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MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.

 

Contents of Companies (Incorporation) Fifth amendment rules, 2019

 

The following notifications were issued by Companies Incorporation are as follows-

 

  1. The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
  2. The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
  3. The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.

 

The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-

 

  • Rule 8A
  • Rule 8B

 

What is Rule 8A?

 

These rule specifies the list of undesirable names, and

 

What is Rule 8B?

 

These rules are for the word or expression which can be used only after obtaining a previous approval of central government.

 

Key Highlights of Company incorporation Fifth amendment, 2019

 

The following matters are to be disregarded while comparing the names

 

  1. The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
  2. The plural or singular forms of words in one or both names.
  3. Use of different tenses in one or both names.
  4. The order of words in the names.
  5. Addition of the name of the place to a current name which does contain name of any place.
  6. addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.

 

Provison

 

Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.

 

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How To Register Law Firm in India

Law Firm Registration in India

A lawyre who wish to open his firm shall apply for its registration first. Only lawyers who are duly admitted as advocates and who are duly enrolled in a State bar can set up a law firm.

 

A person may be admitted as an advocate on aState roll when following things are fulfilled-

 

  1. He must be a Citizen of India.
  2. Has completed the age of 21 years.
  3. Has obtained a degree of law from recognized university which is recognized by Bar Council of India.

 

In what form should a Law firm function- Sole proprietorship, Partnership or LLP

 

 

  • Sole Proprietorship-  Single person brings in the Finance and manges all important function. Here since there is no distinction between individual and the Legal entity, the individual’s assets is liable to pay off any debts that may incur in future. Registering of this is very simple task as it does not contain too many compliances. A Bank account may be opened in the name of the firm which requires a letterhead of the firm with its address of operation, letter from CA regarding the nature of the business.
  • Partnership Firm- When people come together to bring their resources, knowledge and most importantly connections and clients, they may decide to form a Law firm in partnership. The profit sharing is decided upon by the Partners mutually relying on various factors like operations, management etc.
  • General Partnership- This is considered as the easiest form of Business. The partners have unlimited liability which means that their assets are personally liable for the debts of the firm. A Partnership is required to registered but most importantly it is also a wise option so as to give it a legal standing.

 

Steps to getting Partnership Firm Registration-

 

  • Partnership deed with all essential details like name of the firm, details o the partners, capital contribution, profit sharing etc.
  • PAN card to be applied for in the name of Proprietorship firm.
  • A bank account to be opened in the name of Partnership Firm

 

Documents required for Registration

 

  1. Application for Partnership firm in Form 1.
  2. Certified copy of Partnership deed
  3. PAN card and identity proof of the partners.
  4. Pan card of the partnership firm
  5. Proof of registered office

 

 

  • Limited Liability Partnership-  It offers more benefits of both private Limited Company and general partnership. One partner is not liable for the conduct of other partners.

 

 

Steps involved in LLP Registration

 

  1. Name Approval
  2. Obtaining the Digital Signature Certificate, DIN Number.
  3. Obtaining PAN number
  4. Filling up the incorporation form with supporting documents

 

Documents Required

 

  1. For registered office any utility bills or scan copy of rent agreement with NOC from the owner.
  2. From Partners
  • Affidavits
  • PAN card or passport of election id.
  • Latest bank statement/ telephone or mobile bill.
  • Voter id/ Driver’s License.
  • Scan copy of signature.

 

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Advantages of NBFC Registration in India have over Nidhi Companies?

NBFC and Nidhi Companies are seen to be functioning at larger and smaller platforms respectively. In this blog we will discuss what Nidhi company do not have privilege to perform but NBFCs have.

 

Below are the privileges of NBFCs over Nidhi Companies-

 

Minimum capital of Rs. 5 Lakh is required for starting of the business in Nidhi Companies. Where NBFCs are governed by RBI and minimum 2 crore net worth is required in order to start the finance business.

 

 

  • Nidhi Company cannot do any other Business-  If you have a Nidhi company you carry out the business of chit funds, hire purchase finance, lease finance etc. therefore, Nidhi companies carries a predefined business and is not allowed to pursue the business of any other type. And in order to do business of chit funds and other separate business, then separate License is required to take for pursuing such business.

