Wednesday, 22 July 2020

Private Limited Company

Private Limited Company
Private Limited Company is the most popular corporate entity that is registered extensively in India. It is governed by the MCA (Ministry of Corporate Affairs) and regulated by the Companies Act, 2013 and the Companies Incorporation Rules, 2014.

We can help you with company registration across India at a very competitive price. The advantages of registering a private limited company are enlisted to the right.

Easy Transferability
As the ownership of a company is represented by shares, the ownership of a company can be transferred to any other legal entity or person in India or abroad easily - in part or whole. The directors can also be replaced to ensure business continuity.

Limited Liability
A private limited company provides limited liability protection to its shareholders. In case of any unforeseen liabilities, it would be limited to the company and not impact the shareholders.

Funding
A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds.

Separate Legal Entity
A private limited company is recognised as a separate entity legally with perpetual existence. It can have a PAN number, bank accounts, licenses, approvals, contracts, assets and liabilities in its unique name.

Steps to register
We can incorporate a company in less than ten days, subject to government processing times and availability of all documents.

The process for company registration begins with obtaining digital signatures. Your engagement manager will submit the application and generate a link to complete video eKYC verification. The applicant would have to take a short video and verify OTP to authenticate the application.

Next, the name approval form is submitted. The Government typically provides name approval within 48 hours. Then, legal documents are prepared which need to be signed by the directors and shareholders.

Once the documents are verified, your engagement manager will apply for incorporation with the MCA on the same day. Incorporation approval in about 48 - 72 hours of business days.

Documents required
Documents are of utmost importance in the process.In addition to the identity proof, the directors must submit residence proof that is less than three months old.

Companies registered in India must mandatorily maintain a registered office. In case of leased property, the copy of lease deed for the registered office premises along with a NOC from the landlord and EB bill/property tax receipt/water bill copy of the registered office property. In case of property owned by self, copy of the sale deed along with the EB bill/property tax receipt/water bill is required.

In case one of the shareholders or subscribers to the MOA and AOA is a corporate entity (Company, LLP, etc.,) then the certificate of incorporation must be attached along with the resolution passed by the entity to subscribe to the shares of the company under incorporation.

Document submission
Identify the 2 directors and submit their documents as given to the below.

Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
Proof of residence- Bank Statement / Electricity Bill / Phone Bill
Name Approval
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.

Digital Signature
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.

SPICe+ form application
On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.

Company Incorporation
Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.

Company current account
We have exclusive relationships with top Banks in India wherein we will open a zero-balance current account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India.

Register your company this month and get a free payment gateway.
Company Compliance
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of the directors.

We can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.

Some of the important compliances for companies registered in India are given to the right. Please note that additional forms will also be applicable as per government notification.

Other than these mandatory compliances, there are others that need to be done depending on the company’s timeline. We also assists in increasing authorised capital, changing registered office, change in directors and others.

1
Statutory Auditor appointment
30 days of Incorporation
The board of directors must appoint a practising Chartered Accountant within 30 days of incorporation.

2
Commencement of Business (Know more)
180 days of Incorporation
The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.

3
Income Tax Filing
30th September
Companies registered in India must file income tax return each year in Form ITR-6.

4
Annual Return
31st October
Companies registered in India must file MCA annual return each year in forms AOC-4 and MGT-7.

5
DIN KYC
30th April
The DIN KYC procedure must be completed each year for the directors of the company.

Limited Liability Partnership (LLP) Registration

Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over one lakhs registrations in India.

LLP is one of the easiest types of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds.

Difference between LLP & Partnership
Cost: The cost for registration of LLP is normally higher than the cost for registration of a partnership firm. LLP registration can be completed online through us at just Rs.7899. Partnership registration can be completed online through us at just Rs.5899.

Authority: LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Limited Liability Protection: The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner's misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.

Number of Partners: LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, a LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of a LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.

Difference between LLP & Company
Private limited company registration process and the LLP registration process are very similar with some differences in the documents and forms filed for incorporation.

Cost: The cost for the incorporation of a private limited company or an LLP is the same.

Features: Both LLP and Private Limited Company offer many of the same features. LLP and Private Limited Company are both separate legal entities and have assets and liabilities that are separate from that of the promoters. LLP and Private Limited Company are both transferable, though a Private Limited Company offers more flexibility when it comes to transferring or sharing of ownership. LLP and Private Limited Company both have perennial life, unless and otherwise closed by the promoters or competent authority.

Fundraising: A private limited company can raise funds from Angel Investors, Private Equity Funds, Venture Capitalists, banks and NBFCs. An LLP can raise funds from Partners, Banks and NBFCs.

Non-Resident Indian (NRI) & Foreign Ownership of LLP
Post changes to FDI regulations on 10th, November 2015, 100% FDI in LLP is permitted under the automatic route. In most sectors, 100% FDI in LLP is allowed through the automatic route, and there are no FDI-linked performance conditions. In addition, LLPs will also be permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route. Therefore, FDI in LLP is now permitted, and NRIs or Foreign Nationals can start or invest in an LLP.

Documents Required for LLP Incorporation
The following are the documents required for registration of LLP in India:

For the Partners
PAN Card or Passport for Foreigners.
Drivers license or Aadhar card, residence card or election identity card or any other identity proof issued by the Government.
Less than 3 months old bank statement or telephone bill.
Registered Office Proof
The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
LLP Registration Process
The average time taken to complete an LLP registration is about 15 - 20 working days, subject to government processing time and client document submission. At the start of the engagement, your Engagement Manager will reach out to you for the collection of the necessary information or documents for registration of LLP. The data can be submitted online through our mobile app or website.

