DEV Community: Compliance Calendar LLP

How to Start a Private Limited Comapny in India

Compliance Calendar LLP — Fri, 23 Sep 2022 17:27:08 +0000

OVERVIEW
Are you planning to be an entrepreneur but don’t know the business structure which is to be established for conducting your business? Starting your own venture is exciting and full of adventures but at the same time very confusing to the sense that people hardly have knowledge about what kind of business entity is to be set-up?

What are the ins and outs of such business entity?

In this write up we will study in detail about the Private Limited Company Registration and all the compliances related there to.

PRIVATE LIMITED COMPANY REGISTRATION

In general sense, Private Limited Company Registration refers to registration of such a company which is mostly closely held.
According to Companies Act, 2013, Private Limited company is defined under Section 2 (68) according to which Private Limited Company means:

A company having a minimum paid-up share capital as may be prescribed, and which by its articles, —

(i) Restricts the right to transfer its shares;
(ii) Except in case of One Person Company, limits the number of its members to two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that—

(A) Persons who are in the employment of the company; and
(B) Persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased,
shall not be included in the number of members; and
(iii) Prohibits any invitation to the public to subscribe for any securities of the company.

PRIVATE LIMITED COMPANY TYPES OR ITS CATAGORIES FOR REGISTRATION

In India there are mainly two types of Private Limited Company Registrations which are as follows:

• Private Company Limited by shares- In this type of private limited company, liability of its members is limited to the extent of unpaid amount on the share capital of the company which is held by its members.
• Private Company Limited by guarantee- These types of companies can be further divided into two categories:-

 Private Company Limited by guarantee having share capital- In this type of company the liability of its members is limited to the extent of guarantee undertaken by the members, but they are also liable for the unpaid amount on the share capital held by them.

 Private Company Limited by guarantee not having share capital- In this type of company liability of its members is limited to the extent of guarantee undertaken by them only.

BENEFITS OF PRIVATE LIMITED COMPANY REGISTRATION IN INDIA:

As compared to other business entities including Public Limited Companies, Private Limited Company has the following benefits or advantages:

Limited risk: the liability of its members is limited to the extent of either the share capital held by them or guarantee amount undertaken by them as the case may be.
Separate legal entity: Company registration including the Private Limited Company Registration provides a separate legal entity to the business, this feature is not available in case of sole proprietorship or Partnership firm registration.
Business continuity: Due to its feature of separate legal entity and perpetual succession private limited company has the ever-ending continuity regardless of the death or incapacity of its members or directors, unless and until it has been legally dissolved or wound up.
Modes of raising funds: Company Registration including the Private Limited Company Registration provides a variety of modes of raising funds such issuance of shares, debentures, acceptance of deposits, commercial papers, share warrants. Also, it is to be noted that private limited company registration is the most considered form of business entity when it comes to loans to be obtained from the banks or financial institution.
Tax advantages: Company form of business has various advantages but the most important advantage are the tax benefits which are available to company form of business entities.
Beneficial for small business entities: Private Limited Company Registration is the most preferred form of business entity when it comes to small start-ups, which has small funds requirements. As it is closely held company, ownership and management is not widely scattered.

PROCESS OF PRIVATE LIMITED COMPANY REGISTRATION IN INDIA:
The step wise procedure for Registration of Private Limited Company is as follows:

Step-1: Searching the proposed name of the company/ checking company’s name availability

The first step in registration of private limited company is checking the name availability of the proposed company. For this you can visit the MCA portal i.e.

https://www.mca.gov.in/mcafoportal/showCheckCompanyName.do and public search of trademark portal i.e.

https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx.

Step-2: Filing name reservation application to CRC, a wing of Ministry of corporate affairs (Ministry of Corporate Affairs)

Once it has been made sure that the proposed name of the company is available, application can be made for reservation of such name. Application can be made by two ways either by filing SPICe Plus Part- A separately or in integrated incorporation form SPICe Plus.

Step-3: Obtaining Name Approval Letter

On receipt of application CRC will review the application and accordingly approve the application or calls for re-submission. On approval of application, CRC will issue name approval letter on the registered mail id of applicant and name of the company stands reserved for 20 days. In those 20 days, application for incorporation of the company is to be filed to Registrar of companies.

