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one person company registration

One Person Company

The Companies Act, 2013 completely revolutionized corporate laws in India by introducing several new concepts that did not exist previously. On such game-changer was the introduction of One Person Company registration concept. This led to the recognition of a completely new way of starting businesses that accorded flexibility which a company form of entity can offer, while also providing the protection of limited liability that sole properietor or partnership firm lacked.

Several other countries had already recognized the ability of individuals forming a company before the enactment of the new Companies Act in 2013. These included the likes of China, Singapore, UK, Australia, and the USA.

Definition of One Person Company

Section 2(62) of Companies Act defines a one-person company as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.

Such companies are generally created when there is only one founder/promoter for the business. Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead of sole proprietorship business because of the several advantages that OPCs offer.

 Difference between OPCs and Sole Proprietorships

A sole proprietorship  form of business might seem very similar to one-person companies because they both involve a single person owning the business, but they’re actually exist some differences between them.

The main difference between the two is the nature of the liabilities they carry. Since an OPC is a separate legal entity distinguished from its promoter, it has its own assets and liabilities. The promoter is not personally liable to repay the debts of the company.

On the other hand, sole proprietorships and their proprietors are the same persons. So, the law allows attachment and sale of promoter’s own assets in case of non-fulfilment of the business’ liabilities.

Features of a One Person Company

Here are some general features of a one-person company:

Private company: Section 3(1)(c) of the Companies Act says that a single person can form a company for any lawful purpose. It further describes OPCs as private companies.

Single-member: OPCs can have only one member or shareholder, unlike other private companies.

Nominee: A unique feature of OPCs that separates it from other kinds of companies is that the sole member of the company has to mention a nominee while registering the company.

No perpetual succession: Since there is only one member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member. This does not happen in other companies as they follow the concept of perpetual succession.

Minimum one director: OPCs need to have minimum one person (the member) as director. They can have a maximum of 15 directors.

No minimum paid-up share capital: Companies Act, 2013 has not prescribed any amount as minimum paid-up capital for OPCs.

Special privileges: OPCs enjoy several privileges and exemptions under the Companies Act that other kinds of companies do not possess.

Benefits of One Person Company

 One person company registration has all benefits will a corporate enjoys aside to this it has some relaxations in provision of company law. Following are some of benefits of One Person Company. It has separate legal entity. The liability of shareholder/ director is limited The organized version of OPC will open the avenues for more favorable banking facilities Legal status and social recognition for your business. It gives suppliers and customers a sense of confidence in business. The director and shareholder can be same person On the death/disability company can be succeed by nominee. Exemption available from various provisions under Company law.

Incorporation of OPC Types of OPCs can be incorporated under the Act. 

There can be five types of OPCs that can be incorporated under the new Act, viz. OPC Limited by Shares; OPC Limited by Guarantee with Share Capital; OPC Limited by Guarantee without Share Capital; Unlimited OPC with Share Capital, and Unlimited OPC with Share Capital. Steps for Incorporation of OPC Incorporation through SPICe (Without filling RUN) Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) with eMoA, , eAOA. Incorporation through SPICe (With RUN) Name reservation: RUN service shall be used for name availability. Incorporate OPC: After name approval, form SPICe shall be filed for incorporation of the OPC within 20 days from the data of approval of RUN. The company shall file form INC-22 within 30 days once form SPICe is registered in case the address of correspondence and registered office address are not same. Certificate of Incorporation When the eForm is processed and DIN is generated, an acknowledgement email of Certificate of Incorporation (CoI) is sent on email. Further, on approval of SPICe+ forms, the Certificate of Incorporation (CoI) is issued with PAN and TAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user.

Conversion of Private Limited Company to OPC 

A private company other than a company registered under section 8 of the Act may convert itself into One Person Company registration by passing a special resolution in the general meeting. The company shall file an application in Form No.INC.6 for its conversion into One Person Company along with fees as provided in in the Companies (Registration offices and fees) Rules, 2014, by attaching the following documents, namely:- The directors of the company shall give a declaration by way of affidavit duly sworn in confirming that all members and creditors of the company have given their consent for conversion, the list of members and list of creditors; the latest Audited Balance Sheet and the Profit and Loss Account; and the copy of No Objection letter of secured creditors.

  Steps for One Person Company registration (OPC)

Step 1: Apply for DSC

Step 2: Apply for  Director Identification Number

Step 3: Name Approval Application

Step 4: Documents Required

Step 5: Filing Forms with MCA

Step 6: Issue of certificate of Incorporation

CA Goyal Mangal & Co. provides services of one person company registration.

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GST REGISTRATION

The Goods and Services Tax (GST) system came into effect in India on 1st July 2017. The implementation of this tax system has been one of the most monumental economic reforms in India. This ‘one nation, one tax’ reform subsumed most of the indirect taxes levied at the center and state levels and brought about uniformity in terms of tax administration. 

Let's take a look at the advantages of GST. Register your business and get GST registration services in Jaipur.

 Components of GST Taxes applicable under the Goods and Services Tax. •

 State Goods and Services Tax (SGST): Tax levied by the State Government 

• Central Goods and Services Tax (CGST): Tax collected by the central government 

• Integrated Goods and Services Tax (IGST): Tax applicable on inter-State supply of goods and services by the central government 

The introduction of GST positively influenced the Indian economy. This tax has taken apart the inter-state barriers that hinder trade and has brought the economy together in a single unified market. Manufacturers and traders both benefit from this form of taxation. The end consumers have also greatly benefited from the enforcement of Goods and Services Tax in numerous ways.CA Goyal Mangal provides GST registration services. 