Once the information is received, it is verified by the Engagement Manager, the process for obtaining Digital Signatures for the Partners of the LLP would be initiated. On submission of the digital signature application, the applicant would have to complete OTP verification and a video KYC check. In parallel to the digital signature application process, we also file a request with the MCA for reserving the name of the LLP - you had selected.

On obtaining the name approval and the digital signatures, we would draft all the incorporation documents for the registration of the LLP and sent it to the Partners for signature. All of the Partners must sign the document and upload a scanned copy of the signed document on our platform.

The signed incorporation documents are submitted along with the application for the incorporation of LLP to the MCA. The approval from MCA can take anywhere between 2 - 5 working days. Once the approval is obtained, the LLP would be incorporated, and we begin the process of helping you obtain PAN for the LLP and opening of bank account in the name of the LLP. In parallel, we also draft the LLP Partnership Deed. All the partners of the LLP must sign the LLP Partnership Deed on stamp paper, and the signed copy must be uploaded to the our platform within 25 days of incorporation. The signed LLP partnership deed is then verified by the Engagement Manager and uploaded on the MCA portal within 30 days of incorporation to complete the LLP registration process.

Post-Incorporation LLP Compliances
We can help you maintain the basic accounting and compliance for your LLP - at a very affordable price point. Our LLP accounting and compliance packages start from Rs.7899 per year. The following are compliances that a LLP must complete each year.

Income Tax Return: LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner.

MCA Annual Return: LLP Form 11 is due on or before 30th of May each year. Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners.
In addition to LLP Form 11, Form 8 must be filed within 30 days from the end of 6 months of the financial year along with some prescribed fee. Hence, LLP Form 8 would be due on or before 30th October of each financial year.

In addition to the above, GST registration, GST return filing and TDS return filing would be required for the LLP - based on the sales turnover and various other criterias.

We are the market leader in LLP registration services in India. In addition to LLP registration, We also offers a variety of business registration services like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration and Indian Subsidiary registration.

One Person Company (OPC) Registration

One Person Company (OPC) Registration
The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in an OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Private Limited Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the Company - who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.

OPC in India
The concept of One Person Company in India was introduced by Dr. Jamshed J. Irani in his Report on Company Law dated 31st May, 2oo5 . As per the report, Dr. Irani recommended that with the increasing use of information technology and emergence of a strong service sector in India, it was time for the Government to empower entrepreneurs who on their own are capable of developing ideas and participating in the marketplace. He suggested that entrepreneurs who on their own are capable of starting a venture should not be made to do it through an association of persons, and should be able to create a single person economic entity in the form of ‘One Person Company’. Further, it was also suggested that such an entity may be provided with a simpler regime through exemptions so that the single entrepreneur is not compelled to fritter away his time, energy and resources on procedural matters.

This led to the introduction of “One Person Company” in the Companies Bill 2013, which got its assent in the Lok Sabha on 18 December 2012 and in the Rajya Sabha on 8 August 2013. After obtaining the assent of the President of India on 29 August 2013, it has become the Companies Act, 2013.

Benefits of One Person Company
Till the introduction of One Person Company in India, the Limited Liability and Continuous Existence feature was only available to an association of persons such as a Private Limited Company or Limited Liability Partnership or a Limited Company. With the introduction of One Person Company, the limited liability and continuous existence feature is now also available for One Person Company, which is an entity with just one member. As One Person Company has just one member, it is necessitated by the law for the single member of the Company to designate another person in the Memorandum of Association, who on the event of subscriber’s death or incapacity shall become the person to contract. This mechanism provides an adequate safeguard to ensure continuous existence of the entity even in case of incapacitation of the single member.

All companies in India are required to hold an annual general meeting each year, in addition to any other meetings and not more than fifteen months should elapse between the dates of subsequent annual general meetings. One Person Company is exempt from holding an annual general meeting or extraordinary general meetings. The resolution signed by the single Director and entered into the minutes book is sufficient, in lieu of a General / Extraordinary General Meeting.

Every company in India is required to prepare and file financial statements that includes balance sheet, profit and loss account, cash flow statement, statement of changes in equity and explanatory notes. In case of One Person Company, cash flow statement is not required.

OPC Registration Process
Before exploring the concept of a one person company, let us have a brief understanding of the various types of companies that can be formed. A company can be established for a lawful purpose by the following number of persons:

Seven or more persons, in case of a public limited company.
Two or more persons, in case of a private limited company.
One person, in case of a one-person company.
OPC Requirements
Unlike a private limited company, a one person company has certain restrictions associated with its incorporation. Hence, before starting an OPC registration, its essential to understand the constraints and ensure the promoter is eligible as per the Companies Act to register a OPC.

Only a natural person who is Indian Citizen and resident in India can incorporate OPC.
Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
Legal entities like Company or LLP cannot incorporate a OPC.
The minimum authorised capital is Rs 1,00,000.
A nominee must be appointed by the promoter during incorporation.
Businesses involved in financial activities cannot be incorporated as a OPC.
OPC must be converted to a private limited company when paid-up share capital exceeds Rs.50 lakhs or turnover crosses Rs.2 crores.
Thus, a one-person company can be formed by an Indian citizen who has his/her presence in India for at least 182 days during the immediately preceding calendar year. A person can incorporate not more than one OPC. Finally, an OPC is prohibited from having a minor as its member.

