Legal Aspects of Business (Essay Sample)

Legal Aspects of Business Name Instructor Course Date Question 1: Company Law 1 Chronological procedure of incorporating a company Step One: reservation of businesses’ name under spice or RUN The initial step in the process of incorporating a business is to reserve the name of the company. Run and spice are two fundamental ways to reserve a company's name. Applicants can use RUN to check whether or not one's new company's name is already taken and then apply for a desired name for the firm via an online form on the Ministry of Corporate Affairs website. All naming convention rules must be adhered to by the applicant, who must give two names in preferred order. Once the MCA has approved a business's name, the applicant has twenty days to complete the other formalities necessary to register the firm. The ministry of corporate affairs offers access to the RUN online services. The MCA performs three checks before approving a business's name. First, there should be no other business with the same name. Second, no one should be offended by the name. Lastly, the company’s name should not infer any link with the state’s administration or government (LegalRaasta, 2017). Another way to finalize the name is by filling the spice-32 form, but the applicant can redo the documentation process if rejected. The applicant is supposed to select the names of the businesses’ directors. The names of more than two directors are required for a private limited business. Step two: obtaining a certificate of digital signature The next step is to procure a digital signature certificate for the applicant's private limited business once the business name has been authorized by MCA and registered. Every piece of vital data concerning the registered signatory, including name, phone number, email, and address, is stored in a digital signature certificate (Toppr-guides, 2018). Step three: Director Identification Number (DIN) application A registered firm's directors are assigned a director identification number (DIN), which serves as their sole means of identification. Form DIR-3 is then created once the Registry has acknowledged the firm's DIN (Mancuso, 2021). It is vital to note that the business's name can be accepted before the application of a DIN, which takes around seven to eight days to be activated and accepted. Step four: formulating a memorandum of association (MOA) As a business's MOA is like a Constitution, it details all the firm's stakeholders and directors and their connection to the firm. This document outlines the company's mission, its assets and liabilities, and the environment in which it operates. In some cases, it is referred to as a business charter. ROC Compliance in most nations like India requires the MOA to be filed as well as articles like MGT-7 and AOC-4. The Ministry of Corporate Affairs (MCA) developed a web-based filing for business registration in an effort to make incorporation of the company's compliance easier (LegalRaasta, 2017). The Memorandum of Association is further divided into five clauses name, object, capital, liability, and registered office clause. Step five: creating articles of association (AOA) In order for a company to exist, it needs to have a set of rules and a purpose in place, and these regulations and purposes are outlined in the company's articles of association (AOA). AOA it outlines the procedures for selecting directors and maintaining financial records for the company. The members' obligations, rights, and responsibilities are discussed in detail in this article. It applies to everyone in the firm, regardless of their position. Step six: Power of Attorney The applicant hires an attorney with the capacity to act on behalf of the firm to complete the legal and complex documentation processes of incorporation. There will be no limit to what the attorney can do when it comes to making changes to the records that have been presented to the registrar. Step seven: payment of registration charges During the company’s incorporation procedure, a fee is paid to the Registrar of Companies. Corporations also have a share capital, which is determined by their nominal capital. Step eight: incorporation of company application In accordance with Section 7 of the 2013 Companies Act, an application for the incorporation of a company must be submitted to the register of companies in whose jurisdiction the business address is located once all required documents have been prepared and finalized (Khanuja, 2021 p. 327). The registrar of companies issues a certificate of incorporation once the proper procedures have been followed and the company's legitimacy has been established. Mariam should incorporate the company using the outlined manner. 2 Documents and information to be presented to the company house Form IN01 and the Memorandum and Articles of Association are the primary documents an applicant must submit to Companies House. In addition, there should be an annual return and a list of the organization's members and its owner. Finally, there should be annual accounts and confirmation statements notifying the company's house of modifications of the private company. 3 Mariam's responsibilities as a director of the business A limited corporation selects a director to supervise the firm's day-to-day finances and operations, ensuring that all lawful filing necessities are met. A corporation director is expected to act lawfully and fairly, and to reach decisions that are in the corporation's best interests. As a director, Mariam should operate with a designated rule to promote the business's success. She should make independent decisions on what to do, ensuring tasks are completed within the specified time. Mariam should also avoid conflicts of interest and persistently practice diligence, care, and reasonable skill. Furthermore, she is not supposed to accept benefits from third parties since there is an expense. Question 2: Employment Law 1 Employment contract information An employer and its employees or labor union agreements are known as employment contracts. It outlines the obligations and roles of both the employer and the worker. It enables both parties to comprehend their responsibilities and employment terms clearly and concisely. When they sign their contract, workers can feel confident that they are working for an established business with clearly defined obligations and terms of employment (Mokhinur, 2020 p. 78). It gives the employer peace of mind knowing that the employee is completely aware of one's responsibilities and has promised to follow through with them. Attempts to safeguard business clients and intellectual property may also be included in the contract for the employer. An area where an employee cannot work for a certain period is known as a "radius restriction." It will be considered too restrictive if the restriction on the radius is too wide or too long in duration. Misuse or theft of intellectual property is a risk associated with employment contracts, which is why they safeguard customer information such as service records and personal contact information. In addition, the contract stipulates a period during which a person cannot advertise while employed. During this time, they are prohibited from attempting to solicit clients and employees from their current employer. As a result of Mariam's recent incorporation of a business, she has just been employed for a short time. The following information must be included in her employment contract in order for her business to run properly and without issues. To begin, Mariyam should provide some details about the job information. The basic components of the job information are the job designation or title, job description, and skill and educational qualifications. When it comes to sa...