The government of India enacted a new company law on 29 August 2013 which aims to make stronger the rights of shareholders and to increase corporate social responsibility. Companies will also be essential to improve the quality of their financial statements and to disclose unlisted subsidiaries. The new law is likely to take effect in early 2014.
Under the new law, companies will be required to have:
• At least one resident director.
• The financial year for companies has to run from April 1st to March 31st (unless specifically approved by the Registrar of Companies).
• Existing companies’ Memoranda and Articles of Association have to be revised.