Nominee in One Person Company
The rules for incorporation of one person company requires that the sole member of a One Person Company should include the name of a nominee in the Companies MOA, who will undertake the entity after the expiry or incapacity of the former. Moreover, the document must contain the written consent of the nominee, which must also be filed with the Registrar during incorporation along with the MOA and AOA.

Withdrawal of Consent
The nominee is entitled to withdraw his/her consent, in which case the sole member is required to nominate another member as a legal heir within 15 days of the notice of withdrawal. The nomination of new personnel must be intimated to the Company through a written consent in Form INC-3. The Company, in turn, is required to file the notice of withdrawal of consent along with the intimation of the new nominee with the Registrar in Form INC 4.

Change of Nominee
The sole member of a 'One Person Company' is empowered to change the nominee of the Company for any reason whatsoever, by providing notice in writing to the Company. Again, the new nominee must consent to the nomination in Form INC 3, and the Company must file the notice of change and consent of the nominee with the Registrar along with the applicable fee, within 30 days of receiving the intimation of change.

Nominee Appointment
If a nominee becomes in-charge of the one person company due to the cessation of the original member's term owing to the death or incapacity of the latter, the new member must appoint a nominee as a replacement.

Penalty
If a One Person Company or an officer of such Company is not compliant with the specified regulations, the entity or the officer will incur penalties which could be as high as Rs 10,000. Further, the penalty will be increased by a fine of Rs 1,000 for each day of default.

Incorporation Process
The process for incorporation of a One Person Company can be divided into four steps as under:

Obtaining Digital Signature
Obtaining Name Approval
Incorporation Filing
Commencement of Business
Obtaining Digital Signature
Digital signature certificate must be obtained for the sole promoter and the nominee for processing the incorporation. Application for DSC would require passport size photos of the applicant, identity proof and address proof.

Name Availability
In parallel to the Digital Signature applicaiton, the application for name reservation can be submitted to the MCA. Name approval applications are processed by the MCA in 24-72 hours. The name suggested must conform to the naming standards, and the name of the OPC must end or include the words (OPC).

Check company name availability.

Incorporation
After obtaining name approval, incorporation application can be filed to the MCA with signed Memorandum of Association (MOA) and Articles of Association (AOA). Further, the identity proof, address proof and residence proof of the member and nominee would be required. In addition to the MOA, AOA, identity proof, address proof, other incorporation documents like affidavits and declaration of the sole promoter must be submitted. Further, the consent of the nominee director must also be attached in Form INC-3.

On filing for incorporation, approval is granted by the Registrar of Companies (ROC). In case there are any issues with the documents submitted, the application for incorporation can be resubmitted.

Commencement of Business
Once the incorporation certificate is obtained, the OPC would initiate the process for bank account opening. IndiaFilings can help you open a bank current account. Once the bank account is opened, the promoter must deposit the amount mentioned in the MOA of the Company.

Once, the equity capital is infused into the Bank's current account; the Company can file for the commencement of business with the MCA. Commence of Business certificate must be obtained with 180 days of incorporation to avoid a penalty.

Finally, In case notice of the situation related to registered office was not filed during incorporation, it must be filed after incorporation within 30 days. Documents required for filing INC-22 are:

Lease deed or Rent agreement together with rent receipts.
Copies of utility bills as described above that are not older than 2 months
A proof that the Company is allowed to use the address as the registered office of the Company if the same is owned by any other entity or Person and is not taken on lease by Company

Partnership Firm Registration

Partnership Firm Registration
A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises wherein two or more persons decides to contribute to a business and share the profits or losses. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance. Also, the concept of LLP was introduced only in 2010, whereas the Partnership Act, 1932 has been in existence before the independence of India. Hence, partnership firms are the most prevalent type of business entity wherein a group of people are involved.

Types of Partnership
There are two types of Partnership, registered Partnership and unregistered Partnership. In terms of the Indian Partnership Act, 1932, (Act), the only criterion to commence business as a partnership is the finalisation and execution of a Partnership Deed between the Partners. The Act does not require the Partnership Deed/Partnership Firm to be registered and in other words, does not require the Partnership Firm to be a registered Firm. Therefore various partnership businesses exist as an unregistered firm.

There are no penalties for non-registration of a partnership firm, and a partnership firm can even be registered after formation. However, unregistered partnership firms have certain rights denied in Section 69 of the Partnership Act, which deals with the effects of non-registration of a partnership firm. Some of the disadvantages of an unregistered firm are:

A partner of an unregistered firm cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act.
No suit to enforce a right arising from an agreement can be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered.
An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party.
Therefore, any partnership should be registered sooner or later.

Difference between LLP & Partnership
Cost: The cost for registration of LLP is normally higher than the cost for registration of a partnership firm. LLP registration can be completed online through us at just Rs.5899. Partnership registration can be completed online through us at just Rs.5899.

Authority: LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.

Limited Liability Protection: The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. An LLP also provides limited liability protection for the owners from the debts of the LLP. However, unlike private limited company shareholder, the partners of an LLP have the right to manage the business directly.

Number of Partners: LLPs and Partnership Firms must have a minimum of two partners to be registered. Post incorporation, an LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners at any time reduces below the mandatory minimum of 2 due to death, incapacitation or resignation of a Partner, the partnership firm would stand dissolved. On the other hand, in case of an LLP, if the number of Partners reduces below 2, the sole Partner can still find a new Partner to fill the position without dissolution of the LLP.