 

 

 

  • Cannot open a Branch before three years- For opening a Nidhi Company in india, then the company must earn profits continuously for 3 years and after that only they are allowed to open a Branch. It is one of the mandatory condition and it cannot be compromised even if you have sought permission from the Registrar of Companies.
  • No Provision of Preference Share Capital-  In Nidhi Company raising funds by way of preference share capital is not allowed.
  • Dealing with members only- Nidhi Company are not allowed to deal with a person who is not a part of the company.
  • No advertisement or solicitation- Ndhi Company cannot advertise or solicit any person for deposits.
  • No Brokerage or Incentive- Nidhi companies cannot pay any brokerage or incentive to any person rather they can hire employees on fixed salary basis as it is not restricted by law.
  • Cannot open a current account- Nidhi Companies are not allowed to open a current account with members. It is considered as mutual benefit company and hence government does not want these Nidhi companies to commercialize.
  • No service charge on the membership- While issuing any shares, nidhi Company cannot charge any service charge from its members.
  • No Partnership is allowed- Nidhi companies are not allowed to enter into a Partnership firm for the purpose of borrowing or lending activities.
  • Limited within a State- Nidhi companies are not allowed to open a account or branch outside the state of functioning.
  • Cannot add Body Corporate- Nidhi Companies cannot add any body corporate like Private Limited companies do, because the members of Nidhi companies cannot accept deposit from these Body corporate.

 

 

Conclusion

 

Nidhi Companies have lots of Limitations in india before for its application, therefore it is always advisable to seek permission of an expert to guide for the Application of Nidhi company License. whereas , NBFC in India offers a wide range of financial services such as loans, chit-funds, and these are different from banks. NBFCs plays a very crucial role in a developing country like us. Many economists have explained that NBFCs are very important for our economy to grow. For NBFC Registration or any information regarding NBFC and Nidhi Company Registration please contact BIATConsultant.

 

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Procedure For Mutual Fund Registration in India

Procedure For Mutual Fund Registration in India

For Registration of Mutual Fund Registration in India Form-A is to be submitted.

 

A mutual Fund is established as a Trust which has sponsors, Trustees, Asset Management Company, and custodian. Sponsors and trustees are there to work as a promoter of a company. And also trustees hold its property for the benefits of the unit holder.

 

Types of Mutual Funds

 

 

  • Open Ended-  It is a collective investment scheme that can issue or redeem shares at any time. An investor will generally purchase share in the Fund directly from the Fund itself, rather than from the existing shareholders.
  • Close Ended Mutual Funds-  It is a collective scheme model based on issuing of fixed number of shares which are not redeemable from the funds. Unlike open ended funds, new shares in a close ended shares are not created by managers to meet demand from investors.
  • Interval Mutual Funds- It is a Non-Traditional type of closed end mutual funds that periodically offers to buy back a percentage of outstanding shares from the shareholders. Shareholders are not required to sell their shares back to the fund.

 

 

Key Points for Mutual Funds Registration

 

  1. All Mutual Funds should be registered as Trust under Indian trust Act, 1882.
  2. A separate AMC should be registered. The net worth of AMC must be INR 5 Crores.
  3. Investors of Mutual Funds re called as Unit Holders.
  4. Basket of Securities is called as Portfolio.
  5. Managed by Fund Manager.
  6. Value of each unit is called a Net Asset Value (NAV).
  7. An organization that manages the investments is called as Asset Management company.
  8. The sponsor should contribute at least 40% to the Net worth of AMC.
  9. Appointment of custodian in order to secure the securities.
  10. Should be carrying on business in financial services for a period of not less than 5 years and the net worth should be positive.
  11. Applicant has to be fit and proper person with a soundtrack.
  12. The main objects of the MOA of the sponsor company should permit the mutual funds activities.

 

Prerequisites for investing in Mutual Fund Plan-

 

  1. Bank Account
  2. Demat Account with Broker
  3. Documents or KYC to be enclosed
  4. Aadhar linkage of the accounts.

 

Documents required for Mutual Fund Registration

 

  1. A complete list of all associate companies/ Group Companies/ subsidiaries registered with SEBI in any capacity along with their Registration Numbers.
  2. List of instances of Violation/ non-adherence to any security related regulations enforced by any regulatory agency in India or abroad and whether any measure has been taken by you in this regard.
  3. A Declaration that the sponsor company or the Directors have not been found guilty of fraud/ misconduct etc.
  4. Details of registration of any of the companies with the RBI as NBFC or any other capacity.
  5. Two sets of MOA and AOA of AMC and Trustee Company
  6. A Detailed Business Plan
  7. A detailed note on the infrastructure employed by AMC.
  8. Auditor’s Certificate
  9. RBI/ other Regulators approval for the purpose of sponsoring Mutual Funds
  10. Executed copies of Trust Deed and Investment Management Agreement
  11. Undertaking from sponsor to provide additional capital o AMC, till its operations breakeven in order to protect the interest of Unitholders.

