How to Check if a Company is Legally Registered?

Features of SAMRIDH Scheme

• The SAMRIDH scheme provides your startup which already has brilliant solutions and proof of concept for their product, better facilities to enhance the product using innovative technologies for the market with a solid business plan.
• The scheme provides a platform to enhance your products and secure investment for scaling your business.
• Once your startup gains traction, there is a gap in accessing the growth stage funding to scale up the operations,and the scheme is filling up this gap for startups.
• The scheme supports existing and upcoming Accelerators to select and accelerate potential IT-based startups to scale to solve India's problems and create positive social impact.

Eligibility for SAMRIDH Scheme

For Startups

• Must be recognized by DPIIT.
• Must be in the Early-growth stage.
• The product of the startup must be software-based.

For Accelerators

• Must have operations in India.
• Must have been in the business of incubation for more than three years and supported more than 50 startups.
• Must have the required infrastructure and targeted acceleration programs.

Application procedure for Startups

The application procedure primarily comprises the following steps:

• Visit https://meitystartuphub.in.
• On the homepage, click on “Register” under the Startup section.
• The registration page will appear. Fill in all the requisite details and click on the “Submit” button.
• Following registration, one can "log in" to the page for further access by filling in the username and password.

Benefits of SAMRIDH

• This scheme provides a platform for product development and business scaling in terms of investment.
• To provide customer connect, investor connect, and international connect services.
• Up to Rs 40 lakh will be provided to the startups according to their current valuation and growth stage through accelerators..
• Customized acceleration programs for startups and provided product and capacity enhancement services.

Post-Selection Process for SAMRIDH Scheme

The ​​MeitY SAMRIDH Scheme will be implemented through the MeitY Startup Hub (MSH). The selected Accelerator will be responsible for developing personalized acceleration programmes, and the budget for each startup is Rs. 2 lakh.

The services include- Co-learning, networking, expert diagnosis, and negotiation of investment funding from Angel Investors. A maximum of 10 businesses and a minimum of 5 startups working in the sphere of software products can be helped by a shortlisted accelerator.

MSH will take equity in startups for the government's contribution via Promissory/SAFE Note, the same as Accelerator, which will be utilized to sustain the program.The startup's exit may be executed by MSH or its appointed entity holding the company's equity, subject to approval from SMC. Biannual assessments of startups within the portfolio will be conducted, and the resulting reports will inform decisions regarding exiting from the startup.

Frequently Asked Questions

What is Form DPT-3?

Form DPT-3 is an annual return form that companies must file to report deposits and outstanding loan details. It is a statutory requirement under the Companies Act 2013, ensuring that businesses remain compliant and transparent in their financial dealings. The form covers:

• Deposits received by the company
• Non-deposit loans taken from directors, shareholders, or other sources
• Any other amounts that are classified as financial liabilities

The primary objective of this filing is to prevent malpractices related to undisclosed financial transactions and to strengthen corporate governance.

<H2> Applicability and Requirements for DPT-3 Form

Form DPT-3 filing applies to all companies except government companies. This includes:

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPCs)

Key requirements for DP3 include:

• Annual Filing Deadline: Companies must submit Form DPT-3 by June 30 each year, covering financial transactions for the previous fiscal year.
• Financial Year Coverage: The form includes details of financial liabilities up to March 31 of the relevant financial year.
• Auditor Verification: Companies must ensure that the reported figures are verified by auditors to maintain accuracy and compliance.

Penalties for Non-Compliance with Form DPT-3 Filing

Failure to file Form DPT-3 on time can result in significant penalties under the Companies Act 2013. The penalties include:

• A flat penalty of up to ₹5,000 for the company.
• Additional daily fines of ₹500 per day for continued non-compliance.
• Officers responsible for the filing may also be penalised with additional fines.

Ensuring timely submission is essential to avoid legal repercussions and unnecessary financial burdens.

Preparing for the DPT-3 Filing

To ensure a smooth DPT-3 filing process, companies should follow these steps:

1. Review Financial Transactions: Examine all deposits, loans, and non-deposit receipts received during the financial year.
2. Obtain Audit Reports: Work with auditors to verify and validate the data before submission.
3. Gather Necessary Documentation: Collect supporting documents such as loan agreements, receipts, and auditor reports.
4. Consult Experts: If there are complexities in reporting, seek advice from compliance professionals or legal experts.