Registration of Partnership Firm
A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued.

Documents Required for Registration of Partnership Firm
The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, identity proof/address proof of Partners, certified a true copy of the Partnership deed entered into and proof of the principal place of business.

As identity and address proof of the Partners, any of the following two documents can be submitted:

PAN Card
Passport
Drivers License
Aadhar Card
Voters ID
Proof of the principal place of business can be established by submitting the following documents:

Sale deed in case one of the Partner owns the place of business
Rental agreement copy if the premises are rented
Copy of latest electricity bill or water bill or property tax receipt
Advantages of a Partnership Firm
One of the main advantages of a Partnership Firm is that there are very minimal requirements in terms of compliance. For instance, a Company or LLP requires the annual filing of its financial statements with the Registrar of Companies. Such documents filed with the MCA are also made public documents. On the other hand, registered/unregistered Partnership Firms are not required to file any annual returns, and the financial statements of a partnership firm would NOT be made publicly available. Also, the accounts of a registered / unregistered partnership firm are not required to be audited. Whereas, the accounts of a Limited Liability Partnership (LLP) are required to be audited by a practising Chartered Accountant when the turnover exceeds Rs.40 lakhs per annum or when capital contribution exceeds Rs. 25 lakhs.

Disadvantages of a Partnership Firm
Partnership firm does not provide its Partners with limited liability protection and does not have perpetual existence. Also, the interest of a Partner in a Partnership firm is not easily transferrable, and the ownership structure does not allow for investment from Angel Investors, Venture Capitalists or Private Equity Firms. Banks / Financial Institutions also prefer to lend to Companies than Partnership Firms as Companies are separate entities and the regulatory requirement for financial reporting of Companies - makes a company more transparent and structured.

Partnership Firm Taxation
Partnership firms may be assessed either as a partnership firm or as an association of persons(AOP). Interest paid to partners, salary, bonus, commission, or remuneration to a partner will be allowed as a deduction paid to a working partner who is an individual. However, when the Partnership Firm is assessed as an AOP, the above deductions cannot be claimed. Therefore, for a partnership firm, it is more advantageous to be assessed as a partnership firm than as an AOP. For a partnership to be assessed as a firm, the partnership should be evidenced by a written partnership deed. Income tax return of a partnership firm is filed in Form ITR-5.

Partnership Firm Registration Process,
We can help you register a partnership firm anywhere in India in less than seven working days. At the beginning of the engagement, an Advisor from our firm will brief you about the process and provide you with a list of documents required for registration of partnership firm. You can submit the information and documents required through our mobile app or website. Once, the documents and information are verified, a partnership deed will be drafted and sent to the Partners. All the Partners must sign the document on stamp paper and upload a copy on the platform. Once, the signed partnership deed is available; it is registered with the concerned Registrar of Firms and Certificate of Registration of Partnership Firm is provided. In addition to delivering the Certificate of Registration of Partnership Firm, we can also help you open a Bank Current Account in the name of the partnership firm.

What is a proprietorship firm?

What is a proprietorship?
A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship is the most common type of business in India and it is used by most micro and small businesses operating in the unorganised sectors.

Proprietorships are simple to start and have minimal regulatory compliance requirements for operating. This entity is ideal for entrepreneurs who are getting into business for the first time and for small businesses with few clients.

Who is a proprietor?
The owner of a sole proprietorship business in India is called a proprietor. It cannot be a corporate or legal entity. The proprietor and the proprietorship are considered to be the same entity legally.

The PAN and other documents of the proprietor are the basis for obtaining all other business registrations and licenses. In case of any issues of liability in the business, the proprietor is held personally liable for it.

Advantages
Ease of setup- The entrepreneur can start operations and receive payments from clients as no registrations are required to start a proprietorship.
Ease of compliance- The other advantage of a Proprietorship is that it requires no additional compliance in most cases. The PAN of the proprietor and proprietorship are one and the same. Hence in most cases, only income tax return in Form ITR-3 must be filed every year.
Ease of dissolution- The proprietor does not have to particularly wind up the company incase he wants to cease operations. This saves a lot of time and effort.
Disadvantages
Liability protection: A sole proprietorship does not provide the proprietor with limited liability protection. So the proprietor would be held personally liable in case of any loss or liability.
Transferability: Any license or registration obtained in the name of the proprietorship cannot be transferred to any other person or entity.
Lifespan: The existence of the sole proprietorship is tied to the proprietor hence it would cease to exist with the proprietor.
Fundraising: A proprietorship cannot raise equity funds from angel investors, venture capital firms or PE funds. Banks also tend to restrictions on the amount of credit they can lend.
Due to the disadvantages mentioned above, this registration will be suitable only for small businesses and the unorganised sector with a limited period of existence.

Disadvantages
Key registrations
Each proprietorship differs in terms of the functions, clientele and the mode of operations. Hence, a couple of the registrations mentioned below will be applicable.

1
MSME registration
MSME or Udyog Aadhaar registration can be obtained in the name of the business to establish that the sole proprietorship is registered with the Ministry of Micro, Small and Medium Enterprises.

2
TAN registration
TAN registration must be obtained for the proprietor from the income tax department if the proprietor is making salary payments wherein TDS deduction is required.

3
GST registration
GST registration must be obtained if the proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders - annual revenue of more than Rs.40 lakhs.

