Closure of Company under FTE

There are various organizations, which are registered under the Companies Act, 1956, yet because of different reasons they are inoperative since incorporation or commenced business but became inoperative or defunct later on. Such companies might be desirous of getting their names struck off from the Register of Companies kept up by Registrar of Companies.

According to Section 560 of the Companies Act, 1956, (where Section 248 of the Companies Act 2013 is not yet implemented, hence Section 560 is prevailing). Registrar of Companies may strike off the name of companies on fulfilling the conditions in that. According to present practice, an company envious of getting its name struck off, needs to apply to Registrar of Companies in e-form 61. All pending statutory returns are required to be filed with e-form 61. However under the new scheme i.e. Fast track exit (FTE) mode, there are no filings to be done, an application in Form FTE must be made independent of all pending statutory returns “Fast Track Exit mode” by MCA:

Fast Track Exit (FTE) Scheme:

MCA has issued Guidelines for “Fast Track Exit (FTE) Mode” to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956 in time bound way.

Salient Features of FTE Guidelines:

FTE Guidelines are relevant to an defunct company. For the reasons for the FTE Guidelines, any organization will be called as “defunct company “, which has nil resource and obligation and

  • Has not started any business action or operation since incorporation; or
  • Is not carrying over any business movement or operation for most last 1 year before making application under FTE.
  • Any defunct company which has dynamic status or recognized as dormant by the MCA may apply for getting its name struck off from the ROC.

Procedure to closure of Company under FTE:

  • Make the application in form FTE which is accessible on MCA Portal. Charges require for this Form is Rs.5000/-.
  • For striking the name of the company under section 560 of the company act 1956, the following documents are required:
    • Annexure-A – Affidavit required to give individually by every director.
    • Annexure –B – Indemnity Bond to give individually or all things considered by each director.
    • Annexure –C – Statement of accounts duly certified by statutory auditors.
    • Annexure – D – Board Resolution from the Board of Directors.
  • The Registrar of Companies, on receipt of the application, should look at the same and if found all together, might give a notification to the company under section 560(3) of the Companies Act, 1956 by email on its email address intimated in the Form, giving 30 days time, expressing that unless cause is appeared unexpectedly, its name be struck off from the Register and the company will be dissolved.
  • The Registrar of companies should put the name of applicant(s) and date of making the application(s) under Fast track exit mode, on regular basis, on the MCA portal giving 30 days time for raising complaint, assuming any, by the partners to the concerned Registrar;
  • In the event of company(s) like Non-Banking Financial Company(s), Collective Investment Management Company(s) which are directed by different Regulator(s) to be specific RBI, SEBI, the Registrar of Companies, toward the end of every week, should send insinuation of such organizations benefiting fast track exit mode amid that period to the concerned Regulator(s) furthermore a suggestion in respect of all companies availing fast track exit mode during that period to the office of the Income Tax Department giving 30 days time for their objection, if any;
  • The Registrar of Companies immediately after passing of time given in sub-paras (a) to (c) of this Para and on being fulfilled that the case is otherwise in order, should strike its name off the Register and might send notice under sub-section (5) of segment 560 of the Companies Act, 1956 for publication in the Official Gazette and the applicant company should stand dissolved from the date of publication of the notification in the Official Gazette.

CONCLUSION:

The Registrar of Companies will take their time to approve Form FTE. It may take a month or more than a month, and once it is approved the company name will be struck off from the registrars. A certificate confirming the closure of the company will be issued by the Registrar of Companies.

Mudra Bank Loan

An Overview

Mudra stands for Micro Units Development and Refinance Agency Ltd. This association has been set up by Government of India for improvement and renegotiating activities identifying with micro units. Essentially with the vision of – “Funding the Unfunded’’.  Companies, Small organizations, startup entrepreneurs of micro units in India face lack of formal financial support in starting or growing stage of their small businesses.