Advantages of GST Explained in Details 

1. Reduced Tax Evasion and Corruption Free Tax Administration The enforcement of the GST Act has made tax administration transparent and corruption-free. The evasion of tax leads to the outflow of government revenues. This is a significant disadvantage to compliant taxpayers. To curtail evasion of tax, various measures have been undertaken by the authorities: • Syncing of GST registration and PAN • Reporting and matching at the invoice level • Reconciliation of credits • Generation of e-way bills • Tracking of movement of goods • Appointment of GST Commissioner for Investigation • Directorate General of Analytics and Risk Management

 2. Procedural Benefits • Common procedures for registration • Lesser tax filings and uniform formats • Clear and transparent rules • Ease of bookkeeping • Lesser revenue leaks and generation of better revenues • Refund of taxes • Common tax base • Universal system of classification of goods and services 

3. Removal of Cascading Effect The pre-GST period saw a cascading effect of taxes, which the implementation of GST eliminated. GST has almost entirely put an end to the tax-on-tax impact on goods and services. By taking in all the indirect taxes under its wing, GST has managed to bring down the cost of goods and services. Thus uniformity of taxes under GST is one of its crucial benefits.

 4. Technologically Driven Being technologically driven, the entire process of registration and filing of returns is accelerated. It also ensures that the process is clean and tax collection is done legitimately. The Gst Portal supports the following activities: • Registration • Return filing • Application for refund • Response to notices • Consumer grievances 

5. Reduced Compliances The number of separate compliances is lesser now with GST. Earlier VAT, Excise and Service tax had their own schedules of filing and compliances. These were monthly or quarterly, depending on the nature of holding. GST, however, requires a single return to be filed. There are around 11 returns, 4 out of which are basic returns that all taxable persons need to file. 

6. Higher Exemption Limit The GST Council doubled the exemption limit for the sale of goods to Rs 40 lakhs. The exemption limit for the northeastern states is Rs 20 lakhs. The exemption limit for service providers is Rs. 20 lakhs for all states excluding special states for which it is Rs.10 lakh. With effect from April 1, 2019, the annual turnover for availing Composition Scheme was increased to Rs 1.5 crore from Rs 1 crore. A taxpayer with an annual turnover under Rs 1.0 crore can go for this Composition. For North-Eastern states and Himachal Pradesh, this limit stands at Rs 75 lakh. This scheme relieves small taxpayers from the tedious GST formalities. GST under this system can be paid at a fixed rate of turnover. According to the CGST (Amendment) Act, 2018, which came into force from 1st of Feb, 2019, a dealer under this scheme can supply services up to 10% of the annual turnover, or Rs.5 lakhs, whichever is higher. Under this scheme, a cumulative turnover is taken into consideration of different businesses that are registered under the same PAN number. This move alternating the exemption limit is highly beneficial for small businesses. 

7. GST and Make In India Campaign With the application of GST on imports and a boost to manufacturing with a reduction of unnecessary costs, GST forms the backbone of this initiative. The ease of transaction and the free flow of goods through the state border with the elimination of commercial check posts is another advantage. By replacing the arbitrary taxation system, the GST model has unified the Indian market. Reduction of the costs of logistics, lesser transit hours, and relief from export taxes and refunds has given a considerable boost to manufacturing. 

8. Ease of operation for E-commerce businesses Initially, for e-commerce businesses, the supply of goods across the border came under variable tax laws. The delivery trucks crossing borders were required to produce the necessary documents along with the VAT declaration and registration number. Failure to produce the required documents could lead to the confiscation of goods. GST has more or less eradicated all such complications, paving the way for seamless transactions. Conclusion The enforcement of GST has brought in a very transparent system to the country that is also corruption-free. The benefits are far-reaching and are not only business-friendly but consume rfriendly as well. This system of taxation has placed the country well in international trade. The Indian market is far more stable now than it ever was. With the application of GST, India is in a much better position in the international markets, which has positively affected the economy. 

CA Goyal Mangal & Co. Provides professional GST registration and all legal services.

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FSSAI REGISTRATION

FSSAI RegistrationBasic FSSAI RegistrationRequired Documents for Basic FSSAI RegistrationState FSSAI License RegistrationRequired Documents for State FSSAI LicenseCentral FSSAI License RegistrationRequired Documents for FSSAI Central License

FSSAI Stands for “Food Safety and Standard Authority of India. FSSAI is an Independent organization under the Ministry of Health. FSSAI Registration is mandatory for every individuals or entity that is eligible for an FSSAI food safety Registration or License. Maintaining the food quality levels in order to ensure safety and providing satisfaction to every consumer is the aim of every Food Business Operator. Food safety and standards authority of India (FSSAI Registration) plays an important role in formulating the controlling procedures.

The Food Standards and Safety Authority of India (FSSAI) is the supreme authority which is responsible for regulating and supervising the food safety. So it is mandatory to take FSSAI Basic Registration as per the law. Here we discuss about basic registration, Small businesses or startups having annual turnover below Rs.12 lakhs can apply for basic FSSAI Food safety registration. As operations scale up and turnover reaches Rs. 12 lakh bar, the basic registration will need to be upgraded to state license. As the name said it is very basic registration so it won’t be enough for large business firm.

 FSSAI Registration is mandatory for anyone who intends to do food business. This not only involves preparing food but everyone who handles food at various stages before it ultimately reaches the customer like raw materials, Manufacturing, processing, Mess, Canteen packing and the distribution as well as the agencies who have authority to sell them.

 Our expert professionals having specialized knowledge in food safety Registration procedure make the procedure flexible to our valuable clients. Team FSSAI INDIA FSSAI Food safety Registration guarantee that you can experience professional approach from our staffs that make everything hassle free.

Authorized person address proof

Passport size photo

Business name and address

Fssai declaration form

Nature of business details

The Food Standards and Safety Authority of India (FSSAI) is the supreme authority which is responsible for regulating and supervising the food safety. So it is mandatory to take FSSAI Food safety License Registration as per the law. Here we discuss about FSSAI state license. Businesses having annual turnover between Rs.12 lakhs to 20 crore can apply for FSSAI state license. Food business operators like small to medium-sized manufacturers, storage units, Transporters, Retailers, Restaurants Marketers, distributors etc. are however required to obtain the FSSAI State License Registration.