4
Import Export code
Import Export Code or IE code can be obtained from the DGFT in the name of the business - in case of a proprietorship business undertaking export and/or import of goods into India.

5
FSSAI registration
In case the proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the proprietor.

6
Current account
A current account can be opened for a sole proprietorship through us from various banks in India. We offer exclusive partnerships through which zero-balance current accounts can be opened. It is recommended that GST registration be obtained for the same.

Tuesday, 21 July 2020

Draft Residential Property Lease Agreement Instantly

Description
Residential lease agreement drafted by an expert Advocate. A real estate advocate will work with you to write a residential lease agreement that follows the local and state laws.
This is right for you if you need a custom residential lease agreement for your house.
What's Included
a) Introduction call. A 30-minute phone call to know your advocate and talk about how you will work together.

b) Checklist of list of documents required will be shared.

c) Verification of your documents.

d) Drafting of the lease agreement and handling the required paperwork.

e) Registration of the Lease Agreement at the Registrar/Sub-registrar’s office.

What's Not Included
a) Court fees/Stamp Duty.
You May Also Want To Know
a) What is a lease agreement?
A lease agreement is simply a contract between a landlord and a tenant that states what the tenant will pay monthly for rent and for how long. Lease agreements, like many contracts, tend to intimidate some people because much of the language in the contract can be confusing. However, if you have a basic understanding of what is included in a lease agreement, it can help you avoid unnecessary disagreements or expenditures during or after your lease is over.

b) What does a lease agreement outline?
The lease agreement outlines and details the obligations and responsibilities of the landlord (lessor) and the tenant (lessee). It explains what the landlord and tenant have agreed upon in regards to length of the lease, how much the monthly rent will be, and who will be responsible for upkeep of the property. It is important for tenants to understand that a lease agreement can be altered prior to being signed. If there is something that you do not understand or agree to, or if there is a provision that needs to be altered, discuss it with the landlord prior to signing the lease.

c) Is a lease agreement legally binding?
Once your lease agreement is signed, it governs what the landlord and the tenant can and cannot do during the term of the lease. The lease agreement acts as a legal, binding contract between the landlord and tenant and will be used as such by the court if any legal proceedings arise between the two parties. If there is more than one tenant responsible for the lease, a landlord can enforce the lease against all the tenants should the need arise, so it is important for everyone involved to understand what their responsibilities are under the terms of the lease.

Draft Gift Deed With The Help Of Expert Lawyers

Description
A gift deed is a legal document that records and details transfer of movable or immovable property from the donor (giver) to the donee (receiver) without any exchange of money. The “gift” must be a well defined movable or immovable property and be transferable.
What's Included
a) Introduction call. A 15-minute phone call to know your advocate and talk about how you'll work together

b) Checklist of list of documents required will be shared.

c) Verification of your documents.

d) Drafting of the Gift Deed and Handling the required paperwork.
 
What's Not Included
a) Registration of Gift Deed.
 
You May Also Want To Know
a) What is a Gift Deed?
A Gift Deed is a legal document elucidating the voluntary transfer of the property to someone else without any monetary exchange. The handover can be made either to a person or an institution; however, it should be accepted by the recipient during the lifetime of the donor and should also be registered.

b) What all details are included in Gift Deed?
A Gift Deed includes following details:
a) Date and place where the deed is documented.
b) Donor’s details (Name, Date of Birth, Father’s Name and Address).
c) Details of the Donee (Name, Father’s name, Date of Birth and Relationship with the Donor).
d) Relationship of Donor and Donee.
e) Elucidation of the property gifted.
f) Signatures of both- Donor and Donee.
g) Details of two witnesses present at the time of property transfer.
h) Signature of the witnesses.

c) What is the procedure for cancellation of a Gift Deed?
A Gift Deed can be revoked if it complies with following conditions:
a) There is mutual consensus between the Donor and the Donee that the deed should be revoked.
b) The property transfer event was just based on the will of the Donor and the Donee was unwilling to accept the asset.
c) The condition is not illicit, repugnant and immoral to the estate created under the Gift.

Get Property Registration Done Without Any Hassles

Description
Property registration refers to the recording of the property document details in the Registrar’s office and preserving the original documents with the Registering officer. To ensure conservation of the evidence, assurance of title, publicity of documents and prevention of fraud, some documents are obligatorily registered. It is very important that each document has to be presented at the registrar office by the concerned person itself or the authorized person followed by a witness and the implied registration fee.
What's Included
a) Introduction call. A 15-minute phone call to know your advocate and talk about how you will work together.

b) Checklist of list of documents required will be shared.

c) Verification of your documents.

d) Drafting and Handling the required paperwork.

e) Registration of property at the Registrar\Sub-registrar’s office.

What's Not Included
a) Court Fees and Stamp duty as applicable shall be payable extra.

b) Any additional work done by the advocate after obtaining registration of property.

c) For most people, this service covers their complete registration. But if something unexpected happens and your case requires additional work you can talk to the advocate about hiring them for that extra work.

Verify Property Documents With The Help Of Expert Lawyers

Description
People invest their entire lifetime savings in buying property hence it is important to get property documents verified and checked before purchasing the property and secure themselves from risk of fraud, defective title and fraudulent documents. Our team of experienced advocate's all across 400+ cities in India provides first rate professional legal services and guidance for your Property Verification Process.
What's Included
a) Generating Title Search Report of the last 13 years & Certified Copy from the Registrar / sub registrar office.

b) Verification of previous ownership documents for checking the title and rights of the seller.

c) Verification of Sales Deed for checking the title and rights of the seller.

d) Verification of Agreement to sell for checking the title and rights of the seller.

e) Verification of Conveyance deed and Will for checking the title and rights of the seller.

f) Verification of Perpetual lease deed for checking the title and rights of the seller.

g) Verify and check that the documents have been registered and appropriate stamp duty has been paid.

