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COMPANY REGISTRATION CALICUT
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THE FOREIGN INVESTMENT PROMOTION BOARD (FIPB)
The Foreign Investment Promotion Board (FIPB), housed in the Department of Economic Affairs, Ministry of Finance, is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval. The extant FDI Policy, Press Notes and other related notified guidelines formulated by Department of Industrial Policy and Promotion (DIPP) in the Ministry of Commerce and Industry are the bases of the FIPB decisions. In the process of making recommendations, the FIPB provides significant inputs for FDI policy-making.
FIPB comprises of the following Secretaries to the Government of India:
• (i) Secretary to Government, Department of Economic Affairs, Ministry of Finance – Chairperson
• (ii) Secretary to Government, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry
• (iii) Secretary to Government, Department of Commerce, Ministry of Commerce & Industry
• (iv) Secretary to Government, Economic Relations, Ministry of External Affairs
• (v) Secretary to Government, Ministry of Overseas Indian Affairs.
The Board would be able to co-opt other Secretaries to the Central Government and top officials of financial institutions, banks and professional experts of Industry and Commerce, as and when necessary. The Secretary to the Government of India, Ministry of Small, Medium and Micro Enterprises and the Secretary to the Government of India, Department of Revenue have been co-opted on the Board.
The Minister of Finance who is in-charge of FIPB would consider the recommendations of FIPB on proposals with total foreign equity inflow of and below Rs. 3000 crore. The recommendations of FIPB on proposals with total foreign equity inflow of more than Rs. 3000 crore would be placed for consideration of Cabinet Committee on Economic Affairs (CCEA).
Cases which do not require Fresh Approval
As per FDI Policy,2015, Companies may not require fresh prior approval of the Government i.e. Minister-in-charge of FIPB/CCEA for bringing in additional foreign investment into the same entity, in the following cases:
(i) Entities the activities of which had earlier required prior approval of FIPB/CCFI/CCEA and which had, accordingly, earlier obtained prior approval of FIPB/CCFI/CCEA for their initial foreign investment but subsequently such activities/sectors have been placed under automatic route;
(ii) Entities the activities of which had sectoral caps earlier and which had, accordingly, earlier obtained prior approval of FIPB/CCFI/CCEA for their initial foreign investment but subsequently such caps were removed/increased and the activities placed under the automatic route; provided that such additional investment along with the initial/original investment does not exceed the sectoral caps; and
(iii) Additional foreign investment into the same entity where prior approval of FIPB/CCFI/CCEA had been obtained earlier for the initial/original foreign investment due to requirements of Press Note 18/1998 or Press Note 1 of 2005 and prior approval of the Government under the FDI policy is not required for any other reason/purpose.
(iv) Additional foreign investment into the same entity within an approved foreign equity percentage/or into a wholly owned subsidiary.
#fipb
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PROBLEMS AND CHALLENGES FACED BY WOMEN ENTREPRENEURS
Women entrepreneurs face a series of problems right from the beginning till the enterprise functions. Being a woman itself poses various problems to a woman entrepreneur, the problems of Indian women pertain to her responsibility towards family, society and lion work.
The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough etc are some peculiar problems that the Indian women are coming across while they jump into entrepreneurship.
Women in rural areas have to suffer still further. They face tough resistance from men. They are considered as helpers. The attitude of society towards her and constraints in which she has to live and work are not very conducive.
Besides the above basic challenges faced by women entrepreneurs are as follows:
1. WOMEN ENTREPRENEURS STRUGGLE TO RAISE CAPITAL.
Women business owners have traditionally struggled to attract the necessary startup capital as well as ongoing funds to assist in the growth of their businesses. Accessing venture capital especially has been difficult for women.
2. WOMEN ENTREPRENEURS HAVE LIMITED ACCESS TO INDUSTRY NETWORKS AND CONNECTIONS
Networks provide critically important information for entrepreneurs. Networks help entrepreneurs learn more about their industry and build important connections for additional resources and business growth. It is challenging for women to find the connections they need when starting their business and later on when they are seeking advice for business development. For first time entrepreneurs especially, networks provide a safe haven to learn the rules of the game. They are great source of connections for new business.