Information Required to Fill DPT-3 Form

Companies need to provide the following details while filling out Form DPT-3:

• Corporate Identification Number (CIN)
• Name and registered address of the company
• Auditor certification and verification

Other financial liabilities as per the balance sheet-

• Net Worth of the Company: The net worth is calculated as total assets minus total liabilities based on the most recent financial year-end.
• Particulars of Charge (if any): Companies must disclose any charges or encumbrances on their assets. This includes mortgages, liens, or any other security interests held against company-owned properties or resources.
• Total Amount Outstanding as of March 31st, 2020 including-  

• Deposits received from individuals or entities.
• Loans borrowed from banks, directors, or other companies.
• Any other non-deposit receipts that need disclosure.

• Particulars of Credit Rating (If Applicable): Companies with an assigned credit rating should provide: Name of the credit rating agency (e.g., CRISIL, ICRA, CARE, etc.) and the rating assigned. 

Form DPT-3 Due Date

The due date for filing Form DPT-3 is June 30th of every financial year. Companies should ensure timely submission to avoid penalties and maintain regulatory compliance.

Documents Required to File DPT-3 Form

To complete the Form DPT-3 filing, companies must submit:

• List of Depositors
• Deposit Insurance Contract
• Copy of the Trust Deed
• Copy of the Instrument Creating Charge
• Details of Liquid Assets
• Outstanding Receipts of Money or Loans
• Auditor’s Certificate

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Conclusion

Form DPT-3 is a critical compliance requirement for companies in India. Filing this might feel like just another compliance task, but it’s actually a crucial step in keeping your business financially transparent and legally sound. Missing the deadline can lead to penalties, unnecessary stress, and last-minute scrambling. Instead of rushing at the last minute, take a proactive approach—review your records, coordinate with your auditors, and get your documents in order well in advance.

Frequently Asked Questions

What is the Winding Up of a Company?

Winding up a company refers to the legal process of closing its operations permanently. It involves selling the company's assets, settling its debts and liabilities, and distributing any remaining surplus among shareholders according to their rights. Once the process is complete, the company is dissolved and ceases to exist as a legal entity. Winding up may be voluntary, initiated by members or creditors, or compulsory, ordered by a court.

The main reasons for winding up a company include:

• Ceasing the company's operations
• Collecting the company's assets
• Paying off the company's debts and liabilities
• Distributing any remaining assets to the members

The main reasons for winding up a company include:

• Inability to pay debts (insolvency)
• Completion of the purpose for which the company was formed
• Expiry of the period fixed for the duration of the company
• The passing of a special resolution by the members to wind up the company

Key Aspects of Winding Up of a Company

The winding up of a company involves several key aspects that need to be considered:

1.  Appointment of Liquidator

A liquidator is a person or entity responsible for managing the winding-up process of a company, including selling assets, settling liabilities, and distributing remaining funds to stakeholders. A liquidator is appointed to manage the winding up process. He is appointed by members or creditors in voluntary winding up or by the court in compulsory winding up. 

2.  Realisation of Assets

The liquidator takes possession of all the company's assets and realises them into cash. This may involve selling the company's property, plant and equipment, collecting debts from debtors, and recovering any unpaid capital from the contributors.

3.  Payment of Liabilities

The liquidator settles all the company's liabilities, including debts owed to creditors, outstanding taxes and employee dues. The order of priority for payment is fixed by law, with secured creditors being paid first, followed by unsecured creditors and members.

4. Distribution of Surplus

After settling all the liabilities, surplus assets are distributed among the members in proportion to their shareholding. Preference shareholders are paid first, including any arrears, as per their rights. Once their claims are fully settled, the remaining surplus is allocated to equity shareholders in proportion to their shareholding. This process adheres to the company’s articles and legal requirements, ensuring an equitable distribution.

5. Dissolution of Company

Once the winding up process is complete, the liquidator submits a final report to the Tribunal or the ROC. The Tribunal then orders the dissolution of the company, and its name is struck off from the register of companies.

Types of Winding Up

There are three main modes of winding up of a company under the Companies Act 2013:

1. Compulsory Winding Up of a Company (By the Tribunal)
2. Voluntary Winding Up of a Company

a) Members' Voluntary Winding Up

b) Creditors' Voluntary Winding Up

3. Winding Up Subject to the Supervision of the Tribunal

Let us discuss each of these types in detail.

1. Compulsory Winding Up (By the Court)

Compulsory winding up of a company is when a company is wound up by an order of a court or tribunal. This is also known as "winding up by the court". The court may order a company to be wound up on various grounds specified in Section 433 of the Companies Act, 1956 (now governed by Chapter XX of the Companies Act, 2013).

