company registration in india Archives - Business , Financial & Legal Consultant In India

April 3, 2020April 3, 2020

Decoding the benefits of registering a Business

There are lots of benefits which are there of registering a business in India and they are as follows-

It gives you a structure- By forming a new company, it gives you a better structure of business, like suppose if you want to open a one man company then you can go for One person company formation, or if there are Partners in your company then you must opt for a Partnership Firm and by forming a company, it helps in smoothly running of a firm.
Without structure there is no order in the company and therefore it affects the profit margin of the company. Therefore when we talk about business then we must focus on how must give a properly organized structure to your business idea.
By opting for a registration of company, it gives a separate entity to your business, as you get certificate of incorporation which can be called as a Birth Certificate of your newly formed company.
There is perpetual existence of a company, like when we open a startup , then everyone one only wants to make money but also they want to establish a legacy. When a business is registered it gives a separate entity. If and when the owner of the business dies the business can continue to exist. Its ownership can be transferred to another Director, or it can lie dormant.
Registered business are more trustworthy, basically unregistered business is worthless as before doing any business, anyone wants to have safe business and they do not want to lose in their services, therefore registered business are termed as more understandable as compared to the unregistered one.
Limited liability partnership is probably the most overused terms when it comes to “ benefits of Business Registration”, however people are still fuzzy about its meaning. So Limited Liability means that a company is a separate legal entity and it has to bear its own losses.

Conclusion

When it comes to business registration, there are many but when we talk about its benefits, there we lack, I hope that through this blog we have enlightened you with the understanding of what the benefit actually means.

July 21, 2019July 21, 2019

Decoding the benefits of registering a business

Incorporating or Registering your business idea is not a bad idea in India as it gives a strong foundation to your business aspirations so that you don’t come crashing down.

Benefits of Business Registration in India

Registering a business has importance everywhere in the world, but it is India where it is more significant. The major benefits of registering a Business in India are as Follows-

It Gives you Structure- when you register a business in India then you give a proper structure to your business. As without proper structure there is no order in Business and therefore, there is hardly any profit. Without a proper business criteria there is no business conducted properly. Therefore, it is always advisable to register a business for the proper and smooth brunning of your business.
Separate Entity- It forms a separate entity once you form a separate business. Once you get the certificate of incorporation, you apply for PAN card in the name of the company which is considered as a Valid ID of the company.
Perpetual Existence- we live in an era of startups, everyone not only wants to make money, they want to establish a legacy. When an entity is registered then it becomes a separate entity. Therefore, if and when the owner of the business dies , the business can continue to exist.
Registered Business are more trusted- generally a business which is a registered one is trusted more are compared to the unregistered one. We are not saying that unregistered business are worthless, but they are hidden more,less advertised, less marketed and therefore, less trusted. However once you have registered your business

, you are free to reveal yourself and market yourself.

5. Trust then leads to more funds- If you have trust of the people then you would have more trust of the investors and Financial institutions as well. A business cant survivev on the personal assets of its owner, it needs outside funding for expansion, diversification. Being a registered business attracts more investors towards you, who see your business a legitimate one.

6. Limited Liability- Limited liability is probably the most used terms when “Benefits of Business Registration” is the topic. however , people are still fuzzy about its meaning.

A company is a separate legal entity, then is its own person has only has to bear its own losses.

The above statement basically means that if the company goes through any loss on finances, personal finances or assets of the Directors of this company are not affected.

Conclusion

When it comes to the business registration benefits there are any, but what is lacking is the understanding of these benefits. Hope that through this blog we have enlightened you with the understanding of what the benefit actually means. For Registration of Business please contact BIATconsultant.com.

June 2, 2019June 2, 2019

Companies 2nd Amendment Rules 2019 for Appointment and Qualification of Directors

INC 22A is an active form introduced by MCA as compliance back in January of this year. Under this compliance, every company which is formed or which is registered on or before 31st December, 2017 has to file the e-form active INC-22A. It tags the companies that are active and currently doing business. At the same time MCA takes their eyes on the working of the companies. Cobimining with this rules for Director Qualification and appointment, MCA has released a new notification for companies 2nd amendment of 2019, it states as follows-

“Where a company governed by Rule 25A of Companies (Incorporation) Rules, 2014, fails to file the e-form ACTIVE within the period specified therein, the Director Identification Number (DIN) allotted to its existing Directors, shall be marked a Director of ACTIVE Non-compliant company.

Let’s talk about Director Disqualification

As per Rules of Companies Act, under certain circumstances, a director of a company can be disqualified by the MCA. when that happens, the Director’s DIN is removed from the registry. As a result, the Director can no longer be associated with the company. Where you can definitely remove the Director disqualification by filing a Petition o the Court, what if the Director of a company is appointed to again goes non-complaint because of Non- filing of INC-22A.

ACTIVE e-form INC 22A

MCA introduced this form back in january. Important and mandatory for companies that were registered before 31st December, 2017, this form’s main reason was to tag companies that are active (Currently doing business), through active tagging and verification it tries to locate shell companies. If the companies does not file INC 22A within the extended period of due date, it is marked in the MCA registry as “ACTIVE non compliant. It means that the company is active but has not filed the ACTIVE e-form.

Director of Non-compliant company

Before the mentioned notification, it was only the company that was marked as non- compliant. However, with the announcement of companies act, 2nd amendment notification, the meaning is this,

“ If the company is marked as Non- compliant in the mCA registry because INC 22a was not filed the DIN of the Director of that company is marked as “ Director of ACTIVE Non- compliant company”.