Mudra bank loan activity has been taken to give ease subsidizing to MFI (Micro Finance Institutes). MUDRA would be responsible for refinancing all financiers or financial institutions with financing of Small Businesses, Societies, Trusts Section 8 Companies, Co-operative Societies, Small Banks, Scheduled Commercial Banks and Rural Banks which are in the business of lending to micro or small businesses engaged in manufacturing, trading and services activities.

DIFFERENT TYPES OF MUDRA BANK LOAN :

As per the development stage and necessity of fund Mudra bank loan is given at present under three plans in Pradhan Mantri Mudra Yojana. The three plans are as taking after:

Types of Loan under the PMMY:

There are three schemes namely,

  • The Shishu scheme:

Offering loan up to Rs. 50,000. In other words, it is likewise termed as a startup loan.

  • The Kishor scheme:

Offering loan above Rs. 50,000 to Rs. 5 lakh. It is likewise expressed as the mid-level business foundation setup loan.

  • The Tarun scheme:

Offering loan above Rs. 50,000 to Rs. 10 lakh. This is implied for the individual who needs to set up a business in a greater and propelled level.

MUDRA BANK LOAN ELIGIBILITY CRITERIA

Any Indian Citizen who has a marketable strategy for a non-farm sector income generating activity, for example, manufacturing, processing, exchanging or service area and whose credit need is under 10 lakh can approach either a Bank, MFI, or NBFC for profiting of MUDRA advances under Pradhan Mantri Mudra Yojana (PMMY). The terms and conditions of the lendor would need to be taken after for profiting of loans under MUDRA. The lending rates are according to the RBI rules issued in such manner now and again.

The MOST EFFECTIVE METHOD TO APPLY MUDRA BANK LOAN | BASIC GUIDE

Here are some easy steps that may help you as guidance for applying Mudra Loan:

In the first place you should know Mudra bank is not a different bank like SBI or ICICI. It is a finance scheme of Government to provide business loan to small business entrepreneurs in India. To get Mudra bank loan you should contact your closest public or private bank. To contact with a Mudra bank credit nodal officer (State Wise). Taking after are the progressions to apply Mudra Bank Loan:

  • MUDRA Loan Application
  • Business plan.
  • Proof of Identity like PAN/Drivers License/Aadhaar Card/Passport and more
  • Residence proof such as recent phone bill/power bill or property tax receipt and more.
  • Recent passport size photo.
  • Quotation of hardware or different things to be bought
  • Name of supplier or details of machinery or prices of machinery
  • Proof of category like SC/ST/OBC/Minority, if applicable
  • Proof of identity / address of the business like tax registration, business license and more.

There is no processing fee or collateral security needed in getting Mudra bank loan.

Sample Mudra Bank loan Application Form

Mudra loan

KEY FEATURES OF MUDRA BANK LOAN

The key elements are much enchanting and any little or smaller scale organization will discover these components much superior to whatever other elements offered by different plans.

These incorporate

  • No insurance is important.
  • There are zero preparing expenses.
  • The rate of interest is just 1% per month.
  • The maximum period of repaying the loan has been extended up to 5 years.
  • Mudra cards have been dispatched that will give working capital credits.
LIST OF TOP PUBLIC SECTOR BANKS PROVIDING MUDRA BANK LOAN
  1. UCO Bank
  2. State Bank of India
  3. Canara Bank
  4. Bank of India
  5. Syndicate Bank
  6. Indian Bank
  7. Punjab National Bank
  8. Bank of Baroda
  9. Central Bank of India
  10. Allahabad Bank
LIST OF TOP PRIVATE SECTOR BANK PROVIDING MUDRA BANK LOAN
  1. HDFC Bank
  2. IndusInd Bank
  3. Axis Bank
  4. ICICI Bank
  5. Ratnakar Bank
  6. Yes Bank
  7. Karnataka Bank
  8. Karur Vysya Bank
  9. South Indian Bank
  10. Lakshmi Vilas Bank

Startup India – New Dawn for Entrepreneurs

STARTUP INDIA:

During the month of January Prime Minister of India, Shri Narendra Modi launched a fruitful initiative ‘STARTUP INDIA’ which focuses on improving g the start-up culture in the country.

Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Start-ups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Start-ups to grow through innovation and design.

STARTUP INDIA HUB:

The Government of India has taken various measures to improve the ease of doing business and is also building an exciting and enabling environment for these Startups, with the launch of the “Start-up India” movement.

The “Start-up India Hub” will be a key stakeholder in this vibrant ecosystem and will:

  • Work in a hub and spoke model and collaborate with Central & State governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions
  • Assist Start-ups through their life-cycle with specific focus on important aspects like obtaining financing, feasibility testing, business structuring advisory, and enhancement of marketing skills, technology commercialization and management evaluation
  • Organize mentor-ship programs in collaboration with government organizations, incubation centres, educational institutions and private organizations who aspire to foster innovation.

To all young Indians who have the courage to enter an environment of risk, the Start-up India Hub will be their friend, mentor and guide to hold their hand and walk with them through this journey.

TAX EXEMPTION TO STARTUPS FOR 3 YEARS:

Innovation is the essence of every Start-up. Young minds kindle new ideas every day to think beyond conventional strategies of the existing corporate world.

During the initial years, budding entrepreneurs struggle to evaluate the feasibility of their business idea. Significant capital investment is made in embracing ever-changing technology, fighting rising Competition and navigating through the unique challenges arising from their venture.

With a view to stimulate the development of Start-ups in India and provide them a competitive platform, it is imperative that the profits of Start-up initiatives are exempted from income-tax for a period of 3 years. This fiscal exemption shall facilitate growth of business and meet the working capital requirements during the initial years of operations. The exemption shall be available subject to non-distribution of dividend by the Start-up.

ELIGIBILITY FOR A START-UP:

An entity (Private Limited Company or Registered Partnership Firm or Limited Liability Partnership) shall be considered a “Start-up” –

  1. Upto 5 years from the date of its incorporation/ registration, and
  2. If its turnover for any of the financial years has not exceeded INR 25 crore, and
  3. It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.

The entity should not have been formed by splitting up or reconstruction of a business already in existence.

A proprietorship or a public limited company is not eligible as start-up. A one person company, being a private limited company is entitled to be recognized as a ‘start-up’.

In order for a “Start-up” to be considered eligible, the Start-up should

  • be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
  • be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
  • be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI; or be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
  • be funded by GoI as part of any specified scheme to promote innovation; or
  • Have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.

Professional Tax Registration

Professional Tax is a Tax which is required by the State on the Income earned by method for profession, trade exchange, calling or business. This type of tax was initially exacted in India in the year 1949 and the power to levy Professional Tax has been given to the States by method for Clause (2) of Article 276 of the Constitution of India.

This Tax is levied based on slab rates depending on the Income of the Individual. This Tax is much the same as Income Tax with the exception of the way that Income Tax is gathered by the Central Government and Professional Tax is collected by the State Government. At the point when this tax was initially introduced in India, the maximum limit on the tax to be collected was Rs. 250. Be that as it may, this limit was raised from Rs. 250 to Rs. 2500 in the year 1988.

For the past few years, State Governments have been asking for the Parliament to raise this ceiling from Rs. 2500 to Rs. 7500. In any case, their solicitation has not been acknowledged and the maximum amount of Professional Tax that can be imposed by any State is Rs. 2,500 as it were.

Any sum paid as Professional Tax to the State Government is permitted as a deduction under Section 16 of the Income Tax Act and Income Tax on the Balance Amount is levied according to the Income Tax Slab Rates in power.

In the event of Salaried and Wage workers, the Professional Tax is subject to be deducted by the Employer from the Salary/Wages and the Employer is at risk to store the same with the state government. If there should arise an occurrence of different class of Individuals, this tax  is at risk to be paid by the individual himself.