 FSSAI License is mandatory for anyone who intends to do food business. This not only involves preparing food but everyone who handles food at various stages before it ultimately reaches the customer like raw materials, manufacturing, processing, Restaurants packing and the distribution as well as the agencies who have authority to sell them

 Our expert professionals having specialized knowledge in food safety license procedure make the procedure flexible to our valuable clients. Team FSSAI INDIA Registration and Licensing consultants guarantee that you can experience professional approach from our staffs that make everything hassle free.

Rental Agreement of Business Premises.

ID Proof of the Concerned Person (Aadhaar Card / Driving License / Passport / Voter ID)

If any Government Registration Certificates ( Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License)

If the applicant is private limited company or partnership firm then they should provide MOA & AOA or Partnership deed copy

For applying State License any One of the following certificate is compulsory ( Trade license, Shop and Establishment Registration, Panchayath License, Corporation License , Municipality License )

Nature of Business.

Fssai declaration form

If you are applying for Manufacturing /Repacker category please arrange below other documents.

Manufacturing unit photos

Plant Layouts.

Machinery details use for production in your company letterhead (Capacity & Horse Power details)

Product details in company Letter head.

The Food Standards and Safety Authority of India (FSSAI) is the supreme authority which is responsible for regulating and supervising the food safety. So it is mandatory to take FSSAI Food safety License as per the law. Here we discuss about FSSAI central license.

 Businesses having annual turnover above 20 crore can apply for FSSAI central license. Eligible food Business Operators like Importers, Manufacturers, operators in central government, Railways, airports, seaports, etc. need to take a Central FSSAI license from Food Standards and Safety Authority of India.

 Our expert professionals having specialized knowledge in food safety license procedure make the procedure flexible to our valuable clients. Team FSSAI INDIA Registration and Licensing consultants CA Goyal Mangal & Co.guarantee that you can experience professional approach from our staffs that make everything hassle free.

Rental Agreement of Business Premises.

ID Proof of the Concerned Person (Aadhaar Card / Driving License / Passport / Voter ID)

If any Government Registration Certificates ( Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License)

If the applicant is private limited company or partnership firm then they should provide MOA & AOA or Partnership deed copy.

IE Code (Import Export Code) Certificate.(for the category of export and import IE code is compulsory)

Authority letter from the company letterhead to the concerned person stating that he is authorized to file FSSAI application.

List of food category desired to be manufactured (In case of manufacturers).

If you are applying for fssai registration for manufacturing category please arrange below other documents.

Manufacturing unit photos

Plant Layouts & Product details.

Machinery details use for production in your company letterhead (Capacity & Horse Power details)

In case if your business in to mineral water plant then water test report compulsory.

https://www.cagmc.com/fssai-food-license-registration/

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LLP REGISTRATION

Step 1: Application for DIN or DPINStep 2: Secure & Register DSCStep 3: Create a login on the authority's portalStep 4: Incorporate an LLPStep 5: Draft LLP Agreement

Meaning of Limited Liability Partnership (LLP)

The Law defines LLP registration as:-

“A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership”

Features of LLP

The LLP has Separate Legal Entity i.e. the LLP and the partners are distinct from each other.

Minimum of 2 partners are required to form a LLP. However, there is no limit on the maximum number of partners.

No requirement of Minimum Capital Contribution.

The LLP Act does not restrict the benefit of LLP structure to certain classes of Professionals only and would be available for use by any enterprise.

Benefits of forming an LLP 

The Liability of each partner is limited to his share as written in the Agreement filed at the time of creation of LLP as compared to Partnership Firms which have unlimited liability.

It has a Low Cost of Formation and is Easy to Form.

The Partners are not liable for the acts of each other and can be held liable only for their own acts as compared to Partnerships wherein they can be held liable for the acts of their partners as well.

Less Restrictions and Compliance are enforced on an LLP registration by the Govt as compared to the restrictions enforced on a Company.

As a Juristic Legal Person, a LLP can sue in its name and be sued by others. The partners are not liable to be sued for dues against the LLP.

Step-by-Step Procedure for Registering LLP in India

For an Indian LLP registration, you must first secure the Designated Partner Identification Number (DPIN). This can be done by filing an e-from for securing DPIN or DIN. You would then require obtaining DSC, i.e. Digital Signature Certificate, and register it on the MCA's portal.

After that, you need to get name approval for the firm from the ministry. Once the name is acquired, you can incorporate the LLP by filing the prescribed application form.

All serving partners of the proposed firm shall secure DPIN. For this, you need to file an online application viz, DIR-3 to secure DPIN. For those who already have DIN, the same can be used as a DPIN.

The Information Technology Act, 2000 emphasized the use of Digital Signatures on the dossiers furnished electronically to ensure the document's safety. Prevailing legalities mandate the proposed LLP to use the digital signature for signing the documents.

Acquire DSC – The licensed Certifying Authority, i.e. CA, grants the digital signature. CA indicates a person who has been vested with the authority to grant DSC u/s 24 of the Indian IT-Act 2000.

Register DSC - Role Check* Can Be Performed After Registering The DSC With The LLP Application.

'Role Check' functionality ensures that the MCA21 system shall validate whether the digital signatures affixed on the prescribed form belong to the company's signatory and/or of a practising professional (if applicable)

Visit the concerned authority portal and register as a user in the relevant user category. This is necessary for getting access to e-form.

Use Form 1 for registering the proposed LLP name. After name approval, proceed to address incorporation formalities such as facilitation of Incorporation document and Subscriber's statement.

After form approval, you will come across an email relating to the same. It also shows the status " "Approved" to confirm the applicant.

After the incorporation process, an initial LLP agreement has to be filed within the duration of 30 days of the incorporation date. The user must file the detail in Form 3 (information about LLP agreement and change, if any, made therein.

The user has to file the information in Form 3 ( Information with regard to Limited Liability Partnership Agreement and changes, if any, made therein).

