The articles of association/bylaws represent one of the founding documents of a company registered in India, alongside with the memorandum of association. Investors interested in the procedure on how to form a company in India will need to draw the articles of association for specific business forms and the document has to include certain provisions, such as the company’s nature, its purposes, the shareholders, the voting rights or the directors’ attributions. Our team of specialists in company formation in India can offer legal assistance on the rules of law regulating the company’s founding documents.
Main regulations for Indian articles of association
When drawing up the articles of association of an Indian company, it is recommended to receive legal assistance tailored in accordance with the regulations related to this matter. In India, the articles of association are regulated by the Indian Companies Act 2013 and the most important sections are 5, 6, 10,14 and 15.
Section 14 of the Companies Act 2013 establishes the rectifications that can be added to the articles of association, which can be completed through a special resolution.
The articles of association represent an important company document, as it sets up obligations and rights related to the governance of the business registered in India, as well as the powers and responsibilities established for the key players of the company (shareholders, directors) and our representatives may advice on the rights of the company’s founders.
Aspects regulated by the Indian articles of association
When starting a company in India, it is of high importance to include all aspects regarding the management of the business in the articles of association, which should specify the following:
• valuation of intellectual assets;
• appointment of directors and auditors;
• board meetings and general meetings;
• rights of the shareholders and company members;
• powers and responsibilities of the company’s top management;
• election procedures;
• remuneration of the company’s representatives;
• dividend policies;
• transfer of shares.
At the same time, the articles of association should include regulations concerning the winding-up procedure, in the case in which this situation may arise.
Furthermore, the articles of association have to be submitted with the Registrar of Companies, by filing the Form INC-34 and investors are invited to contact our team of consultants in company formation in India for further assistance on this procedure.