Under Section 135(1) of the Companies Act, 2013, any company that is required to form a Corporate Social Responsibility (CSR) Committee must include at least one independent director in that committee. This requirement applies regardless of whether the company is a public company or a private companRead more
Under Section 135(1) of the Companies Act, 2013, any company that is required to form a Corporate Social Responsibility (CSR) Committee must include at least one independent director in that committee. This requirement applies regardless of whether the company is a public company or a private company.
Key Points to Understand:
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CSR Applicability:
A company must form a CSR Committee if it meets the prescribed thresholds (net worth, turnover, or profit). Once a company falls under these criteria, forming a CSR Committee becomes mandatory. -
Independent Director Requirement:
The law specifically mandates that the CSR Committee should have at least one independent director. This is to ensure transparency and unbiased decision-making in matters related to CSR. -
Private vs. Public Companies:
While many private companies may not be required to have independent directors for their overall board (if they are smaller or do not meet certain criteria), if such a private company is subject to the CSR provisions, it must include at least one independent director on its CSR Committee.
Conclusion:
If your private company meets the CSR criteria under Section 135, you are required to form a CSR Committee that includes at least one independent director, even if you are not otherwise mandated to have independent directors on your board.
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When a business changes its legal structure—from a proprietorship to a partnership—the underlying legal entity also changes. Since GST registration is issued to a specific legal entity, the GST number linked to your proprietorship cannot be transferred to the new partnership. What This Means: New LeRead more
When a business changes its legal structure—from a proprietorship to a partnership—the underlying legal entity also changes. Since GST registration is issued to a specific legal entity, the GST number linked to your proprietorship cannot be transferred to the new partnership.
What This Means:
New Legal Entity:
A proprietorship is treated as an extension of the owner, while a partnership is a distinct legal entity with its own identity.
New GST Registration Required:
Since the legal entity has changed, you must cancel your existing GST registration for the proprietorship and apply for a new GST registration in the name of the partnership.
Compliance:
It’s important to complete the new registration process to ensure continued compliance with GST laws and avoid any disruptions in your business operations.
Final Takeaway:
No, you cannot use the same GST number when transitioning from a proprietorship to a partnership. A new GST registration is mandatory for the new partnership entity.
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