Students shall read the article to know about How to Prepare SBEC as we have shared detailed preparation Strategy for Setting Up of Business Entities for CS Executive.
How to Prepare SBEC: There is no denying that students must study a wide range of laws and legal regulations to prepare for the CS Executive exam. The fundamentals of business law are taught to the students in this course.
How to Prepare SBEC for CS Executive Exams Overview
However, this subject is introduced at the intermediate level, or the executive level, to give students a working knowledge and understanding of the various procedural requirements involved in the establishment of business entities as well as an overview of the procedures involved in the closure of entities.
As everyone is aware, considering all of the latest developments worldwide, our economy has demonstrated remarkable productivity in terms of GDP and National Income. Some businesses have managed to recover well from the pandemic while maintaining their revenue and profit margins. But without diversity in the business structures that are being used across the nation, this would not have been possible.
When starting a business, one can choose from a variety of business structures, including companies, limited liability partnerships, societies, and trusts. A successful organization depends on its choice of business entity. The purpose, advantages, scale of the entity’s operations, and numerous other considerations will all play a role in the choice of business structure.
How to Prepare for SBEC: Know In-depth Understanding
In India, sole proprietorships, partnerships, Hindu Undivided Family (HUF) businesses, limited liability partnerships (LLPs), cooperative societies, branch offices, and companies are the most common forms of business entities. These can be any kind of company, such as a One Person Company (OPC), a private limited company, a public limited company, a company limited by guarantee, a subsidiary company, a statutory company, an insurance company, or an unlimited company that was formed under section 25 of the previous Companies Act, 1956 or section 8 of the Companies Act, 2013.
Several laws apply when incorporating a business. First Registrations: FSSAI, ISO, MSME, copyright, patent, shops and establishments, etc.; licenses from regulatory bodies: RBI, IRDA, GST, Income Tax, IPR, etc. shall be obtained.
It becomes extremely important to know and understand the laws associated with a particular form of business to initiate successful business setup and successful closure, when preferred to serve the best interests of all stakeholders, in this scenario of varied options for the type of business entity and the multitude of laws applicable to the businesses.
Understanding legal regulations is crucial for Company Secretary students not only to pass the exam but also to comprehend how these regulations will affect their business operations when put into practice.
The CS fraternity has been entrusted with the primary duty of understanding the legal system from every perspective to contribute to the expansion and operation of the business overall while upholding the existing legal regulations.
The primary responsibility of the company secretary is to serve as the company’s compliance officer. This subject becomes one of the most significant topics of the CS Executive exam when one considers the significance it has for professional students.
It is the third subject in CS Executive Module 3. The CS Executive is the second step in the company secretary’s career path, as is currently understood. Fundamentally, the executive stage is meant to instill the abilities and proficiencies of students who have completed the executive program.
This significant subject was included in the curriculum to provide students with a practical understanding of how to set up a business in India while adhering to all registration and license requirements and providing an overview of the procedures associated with insolvency, winding up, and closure.
How to Prepare SBEC Syllabus
Before creating the study plan, we should be aware of the subject’s contents. The format of the study lessons for this subject is as follows,
Part 1️⃣ – Setting up of Business (40 Marks)
Module-1️⃣ Paper-3 Setting up of Business Entities and Closure
👉Choice of Business Organisation
👉Types of Companies and their Formation
👉Part I : Charter Documents
👉Part II : Alteration of Charter Documents
👉Legal Status of Registered Company
👉Formation of Limited Liability Partnerships
👉Different Forms of Business Organisation and its Registration
👉Formation and Registration of NGOs- Section 8 Company, Trust and Society
Financial Services Organisation and its Registration Process
👉Start-ups and their registration
👉Joint Ventures Collaboration and Special Purpose Vehicles
👉Setting up of Business outside India and issues relating thereto
👉The procedure of conversion of business entities
Part 2️⃣ REGISTRATION; LICENSES & COMPLIANCES (35 Marks)
👉Various Initial Registrations and Licenses
👉Maintenance of Registers and Records
👉Identifying laws applicable to various Industries and their initial compliances
Intellectual Property laws (Provisions applicable for setting up of business)
👉Compliances under Labour Laws (Provisions applicable for setting up of business)
👉Compliances relating to Environmental laws (Provisions applicable for setting up of business)
Part 3: INSOLVENCY; WINDING UP & CLOSURE OF BUSINESS (25 Marks)
👉Dormant Company: Obtaining dormant status and dormant to active status.
👉Strike off and restoration of name of the company and LLP.
👉Insolvency Resolution process; Liquidation and Winding-up: An overview.
Understanding 🧠 the Purpose of SBEC: A Guide 🗺 on How to Prepare
Given that company secretaries’ core area is understanding commercial laws, these professionals must be completely informed about a wide range of laws and regulations for both practices to guide management on relevant topics and impart knowledge of specific economic, business, and commercial laws that directly affect the operations of the various business entities selected to launch new ventures or redefine existing ones.
We also need to keep in mind that the way corporate affairs are conducted is directly impacted by our comprehension of certain business and commercial laws.
A professional company secretary is expected to be well-versed in the laws, rules, and regulations that govern the modern world. Violations of these regulations can result in harsh penalties, while compliance with these regulations facilitates the smooth operation and dealings of the company.
SBEC Preparation Strategy 🎯
The establishment of business entities is a complex topic that is constantly being improved upon by new primary laws, the rules and regulations that are enacted under them, and decisions from the courts on particular legal matters. As a result, it becomes imperative that each student stay up to date on the numerous legislative modifications that have been made as well as the occasional rulings from the courts by consulting the Institute’s journal, “Chartered Secretary,” its e-bulletin, and other legal and professional publications.
✍️Comprehending the subject’s fundamentals: Students must, first and foremost, comprehend the fundamental provisions of each act, rule, and regulation about the subject.
✍️Understanding the subject’s requirements: Students should, first and foremost, fully comprehend the subject’s and paper’s requirements. They should comprehend the duties and responsibilities of the company secretary in handling all the different kinds of situations that are listed in the various acts; in other words, they should comprehend how the written laws are put into practice.
✍️Dynamic subject: Students must keep in mind that this is not a static subject like accounting or costing, but rather one that involves many dynamic elements due to constantly changing regulations. Additionally, the requirements will continue to evolve by the type of business entity we are working with.
✍️Requirements for Analytical Skills: Students must focus more on analytical abilities than theoretical knowledge. It is important to fully comprehend the case laws and how they apply to real-world business issues.
✍️Referring to recent case studies that have been posted on the SEBI website: As part of their exam preparation, students must study pertinent and significant examples from current events involving business and society.
✍️Regular Updation: At least six months before the date of the relevant examinations, familiarize yourself with all pertinent circulars, clarifications, notifications, etc. issued by the MCA, SEBI, judicial pronouncements, provisions, etc.
✍️Subject-specific fundamentals: Last but not least, students must understand the essence of the Acts, their key provisions, their powers, their amendments, and the characteristics and purposes of each Act’s feature, particularly before the exam.
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