3. WOMEN ENTREPRENEURS LACK BUSINESS AND FINANCIAL SKILLS.
Many of the women entrepreneurs interviewed for the report mentioned their lack of basic business and financial skills as a major challenge. They had little if any experience in accounting and risk management, legal, tax and regulatory compliance, sales, marketing, and the use of technology. Even women who had the business skills and/or corporate experience cited the need for training in areas like strategic planning as well as hiring and evaluating personnel.
4. WOMEN ENTREPRENEURS LACK ROLE MODELS AND MENTORS.
Even with industry experience, maybe you never started a business before and, therefore, lack the aforementioned business and financial skills.Role models and mentors are invaluable for new business owners. Role models and mentors as well as strong network connections when available can help women build their skills and subsequently their confidence. Without solid networks and connections, it is difficult to find qualified people who are willing and able to fulfill this need for women business owners. Leaning on more experienced business owners is especially helpful for women who are just beginning the entrepreneurial journey, and for those who face challenges growing their businesses.
5. WOMEN ENTREPRENEURS LACK CONFIDENCE.
Women’s self-doubt and lack of confidence affect their ability to effectively pitch their business to attract funding. They are less likely ask for capital or sufficient capital. A lack of confidence therefore holds them back from starting and growing a viable business.
A lack of confidence also causes women to be more risk averse. Women who create successful businesses take calculated risks. They carefully plan for their growth based on a confidence in their ability to sustain and manage growth over time.
#women #womenempowerment #womenenterpreneur #startup #womenstartup
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NOW APPLICATION FOR PAN CAN BE GIVEN AT THE TIME OF COMPANY REGISTRATION ITSELF

New companies will soon be able to apply for a permanent account number (PAN) and tax deduction and collection account number (TAN) online, reducing multiple application processes and boosting ease of doing business.

The new version of ‘SPICE’ (Simplified Proforma for Incorporating Company Electronically) will now require mandatory applications for both PAN and TAN for all new filings.The government in October notified SPICE and introduced digital submission of documents for incorporation.

Application forms for PAN and TAN will be generated automatically after submission of SPICE forms on the MCA21 system. The revised format requires new applicants to upload duly signed forms for PAN and TAN as ‘linked forms’ with SPICE.

“New version of SPICE incorporation applications will be processed only after Forms 49A (for PAN) and 49B (for TAN) are duly signed, uploaded and payment is confirmed by MCA,” a government statement said.

The updated SPICE forms will enable speedy allotment of PAN and TAN to new companies.

SPICE was notified in the Companies (Incorporation) Fourth Amendment Rules, 2016 to provide speedy incorporation-related services within stipulated timeframes. The rules allowed digital submission of documents for incorporation along with e-Memorandum of Association and e-Articles of Association.

As per Companies (Incorporation) Amendment Rules, 2017 which come into force on the 30th day of January, 2017.For rule 18, the following rule was substituted, namely:-

“The Certificate of Incorporation shall be issued by the Registrar in Form No.INC-11 and the Certificate of Incorporation shall mention permanent account number of the company where if it is issued by the Income-tax Department”
#crc #company #companyregistration #roc #startup #boost #easeofdoingbusiness
#pan #panforcompanies
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HOW TO CHOOSE A BUSINESS CONSULTANT
Hiring outside consultants to do short-term projects is common in business. More and more frequently, as in-house resources become scarcer and impartiality is required, organizations and municipalities are turning to consultants to get the job done.
Hiring a consultant for the first time can be a little intimidating.
Consultants generally specialize in a particular area. They may be good at solving problems or doing research or exploring alternatives. Consultants usually work on contract, they sell their knowledge or services for a fee. Professional consultants can bring new ideas to community projects, and your organization or community can often learn from working with them. When selecting a consultant, follow these five simple, but important, guidelines:
1. UNIMPEACHABLE CHARACTER
First and foremost, an effective consultant must be a person of the highest character. He or she must be the consummate professional. The consultant must be willing to put the best interest of the client ahead of their own.