Professional Tax in India is gathered by some state governments themselves while in a few different states which have dynamic Panchayats, the local bodies themselves levy and this tax. Every person liable to pay this Tax might apply for Professional tax registration in the endorsed form  with the prescribed authority.

As the states have been empowered to levy and collect this Tax, different states levy Professional Tax according to Different Slab Rates. The Professional Tax Slab Rates in a percentage of the significant states in India are given below:-

  1. Maharashtra
  2. New Delhi
  3. Karnataka
  4. West Bengal
  5. Madhya Pradesh
  6. Tamil Nadu
  7. Andhra Pradesh
  8. Gujarat

Professional Tax in Maharashtra

Professional Tax in Maharashtra is represented by the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975 which became effective from 1st April 1975. The Professional Tax slab Rates on Salary and Wages in Maharashtra are as per the following:-

Monthly SalaryAmount payable in Maharashtra
Less than Rs. 7500Nil
Rs. 7501 to Rs. 10000Rs. 175 pm
Rs. 10001 & aboveRs. 200 pm except for the month of Feb
Rs. 300 for the month of Feb

Different Slab Rates have been prescribed for various class of Individuals by the Maharashtra State Government and above slab rates are just for Salaried Individuals and Wage Earners.

For all different class of Individuals, Maharashtra State Government has prescribed different slab rates and the Individual is himself liable to pay this Tax.

The Maharashtra State Government has announced a composition scheme under which any individual liable to make payment to the Maharashtra State Government at  Rs. 2500 p.a. can make an one time single amount payment  ahead of time of Rs. 10,000 and his liability for the following 5 years would be released.

The Interest levied for late payment of this Tax in Maharashtra is 1.25% per month and the Maharashtra State Authority might also impose penalty at 10% of the Total Tax due.

Professional Tax in New Delhi

In December 2004, the Municipal Corporation of Delhi (MCD) attempted to enforce professional tax on those residing and working in New Delhi. In any case, this proposal was rejected by the Standing Committee of the MCD. Also, along these lines, this Tax is not levied in New Delhi.

Professional Tax in Karnataka

Professional Tax in Karnataka is levied under the Karnataka Tax on Professions, Trade, Callings and Employment Act, 1976. Professional tax slab rates in Karnataka on Salary and Wage workers are as per the following:-

Monthly SalaryAmount payable in Karnataka
Less than Rs. 15,000Nil
Rs. 15,000 & aboveRs. 200 per month

Different Slab Rates in Karnataka have been prescribed for different class of Individuals and the above slab rates are just for Salary/Wage workers.

For late payment of Professional Tax in Karnataka, Interest at 1.25% per month would be levied and a maximum penalty of 50% of the Total Amount due may also be levied by the Karnataka authority.

Professional Tax in West Bengal

Professional Tax in West Bengal is represented by the West Bengal State Tax on Professions, Trades, Callings and Employment Act, 1979. The Professional Tax Slab Rates in West Bengal with impact from 01/04/2013 on Salary and Wage workers are as per the following:-

Monthly SalaryAmount payable in West Bengal
Less than Rs. 8500NIL
Rs. 8501 to Rs. 10000Rs. 90 pm
Rs. 10001 to Rs. 15000Rs. 110 pm
Rs. 15001 to Rs. 25000Rs. 130 pm
Rs. 25001 to Rs. 40000Rs. 150 pm
Rs. 40001 & aboveRs. 200 pm

The above slab rates in West Bengal are just relevant to Salaried and Wage workers.

In the case of any delay in depositing this Tax with the West Bengal Govt, Interest at 1% pm would be levied. The West Bengal govt may also levy penalty at 50% of the Total Amount Due.