If applicant intends to increase the reservation period he may do so by filing application for extension of reservation period. Such application can be made two times for maximum 60 days subject to payment of additional fees.

**Step-4: **Obtaining DSCs of promoters

The next step is to obtain the Digital Signature Certificates (DSCs) of all subscribers cum directors of the company which are commonly known as the promoters of the company because all forms at MCA will be filed digitally.

Step-5: Application for incorporation of the company

The next step is to file application for incorporation of the company in form SPICe plus Part-B along with AGILE-PRO-S and form INC-9. It is to be noted that along with the incorporation application e-MOA and e-AOA are to be attached in form SPICe- MOA and SPICe- AOA.

Step-6: Application for Director Identification Number (DIN)

Application of DIN up to 3 directors can be made in integrated form SPICe plus itself. For more than 3 directors after Incorporation Company can make an application for the applicant Director in form DIR-3 along with prescribed fees.

Step-7: payment of stamp duty and other government fees

After uploading form SPICe Plus for incorporation, payment of stamp duty is to be made along with other government fees. It is to be noted that stamp duty is to be paid according to the authorised share capital of the company and the state in which registered office of the company is situated.

Step-8: Obtaining Certificate of incorporation along with PAN, TAN, ESIC etc of the company

Once application for incorporation of the company is approved by the Registrar of companies it will issue certificate of incorporation under his hand along with PAN, TAN, ESIC registration number, Professional tax registration number if any, GSTIN if any, for the company for which application is made in form AGILE-PRO-S.

Hope you liked this write up, if you still have any queries regarding private limited company registration in India, then you can connect to our team of experts at info@ccoffice.in or 9988424211.

How to register a Start-up Company in India

Compliance Calendar LLP — Thu, 15 Sep 2022 06:40:59 +0000

People do have a business idea but have no clue where to start it from or how to convert the idea into venture. They do not have any idea about how to register their company as Start-up. Moreover, people don’t know even if their company comes into the category of registering as a start-up or not.

Keeping all these questions in mind, in this write-up you will read about how to register a Start-up Company in India or What are the requirements of Start-up registration in India.

Which types of entity are allowed to get recognized as a Start-up Registration?

Before going towards the deep analysis about the registration for start-up. Let us first get to know about: -

What do you mean by a Start-Up?
A Start-up is the company or any organization which is in the early stages characterized as typically risky and uncertain business areas. Start-ups comes into existence with the intend to solve the problems or issues which are being faced by the people.

Start-Up India Scheme

Start-up India Scheme is the initiative by the Hon’ble Prime Minister Shri Narendra Modi in order to promote growth of Start-up in India. DPIIT declared 16th January as a National Start-up Day to acknowledge and support the excellence of the entrepreneurs of India.

What are the requirements of Start-up registration in India?

•The existence and operational period should not be exceeding 10 years from the date of incorporation.
•It should be incorporated as a Private Limited Company, Limited Liability Partnership Firm or Registered Partnership Firm.
•It should have the annual turnover not exceeding Rs.100 Cr for any of the financial years.
•It should not be formed by splitting or reconstructing an already existing business; and
•It should work towards the development and improvement of a product, process, or service.

How to register a Start-up Company in India?

Procedure to register a start-up Company in India is as follows.

1.Incorporate or Register your Business

The first and the foremost step is to incorporate or register your business as the

•Private Limited Company
•Limited Liability Partnership Firm
•Registered Partnership Firm

2.Register under Start-up India Portal

In the next step you need to register your start-up under Start-Up India Scheme at https://www.startupindia.gov.in All you need to do is fill the application form with the relevant details and upload required documents for verification.

What are the Documents Required for Start-up Registration

a)Certificate of Incorporation/ Registration Certificate
b)Details of the Directors
c)Details of Trademark or Patent if any
d)Pan Number
e)A proof of concept which can be in the form of website link, video, pitch deck for Startup at the validation Stage.

3.Tax Exemptions

In India, Start-ups which are incorporated on or after 1st April 2016 can apply for Income Tax Exemption only if the Inter- Ministerial Board (IMB) validates the innovative nature of the business.

•Tax Exemptions for the period of 3 consecutive years out of 10 years from the date of incorporation.
•Exemption under Section 80-IAC of the Income Tax Act.
•Exemption from provision of section 56(2) (viib) of Income Tax Act.

