Corporate & Commercial, Clasis Law updates

India

Contributed by Clasis Law
MCA introduces stricter compliance requirements for LLPs
  • India
  • 03 May 2021

In order to improve limited liability partnership (LLP) compliance and regulate the designated partners of LLPs, the Ministry of Corporate Affairs recently stated that it will extend certain sections of the Companies Act 2013 to the Limited Liability Partnership Act and therefore LLPs. It is surprising that the LLP structure, which was introduced by the government to relax and ease the process of setting up small businesses, is now pushing the same small enterprises towards a stricter compliance regime.

One-person companies: a new entry route for non-resident Indians into the Indian market
  • India
  • 26 April 2021

When the Companies Act 2013 entered into force, the concept of 'one-person companies' ('OPCs') was introduced. New amended rules recently entered into force and provide that natural persons who are Indian citizens, whether resident in India or not, can incorporate OPCs in India. This move has been highly welcomed by start-ups and innovators as it will boost the entrepreneurial capabilities of non-resident Indians and overseas citizens of India and help them to enter the Indian market.

Analysing the concept of force majeure, especially during the COVID-19 pandemic
  • India
  • 19 April 2021

In 2020 the central government issued an office memorandum which stated that the hindrances that have occurred within supply chains due to COVID-19 should fall within the purview of natural calamity and thus force majeure clauses may be invoked in situations where deemed appropriate. The crux of the issue is: when can force majeure be invoked due to breaches that have occurred in contracts between parties due to COVID-19?

Key changes under Foreign Contribution (Regulation) Amendment Act
  • India
  • 01 March 2021

The central government recently notified the Foreign Contribution (Regulation) Amendment Act. The amendment act aims to strengthen organisations' compliance mechanisms, enhance transparency and accountability in the use of foreign contributions and prevent the misuse of funds received from foreign contributions by certain organisations and instead promote the use of such funds by genuine non-governmental organisations which are working to improve the welfare of society.

Key takeaways from Companies (Amendment) Act
  • India
  • 01 February 2021

The Companies (Amendment) Act recently entered into force and aims to decriminalise minor, technical and procedural non-compliance based on the nature and gravity of such offences, thereby facilitating and promoting the ease of doing business and further facilitating the ease of living for law-abiding corporates in India.


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