What's Not Included
a) Title search report for more than 13 years.

b) Final list of deliverables may vary depending on available documents and property type.

c) Verification of certain type of properties like large land parcels, agricultural land, large commercial buildings and complexes, etc.
You may Also Want To Know
a) In what all situations, do property documents need to be verified?
Documents need to be verified when you are entering into to a transaction involving property such as:
a) when you as a purchaser are taking a home loan
b) when you are mortgaging your property for obtaining loan against property
c) when you are taking a property on a long term lease for commercial purposes etc.

b) Which all documents should be verified?
The following documents should be verified:
a) Conveyance Deed
b) Sale Deed
c) Agreement To Sell
d) GPA/Power Of Attorney
e) Will
f) Relinquishment Deed
g) Partition Deed
h) Freehold/Mutation Details etc.

c) Is it worth to get documents verified/checked?
For a property valued at lakhs and crores, spending a few thousand on verification is a wise decision as it will ensure you are investing such a huge amount in the right property. Compared to the commissions charged by real estate brokers, the expenses involved in title verification is almost negligible.

Apply For Legal Heir/Succession Certificate

Description
Succession Certificate is a certificate granted by the Courts in India to the legal heirs of a person dying intestate leaving debts and securities. Succession certificate entitles the holder to make payment of debt or transfer securities to the holder of certificate without having to ascertain the legal heir entitled to it. Apply for a Legal heir / Succession certificate with the help of a local experienced advocate. This is important for you if you want to establish yourself as the legal heir of a deceased person.
What's Included
a) Introduction call. A 15-minute phone call to know your advocate and talk about how you will work together.

b) Checklist of list of documents required will be shared.

c) Verification of your documents.

d) Applying for Legal Heir / Succession certificate and handling the required paperwork.

What's Not Included
a) Court Fees and Stamp Duty as applicable shall be payable extra.

b) Any additional work by the advocate after obtaining the legal heir certificate.

c) Appearances beyond 3 court appearances, if needed.
You May Also Want To Know
a) What is a Succession Certificate?
Succession Certificate is a certificate granted by the Courts in India to the legal heirs of a person dying intestate leaving debts and securities.

b) Why is it important to obtain a Succession Certificate?
Succession certificate entitles the holder to make payment of debt or transfer securities to the holder of certificate without having to ascertain the legal heir entitled to it. It provides indemnity to all persons owing such debts or liable on such securities with regards to all payments made to or dealings had in good faith with a person to whom a certificate as granted. Hence, many organisations and person request for succession certificate before settling the debts or securities of the deceased in favour of the person claiming such debts or securities.

c) What is the procedure for obtaining the succession certificate?
To obtain succession certificate, a petition has to be filed before the District Judge within whose jurisdiction the deceased person ordinarily resided at the time of his or her death or, if at that time he or she had no fixed place of residence, the District Judge within whose jurisdiction any part of the property of the deceased may be found.

d) What is the time period involved in completing the entire process?
It takes roughly 5-6 months in obtaining the Succession Certificate.

e) What is the validity of a Succession Certificate?
A succession certificate has validity throughout India. If a certificate is granted in a foreign country by an Indian representation accredited to that State, it should be stamped in accordance with the Court Fees Act 1870 to have the same effect in India as a certificate granted in India.

Draft Will With The Help Of Expert Lawyers

Description
A will drafted by a local, experienced advocate. An expert advocate will work with you to write a will that expresses how you want your property and assets handled after your death.
This is right for you if you need a will that specifically states what the courts should do with your property and assets after your death.
What's Included
a) Introduction call. A 30-minute phone call to know your advocate and talk about how you will work together.

b) Full support. An attorney will talk to you about your unique needs and create a personalized will for your situation.

What's Not Included
a) Any additional work done by the advocate after the completion of the agreement.
You May Also Want To Know
a) What is a Will? 
Will is a legal declaration of the intention of a testator with respect to his property, which he desires to be carried into effect after his death. It is testamentary instrument by which a person makes disposition of his property to take effect after his death, and which, in its own nature, is ambulatory and revocable during his life.

b) What are the essential characteristics of a valid Will?
a) It must be intended to come into effect after the death of the testator; and
b) It must be revocable by the testator at any time. Although Wills are usually made for disposing property, they can also be made for appointing executors, for creating trusts and for appointing testamentary guardians of minor children.

60 Minute Marriage Counselling Session On Phone

Description
A 60 minute phone call with an expert Marriage\Relationship Counselor to discuss your marriage\relationship related issues. Counselling aims to resolve issues and improve communication in a relationship. Couples’ counselling works with both people in the relationship, however sessions can start with one individual, working towards the involvement of the other partner.
What's Included
a) 60 minute phone call with the counselor where you can discuss all your issues and seek guidance.