Professional Tax in Madhya Pradesh

Professional Tax in Madhya Pradesh (MP) is levied by the Madhya Pradesh Vritti Kar Adhiniyam, 1995. According to Notification No. 174 dated 31/03/2012 distributed in the MP Gazette, the following Slab Rates would be applicable in Madhya Pradesh on salaried income wef 1st April 2012 onwards

Monthly SalaryAmount payable in Madhya Pradesh
Less than Rs. 12500Nil
Rs. 12500 to Rs. 14999Rs. 125 pm
Rs. 15000 & aboveRs. 208 from April to Feb & Rs. 212 in March

Professional Tax in Tamil Nadu

Professional Tax in Tamil Nadu is levied under the Town Panchayats, Municipalities and Municipal Corporations Rules 1988. The Slab Rates in Tamil Nadu on salaried pay are as per the following:-

Monthly SalaryAmount payable in Tamil Nadu
Less than Rs. 3500Nil
Rs. 3501 to Rs. 5000Rs. 16.66 pm
Rs. 5001 to Rs. 9000Rs. 40
Rs. 9001 to Rs. 12500Rs. 126.67 pm
Rs. 12501 & aboveRs. 182.50 pm

Professional Tax In Andhra Pradesh

Professional Tax in Andhra Pradesh is levied under the Andhra Pradesh Tax on Professions, Trades, Callings and Employment Act 1987. The Slab Rates in Andhra Pradesh on Salary/Wage workers are as per the following:-

Monthly SalaryAmount payable in Andhra Pradesh
Up to Rs. 15000Nil
Rs. 15001 to Rs. 20000Rs. 150 pm
Rs. 20,000 & aboveRs. 200 pm

Professional Tax in Gujarat
Professional Tax in Gujarat is administered by the Gujarat Panchayats, Municipalities, Municipal Corporations and State Tax on Professions, Traders, Callings and Employment Act 1976. The Slab Rates in Gujarat are as per the following:-

Monthly SalaryAmount payable in Gujarat
Less than Rs. 5999Nil
Rs. 6000 to Rs. 8999Rs. 80 per month
Rs. 9000 to Rs. 11999Rs. 150 per month
Rs. 12000 & aboveRs. 200 per month

VAT Registration in India

Value Added Taxation in India:

Introduced to replace the sales Tax, VAT could be a multi-point levy on every of the entities within the offer chain with the supply to permit ‘Input tax credit (ITC)’ on tax at Associate in earlier stage, which may be taken against the VAT liability on subsequent sale.

Who is liable to register for VAT?

Any trading or business, whether or not a sole proprietorship or a partnership firm or a private limited company, that sells its product is susceptible to be registered for VAT.

Documents required for VAT Registration:

VAT registration is needed for any business that’s into sales either by manner of mercantilism, manufacturing etc. The units might to Proprietary, Partnership, private limited company because the case.

The documents that are needed to submit for company are as below:

Proprietary company:

  1. Application in VAT (Form 1).
  2. Additional for CST registration (Form A).
  3. Professional tax registration (Form 2).
  4. Copy of the rental agreement of the business place.
  5. Copy of the address proof, ID proof of the Proprietor / Partner / Director.
  6. Four passport size images of owner / Partner / Director.
  7. PAN No. and Bank Account No.
  8. Details of business activities.

Additional Documents for Partnership:

Partnership deed

Additional document for Private Limited Company:

Memorandum of Association (MOA) and Articles of Association (AOA).

Procedure of VAT registration:

  1. Submit an application for VAT in Form 1 with the subsequent documents to the local VAT office:
    • Central sales tax registration certificate (Form A).
    • Professional tax registration certificate (Form 2).
    • Copy of important documents like the address proof, ID proof of the Proprietor/Partner/Director.
    • Four passport size photos of the Proprietor/Partner/Director.
    • PAN No. and Bank account No of the Proprietor/Partner/Director.
    • Copy of the rental agreement of the business place.
    • Details of business activities.
    • Partnership deed (in case of a partnership firm).
    • Memorandum of Association (MOA) and Articles of Association (in case of a Private Limited Company)
  2. The authorities from the local VAT office can examine the premises of wherever you conduct business within a prescribed time.
  3. Once the review is over, you’ll ought to pay a such that fee to the local office for your VAT registration.
  4. On payment of the fee, a TIN number are assigned to you for your business and you’ll even be given the VAT registration Certificate.