Compulsory winding up of a company is initiated by a petition filed before the National Company Law Tribunal (NCLT) by:

• The company itself
• The company's creditors
• The company's contributors
• The Registrar of Companies
• Any person authorised by the Central Government

The grounds for compulsory winding up include:

• Inability to pay debts
• Acting against the sovereignty and integrity of India
• Conducting affairs in a fraudulent manner
• Failure to file financial statements or annual returns for five consecutive years
• The Tribunal is of the opinion that it is just and equitable to wind up the company

If the NCLT is satisfied that a prima facie case for winding up is made out, it admits the petition, appoints an official liquidator and makes an order for winding up.

2. Voluntary winding up of a company

Voluntary winding up is when a company is wound up by its members or creditors without the intervention of a court or tribunal. Voluntary winding up is initiated by the company itself by passing a special resolution in a general meeting. There are two types of voluntary winding up:

1. Members' Voluntary Winding Up

This occurs when the company is solvent and can pay its debts in full. A declaration of solvency is made by a majority of the directors, stating that they have made an inquiry into the company's affairs and believe that the company has no debts or will be able to pay its debts in full within three years from the commencement of the winding up.

2.  Creditors' Voluntary Winding Up: 

This occurs when the company is insolvent and unable to pay its debts in full. No declaration of solvency is made in this case. The creditors play a greater role in this type of winding up compared to a members' voluntary winding up.

In a voluntary winding up, the company appoints a liquidator in a general meeting to conduct the winding up proceedings.

3. Winding Up Subject to the Supervision of the Court

A voluntary winding up (whether members' or creditors') may be converted into a winding up by the Tribunal if the Tribunal is of the opinion that the company's affairs are being conducted in a manner prejudicial to the interests of the public or the company.

In such cases, the Tribunal may order that the voluntary winding up shall continue but subject to the supervision of the Tribunal. The Tribunal may appoint an additional liquidator to conduct the winding up along with the liquidator appointed by the company.

Winding Up a Company Process

The procedure for winding up of a company in India depends on the mode of winding up. Here is a step-by-step procedure for compulsory winding up of a company in India and voluntary winding up:

The process of winding up of a company in India is complex and involves several legal formalities. It is advisable to seek the assistance of a professional (such as a company secretary or a lawyer) to ensure compliance with all the requirements.

Example of Winding up of a Company

One notable example of the winding up of a company in India is the case of Kingfisher Airlines Limited. Kingfisher Airlines was a prominent Indian airline that ceased operations in 2012 due to financial difficulties and mounting debts.

In 2016, the Karnataka High Court ordered the winding up of the company on a petition filed by the Airports Authority of India, which was one of the company's creditors. The court appointed an Official Liquidator to take charge of the company's assets and manage the winding up process.

The liquidator faced several challenges in the winding up process, including the recovery of dues from the company's debtors and the sale of its assets. The company had a fleet of aircraft and other assets, which had to be valued and sold to pay off the creditors.

One of the major issues in the winding up of Kingfisher Airlines was the recovery of dues from its promoter, Vijay Mallya. Mallya had given personal guarantees for some of the loans taken by the company, and the creditors sought to recover these dues from him. However, Mallya fled to the UK, and the Indian authorities have been trying to extradite him to face charges of fraud and money laundering.

The winding up process of Kingfisher Airlines is still ongoing, and the liquidator is working to realise the company's assets and settle its liabilities. The case highlights the challenges involved in the winding up of a large and complex company with multiple stakeholders and legal issues.

The Kingfisher Airlines case also underscores the importance of timely action by creditors in the event of default by a company. Many of the company's creditors, including banks and airports, had allowed the debts to accumulate for several years before initiating legal action. This delay made it more difficult to recover the dues and increased the losses for the creditors.

In conclusion, the winding up of Kingfisher Airlines is a cautionary tale for companies and creditors alike. It highlights the need for effective risk management, timely action in case of default, and the importance of following due process in the winding-up of a company.

Conclusion

In conclusion, the winding up is a legal process of  liquidating a company's assets, settling of liabilities and distributing surplus to its members. It is a complex process that requires careful planning and execution, and the guidance of professional advisors. 

There are three modes in winding up under companies act 2013: compulsory winding up by the Tribunal, voluntary winding up by the members or creditors and winding up under the Tribunal's supervision. 

These modes of winding up have specific requirements and procedures. Proper planning and professional guidance can help minimise the impact on stakeholders like creditors, employees and members, ensuring a smoother and compliant winding-up process.

Frequently Asked Questions