4.Issue of Recognition number and Start-up Certificate

Once the Application is duly submitted on the portal you will get an automatically generated recognition number with immediate effect and the Start-up certificate shall be issued once all the submitted documents are duly verified by the department which may take not more than 2-3 days from the date of filing the application form.

*Frequently Asked Questions (FAQs)
*
*Q1. Who is not eligible for Start-up Registration?
*
Ans. Any Company or Firm formed by splitting or reconstructing any existing company shall not be eligible for Start-up Registration.

Q2. Do Start-up Company need GST Registration?

Ans. It is advisable to take GST Registration because only in organized business structure people trusted and interested to invest.

*Q3. What is Start-up Scheme?
*
Ans. Startup India Scheme is an initiative by the Indian Government for generation of employment and wealth creation. The goal of the Startup India is the development and innovation of products and services and increasing the employment in India.
Q4. Where to check my Company Registered as a Startup or not?
Ans. You can check company is registered as a startup by visiting https://www.startupindia.gov.in/

Q5. How Startup Certificates looks?

Ans. Here is the Start-up Certificate

Q6. Is any Exemption under Companies act 2013 available for startup Companies?

Yes, Wherever Small companies getting the relief for compliance burden under the law, in same manner startup companies are also exempted for many provisions under the Company law.

If you want to get your Start-up registered in India, we at Compliance Calendar LLP has the team of professionals who are experts in the Start-up Company Registration Process and will update you throughout the process. If you have any query, write to us info@ccoffice.in or ping us at 9988424211. We are always available at your service.

Trademark Registration Application

Compliance Calendar LLP — Sun, 11 Sep 2022 16:02:57 +0000

A Trademark is a unique mark which helps in identifying a specific Brand, Company, or Business. It differentiates the goods or services of one’s business from others.

The word “Registered Trademark” is defined under clause (w) Section 2 (1) of Trademark Act, 1999 as - “Registered Trade Mark” means a trade mark which is actually on the register and remaining in force which means a Trademark cannot act as a protection for any brand until it is registered on www.ipindia.gov.in

Key Takeaways-

•Trademark Registration Importance
•Trademark Registration Application
•Trademark Registration Documents
•Trademark Registration Process
•Trademark Registration Certificate

Importance of **Trademark Registration in India:
**
Where the owner registers it trademark, he enjoys the exclusive power and rights over it. As a result, no one can use a registered mark without the prior permission of the owner of such mark. If anyone intends to do so, the owner has a legal right to prosecute against such person for trademark infringement.

Trademark offers a brand name to the associated goods and services. It gives distinctiveness to the good and services of an organization that is special and can’t be used by any other business. The logo embraces the company’s vision, nature and quality of its goods and services.

The trademark distinguishes ones good and services from other, and therefore builds the trust and reputation of the associated goods and services. The customers remember the traits of product through its trademark. This makes the Brand owner more dedicated to the business to enhance and upgrade the quality of its product which further results in building a better Brand Reputation.

Sometimes the Brand owners feels that the TRADEMARK IS AN EXPENSE WHICH CAN BE AVOIDED BY THEM. However, in the real scenario, the registered and enrolled trademark is considered as Intangible asset of the organization. The value of the Trademark will increase with the growth of the organization. The Trademark can also be sold by its owner in case he is facing distress situation. Therefore, Trademark is not a cost for business but an Asset which may provide multiple returns to the organization.
Now let’s discuss the Trademark Registration/A Process

*1.Choosing a TM
*
It is the foremost step prior to registration. The selected or shortlisted trademark should be unique, non-descriptive, and different from the existing trademark. It should not be already registered in the records of trademark registry by some other applicant. A Trademark may be a Word, Device, Monogram, or combinations of them. The trademark should be unique, non-descriptive, and different.

*2.TM Search Report
*
The Trademark you have selected is unique, however if the Trademark Department finds the mark as deceptively similar to already registered Trademark, the examiner may refuse to register such a mark. Therefore, it is suggested that an in depth Trademark Search, prior to the submission of TM application (TM-A), is important.

For Trademark search through the online portal of Government of India the following link can be used

https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx

*3.Application for TM Registration
*
A proprietor may proceed to the next step, once he is satisfied with the TM search report. He can apply for TM for Registration in Form TM-A. A Proprietor in TM application can be an Individual, a startup, a SME, or others.