2. SOLID EXPERIENCE
A good consultant should have experience with the challenges or opportunities you and your company are facing. She or he may not know your specific company or industry, but you and your people know your company and your industry quite well, don’t you? What the consultant brings to the table is experience in addressing the types of issues you face.
3. CREATIVE PROBLEM-SOLVING SKILLS
You will want the consultant you engage to be an outstanding problem solver. After all, you are hiring a consultant to help you solve problems (or take advantage of opportunities).
4. OUTSTANDING COMMUNICATION SKILLS
A good consultant should be articulate. He or she should possess unusually strong communication skills, both orally and in writing. Of course, communication is a two-way street. Perhaps more important than her or his ability to speak articulately and write eloquently is the ability to listen.
No matter how smart a consultant is, she or he won’t be able to help you improve your business until they fully understand the challenges you face. This will never happen until the consultant listens to you.
5. EXCELLENT INTERPERSONAL SKILLS
Simply put, for any consultant to be successful in helping your company, a trust-based relationship is going to have to develop. You will need to be comfortable revealing the intimate details of your business. The relationship between consultant and client is not unlike the relationship between a doctor and patient.
Without complete candor, the consultant will be hindered in his or her effort to help your business. Chose a consultant with whom you can develop this kind of professional relationship.
The right consultant can create tremendous value. The wrong consultant can destroy value.
Sou: entrepreneur.com
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ADVANTAGES AND DISADVANTAGES OF CASHLESS ECONOMY
The finance minister, in his budget speech, talked about the idea of making India a cashless society, with the aim of curbing the flow of black money. But what exactly is a cashless economy? It can be defined as a situation in which the flow of cash within an economy is non-existent and all transactions have to be through electronic channels such as direct debit, credit and debit cards, electronic clearing, payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer and Real Time Gross Settlement in India. Major advantages and disadvantages of cashless economy is:
PROS:
o Enhance the tax base, as most / all transactions in the economy could now be traced by the government;
o Substantially constrain the parallel economy, particularly in illicit activities;
o Force people to convert their savings into consumption and/or investment, thereby providing a boost to GDP and employment;
o Foster the adoption of new wireless / cashless technologies.
CONS:
o The government loses an important alternative to pay for its debts, namely by printing true-to-the-letter paper money. This is why Greece may have to leave the euro, since its inability or unwillingness to adopt more austerity measures, a precondition to secure more euro loans, will force it to print drachma bills to pay for its debts;
o Paper money costs you nothing to hold and carries no incremental risk (other than physical theft); converting it into bank deposits will cost you fees (and likely earn a negative interest) and expose you to a substantial loss if the bank goes under. After all, you are giving up currency directly backed by the central bank for currency backed by your local bank;
o This could have grave consequences for retirees, many of whom are incapable of transacting using plastic. Not to mention that they will disproportionately bear the costs of having to hold their liquid savings entirely in a (costly) bank account;
o Ditto for very poor people, many of whom don’t have access to the banking system; this will only make them more dependent, in fact exclusively dependent, on government handouts;
o We wonder if the banks would actually like to deal with the administrative hassle of handling millions of very small cash transactions and related customer queries;
o Illegal immigrants would be out of a job very quickly – creating the risk for substantial social unrest;
o If there is an event that disrupts electronic transactions (e.g. extensive power outage, cyberattack, cascading bank failures) people in that economy will not be able to transact and everything will grind to a halt;
o Of course enforcing a government mandate to ban cash transactions must carry penalties. This in turns means more regulations, disclosure requirements and compliance costs, potentially exorbitant fees and even jail time;
Source: zerohedge

#cashless #cashlesseconomy #digitalindia
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SETTING SALES TARGETS
Your sales targets will grow with your business. Good sales planners set targets in areas that will drive business growth. For example, if the market is chasing compression gym clothing, they increase their targets for that range.