 

Applicant ha sto provide all the required information within 30 days from a receipt of a communication from SEBI, failing which case may be considered as Closed.

 

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Types of Trademark Application in India

Types of Trademark Application in India

Before the Advent of new TM  rule, 2017, there were separate applications which had to be filled for each of the below mentioned Types of trademarks and there were separate forms for single class and multi-class applications, also depending upon whether priority was claimed or not. The type of the application would depend upon factors like the type of mark that is to be filled, single or multi class, priority or not, an application could be fro-

 

 

  • Normal Trademark- A normal Trademark Application to be filed for a word, Device or any other combination thereof.

 

 

 

  • Certification Mark- A certification mark is defined under Section 2(e) of the Act, “Certification Trademark” means a mark capable of distinguishing the goods or service in connection with which it is used in the course of trade which are certified by the proprietor of the mark in respect of origin, material, mode of manufacture of goods or performance of service not so certified and registrable as such under chapter IX in respect of those goods and services in the name, as proprietor of the certification trade mark, of that person. In short it is a mark certifies the characteristics like quality, origin etc of other goods or services. Example ISI mark.

 

 

 

  • Collective mark-  As the name suggests, where a mark belongs to a collective group or association of persons it is called as collective mark. Example Confederation of Indian Industry (CII).

 

 

 

  • Series mark- Where the trademark applied applied for, is in the form of a series. In other words, the primary element of a mark might be used used/ intended to be used in several forms/ways by the proprietor and instead of filing separate applications for each, it is possible to file them as a series. For example, McDonalds has series mark incorporating the term “MC” +Like Mcchicken, Mc Cafe, MS Donuts etc.

 

 

Currently all the above applications could be filed under form TM -A.

 

Generally a Trademark application can be filed on the following basis-

 

  1. Indian Application- this is the Application form directly filed in one of the IP offices in India and also Online Application can be filed.

 

  1. International Applications- India Acceded to the Madrid Protocol and with effect from July 8, 2013 it is possible to designate India in an international application. Similarly it is also possible to file online an international application under the Madrid Protocol throgh the Indian Trademark Office.

 

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Using Copyrighted Music In Videos: When Is It legal?

Using Copyrighted Music In Videos: When Is It legal?

Copyright Law is one of the most grayest area of internet and violations happens more often than a troll comment gets posted on Youtube. Well may be not, Copyright laws can be quite complicated and confusing to navigate if you don’t know how laws are applied to your particular situation.

 

Often creators don’t even realize that they are actually violating the copyright laws. Following are the steps which can help individuals to earn money from the works you produce.

 

In this blog we will discuss, legal implications of using copyrighted music in your videos, and confirm royalty free, public domain options.

 

What Audio can you use and when?

 

The easiest way to avoid copyright violations is to create 100% original content. But what about using sound effects or a soundtrack in your video? Whether an individual can use soundtrack in their videos hassle free?

 

Examples would include having the entire track from Justin Bieber’s Baby playing in the background of your latest video. To that end any person can use these videos but prior permission is required to be taken from their original creator if the song is already in public domain.

 

When is it ok to use Another creator’s work?

 

It is a complicated topic but if you want to use music that someone else has created then you will need to know the legal implications of doing so. Obtaining permission really depends on the specific piece itself and whether it needs a License or not?

 

  1. In the purest sense, the only time that you do not need to secure special permissions to use a work is when what work is in public domain. Some older work have made their way into public domain and according to the public domain information projects that includes: any song or published work published in 1922 or earlier is in public domain then taking of permission is not needed in USA.
  2. If the work is already in public domain then you will need to obtain the license to use the work of original creator.

 

Following sites can be used for royalty free and there are websites available for it:-

 

Royalty free is attractive because the legal responsibilities with it are completely minimized. It is the closest you can get to the Public Domain, yet still retain some legal rights if you are the original creator of the song. The nice thing here is that your music or work can become widely used and gain exposure for original creator, yet it benefits the public at large with a fress service. These works re free and allow you to work or use them without penalty or fees. Each site may have some stipulations on the way in which you use the work, so be sure to use the type of license they grant. Some good examples of Royalty free sites are as follows:-

 

  1. The Public Domain Project
  2. Youtube Audio Library
  3. Incompetech.Com
  4. Audio Micro
  5. FreePD.com
  6. www. Audionautix.com
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Requirements for your Design Registration

Requirements for your Design Registration

Novelty

In order to be able to protect your Design, it must be new. A design is considered as new if no other identical design has been made publicly accessible before the filing date or priority date. A Design is considered as identical to another Design if they only differ in unimportant respects.