*It has to be noted that the application shall be signed either by:
*
1.A Proprietor
2.A Legal Practitioner; or
3A Registered Trademark Agent

*Documents to be submitted along with Form TM-A (erstwhile TM-1):
*
1.KYC of the Proprietor or Individual/Partner/Director/Firm-
PAN/Aadhar/Passport

2.Certificate of Incorporation (in case of a Company or LLP)

3.Udyog Aadhar/Udyam Registration Certificate (In case of MSMEs Opted)

4.Logo of the Brand (if any)

5.Power of Attorney – In case TM is applied by Trademark Agent or Attorney

Startup Recognition Certificate (In case of Start-up Opted)

4.Examination of Trademark Application:

Once the Application is submitted by the Applicant for TM registration to TM Department, the Registrar of Trademarks examine the application and make an Examination Report. It is on the TM Department, either it may accept the application or mark objection. After a proper scrutiny of submitted TM application, the TM department will issue an Examination Report if finds mark is objectionable under section 9 or 11 as the case may be.

If the Examination Report contains any objection under Section 9 or/and 11, a Reply to Examination Report is to be submitted within one month from the date of receipt of this Examination Report, to satisfy the Registrar. If the Examiner is not satisfied with the reply which is filed by the applicant, a show cause hearing can be requested. On the other hand, if the Examiner is satisfied that the trademark is eligible and should be registered, he will publish it in Trademark Journal.

On the other hand, If the application is accepted by the TM department without raising any objection, it is directly sent for Publication in TM Journal and status changes from Accepted to Accepted & Advertised.

*5.Show Cause Hearing:
*
If the Reply to the Examination Report is not up to the mark, the Trademark Department will mark the application as ‘Ready for Show Cause Hearing’. The applicant has all the rights to attend the show cause hearing, or he can also authorize his Trademark Agent/ Attorney to attend the same. The date of hearing will be intimated by the TM Department itself to the applicant’s registered E-mail Id. The hearing can be attended by both the ways physically and through video conferencing as per the convenience.

*6.Publication on Trademark Journal:
*
If the application is Accepted by the TM Department, the proposed mark published in the trademark journal. The public have an opportunity to Oppose the published Trademark within 4 months from the publication date. The public may oppose, if they find that such Trademark, is similar and will affect their brand and its reputation. The opposition is filed in Form TM-O with the requisite fees as prescribed and The Applicant must file a Counter Statement with reply to the Opposition within 2 months from the opposition date.

*7.Trademark Registered:
*
If there is no objections or oppositions to the application, the Trademark Registration Certificate will be issued by the TM Department and therefore applicant can use the symbol ® next to the logo/brand name. Finally, you can say that my Trademark is registered.

*Frequently Asked Questions (FAQs)
*
*Q1. What does ™ and ® signify, when can we use them?
*
Answer: ™ is used to indicate that the trademark is unregistered, but this mark can be used to promote goods. ™ can be used even for trademarks for which registration is not applied to claim use over it.

® is used to represent a registered trademark that provides the applicant complete ownership and legal rights over the trademark.

*Q2. Is the registration of a trademark compulsory?
*
Answer: No. Trademark registration is not at all compulsory. However, it is to be noted that no suit can be filed for the infringement of unregistered trademarks or brand name.

If you wish to get your TM Registered, Compliance Calendar LLP have a dedicated team of Professionals who are experts in the field of IPR Laws. Contact us on info@ccoffice.in or ping us at 9988424211 and we will be happy to help you in all aspect from Preparation of TM Search Report till the Company Registration of your Trade mark at IP India Portal www.ipindia.gov.in

What are The Benefits Available for Private Company Registration

Compliance Calendar LLP — Sun, 04 Sep 2022 06:45:10 +0000

There are multiple benefits of Private Limited Company Registration which sets it apart and makes it a preferable choice among other forms of business entities such as Sole

Proprietorship, Partnership, Limited Liability Partnership, One Person company and Public Company.

This article has been written with an intention to inform and educate readers about all the advantages of Private Limited company Registration, so that an informed choice can be taken on their legal statuses.

As the third largest start-up ecosystem, India has been witnessing sharp rise in number of business startups across different industries in the past years. Most of these startups operate at a smaller scale and cater the needs of local customers.