In setting sales targets you need to:
• consider the profit margins each of your sales will achieve (there's little point reaching your sales target figure but shrinking your margin to achieve it)
• be realistic - your targets must be supported by marketing plan information
• keep all your business costs in mind and plan for growth.
GROSS PROFIT MARGIN
Gross profit is the difference between sales and the cost of producing or purchasing products or providing services before subtracting operating expenses such as wages, rent, accounting fees, or electricity.
Gross profit margin is the percentage of each rupee that is profit. Knowing your gross profit margin helps you identify products making the most profit, so that you can focus your sales targets on them. While any profit is good profit, smart businesses concentrate on achieving higher sales targets for their more profitable items, rather than making 'broad' product sales with a thin margin.
BREAK-EVEN POINT
Your break-even point is the number of units of your products or services that you need to sell to cover fixed costs such as rent, electricity, insurance and wages.
You can determine your break-even point by itemising all of your known, fixed annual costs, and then working out the volume of sales (in units) required to cover those costs.
Use the following interactive calculator to help you work out your break-even point. Once you have read and understood the example, you can type the numbers that are relevant to your business into the calculator to see your break-even point (i.e. how many units of a product or service that you need to sell per year before you make any profit).
MINIMUM SALES REQUIREMENTS
Minimum sales requirement is the point at which both your fixed costs and your profit goal are covered by your gross profit. You work this out by calculating how much of your products or services you need to sell to cover fixed costs, your salary and your desired profit.
Keep in mind your aim is to achieve a fair return on the funds you have invested in the business, in addition to your salary. Once you've calculated your break-even point, decide what you consider to be a reasonable return on investment (ROI) and a fair salary for the owner and/or manager of the business (i.e. you).
Use our interactive calculator to work out your minimum sales requirement.
COSTS THAT COULD AFFECT YOUR PROFIT
Consider all the related costs involved in achieving your minimum sales requirements. Marketing, production and supply costs can affect the amount of sales you need to make a profit.
Your marketing must be sufficient to generate your desired sales volume, and your production processes must be capable of delivering those sales.
SALES STRATEGIES
You must have sales strategies in place to meet your targets. There are a range of strategies you can use, including how you will:
• keep existing customers (e.g. a customer rewards program)
• attract new customers (e.g. marketing and advertising)
• sell more to existing customers (e.g. up-sell).
A realistic sales target is often based on a solid marketing strategy. You can help your sales staff achieve their targets by generating qualified leads and brand awareness from your marketing activities. #sales #target #salestarget
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HOW TO APPLY FOR A BUSINESS VISA TO INDIA
All foreign nationals entering India are required to possess a valid international travel document in the form of a national passport with a valid visa obtained from an Indian Mission or Post abroad.
All Individual visa seekers are requested to apply for the Indian Visa through Online application, in order to make an application for getting the Indian visa.
The duly signed physical copy of the application form completed in all respect and submitted successfully, is to be submitted at the concerned Indian Visa Application Center (IVAC) or directly to Indian Mission/ Post, on the scheduled date of interview along with the requisite supporting documents. The applicants are also requested to visit website of the Indian Mission concerned for detailed information about Indian visa.
ONLINE APPLICATION FORM:
1. This application form is meant for those foreigners who are applying for visa from outside India.
2. Each online application form is meant for one person only. Separate application has to be filed for each applicant.
3. Furnish information exactly in the manner asked for in the forms, especially the names, address and date of birth.
4. Applicants are required to verify the application details before submitting the online application. They have an option to save the online application form, in case it is not to be submitted.
5. Once the online application form is submitted by the applicant, then further modifications are not allowed. Hence applicants are requested to check and validate the details before submitting the online application form.
6. Applicants are requested to keep the Application Id (generated automatically after the submission of online form) for further communications.
B. APPOINTMENT SCHEDULING:
1. Applicant can schedule the appointment as per his/ her convenience with the concerned Indian Mission.
2. Each applicant to schedule a separate appointment with the Indian Mission
C. PROCESS FOR FILLING UP ONLINE APPLICATION FORM:
1. Applicant shall access the Visa Application system online through the following link: http://indianvisaonline.gov.in/visa/.