 

Publicly accessible

 

A Design Is considered to be publicly accessible if it has been made public in connection with a registration or in some other way. The same applies if your Design has been displayed, used in the professional capacity or become known in some other way.

 

However, your design is considered to be publicly accessible if Trade groups in the sector (within the European Economic Area) could not reasonably, in their normal business operations, have known about the publication of Design.

 

Novelty Time Limit

 

Neither is a Design considered to have been made publicly accessible if it has been made in Public, or in some other way become known, by the Designer within a period of 12 months before the Filing date or priority date.

 

Individual character

 

In Order to protect your Design, it must also have individual character. A Design has individual character if the overall impression differs from previously known Designs. It is not possible to protect your designs that is so simple and  common place that it should be available for everyone to use. For Example, if something is made simply of geometrical shapes or simple striped and checked patterns. As a rule, it is not enough to just redesign an old Design.

 

Other requirements

 

It is not possible to register a Design, that without permission includes:

 

  • A nation coat of arms, national Flag or other State Emblem.

 

  • A national control or guarantee designation, another designation that refers to swedish state and as such gives the design an official character, a Swedish municipal coat of arms, an international Designation that is protected according to the act on the protection of coats of arms and certain other official designations or something that can easily be mistaken for a coat of arms, flags, emblem or Designation.

 

No Design that are contrary to morality or public order be registered.

 

Important to consider

 

BIATConsultant at any time can revok Design protection after opposition if it is found that the design, without permission, includes someone else’s

 

  • Protected company
  • Trademark
  • Portrait
  • Family Name
  • Artist Name
  • Copyright protected work or something that infringes someone else’s Copyright
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How to avoid copyright infringement when creating you android app content

How to avoid copyright infringement when creating you android app content

When you decide to create an Android app, it is important that your content is interesting, entertaining, or informative else you will find no one wants to actually use you app.

 

It is very simple to look into the vast amount of content on the web and simply copy it to you own app. However, have you considered the fact that this is illegal? Today in this blog we will discuss things about Protection from Copyright Infringement while creating you Android app content.

 

What is Copyright?

 

Copyright means that the work which is created by the holder is creative and must be original piece of work, be it a written article, a photo, a song or a game, only you have the right to reproduce the work or to give permission to someone else to use your work. You cannot claim copyright on a fact or an idea unless the idea has been published or is in a written format.

 

How can you avoid infringing on copyright laws

 

 

  • Create your Own Content- his is a simple answer, if you write your own content and use your own images you will not be infringing upon anyone’s else’s work, not only that you will be producing work that you will have rights over.
  • Give Credit- even if you are writing in your own words, many ideas and thoughts are based upon other’s ideas and thoughts, it is always recommendable and appreciable that you give thanks to your sources so that in future they cannot claim for not taking the prior permission from them.
  • Public Domain- The internet is widely accepted as a public domain due to its vast audience, however, this where people are mistaken. The contents provided on the internet are still protected by Copyright laws and it is important to take permission from the original holders.

 

Fair Use- If you are using snippets of an article, video, or image to get an idea across then this may be seen as using the materials within the powers of free speech in order to get you ideas of views across. This means that you are not replicating the works, but you are only using these work for only background purposes and not for commercially exploiting. For Eg. Copying of Book for a research purpose never comes under copyright infringement as an individual is not using for commercially exloiting it.

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Chowkidar Remark made in the heat of Political Campaign, Rahul gandhi tells SC

Congress President “ Rahul gandhi” said that the Chowkidar Remark was made by him in the heat of the political campaign and he also clarified that he did not have the slightest intention to bring SC into the political arena or disrepute.

 

On April, 15 the apex court had asked Gandhi’s explanation on the petition filed by the BJP MP Meenakshi Lekhi, who had sought criminal contempt against the congress president for wrongfully attributed statement to the apex court. Senior Advocate Mukul rohatgi and appeared on behalf of Lekhi and told CJI- led bench that congress president had made a remark that the SC has said “ Chowkidar Chor Hai” in the verdict in Rafale Review delivered on April, 10.

 

In the Affidavit filed today, Gandhi has clearly said that he has made a statement without going through the actual order and in the head of Political campaign he passed such comment on the BJP.

 

He as written following things in his affidavit?