What's Not Included
a) Counselling session via meeting

Draft Legal Notice or Reply To A Legal Notice For Divorce

Description
If you are facing any sort of matrimonial dispute, you can legally send a notice to your spouse before reaching to the courts as the last resort. Most matrimonial disputes get settled once they receive a legal notice. We helps you send a legal notice drafted by an experienced advocate, which increases the chances of getting your matrimonial dispute resolved.
What's Included
a) Introduction call. A 15-minute phone call to know your advocate and talk about specific facts of your situation.

b) Draft of Legal Notice. The advocate will share the draft of the legal notice for your approval.

c) Dispatch of Legal Notice. Once the notice is finalized after your approval the advocate will dispatch the legal notice through registered post and share the tracking number.

What's Not Included
a) Filing of any case post sending out the legal notice is not included in this service.

b) Preparation of any settlement deed post sending out the legal notice is not included in this service.

Get Court Marriage Registration Done Without Hassles

Description
Court marriages are solemnized under the Special Marriage Act, 1954. Court marriage can be performed between an Indian male and a female irrespective of their caste, religion or creed. It can also be solemnized between an Indian and a foreigner. The procedure of the Court marriages does away with the rituals and ceremonies of the traditional marriages. The parties can directly apply to the Marriage Registrar for performance & registration of marriage and grant of marriage certificate.
What's Included
a) Introduction call. A 30-minute phone call to know your advocate and talk about how you will work together.

b) Checklist of list of documents required will be shared.

c) Filing for application for Court Marriage.

d) Court appearance and Solemenisation of Marriage on the appointed day.

What's Not Included
a) Court Fees and Stamp duty as applicable shall be payable extra.
You May Also Want To Know
a) Who must give notice of intended marriage?
A notice in writing is to be given by parties to the marriage.

b) To whom should the notice be given?
The notice is given to the marriage officer of the district in which at least one party must have stayed for 30 days immediately before the date when the notice is served. For example, if the male and female are in Delhi, but wish to marry in Mumbai. At least one of them must travel to Mumbai 30 days before the intended date and live there until the date of the marriage.

c) Who publishes the notice?
The marriage officer of the district to whom the notice has been served publishes the notice.

d) Where is the notice published?
At a conspicuous place in the office and one copy in the office of the district where the other party permanently resides.

e) To whom objection to marriage is raised?
To the marriage officer of the concerned district.

f) What are the consequences if objection(s) are accepted?
The marriage officer must, within 30 days from the date of objection, make inquiries and if the objections are found to be true, the marriage cannot be solemnised.

g) What is the remedy in case objection(s) have been accepted?
An appeal can be filed by either party.

h) To whom is the appeal filed?
The district court within the local limits under the jurisdiction of the marriage officer.

i) When can an appeal be filed?
Any time within 30 days from the date of refusal to solemnise marriage.

j) Who has to sign the declaration?
Both parties and witnesses (in the presence of the marriage officer). It will also be countersigned by the marriage officer.

Get Marriage Registration Done Without Any Hassles

Description
Registering Marriage was never so easy. We made it simple. You have to just give your proper documents and we will process the rest for you and all at a very nominal fee.
What's Included
a) Introduction call. A 15-minute phone call to know your advocate and talk about how you will work together.
b) Checklist of list of documents required will be shared.
c) Verification of your documents.
d) Online application and submission of your Registration form.
e) Physical appearance at Registrar’s office and obtaining your marriage registration certificate.

What's Not Included
a) Court fees and Stamp duty shall be payable extra.
You May Also Want To Know
a) What is Marriage Registration Certificate ?
Marriage Registration Certificate is issued to both Husband and Wife whose marriage has already been solemnised. The Registration is done under Hindu Marriage Act, 1955 or under the Special Marriage Act, 1954. The Hindu Marriage Act is applicable in cases where both husband and wife are Hindus, Buddhists, Jains or Sikhs or where they have converted into any of these religions.

Where either of the husband or wife or both are not Hindus, Buddhists, Jains or Sikhs the marriage is registered under the Special Marriage Act, 1954.

b) What are the documents required for registration ?
a) Photocopies of National Identity of the couple, passport or residence card.

b) Certificate of residence.

c) Certificate of nationality.

d) Certificate of singleness and marital status affidavit.

e) Updated birth certificate issued by the Civil Registry of the place of birth.

f) Signature of two witnesses.

c) What is the Response time ?
Marriage Registration certificate is issued within 7 days.

File For Mutual Consent Divorce

The easiest and the simplest way to end your marriage is through mutual divorce. In a mutual divorce parties agree mutually to separate and dissolve the marriage. To file for divorce through mutual divorce there are two things on which the parties are required to reach consensus, i.e., alimony and child custody. Owing to this mutual divorce saves a significant time and money as opposed to a contested divorce. It is also easier to file for mutual divorce.

Procedure for mutual divorce

FILE A JOINT PETITION
The parties are required to file joint statement by both the parties. This statement has the agreement to split the assets, custody of children, etc.

APPEAR FOR SECOND SESSION
After 6 months of the first motion or by the end of the reconciliation period, if both parties still don't agree to come together, then the parties may appear for the second motion for the final hearing. In a recent judgement, the Supreme Court has categorically stated that the six months period is not mandatory and can be waived off depending upon the discretion of the court.

DIVORCE IS GRANTED?
In the final step divorce decree is granted by the court after hearing both the parties.

The parties need to agree on the following before filing for mutual divorce- 

CUSTODY OF CHILD
The parties must agree on who will have custody of child. Parties can either opt for joint custody or sole custody. In case of joint custody both the parents have the legal custody of the child but only one of them have the physical custody whereas in case of the sole custody only one of the parent has both the sole and physical custody of the child.     