2. Applicant visits the above mentioned web link and selects the Indian Mission from where he intends to apply for the Visa from the tab “Select Mission”.
3. Applicant fills the application on-line as per the forms standardized by the Ministry.
4. After filling the form and submitting it, the system shall automatically generate a Application Id. Applicants are requested to keep this Application Id for further communications with the concerned Indian Mission.
5. System will automatically ask the Applicant for the following confirmation: “Select ‘Yes’ if the applicant want to seek appointment and make payment online or ‘No’ if the applicant just want to print the submitted application form.”
6. If the applicant response is “No”, then it is requested by the applicant to take the print out of the submitted online application form and approach the concerned Indian Mission for submission of the online form along with supporting documents.
7. If the response from applicant is “yes” then the system automatically takes the link to perform the following:
i. Selection of Date and Time of appointment at the concerned Indian Mission
ii. Calculation of Visa fee, service charge, VAT etc. as applicable according to the Visa type
8. ePayment using service provider’s payment system
9. In case the facility of Appointment Scheduling and e-Payment is not available for the concerned Indian mission, then applicant has to take the printout of the online application form and visit the concerned Indian Mission to submit the same along with supporting documents and and make the payment. #businessvisa #foreigninvestors
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FAQ ABOUT INCOME TAX ISSUES ON OLD CURRENCY DEPOSIT
Q: A LOT OF SMALL BUSINESSMEN, HOUSEWIVES, ARTISANS, WORKERS MAY HAVE SOME CASH LYING AS THEIR SAVINGS AT HOME, WILL THE INCOME TAX DEPARTMENT ASK QUESTIONS IF THE SAME IS DEPOSITED IN BANKS?
A: Such group of people as mentioned in the question need not worry about such small amount of deposits up to Rs.1.5 or 2 lacs, since it would be below the taxable income. There will be no harassment by the Income Tax Department for such small deposits made.
Q: WILL THE INCOME TAX DEPARTMENT BE GETTING REPORTS OF CASH DEPOSITS MADE DURING THIS PERIOD? IF SO, WILL THE CURRENT THRESHOLD OF REPORTING REQUIREMENT OF CASH DEPOSITS OF MORE THAN RS. 10 LAKH WILL ONLY CONTINUE?
A: We will be getting reports of all cash deposited during the period of 10th November to 30th December, 2016, above a threshold of Rs. 2.5 lacs in every account. The department would do matching of this with the income returns filled by the depositors. And suitable action may follow.
Q: SUPPOSE THE DEPARTMENT FINDS THAT HUGE AMOUNT OF CASH ABOVE RS. 10 LACS IS DEPOSITED IN A BANK ACCOUNT, WHICH IS NOT MATCHING WITH THE INCOME DECLARED, WHAT WOULD BE THE TAX AND PENALTY TO BE PAID ON THE SAME?
A: This would be treated as the case of tax evasion and the tax amount, plus a penalty of 200% of the tax payable, would be levied as per the section 270(A) of the income tax Act.
Q: IT IS BELIEVED THAT A LOT OF PEOPLE ARE BUYING JEWELLERY NOW. HOW DOES THE DEPARTMENT PLAN TO TACKLE THIS?
A: The person who buys jewellery has to give his PAN number. We are issuing instructions to the field authorities to check with all the jewellers to ensure that this requirement is not compromised. Action will be taken against those jewellers who fail to take PAN numbers from such buyers. When the cash deposits of the jewellers would be scrutinised against the sales made, whether they have taken the PAN number of the buyer or not will also be checked. #demonetisation
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FCRA REGISTRATION

PURPOSE OF FCRA, 2010
FCRA, 2010 has been enacted by the Parliament to consolidate the law to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.
ACTS/RULES/GUIDELINES WHICH REGULATE THE FLOW OF FOREIGN CONTRIBUTION TO INDIA
The flow of foreign contribution to India is regulated under Foreign Contribution (Regulation) Act, 2010, Foreign Contribution (Regulation) Rules, 2011 and other notification / orders etc., issued thereunder from time to time. These are available at the website fcra.online.nic.in.
