manage the business, a sleeping partner has the right ...