ALIMONY
The second most critical part of mutual divorce is to agree on the alimony amount. Alimony is the payment given to one spouse by the other as maintenance. The parties need to agree on this before filing the divorce petition.  

RETURNS OF ITEMS
Whatever is received as streedhan should be returned as per what is mutually decided by the parties.   

LITIGATION EXPENSES
The couple should also decide on how would they like to divide their litigation expenses. 
 
Where to file a mutual divorce case?

As per Section 19 of the Hindu Marriage Act, 1955 you file the divorce petition before a civil court of a district-
 
1. Where  the couple seeking divorce last resided together
2. Where the marriage took place
3. Where the wife is residing at present
4. Where the respondent(opposite party) is residing at the time of presentation of the petition.

The district court here implies the family courts that are established under the Family Courts Act, 1984.
 
Documents required for mutual divorce

What's Included
Advise and consultation from lawyer on a 30-minute phone call
Consultation and counselling at advocates's office.
Mutual Consent Divorce petition drafting.
1st Motion filing of Mutual Consent Divorce petition.
2nd Motion filing of Mutual Consent Divorce petition.
Obtaining Divorce Decree from the court.

File for a mutual consent Divorce in your city through an experienced lawyer at an all inclusive fixed fee. Contact us to know the fee in your city.
 

You May Also Want To Know
1. Can a party withdraw the petition for divorce?
During the six month period or time gap between first motion and the second motion either of the parties can withdraw by filing an application before the court, stating that they do not intend to get divorce through mutual consent. In such a circumstance the other party only have one option to file for contested divorce. Contested divorce can be filed on any of the following grounds like cruelty, desertion, voluntary sexual inter-course with another person, unsound mind, conversion of religion by other spouse, leprosy, venereal disease, a spouse having renounced the world or being missing for a period of more than 7 months.

2. Can a party remarry another person without getting divorce? 
To remarry, getting divorce is a pre-condition. If you remarry without getting divorce then it is a punishable offence with 7 years imprisonment. 

3. Is appearance of parties necessary for obtaining divorce decree?
In most cases, parties are required to be present before the court during first and second motion. Only in rare cases, camera proceedings may be allowed where the courts are convinced that the attendance of the party in question cannot be arranged by all possible means and it is totally on the discretion of the court to allow it.  

4. Is the statutory cooling off period for six months mandatory?
No, the statutory cooling off period for six months is not mandatory. If the court deems fit, then it can waive off this cooling period. This implies that if the couple has mutually decided to dissolve their marriage, they can request the court to expedite the process and not wait for another six months.

5. How is the issue of maintenance tackled in case of a mutual divorce? 
In cases of mutual divorce, the divorcing husband and the wife are required to agree on the sum of alimony or maintenance which will be given either by the husband to wife or wife to husband as the case may be.    

6. How is child custody decided in divorce matters?
While obtaining divorce through mutual consent the parties are required to settle the issue of child custody. The spouse can opt for joint custody. Under this arrangement, one of the parent has the physical custody of the children and both of them have legal custody of the child. 

7. What is the time taken in getting a divorce decree?
The entire process from the date of filing till getting the divorce can take around six months to one year. 

8. What if one party does not consent to divorce?
At the same time, there have been a lot of cases that come up when not all couples agree on the desirability, the grounds or the conditions for the divorce which in turn creates a trouble for the partner that is willing to start and file the petition.

9. Mutual consent divorce in case of court marriage
If you have done court marriage then mutual divorce will be governed by Section- 28 of The Special Marriage Act, 1954. In such a situation a petition for divorce may be presented before the district court by both the parties together on the ground that they are not staying together for over a period of one year now. They mutually agree that the marriage should be dissolved as they are unable to live together. 
After six months of submitting the petition but not later than 18 months, the court after hearing both the parties and making enquiry as it deems fit can a pass a divorce decree stating that the marriage is dissolved from the date of  the decree. 

10. Mutual consent divorce between Christian Couple  
Divorce of a christian couple is governed by the Divorce Act, 1869. Here the parties can mutually present the petition before the district court. In their petition they have to state that they have been staying away for a period of two years or more. They need to show that are unable to live together and want to mutually end the marriage. After the expiry of six months and before 18 months, if the court is satisfied after hearing both the parties, then it may pass the divorce decree. 

11. What happens if the consent is taken by fraud or force for mutual divorce? 
As per the Hindu Marriage Act, Section- 23(1)(bb) the court is required to be satisfied that the consent for divorce under Section- 13-B is not obtained by force, fraud or undue influence. It is the duty of the court to figure out if the consent is obtained freely or under coercion. The option of appeal is available against the decree as there may be situations where the court may have failed to see that the consent was not given freely. 

12. Do the divorce laws vary for different religions? 
In India marriage and divorce are governed by personal laws. Hindus including Sikhs, Jain and Buddhists are governed by Hindu Marriage Act, 1955. Christians are governed by Indian Divorce Act, 1869. Muslims are governed as per Dissolution of Marriage Act, 1939. Parsis are governed by the Parsi Marriage and Divorce Act,1936. 

13. How can NRIs get mutual divorce?
In case of divorce of an NRI couple, they can file a divorce petition in a foreign country under the laws where the party currently resides. It is imperative that the decree by foreign courts should not be inconclusive of Section- 13 of the Civil Procedure Code, 1908. In fact, if the divorce petition is filed in India where one of the parties is staying abroad then the court may permit for camera proceedings.

Inflation

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