FCRA, 2010 applicability
As per Section 1(2) of FCRA, 2010, the provisions of the act shall apply to:
• i. Whole of India
• ii. Citizens of India outside India; and
• iii. Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India
OBTAINING PERMISSION TO ACCEPT FOREIGN CONTRIBUTION
There are two modes of obtaining permission to accept foreign contribution according to FCRA, 2010:
• i. Registration
• ii. Prior Permission
A. Eligibility
ELIGIBILITY CRITERIA FOR GRANT OF REGISTRATION
For grant of registration under FCRA, 2010, the association should:
• (i) be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 (Now Section 8 of Companies Act, 2013) etc;
• (ii) Normally be in existence for at least three years and has undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilised. For this purpose, the association should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to be submitted to substantiate that it meets the financial parameter.
WHAT ARE THE ELIGIBILITY CRITERIA FOR GRANT OF PRIOR PERMISSION
An organization in formative stage is not eligible for registration. Such organization may apply for grant of prior permission under FCRA, 2010.Prior permission is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. For this purpose, the association should meet following criteria:
• (i) be registered under an existing statute like the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956 etc;
• (ii) submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given; and
• (iii)For Indian recipient organizations and foreign donor organizations having common members, FCRA Prior Permission shall be granted to the Indian recipient organizations subject to its satisfying the following:
• i) The Chief Functionary of the recipient Indian organization should not be a part of the donor organization.
• ii) At least 51% of the office-bearers/ members of the Governing body of the Indian recipient organization should not be members/employees of the foreign donor organization.
• iii) In case of foreign donor organization being a single person/individual that person should not be the Chief Functionary of the recipient Indian organization.
• iv) In case of a single foreign donor, at least 51% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor
CONDITIONS TO BE MET FOR THE GRANT OF REGISTRATION AND PRIOR PERMISSION
In terms of Sec.12 (4) of FCRA, 2010, the following shall be the conditions for the grant of registration and prior permission:
(a) The 'person' making an application for registration or grant of prior permission-
• i. is not fictitious or benami;
• ii. has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another;
• iii. has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country;
• iv. has not been found guilty of diversion or mis-utilisation of its funds;
• v. is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends;
• vi. is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
• vii. has not contravened any of the provisions of this Act;
• viii. has not been prohibited from accepting foreign contribution;
• ix. the person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him.
• x. the person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him.
(b) the acceptance of foreign contribution by the association/ person is not likely to affect prejudicially –
• i. the sovereignty and integrity of India;
• ii. the security, strategic, scientific or economic interest of the State;
• iii. the public interest;
• iv. freedom or fairness of election to any Legislature;
• v. friendly relation with any foreign State;
• vi. harmony between religious, racial, social, linguistic, regional groups, castes or communities.
(c) the acceptance of foreign contribution-
• i. shall not lead to incitement of an offence;
• ii. shall not endanger the life or physical safety of any person.
#FCRA #FCRAREGISTRATION
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NOW PARTNERSHIP FIRM CAN BE CONVERTED IN TO COMPANY
Now partnership firms can also be converted into company as per Companies Act 2013.Companies (Authorised to Register)amendment rules, 2016 have allowed Partnership firms also to be converted in to company like LLP
DOCUMENTATION :-
1 Decleration from proposed Directors that compliance of Indian stamp Act,1899 will be made.
2 Statement of Assets and Liabilities* not older than 30 days from date of filing URC-1, certified by CA required, if a LLP/ firm being converted into Company.
3 Copy of latest ITR also required to be filed.
STEPS FOR CONVERTION:
STEP1 :HOLD A MEETING OF THE PARTNERS TO TRANSACT THE FOLLOWING BUSINESS
• Assent of majority of its members as are present in person or where proxies are allowed, by proxy, at a general meeting summoned for the purpose of registering the firm. Since the liability of the members of the firm is unlimited, when a firm desires to register itself as a company, the majority required to assent as aforesaid shall consist of not less than ¾ of the members as are present in person or where proxies are allowed, by proxy, at a general meeting summoned for the purpose.