Partners and Designated Partners in LLP

PARTNERS:

“Partner”, in relation to a limited liability partnership, means any person who has been admitted as a partner in the limited liability partnership in accordance with the limited liability partnership agreement

An individual or a body corporate may become a Partner in a Limited Liability Partnership.

Proviso to Section 5 specifies the disqualifications that will prevent an individual from becoming a Partner. Accordingly, an individual shall not be capable of becoming a partner of a limited liability partnership, if-

  1. He has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;
  2. He is an undischarged insolvent; or
  3. He has applied to be adjudicated as an insolvent and his application is pending.

The LLP Act, 2008 has not specified the qualifications to be a partner but has specified the above three disqualifications in respect of an individual. Minimum number of partners in the Limited Liability Partnership is stipulated as two by Section 6 (1) of Limited Liability Partnership Act 2008. In case the minimum number of partners is reduced below two and the LLP carries on Business for more than 6 months, then such sole partner with whom business is carried on, if he has knowledge of such fact, shall be personally liable for obligations of LLP during that period.

DESIGNATED PARTNERS:

“Designated partner” means any partner designated as such pursuant to section 7 of the said Act.

Every LLP should have at least 2 designated partners and at least 1 should be resident in India. The term – resident in India means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding one year.

The Incorporation document of the LLP can specify the names of the designated partners and if so, they will become designated partners.

The Incorporation document can also state that every person who from time to time is Partner will be Designated Partner.

The Individual should have given his consent to act as a designated partner in the form and manner prescribed. Every LLP has to file Particulars of every partner who has consented to act as such with the Registrar within thirty days of his appointment [Section 7(4)] .

Section 7(5) lays down that an individual eligible to be a designated partner shall satisfy such conditions and requirements as may be prescribed. Rule 9 of the LLP Rules 2009 lays down the disqualifications for appointed as designated partner. As per section 7(6) of the LLP Act 2008, every designated partner of a limited liability partnership will have to obtain a Designate Partner Identification Number from the Central Government.

Every individual, who is intending to be appointed as designated partner of a limited liability partnership, should make an application electronically in Form DIN-1 under Companies (Director Identification Number) Rules, 2006 to the Central Government for obtaining DPIN under Limited Liability Partnership Act, 2008 and such DIN will be sufficient for being appointed as designated partner under Limited Liability Partnership Act, 2008. If a person holds both DIN and DPIN, his DPIN will stand cancelled and DIN will be sufficient for being appointed as Designated Partner under Limited Liability Partnership Act, 2008

The designated partner shall be answerable for doing of all acts, matters & things as are required to be done by LLP pursuant to the Act and will be responsible for filing of document, return, statement and the like report pursuant to the provisions of this Act and as may be specified in the LLP agreement. The designated partners are liable to all penalties imposed on the LLP for any contravention of the specified provisions. Notice has to be filed with the Registrar when changes occur in the partnership and/or designated partnership of a LLP within 30 days of the change.

How to Form a Charitable Trust

Setting up of a Not for profit organization for the purpose of doing charitable activity can be done through Trust, Society, and Sec 8 company under Companies Act 2013.

Process Involved in Forming a Public Charitable Trust

A Trust needs a Settlor he is the Author of the Trust. He writes the Trust deed and he creates the trust with a corpus defining the purpose for which such trust being created. While declaring his Trust he nominates the other trustees and formulates the Board of Trustees. Therefore for forming a Trust

  1. One Settlor and
  2. At least another one Trustee.

There is no restriction of family members are getting in to the trust.

