Start up Company
The Companies Act, 2013, regulates startups in India through various provisions and exemptions. Here are some key ways the Act impacts startups: *Regulations:* 1. *Incorporation*: Startups must register with the Registrar of Companies (ROC) and obtain a Certificate of Incorporation. 2. *Compliance*: Startups must comply with various filing requirements, such as annual returns, financial statements, and tax returns. 3. *Governance*: Startups must have a Board of Directors, with at least one Independent Director, and ensure that the Board meets regularly. *Exemptions and relaxations:* 1. *Private placement*: Startups can raise funds through private placement, which is exempt from the requirement of filing a prospectus. 2. *Angel tax exemption*: Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) are exempt from angel tax. 3. *Relaxation in filing requirements*: Startups are allowed to file simplified financial statements and annual retur...