• To authorize one or more partners to take all steps necessary and to execute all papers, deeds, documents etc. pursuant to registration of the firm as a Company.
• To execute a supplementary Partnership Deed to align it with the requirements as under:
• There must be at least 7 partners in the partnership firm;
• The firm may be registered with the Registrar of Firms;
• There must be a fixed capital divided into units ;
• There must be provision of converting a firm into company.
• There must be an agreement by the partners to convert the partnership to a company. This can be done by a contract in writing to this effect to which the partner’s resolution for conversion can be attached as annexure.
• Execute a settlement deed.
STEP2: OBTAIN A DIRECTOR IDENTIFICATION NUMBER (DIN) FOR ALL PROPOSED DIRECTORS:
The proposed director must have a DIN allotted by the Ministry of Corporate Affairs. DIN can be obtained by filing an online application with a copy of ID and address proofs. PAN Card is mandatory for Indian nationals for applying a DIN, Passport is enough for the Foreign National. For taking DIN the Digital Signature Certificate is required.
STEP3: OBTAIN A DIGITAL SIGNATURE CERTIFICATE (DSC) FOR DIRECTORS:
During the registration process, all the documents are submitted to the ROC online through www.mca.gov.in. These forms need to be authenticated by signing it using a Digital Signature Certificate issued by the Certifying Authority in India. Directors of the Company should have a digital signature certificate to authenticate documents that are submitted to the ROC.
STEP4: IDENTIFY THE LOCATION AND AUTHORIZED CAPITAL OF THE COMPANY:
It is important to have a proper address for the company's registered office. The address need not be a commercial location for registering a company. It could be the residential address of one of the promoters or any other identifiable address. The ROC will send all the correspondence relating to the company to the registered office address. The jurisdiction of the ROC will depend on the location of the registered office.
A private limited company should have a minimum paid-up capital of Rs. 1,00,000. Authorized capital can be any amount above the minimum limit. Company registration fee varies depending on the authorized capital of the company.
STEP5: COMPANY NAME APPLICATION:
The name of the company should end with the words 'Private Limited’. Before proceeding with the incorporation process, an application has to be filed for getting the company name approval from the ROC. It is preferable to submit the application with multiple names in the order of preference. Company name application must be in line with the Company Name Guidelines. Company name application is filed in INC-1 to the Ministry of Corporate Affairs, Government of India, to check the availability of the proposed name for registration of a new company.
Once approved, the name will be reserved for 60 days. Company registration documents have to be executed and filed within this time line.
STEP6: EXECUTION OF COMPANY REGISTRATION DOCUMENTS:
After the company name is approved, the company incorporation documents such as MOA and AOA have to be executed by the promoters in the prescribed format.
MOA and AOA have to be executed by the subscribers, they have to write all details such as name, father's name, residential address, occupation and the number of shares they agree to take on in their own handwriting. They will then have to sign the document and should enclose the signature of a witness who knows the subscribers.
STEP7: SUBMISSION OF COMPANY REGISTRATION DOCUMENTS TO THE ROC:
Once the MOA and AOA are executed, Copy of the same has to be submitted to the ROC of the respective state for the company registration. The originally executed MOA and AOA are not required to be filed with the ROC. The same has to be preserved by the promoters for future reference. Along with incorporation documents, details of directors and registered office are also required to be filed with the ROC.
STEP8: COMPANY REGISTRATION AND CERTIFICATE OF INCORPORATION:
The ROC will register the company after due verification of MOA, AOA and other details and will issue the Certificate of Incorporation (COI). It will also allocate a Corporate Identification Number (CIN) to the company so registered. The COI is now issued by the ROC in digital form with the digital signature certificate. No physical certificate will be issued by the office of ROC. A private company can commence its business after obtaining the COI and Certificate of Commencement of Business.
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