What is a Private Limited Company?

In general sense, a Private Limited Company is a form of Company Registration in which entire shareholding is held by small number of people (Maximum 200) and restricts shareholders from trading shares publicly.

Private Limited Company Registration under Companies Act, 2013
Company registration including “Private Limited Company Registration” is governed by the Companies Act, 2013. Registrar of Companies (ROC) is the authority under Ministry of Corporate Affairs (MCA) which regulated the procedure for Pvt Ltd Registration Online.

What are the benefits available for Private Company Registration

There are various advantages for company registration some of which are highlighted below:

• Limited Liability - The liability of members of the company is limited to the extent of share capital held by them, in this way the personal assets of the members are protected in case company’s assets are insufficient to pay off the liability.
• Perpetual succession - Company has entity distinct from that of its members and even in the event of death of all the members the entity of company remains intact. Unless and until it has been legally wound up.
• Professional image - The corporate form of business entity gives a professional image in the market. Which helps it to attract number of customers.
• Easy access to capital - The company form of business entity works in the transparent working environment due to constant reporting of its working to Registrar of Companies (ROC), which along with good credit score can have easy excess to capital.
• Transferability of shares – Shares are considered at par with movable property therefore shares are freely transferable except in the case of private company or OPC.

*Eligibility for Pvt Ltd Company Registration
*
The following are the eligibility requirements for Online Company Registration in India including Pvt Ltd Company Registration

• Minimum 2 members and maximum 200 members
• Non residents and foreigners are allowed for Private Limited Company Registration in India.
• It should have unique name
• There should be minimum 2 and maximum 15 directors. More than 15 directors are allowed subject share holders approval through special resolution.
• Requirement of DSC of all the subscribers and first directors.

*Private Limited Company Registration Process
*
Private Limited Company Registration Process consists of:
• Obtaining Digital Signature Certificate (DSC) of Directors and Subscribers
• DIN application for Directors
(Note: DIN up to 3 directors can be applied for in Pvt Ltd company registration application form (SPICe Plus form)

• Checking Private Limited Company Registration Name Availability on MCA portal and public search of trademark portal i.e. https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx and applying for Private Limited Company name reservation application.
• Application for “Private Company Registration Online” along with all attachments.
• Payment of Private Company Registration Fees
• Obtaining Certificate of Incorporation (COI)

*Documents for Private Limited Company Registration
*
As of now you are aware of Private Limited Company Registration Process the next is to know about the private limited company registration documents, these are listed below:

• Self-attested copy of PAN card and Aadhar Card of Subscribers to MOA and Directors.
• Self-Attested copy of Bank Statement or Utility Bill (should not be older than 2 months) as present address proof of Subscribers and Directors.
• Self-Attested copy of Voter ID/ Driving License/ Passport as permanent address proof of subscribers and directors.
• Consent Letter in form DIR-2 and declaration as to non-disqualification and interest in other entities in form DIR-8 for first directors.
• Rent agreement/ NOC from owner and utility bill for Private Limited Company Registered Office address.
• Details regarding the share capital of the company including the authorised share capital and paid-up share capital of the company.
• Details about the business activity and NIC code of business activity of the company.

*Private Limited Registration Fees in India
*
*The Cost of Private Limited Company Registration consists of following:
*

• Cost of DSCs of Subscriber and first directors: It may cost around1000 per DSC. Rest it depends upon the discretion of DSC issuing agency and location of the agency.
• Fees For Name Reservation: Rs 1000 per Application, however this cost can be saved if application is filed in integrated form SPICe plus along with incorporation application.
• Stamp Duty Fees: It depends upon the Authorized Share Capital of the company and the state where Private Limited Company Registered Office is proposed to be situated.
• Payment For PAN And TAN: Government fees for Rs. 65.00 and Rs. 66.00 for allotment of PAN and TAN.
• Fees for Company Registration Consultant: For incorporation of OPC consultation and professional certification of CA/CS/CMA in practice is required, the professional charges for which are subject to their discretion.

Thank you, for giving your valuable time for reading this article, if you have any query or suggestion, please let us know in the comment section. If you are looking for professional assistance for Private Limited Company Registration in India then please contact our team of experts at Compliance Calendar LLP at info@ccoffice.in or connect with our team at 9988424211 and we would be happy to support you.