What type of Documents are Required to Register an LLP in India?

Here are the listicles of mandatory documentation that are required during LLP registration  in India;

PAN Card/ Identification Proof Of Proposed Partners: All proposed partners are mandated to furnish their PAN during registration time. PAN card serves as a fundamental ID proof.

Partners' Address Proof: Proposed partner furnish any one document out of passport, Voted ID, DL, or Aadhar Card. Name as well as other information as per address proof & PAN card ought to be exactly the same.

Any Flaws In The Details Of The PAN Can Be Corrected Before Furnishing To RoC.

Partners' Residence Proof –Updated bank statement, utility bill, should be furnished as residence proof. Such bills should be the latest one, i.e. not older than 2-3 months & must entail the partner's name as cited in PAN card.

Photograph – Partners must furnish the latest passport size photo, preferably on white background.

Passport (In Case Of Overseas Nationals/ NRIs) – To become a partner of Indian-based LLP, overseas nationals & NRIs have to furnish their passport mandatorily. Passport must be notarized by the concerned authorities in the nation of such foreign nationals and NRI, else Indian Embassy located in the nation can also sign the documents.

Foreign nationals or NRIs must facilitate address proof, bank statement, and legit identity proof enclosing the address.

If The Documents Exist In Any Other Language, The Applicant Must Facilitate The Notarized Translation Copy.

Registered Office Address Proof: Registered office proof must be furnished during the registration process or within 30 days of incorporation.

If the registered office is rented, a rent agreement and a NOC from the actual land owner have to be furnished. NOC shall be the landlord's consent to permit the LLP to use the premises as a registered office'.

Also, anyone document out of gas, electricity, or telephone bill should be submitted. The bill should not be older than two months and must reflect the address of the premise and the owner's name.

Digital Signature Certificate (DSC): One of the designated partners must hold DSC for signing the documents electronically.

Benefits of an LLP

There are numerous benefits to be had from trading through an LLP -

Limited liability protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.

Flexibility. The operation of the partnership and distribution of profits is determined by written agreement between the members. This may allow for greater flexibility in the management of the business.

The LLP is deemed to be a legal person. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable if necessary.

Corporate ownership. LLP’s can appoint two companies as members of the LLP. In an LTD company at least one director must be a real person.

Designate and non-designate members. You can operate the LLP with different levels of membership.

Protecting the partnership name. By registering the LLP at Companies House you prevent another partnership or company from registering the same name.

This is not an exhaustive list but covers some of the key benefits on an LLP.

Disdvantages of an LLP

As with all formats of business there will be disadvantages as well as advantages. The following may be considered disadvantageous in some cases.

Public disclosure is the main disadvantage of an LLP registration. Financial accounts have to be submitted to Companies House for the public record. The accounts may declare income of the members which they may not wish to be made public.

Income is personal income and is taxed accordingly. There may be tax advantages in registering as a company, but this will depend on your personal circumstances.

Profit can not be retained in the same way as a company limited by shares. This means all earned profit is effectively distributed with no flexibility to hold over profit to a future tax year.

An LLP must have at least two members. If one member chooses to leave the partnership the LLP may have to be dissolved.

Residential addresses were historically recorded at Companies House. Whilst the use of ‘service addresses’ now allows for home addresses to be kept out of public view, any address previously supplied to Companies House is still part of the public record unless you pay for the records to be suppressed. For many businesses  this is not a problem. However, there are some examples where this may not be desired. Consider solicitors and partners of law firms that may not want their home address so freely available if their work involves sensitive cases.

This is not an exhaustive list but covers some of the key issues that some may feel are disadvantageous for LLP registration.

 https://www.cagmc.com/llp-registration/

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NGO REGISTRATION

An NGO is basically a not for profit earning entity which strives to work towards the betterment of the underprivileged sections of Society. Online NGO registration could have a wide range of interests for the betterment of society.

This could include Environmental reasons, human & animal rights, improving fitness, and the welfare of children, development work and will even include raising recognition about sports of social importance. So there could be any sight for an NGO Registration which could bring your idea to reality.

There are various means and sources through which a non-profit organization raises funds which could be a voluntary donation, donations to gain relaxation in income tax and it could be foreign contributions. There are 3 most popular ways for NGO REGISTRATION:

Section 8 Company

Society

Trust

Documents required for online NGO registration

Application Letter from the founders/trustee stating the purpose of NGO Registration in India

Memorandum of association/ Articles of association [MOA/AOA]

Name, Address & complete details of the members

Address proof [if rented, then NOC from landlord]

Donation receipts [if any received in the past]

Affidavit signed by the president of the NGO

Duly signed declaration by the president.

Advantages/Merits

NGO’s help farmers to increase crop production.

NGO’s introduce new technologies to farmers such as new variety, new crop, and new equipment.

NGO’s help farmers to improve their living standard.

There is a special programme for rural women and youth development.

It’s have a strong network.

It improves the leadership ability of the rural women and youth.

Its help to rural women and youth to develop their social economic condition.

It provides a good employment opportunities for educated unemployed youth.

It helps to initiate the creativity of youth and rural women.

It provides handsome salary for their employer.

It encourages the unemployed young and rural women to establish themselves.

It increases the economic contribution power in rural women.  

Disadvantages/Demerits of NGO registration

It provides a vicious cycle of interest.

By giving small money, they can take over money by the high rate of interest.

It forces people to buy their attractive and developed things.

It creates a source of depression, when the consumers pay their loans they suffer a mental depression.

When rural people can not pay their loans, they take some punishable action against them which cannot tolerable to mankind.

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TRADEMARK REGISTRATION

1. Name2. Logo/Symbol3. Tagline4. Other OptionsStep 1: Trademark SearchStep 2: Class Selection and Document CollectionStep 3: Trademark Application FilingStep 4: Trademark Objection (in some cases)Step 5: Trademark Opposition (in some cases)

Trademark Registration In India - An Overview

A trademark can be defined as the unique identity that makes your company, product, or service stand out from the rest. A registered trademark is your business’s intellectual property/ intangible asset. It protects the investment made into creating trust and loyalty among your customers.