The Trustees cannot claim salary for the service they provide however a nominal honorarium can be paid for the professional service he is rendering to the trust.

The trust can be registered with the Registrar of Trust. He will be available in the sub registrar office of the jurisdiction of the registered office address of the Trust. While registering the Trust the settler along with two witnesses has to appear before the Registrar of Trust for completing the registration process.

Normally the registered office of a Trust can be the address of the Settlor and he gives an NOC to the trust to function from his premises.

Settlor is one who settles the corpus and creates the trust and it’s a permanent one. Once created then he cannot go back from his own words.

In general Trustees are appointed by the Settlor or the Trust can define the method of selecting a Trustee.

The trust is run by its trustees.

After registration the Trust can apply for PAN and can open Bank account by passing necessary Resolution in its Board of Trustees meeting.

Subsequent to this the Trust can apply for 12A registration and 80G exemptions.

12 A is for exempting the income of the Trust from the income Tax and 80G is for exempting and allowing the donors from paying tax for the amount he donates to a trust which is having the 80G exemption and claim deductions.

While drafting the Trust the Settlor has to very clearly specify the purpose and objective of the Trust.

NRI can be a Trustee but not the Foreign nation as Trustee.

Digital Signature Certificate

A Digital Signature Certificate, similar to hand written signature, sets up the identity of the sender filing the documents through web which sender cannot renounce or deny. As needs be, Digital Signature Certificate is a digital equivalent of a hand signature which has additional information attached electronically to any message or a document. Digital Signature also guarantees that no changes are made to the information once the document has been digitally signed. A DSC is regularly legitimate for 1 or 2 years, after which it can be renewed.

There are three types of Digital Signature Certificates: Class-1, Class-2 and Class-3 each having distinctive level of security.

All the authorized signatories of company under MCA21 require Class-2Digital Signature Certificate.

Similarly any document filed by CA/CS/CWA and TAX PRACTIONERS under MCA21 require Class-2 Digital Signature Certificate.

A Digital Signature is a method of authenticity of an electronic document. Digital signatures are going to play an important in our lives with the gradual electronization of records and documents.

Why Digital Signature Certificate:

A Digital Signature Certificate validates your character electronically. It also outfits you with an abnormal condition of security for your online exchanges by ensuring incomparable assurance of the information exchanged using a Digital Signature Certificate. You can use certificates to encrypt information such that only the intended recipient can read it. You can digitally sign information to guarantee the beneficiary that it has not been changed in travel, and also verify your identity as the sender of the message.

The digital signature certificates are available in following varieties:

  • Class-II (Only Signing) Signature: For Income Tax & ROC.
  • Class-II (Signing & Encryption) Signature: For companies to file e-tenders.
  • Class-III (Signing & Encryption) signature – For companies to file e-tender for organizations like IFFCO, IREPS. ONGC, For Stock Broking companies for signing contract notes.
  • Class III (Only Signing) signatures – For IRCTC agents for e-ticketing & also e-tenders.

Difference between MOA and AOA

The fundamental points of distinction between MOA and AOA are as follows:

BASIS FOR COMPARISONMEMORANDUM OF ASSOCIATIONARTICLES OF ASSOCIATION
DefinitionMemorandum of Association is a document that contains all the fundamental data which are required for the company incorporation.Articles of Association is a document containing all the rules and regulations that governs the company
RegistrationMOA must be registered at the time of incorporation.

 

The articles may or may not be registered.

 

ScopeThe Memorandum is the charter, which characterizes and limits powers and constraints of the organization.The articles demonstrate obligations, rights and powers of individuals, who are endowed with the responsibility of running the organization and administration.
StatusSupreme document.It is subordinate to the memorandum.
PowerThe memorandum cannot give the company power to do anything opposed to the provision of the companies act.The articles are constrained by the act, but they are also subsidiary to the memorandum and cannot exceed the powers contained therein.
ContentsA memorandum must contain six clauses.The articles can be drafted according to the decision of the Company.
ObjectivesThe memorandum contains the objectives and powers of the company.

