IMPACT OF THE COMPANIES ACT, 2013 ON THE FOREIGN COMPANIES HAVING A PLACE O...

April 05, 2014

The much awaited Companies Act, 2013 (“New Act”) has finally been notified to replace most of the provisions of the Companies Act, 1956 (“Old Act”). The economic scenario globally has undergone major transformation and structural changes and promulgation of the New Act is a step towards globalization and is a successful attempt to meet the changing environment and liberalization. The New Act is progressive and futuristic as it duly envisages the technological and legal developments. The New Act aims to:

No one is born as a readymade performer. All big players of the corporate sector started with everything less in their hands. So what made them survive and build to a level which is now admired by all young minds who wish to become like them.

It is clear that there has been a huge amount of hard work, discipline, clarity in goals, ambition and guts. But is that enough to get into the billion-dollar club? There exists no single answer for this. A right effort, on the right time, with the right opportunity will only result into wonders.

The business environment is affected by internal and external factors. An entrepreneur cannot control the external factors affecting the business to a great extent but the command of internal factors is in his very hands. Human Resource is one of the most important among the internal factors in turning a business story into its success story.

Employees are the stepping stones which need to be nurtured in order to build a strong foundation that leads to growth. Contrary to this, people generally fail to pose trust into new ventures, which is even correct, as a startup is neither in a position to pay attractive packages nor it can assure a sure-shot success / profits out of its endeavors.

But this is not the end of the story. Early stage companies are high-risk investments and many fail. In order to attract employees, startups need to be able to offer something different, such as the prospect of a share in the upside should the company go on to be successful. Entrepreneurs need to chalk out strategies which enable them to create a win-win situation. The best and most trending incentive for employees is to make them partner in the growth of the business by making them co-owner.