The Trademark registration provides the right to sue against others who try to copy your trademark and prevents others from using a similar trademark to the one registered by you.

What Can You Register As a Trademark?

Many aspects of your brand image can be registered as a trademark. The aspect you need to consider is which aspect of your brand stands out to your customers. Pick that aspect(s) for registering.

a. Product Name: You can register a particular product’s name as a trademark. Apple’s iPod is a product name trademark.

b. Business Name: Registering a company name as a trademark is the most common route businesses take. Ex: Bajaj.

c. Person’s Name/Surname: If your name plays an important part in generating revenue, then you can even trademark your name! Ex: Shah Rukh Khan has trademarked his name.

d. Abbreviations: Abbreviations of a company or brand name can also be a trademark. Ex: BMW.

It is highly recommended to trademark a logo because it visually represents your brand. Your customers can recollect a logo faster than a name. A great example of a logo trademark is the ‘swoosh’ of Nike.

If you have a tagline for your brand, you can go ahead and trademark that as well. A tagline tells your customers what you stand for as a business. For example, KFC’s ‘It's finger lickin' good’.

a. Colour Mark: You can trademark a colour or a combination of colours. (Ex: Cadbury has trademarked the colour royal blue)

b. Sound Mark: Musical notes or sounds can be trademarked if we can prove that it's distinctive. Nokia has trademarked its tune.

c. Scent Mark: Even scents can be trademarked.

Why Is Trademark Registration Important?

Trademark registration is important and necessary for a business because:

It showcases your unique identity

It helps you build trust and loyalty among your customers

It offers legal protection for your brand’s identity

It is an asset in itself

It prevents unauthorized usage of your brand’s identity.

Trademark Classes

There are 45 trademark classes and all the goods and services are categorised across these classes. You need to be very careful while picking the classes as it will determine the validity of your trademark for your business’ products/services. If your business operates across different goods/services that fall under different classes, you have to ensure that you apply for the trademark under all the applicable classes.

Some of the popular trademark classes in India are:

Class 9: which includes computer software and electronics,

Class 25: which includes clothing,

Class 35: which includes business management and advertising, and

Class 41: which includes education and entertainment.

If you are operating within these trademark classes, the competition for a trademark might be higher. However, that shouldn’t matter as long as your mark is unique.

How to Register a Trademark With Vakilsearch

The process of trademark registration online is more complicated than it appears. It involves a number of processes and government follow-up. Vakilsearch has made it easier for you by breaking it down into three parts and doing the majority of the work. Register your trademark today to protect your company's logo, slogan, and brand.

Once you give us the basic information about what you want to trademark and the industry you operate in, our experts will do a thorough search across the trademark database. This is to check whether the mark you want to register is available or not.

Once you decide on an available trademark, we move to step 2.

The next task is to select the appropriate class(es) for your business. You need not worry too much though. Our experts will guide you in selecting the right classes to cover all aspects of your business. Simultaneously, you can start uploading all the required documents (list given below) for trademark registration in your dashboard.

Once you upload all the documents, our team will proceed to verify them. Then the trademark application form will be filled on your behalf and submitted along with the documents. Our team will ensure that your application is accurate and error-free.

We will keep you updated throughout the process and watch out for any notifications from the Trademark Registry until the registration is complete.

Congratulations! You can now start using the symbol ™ as the application has been submitted!

Sometimes the examiner might have some questions about your application. This is sent to you as a trademark objection notice and you need to respond to it within 30 days. Our experts can craft a strong objection response and guide you in submitting the right documents and proofs.

There is also a chance for a third party to oppose your application. In that case, you have to submit a counter-statement to the Registrar within 2 months stating why the opposition isn’t valid. Based on your response the Registrar may either dismiss the opposition or call for a hearing.

Trademark Objections

In some cases, the trademark examiner might see certain problems or issues with the registration of your trademark. These issues can be either the filing of an incorrect trademark form, incorrect name/details, the usage of deceptive or offensive terms, insufficient information on goods or services, or the existence of an identical or deceptively similar mark.

When an objection is raised, the status on the register will show as ‘Objected’, following which an expertly drafted response will need to be filed after an analysis of the objection itself and with any supporting documents and proofs. Objection response is your opportunity to strengthen the claim over your mark and create urgency.

If the response is accepted, the application will be processed further for registration and advertisement in the Trademark Journal. If it is not accepted, or if there are additional clarifications sought by the examiner, there could be a trademark hearing scheduled and this will be communicated to you by a notice.

The process typically takes 2-4 months from when the objection is first raised. Once completed, the chances for approval, while not guaranteed, are much higher.

Trademark Opposition

On the other hand, A trademark opposition is a legal proceeding in which one party attempts to put a stop to a trademark application from being granted. A trademark opposition is filed by third parties who feel your trademark could in some way impact them or their own trademark, in writing, in the form of a notice, with the trademark examiner. If the examiner sees any merit to the opposition, they are to forward the notice to the applicant, who is required to send in a counter statement to the Registrar within 2 months.

If the Registrar feels the counter statement addresses the opposition substantially, they may dismiss the opposition. Alternatively, if the registrar feels there is more to be weighed, they may call for a hearing with both parties appearing before them and presenting their cases. After the hearing, the Registrar will rule on the validity of either the application or the opposition. This ruling can be appealed before the Intellectual Property Appellate Board within 3 months of it being made public.