 

 

The articles provide the regulations by which those objectives and powers are to be conveyed into impact.

 

ValidityThe memorandum is the dominant instrument and controls articles.

 

Any provision, as opposed to memorandum of association, is invalid.

 

 

Startup India Action Plans

PM Narendra Modi launches ‘Start-up India, Stand-up India’ action plan

Prime Minister Narendra Modi had announced the ‘Startup India, Standup India‘ initiative in his Independence Day address a year ago. However the plan was formally propelled on January 16, 2016 in New Delhi by Prime Minister Narendra Modi.

The plan intends to push for Entrepreneurship in the nation by giving empowering environment for the entrepreneurs.

The Features of the Action Plan 2016 are as follows:

    1. A Rs. 10,000 Crore Fund for Start-ups

The government will set up a fund with a starting corpus of Rs. 2,500 crore and an aggregate corpus of Rs. 10,000 crore over a time of four years, which will be overseen by a board with private experts drawn from industry bodies, the educated community, and successful startups. The fund will take part in the capital of SEBI registered venture funds, and invest in sectors such as manufacturing, agriculture, health, and education.

    1. Simplifying the Startup Process

A startup will be to ready to set up by simply filling up  a short form through a mobile application and online portal.  A mobile application will be propelled on April 1 through which startups can be registered in a day. There will likewise be a portal for clearances, approvals and registrations.

    1. Compliance Regime Based on Self Certification

The objective of compliance regime based on self certification is to reduce the regulatory burden on startups. This self-certification will apply to laws like payment of gratuity, contract labour, employees provident fund, water and air pollution acts.

    1. Patent Protection:

The government is also working on a legal support for fast-tracking patent application at lower expenses. It will promote awareness and selection of Intellectual Property Rights (IPRs) by startups and offer them some assistance with protecting and popularize IPRs.

    1. Startup India Hub

A startup India hub  will be made as a solitary purpose of contact for the whole startup biological system to empower learning trade and access to funding.

    1. Credit Guarantee Fund:

A National Credit Guarantee Trust Company is being visualized with a budgetary allotment of Rs 500 crore for every year for the following four years.

    1. Exemption from Capital Gains Tax

At present, investments by venture capital funds in startups are exempt from this law. Now, the same is being extended to investments made by incubators in startups.

    1. Tax exemption for Start-ups

Income tax exemption to startups announced for three years.

    1. Faster Exits for Startups

Startups with basic debt structures or those meeting such criteria as might be determined might be wound up within a period of 90 days from making of an application for winding up on a fast track basis. This process will respect the concept of limited liability.

    1. Launch of Atal Innovation Mission

Government to begin Atal Innovation Mission to give an impetus to development and instituting so as to empower ability among youngsters national grants.

    1. Relaxed Norms of Public Procurement for Startups:

Keeping in mind the end goal to advance Startups, Government should excluded Startups (in the assembling part) from the criteria of prior experience /turnover with no unwinding in quality principles or specialized parameters.

    1. Setting up of 35 New Incubators in Institutions

PPP model being considered for 35 new incubators, 31 innovation centres at national organizations.

    1. Setting Up of 7 New Research Parks

Government might set up seven new research parks – six in IITs, one in IISc with initial investment of Rs 100 crore each.

    1. Innovation Focused Programmes for Students

There will be innovation core programs for students in 5 lakh schools.

    1. Promote Entrepreneurship in Biotechnology

Five new bio groups, 50 new bio incubators, 150 technology exchange workplaces and 20 bio connect  offices  will be built up.

    1. An Annual Incubator Grand Challenge

The government will identify and select ten incubators, evaluated on pre-defined Key Performance Indicators (KPIs) as having the potential to become world class, and give them Rs.10 crore each as financial assistance to ramp up their infrastructure.