CS Executive: Setting Up of Business study guide
CS Executive: Setting Up of Business · Work through your exam, one topic at a time.
Setting Up of Business is a paper in the Company Secretary Executive programme, the intermediate stage of the CS qualification in India. It sits at the point where a candidate stops thinking like a student of law and starts thinking like the person a promoter calls before a company exists: which vehicle to choose, what to file, who sits on the board, how money and people are brought in, and which regulators will want to hear from you afterwards. The CS Executive: Setting Up of Business study guide has 8 sections and about 2,677 words.
01Business Environment and Forms of Business Organisation
The paper checks whether you can match a business form to liability, funding, control and compliance, and whether you can read the business environment that shapes that choice. Micro-environment includes customers, suppliers, competitors and intermediaries; macro-environment includes political, economic, social, technological, legal and environmental forces.
366 words, about 2 min02Promotion and Incorporation of Companies
A promoter is a person named in the prospectus or identified in the annual return as a promoter, or one who controls the company's affairs. Promoters stand in a fiduciary position and must not make secret profits.
334 words, about 2 min03Corporate Governance and Board Constitution
The Companies Act, 2013 requires a public company to have at least 3 directors, a private company 2 and an OPC 1; the maximum is 15, and more directors require a special resolution. Every company must have at least one director who stayed in India for at least 182 days during the financial year.
356 words, about 2 min04Management of Financial and Non-Financial Resources
Companies can raise equity, preference capital, debentures, loans and deposits. A rights issue under section 62 is offered to existing shareholders.
343 words, about 2 min05Business Contracts and Legal Framework
A contract needs offer, acceptance, lawful consideration, capacity, free consent and a lawful object. Acceptance must be absolute and unqualified and must be communicated.
341 words, about 2 min06Intellectual Property Rights and Business Ethics
Patent: Patents Act, 1970; protects inventions with novelty, inventive step and industrial application; term 20 years from filing; business methods and mere algorithms are not patentable. Trademark: Trade Marks Act, 1999; protects distinctive marks; registration for 10 years, renewable indefinitely; infringement and passing off are separate remedies.
324 words, about 2 min07Compliance and Regulatory Framework for Business
The compliance framework is calendar-driven. AOC-4, the financial statements, is filed within 30 days of the AGM.
283 words, about 1 min08Entrepreneurship and Start-up Ecosystem
DPIIT recognition under Start-up India is available to a private limited company, LLP or registered partnership firm. The entity must be within ten years of incorporation, must not have been formed by splitting up or reconstruction of an existing business, and must be working towards innovation, development or improvement of products, processes or services, or have a scalable business model with high potential for employment or wealth creation.
330 words, about 2 min