Documents Required for Trademark Registration

Initially, you have to provide us with the following details:

Applicant’s name

Business type

Business objectives

Brand/logo/slogan name

Registration address

The documents required of trademark registration are:

Signed Form-48

Identification proof of the signatory

Address proof of the signatory

Business proof (depends on the type of business)

Udyog Aadhar/MSME registration certificate (optional)

https://www.cagmc.com/trademark-registration/

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ITR FILLING IN INDIA

In India, for FY 2020-21 (i.e. Assessment Year 2021-22), filing of Income Tax Return (ITR) is due. In general, the Due Date of filing is July 31, 2021 for non-auditbusiness assesses, and Oct 31, 2021 for audited-business-assesses. Therefore, in most of the cases, generally, July 31 (i.e. presently July 31, 2021) is relevant due date (generally for mostly Individuals). Hence, it is high time and important for all individuals to get ready with all information & documents for the preparation of an Income Tax Return. Some people (for various reasons) do not pay much attention for ITR Filling in India before the due date. Here, it is important to understand that why the ITR must be filed before the due date. Here are certain useful & relevant points, which show the importance of ITR filing by the due date and must be considered for the purposes of filing of ITR before the Due Date: • Levy of Interest Penalty: The very first impact of not filing of ITR by due date is that a Penal Interest @ 1% gets attracted (u/s 234A of the Income Tax Act, 1961 "Act")). This penal interest is charged on Tax Liability Payable, and is charged in addition to normal interest of section 234B of the Act. Hence, non-filing of an ITR, by Due Date, will lead to double interest i.e. one, a normal interest u/s 234B and two, a penalty interest for non-filing of ITR by Due Date. Any person, once misses the due date, awakes very late (i.e. after receiving an IT Deptt Letter or Arising of a need for Loan/Visa/Otherwise) and till that date a big amount of interest gets accrued, which become a burden for assessee at that stage. • Levy of Penalty Fee: U/s 234F of the Act, if ITR is not filed by due date then a late penalty fee needs to be paid which varies from Rs 1,000 to 10,000. Also, there are prosecution provisions in case of non-filing of ITR. • Late ITR Late Refund: If ITR is filed with delay then the ITR will get processed also with delay and the same will lead to late processing of ITR in Refund cases. Hence, assesse will face delay in getting the refund back from the IT Deptt. Here, it is important to understand that most of the assesses (who file their ITR by due date) are used to file their ITR in last 10 days before Due Date. However, if the ITR is filed much before the due date (i.e. 1-2 months before) then the processing of those ITRs will be done first and refund processing shall also happen accordingly on FIFO basis. Hence, in addition to filing ITR by Due Date, filing well before Due Date is important for hereby mentioned reason. • Less Time For Filing of Income Tax Return: As per the latest provisions of the Act, ITR can not be filed after the end of relevant assessment year (even with late fee). Hence, If ITR filling in india is not done by the due date, there will be left very less time to file the ITR. And once the ITR is missed and not filed by the end of assessment year it will lead lots of inconveniences in the form of IT Deptt Notice, Refund loss etc. • Chances of Income Tax Notice as well Scrutiny Notice: In today scenario, through various sources IT Deptt is aware of assessees major financial transactions, property transactions, bank deposits, credit card transactions etc. Also, if any income is earned by assessee, the IT deptt is aware of those transactions through TDS records (i.e 26AS). In these kind of situations, if assesse does not file the ITR by due date and thereafter, the same may lead to some Income Tax Notice from the IT Department (through IT Deptt Compliance Cell or otherwise) and in some cases to Income Tax Scrutiny Notice as well. • Reminders From Income Tax Department: Now, the IT Deptt have full records of assesses. If an ITR is not filed by due date, IT Deptt starts sending communications via emails, sms etc. These communications trouble the assesse. Also, in IT Deptt records, assesse information gets place in defaulter/non-compliant assesse. Hence, for these reasons also, it is very important to comply the Tax Rules (specifically for filing ITR before Due Date). • Carry Forward of Losses Not Allowed: If assesse has incurred some losses during the year (business loss, loss on sale of shares/mutual funds etc) then as per the provisions of the Act same can be carried forward to next years to set off against future year profits. However, if the assesse files the ITR late (ie after due date) then assesse loses the right of carry forward of losses. Hence, in nutshell, for losses ITR, one should be very cautious to file ITR wrt filing of same by due date. Here, it is important to understand that in loss cases, assesse thinks that there is no tax payable, hence, ITR lapses for filing by Due Date, which become a bottleneck in carry forward of losses and the losses lapses. • Importance of Tax Return: ITR is a very important legal document and is very helpful before various authorities and at various places e.g. for VISA purposes, Loan purposes etc. Even in various proceedings in the Income Tax Department, ITR Filing in india(by Due Date) provides lots of strengths to assesses representations. • Prosecution: As per the new provisions of Income Tax Law, intentionally non-filing of ITR (by due date) can lead to initiating of prosecution provisions by the the Tax Authorities. • Foreign Assets: As per the latest Budget (passed by Loksabha & RajyaSabha) i.e. Finance Act 2019, it is proposed that all Resident Assessees, who have foreign assets or financial interest, are compulsorily required to file their ITR whether they have taxable income or not. Here, even in honest assesse cases, through filing of ITR the due needful can be taken care by them, which will avoid unnecessary hassles to them by the Investigation Deptt of Income Tax Office. • Black Money Act: Now, with the passage of Black Money Bill (in relation to foreign undisclosed assets and income) it is very pertinent for Resident Assessees, who have foreign sources of assets and/or income, to file an ITR and take needful timely decisions in relation to disclosure so that harshest penal provisions of this new Act can be minimized or avoided or taken care of. Here, it is important to understand that though as per the provisions of the Act, one has time of one year to file belated returns. For instance, for FY 2019-20, belated returns can be filed till March 31, 2021 (with late fee penalty etc). Though this date is extended upto May 31, 2021 due to covid. However, this should not be considered a tool to sit back and relax as the same may lead to various penal provisions & inconveniences. In the current era, where various new information technologies have been launched by the Tax Department, delay in ITR filing will automatically lead to triggering of various trouble-raising mechanism by the Department. Also, in the light of insertion of new laws (e.g. Black Money Act), ITR filing (By Due Date) is very very important. Also, it is found that once the ITR is not filed by Due Date, assesse even lapses the maximum time available for filing an ITR, and in that case non-filing of ITR leads to non-repairable losses to assesses. It is also very important to understand that ITR should not only be filed by Due Date but should be filed well before Due Date so that last hours inconveniences can be avoided and benefits of early filing are gained. Get your ITR filing in India by CA Goyal Mangal & CO.