 

“ At the time of and in my statement, the issues relating to court proceedings unfortunately got juxtaposed and mingled with a political slogan being used extensively by answering Respondent’s party as well as answering Respondent for the last several months, which is a matter of intense and frenzied public debate during the ongoing Lok Sabha elections” “It is unfortunate that this slogan got intermingled with my comments on and references to the Apex Court’s order dated 15.04.2019”

 

“It has been used (and misused) by my political opponents to project that I had deliberately and intentionally suggested that this Court had said Chowkidar Chor Hai! Nothing could be farther from my mind. It is also clear that no court would ever do that and hence the unfortunate references (for which I express regret) to the court order and to the political slogan in juxtaposition the same breath in the heat of political campaigning ought not to be construed as suggesting that the court had given any finding or conclusion on that issue”

 

“As a responsible political and public figure as also as the head of a 130 year old political party, the answering Respondent does understand that the said juxtaposition of the political and legal stands has been fully clarified by the order of this Hon’ble Court dated 15.04.2019 to which the answering Respondent humbly bows down”

 

This is how Congress President had taken his words back and said sorry.

 

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How to get BIS certification in India easily

How to get BIS certification in India easily

It is quite vital to ensure that the products that we are using are safe to use and are good in quality.  Keep same into consideration, an international agency in Geneva, Switzerland, established an organization called the International Organization for Standardization ( ISO).

 

India is also member to it and that is called Bureau of Indian Standards (BIS). Products adhering to the standards mentioned by BIS are certified.  The BIS reviews its standards in every 5 years.

 

If you want BIS consultation then you must consult, BIATConsultant. BIATConsultant is a leading consultant that offers plethora of services to its client such as Company Registration, GST Registration, Trademark Registration etc.

 

Now, the question that would be arising in your mind may be why you need to have BIS Registration. Here is the solution for that, in this blog we will discuss about BIS certification and its purpose.

 

What is the purpose of BIS Certification

 

Basically BIS works towards maintaining the quality, safety and reliability of products in India. The basic purpose of BIS is to test samples of products during the preliminary and surveillance operations. And therefore several Branch laboratories is being established in the country.

 

BIS Registration is encouraged by the Government for the following purposes:-

 

  1. Protecting the consumers from Hazardous products
  2. Providing a safeguard to a public health
  3. Providing quality assurance
  4. Promoting consumer confidence

 

What Activities does BIS Oversee?

Given below are the following activities that BIS look after:-

 

  1. Compulsory registration Scheme
  2. Foreign Manufacturers Certification Scheme
  3. Hall marking scheme
  4. Standards formulation
  5. Product Certification Scheme
  6. Laboratory Services
  7. Laboratory Recognition Scheme
  8. Sale of Indian Standards
  9. Sale of Indian Standard

 

  1. Training services at national and international level
  2. Information services
  3. Consumer affair activities
  4. Promotional activities

 

Who can apply for BIS Certification?

 

Here are the List of people or group who can apply for BIS registration:-

 

  1. Manufacturers of Notified products established in India or outside the country under the Compulsory Registration scheme (CRS)
  2. Separate registration for products producing at different locations
  3. Separate registration for each brand producing at the same location is required to have a BIS certification.

There  are various schemes that can help certified users.

 

Steps for BIS certification

 

The certification process is simple and they are as follows-

 

  1. Sign in with User id and Password. If you are  new user then click, new user.
  2. The next step is to fill form VI.
  3. Then you are required to make payment as required.
  4. After making the payment you have to fill the form fields as required and  then click submit button.
  5. You will receive an auto generated mail with the Application Number.
  6. Submit the hard copy of the application within 15 days, test report in original, which must not be older than 30 days, should be submitted with the application. ( test report must be from a recognised BIS labs).
  7. BIS will scrutinise the application. In case of any query or objection they have to submit their reply online.
  8. Once their objection is addressed and affidavit cum undertaking is submitted, Registration is granted .

 

Documents Required for BIS Registration:-

 

Following are the documents which are required for BIS registration and they are as follows-

 

  1. Application form as per the prescribed format is to be given.
  2. Self evaluation report as per the described format.
  3. Original test reports from the recognized BIS laboratories, not older than 30 days. It must mention all the requirements as per the relevant category.
  4. A scanned copy of the acknowledgment received from the portal screenshot of the online file submission.
  5. Address proof that could be business license or any document issued by the government
  6. Demand draft along with the prescribed fees along with the Xerox of DD and NEFT details.
  7. The undertaking document
  8. Affidavit as per Form C