CS Executive Setting up of Business Entities and Closure Classes

CS Executive Paper 3 — Setting up of Business Entities and Closure

This 100-mark MCQ paper is uniquely practical — it covers the entire lifecycle of a business entity from formation to dissolution, making it the most operationally relevant paper in CS Executive Module 1. Company Secretaries are typically the professionals responsible for the procedures covered in every chapter of this paper.

Setting Up Business Entities

• Companies — Private, public, one-person, producer, Section 8 companies; step-by-step incorporation process; SPICe+ form; INC series filings
• Limited Liability Partnerships — Incorporation under LLP Act 2008, LLP Agreement, conversion from company to LLP
• Partnerships — Indian Partnership Act 1932, registration of firm, reconstitution, dissolution
• Societies and Trusts — Societies Registration Act 1860, Indian Trusts Act 1882, not-for-profit entity formation
• Cooperatives — Multi-State Co-operative Societies Act 2002, state cooperative society laws
• Nidhi Companies and Producer Companies — Specific entity types under Companies Act 2013

Foreign Business Entities in India

• FEMA 1999 — Current vs capital account transactions, FDI policy (automatic vs approval route), RBI permissions
• Foreign company registration — Liaison office, branch office, project office — RBI and ROC filings
• SEBI regulations for foreign portfolio investors (FPIs)
• Joint ventures and wholly-owned subsidiaries — Incorporation and compliance

Business Closure

• Strike off — MCA's Fast Track Exit (FTE) scheme, voluntary strike off under Section 248
• Voluntary winding up — Members' and creditors' voluntary winding up procedures
• Insolvency and Bankruptcy Code 2016 — CIRP initiation by financial creditors, operational creditors, and corporate debtor itself; moratorium; resolution plan; liquidation; IBBI role
• Cross-border insolvency — UNCITRAL Model Law provisions proposed in India