https://www.cagmc.com/income-tax-returns-for-individuals/

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PARTNERSHIP FIRM REGISTRATION

Partnership FirmAn AgreementSharing Profit of BusinessRunning the Business Minimum ComplianceSimple To BeginComparatively Economical

The law relating to partnership firm registration in India is prescribed in the Indian Partnership Act of 1932. This Act lays down the rights and duties of the partners between themselves and other legal relations between partners and third persons, which are incidental to the formation of a partnership. Thus, the Act establishes the position of a partner as well as a partnership firm vis-à-vis third parties, in legal and contractual relations arising out of and in the course of the business of a partnership firm. In this article, we look at the various aspects of running a partnership firm in India in detail.

Partnership

A partnership is a relationship between individuals who have agreed to share the profits of a business carried on by all or any one of them acting for all as stated in Section 4 of the Indian Partnership Act. Therefore, a partnership consists of three essential elements.

A partnership must be a result of an agreement between two or more individuals.

The agreement must be built to share the profits obtained from the business.

The business must be run by all or any of them representing the rest.

All these conditions must coexist before a partnership can come into existence.

Essential Elements of a Partnership

Some key elements are required for the formation of a Partnership. They are listed below with a brief explanation.

A partnership is the result of an agreement between two or more persons. It should be noted that this sort of a deal can arise only from a contract and not from status. This is why a partnership is distinguishable from a Hindu Undivided Family carrying on family business. The reason is that this kind of an alliance is a creation only out of a mutual agreement. Thus, the nature of a partnership is voluntary and contractual.

An agreement from which a partnership relationship arise may be express. It may also be implied from the Partnership Act done by the partners and from a consistent course of conduct being followed, showing a mutual understanding between them. This agreement may be in oral or in writing.

When it comes to sharing profits of the business, two propositions are to be considered.

Firstly, there must be a business that exists. For this purpose, the term ‘business’ would generally mean every trade, occupation, and profession. The existence of a company is crucial. The motive of a business is the “acquisition of gains” that leads to the formation of a partnership. So, there can be no partnership where there is no intention to carry on a business and to share the profits obtained from the same. For example, co-owners who share the rent derived from a piece of land are not considered partners as a business does not exist. Similarly, no charitable institution or club may be called a partnership. However, a Joint Stock Company may be floated as a partnership for non-economic purposes.

Secondly, there must be an agreement concerning the sharing of profits. For example, A and B buy certain bales of cotton which they agree to sell on their joint account and to share the benefits equally. In such a situation, A and B are partners in respect to the business they have planned out. However, an agreement to share the losses is not an essential element that is considered. However, in the event of damages, unless agreed otherwise, these must be borne in a profit-sharing ratio.

The third requirement for a partnership is that the business must be carried on by all the partners or by one or more of the partners acting for all. This is the crucial principle of the partnership law. An act of one partner in the course of the business of the firm is, in fact, an act of all partners. A partner carrying on a business is the principal as well as the agent for all the other partners. Therefore, it should be noted that the real test of a partnership is a mutual agency rather than sharing of profits. If the element of interactive agency is absent, then there will be no partnership. Sharing of benefits is the only Prima Facie evidence which can be rebutted by stronger evidence. This, this prima facie evidence can be countered by proving that there is no mutual agency.

Dstinction between Partnership and Firm

Individuals who have entered into a partnership with one another are called Partners individually. The partners may be called collectively as the name under which the business is carried on is called the name of the Firm. A partnership is merely an abstract legal relationship between the partners. A firm is a concrete object signifying the collective entity for all the partners. Thus, a partnership is an invisible bind that holds the partner together, and a firm is the visible form of this partnership which is, therefore, bound together.

Eligibility Criteria for Partnership Registration in India

Following is the eligibility criteria for register a partnership in India.

There is a minimum of two partners

The partners may or may not share the responsibilities of the business.

Risk is shared in a partnership form

All the partners should agree to the terms mentioned in the partnership deed.

Benefits of a Partnership

For general partnerships, there is no need for an auditor to be appointed or, if the company is still in the process of partnership firm registration or is still unregistered, annual accounts filing with the registrar is not necessary either. Annual compliances are also lower when compared to an LLP.

A general partnership can be formed within 2-4 business days, with an unregistered deed of partnership. However, registering for the event offers its own set of benefits.

A general partnership is substantially less expensive to start than an LLP. It will still be cost effective in the long term because the compliance needs are minor.

Documents Required for Partnership Registration in India

Following are the documents required for partnership firm registration in India:

Application for partnership firm registration in the prescribed Form – I.

Duly filled Specimen of Affidavit.

Certified copy of the Partnership deed on appropriate non-judicial stamp paper.

Proof of ownership of the place of business or the rental/lease agreement thereof.

Affix court fee stamp & payment of prescribed partnership firm registration fee by demand draft.

Process for Partnership Registration in India

The partnership firm registration process varies from state to state. In some regions, you can get the partnership registration online. However, in most cases, the incorporation process is still offline. The reason behind this is the age of the Partnership registration act. It was established in 1932 and have not gone through any changes since then.

Thus, the process of partnership company registration that you must follow is:

First, partners are appointed for the process.

The first draft of the partnership deed is created.

Changes are made to the draft as per the requirement of the partners

Application is filed to the partnership registrar’s office you can submit the partnership deed registration online if your state allows it).

The registrar assesses the partnership deed and the application.

A partnership registration certificate is granted and the partnership deed is certified.

After you have procured the partnership firm registration certificate, your start your business operations right away. 

The process of partnership firm registration is not an easy one. Therefore, the experts of CA Goyal Mangal & Co. help you in any way necessary. Through our partnership registration facilities, you can start your business as a partnership firm in no time.

Our Assistance in Partnership Registration in India

We, at CA Goyal Mangal & Co., provide end-to-end solutions for Partnership firm registration in India. Our services include:

Collection of basic information.

Drafting the partnership deed.

Reviewing the application and making changes if needed

Submitting the final deed and filing the partnership registration application.

cagmc.com is a leading legal consultancy firm providing comprehensive services relating to partnership registration. Our expert team will provide you full-fledged assistance required for the seamless registration of a Partnership firm. 

https://www.cagmc.com/partnership-registration/

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PUBLIC LIMITED COMPANY REGISTRATION

What is Public Limited Company?Benefits of Registering a Public Limited Company in India

Before proceeding to public limited company registration let’s understand what does it exactly means.

As per Section 2 (71) of the Companies Act public company means a company which-

(a) is not a private company;

(b) has a minimum paid-up share capital * as may be prescribed:

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.

- Limited liability to shareholders

- A public Limited company can raise additional capital by issuing more shares or debentures.

- Greater borrowing power.

- A board of directors with experience/ expertise can be appointed.

- Shareholders can sell/transfer their shares freely.

Conditions for Registering a Public Company in India

Minimum Directors / Members

Minimum 7 Members and 3 Directors are required to Register a Public Limited Company.

 Maximum Number of Directors and Members

Maximum Number of Directors is 50 and Maximum number of Members is unlimited

 Resident Director

As per Section 149(3) of Companies Act 2013 at least one director should be resident of India satisfying the conditions of total stay prescribed by Government.

 Minimum Capital Requirement

Minimum Capital Requirement for a Public Limited Company is Rs. 5 Lakh.

 Name of Company

The suggested name must be unique and should not be related to any other existing Company.

 Registered office of Company

The Registered office should be Commercial space. No Objection Certificate of Landlord is necessary in case of Rented Office.

 Steps involved in Registering a Public Limited Company

1. Apply for Digital Signature Certificate

2. Apply for Director Identification Number (DIN)

3. Apply for Name availability online with MCA Website

4. Filing of Memorandum of Association and Articles of Association online

5. Apply for PAN and Tax Deduction Account Number (TAN)

6. Issue of Certificate of Incorporation by ROC with PAN and TAN

7. Open Bank Account in the name of the Company

 Statutory Requirement to Register a Public Ltd Company

- DIN or Directors Identification Number of all the designated directors is mandatory for public limited company registration.

- DSC or Digital Signature Certificate of the designated directors

- Memorandum of Association (MOA) and Article of Association (AOA)

Documents Required to Register a Public Limited Company

For Public Limited Company registration in India all Shareholders and Directors needs to produce identity proof and address proof. List of documents accepted by the Ministry of Corporate Affairs (MCA) are given below:

- Copy of PAN Card or Passport of directors (Foreign Nationals & NRIs)

- 2 Passport size photograph of directors of the company

- ID proof such as Aadhaar Card or Voter identity card of directors

- PAN card details of all the directors and shareholders

- Copy of address proof rent agreement or property papers

- Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.

- A NOC or No Objection Certificate from the landlord of the business place.

- In the case of personal property, a copy of sale deed or property deed

 For Foreign Nationals

It is mandatory for Foreign Nationals to submit notarized copy of the passport. The residence proof documents like a bank statement or electricity bill must be less than two months old.

 Proof of Registered Office

In India a Company must have a registered office to get company registration. In order to show that the registered office is working , a recent copy of the electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill, or the sales deed and a letter from the landlord with her/his consent to be used to register the particular address as the registered office.

Advantages of Public Company Registration

Limited Liability of the shareholders

In Public limited Company registration, the liability of the shareholder and Directors is limited to the extent of the shares they hold in the company. For example, if the company suffers from any financial contingencies because of primary business activity, then in such case personal assets of shareholders and Directors will not be snatched by the Banks, creditors, and government.

Raising the capital through Public Issue

In the case of Public Company Registration, the proposed company can raise funds through the Public.

Separate Legal Entity

Shareholders and Directors may come and go, but the existence of the company continues to exist. i.e. the absence or movement of any shareholder in the company will not affect the existence of the company.

Unlimited source of raising fund

The company has an unlimited source of raising fund through Public which results in pursuance of new projects and for capturing the new market

Easy Transferability

The shares of a public limited company are easily transferable. Shares of the company are listed on a stock exchange; the shareholders find it is easy to transfer the share in the company. In the case of Public Company Registration, shareholders are less bound to remain with the company, which results in making people more willing to invest.

Maintains the Transparency

Because of Public involvement, the company publishes its statutory details and reports to maintain greater transparency and also to provide accurate information of its current financial position.

Maintains the Brand Position

Being registered as a Public Company, it improves the brand position of the Company. Listing the shares of the company in the stock exchange enhances the brand position and reputation of the company.

Disadvantages of Public Company Registration

Lack of Flexibility

Flexibility always acts as strength to every organization, but in the case of the public company, there is no such advantage. Every public company is bind by the rules and regulations, which results in a lack of flexibility in its operations.

Lack of secrecy

To maintain the transparency and trust of the shareholders, the company provides full disclosure to the public due to which secrecy cannot be maintained. The Public is involved in decision making, the company cannot maintain the secrecy.

Suitability

A public limited company is only favourable to large scale a business which is a disadvantage to small scale industries.

High Costs

Public limited Company registration requires a huge cost. To start a public company huge investment, time and procedural things are required to be complied with. The profit of the company depends upon the investment you have done.

Takeaway

Every aspect has its pros and cons. The advantage of the PLC is visible to all; some disadvantages of the public company cannot be ignored. Public company registration offers shares to the public at large, which provides better business opportunities. The registration of public company offers additional opportunities which generate revenue through selling the new shares in the public.

https://www.cagmc.com/public-company/