The notification further states that when the Director’s DIN is marked as Director of ACTIVE Non- compliant company, then they have to take all the necessary steps to file the complaint and to remove this mark. In this case the step would be to file INC 22A.

Further the notification states that once the Director files the Compliance INC-22A their DIN will be marked as Director of ACTIVE Non- compliant company.

May 25, 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-

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.
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.
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

The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
The plural or singular forms of words in one or both names.
Use of different tenses in one or both names.
The order of words in the names.
Addition of the name of the place to a current name which does contain name of any place.
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.

April 13, 2019

How To Register A Company In India From USA

In this blog we will discuss that how a Foreigner/ Non resident Indian can register a company easily in India .

An Applicant can apply for Company Registration in India either Online or Virtual , and can easily get its company incorporated in India .

How to register a company in India from USA

The very first step to start with the registration process of company is to decide the name of your business entity i.e. firstly name of the Business Entity is to be chosen before applying for company registration. You can Register Private Limited Company, LLP, Partnership etc in India from USA completely online. According to BIATConsultant , it is advisable to register a LLP or a Private Limited Company in India since these requires very minimal legal requirement in India , and can be carried on in India with minimum requirement .

Conditions for Registration of a Company in India from USA

There are certain conditions which needs to be fulfilled in order to start a Company in India right from sitting in USA:

Firstly you need to make sure that there should be One Indian Resident to be a Director of the said company ( in case you don’t have , don’t worry , BIATConsultant will provide you with sleeping director for the same at initial stages) along with his/her documents and KYC details in order to get DIN Number and DSC (Digital Signature ) Number in India.
Secondly, Foreign Direct Limit is to be checked, as in case of formation of a company. If the sector comes in Automatic routes, it will not require any prior permission of RBI. however, if the sector belongs to 100% FDI route, prior permission of concerned ministry of Central Government or RBI is required to start a business and name application needs to be done for company along with the preparation of MOA, AOA of the company.
Thirdly , you have to make sure that you have all the documents in place for company registration and all documents are notarised from your local country and you must send all the necessary documents in well scanned format to a business consultant who is applying for the same .

Documents required to Register a Company in India from USA

Here are the list of documents which are required to register a Company in India from USA:-

Valid Passport
Driving License from issuing country
Voter Id of the issuing country.
Social security Number(SSN)
Bank Statement of last 6 month
Photographs
A resident permit issued by an Indian embassy ( in case you want to reside )
Copy of valid business visa issued by foreign national

Documents required if a foreign company is trying to register a company in India ( Subsidiary of Company ) :

If any Foreign Company wants to register a company in India then following documents are required and they are follows:

Certificate of incorporation that proves that a company is legally formed and registered.
Board resolution of foreign company
Copies of valid address proof of foreign company

The process of registration of Company in India from USA :

The Applicant must have a valid account with the MCA portal in India ( It is preferred to get help of business consultant to do the same ). And if you are not having a account with MCA portal then you can easily sign up with the portal in order to process the company registration in India.
Firstly, you need to apply form DSC ( Digital Signature Certificate), for this you can directly approach the certified authorities to get DSC registered or otherwise you can directly take help of a professional like BIATConsultant for the DSC.
Once you have made an account with MCA Portal and also DSC is prepared, then you can visit this link of MCA , after which you can apply for the name of the company through Run Form.
The applicant after logging into the account, by entering the name of the business entity he must check that whether that name is available or not, and after choosing the name it has to be submitted through Run form along with the prescribed fees of Rs. 1000/-, after which MCA or personnel of central registration will check for the name, and if the name is unique then they will sanction through MCA within 1 to 2 weeks.
After the Application for Name approval, applicant must apply for DIN Number or Director Identification Number. In order to obtain the DIN Number, you have to fill SPICE Form, and there you need to submit the details of the Director for whom the DIN Number is to be allotted along with the PAN card and passport.
And after the above steps your company will be incorporated and certificate of Incorporation will be issued to you and your company will be formed in India from USA.

The company registration in India is only possible with the help of CA/CPA in India who is registered with MCA Portal , and can aids you with all the documentation process along with after company formation compliance service at nominal cost . Check BIATConsultant.com to know more about it

March 3, 2019March 3, 2019

What is the commencement of certificate of business?

There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.

Format

I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:

Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
All the requierment attachment have been completely and legibly attached to this form.
Every subscriber to the MOA has paid the values of share agreed to be taken by him.
The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

Documents that have to be attached-

COI of the Company
PAN of the company
List of directors and shareholders of the company
Bnak statements of the Directors and shareholders of the company
ID proofs of the same
Receipt proof (if any)

Fee structure of the share certificate

Share capital involved

Fee to be paid

Less than 1 lakh	Rupees 200
1,00,000- 4,99,999	Rupees 300
5,00,000- 24,99,999	Rupees 400
25,00,000- 99,99,999	Rupees 500
1,00,00,000 or more	Rupees 600

What if you don’t comply with the Declaration

Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.

Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.

Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.

Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.

January 13, 2019

Is Independent Director really an independent person?

In the age of start-ups there are Directors who take up the charge of the company as they manage and controls the whole of the undertaking efficiently.

Directors are the representatives of the investors and ensures that the company is moving inna right direction to achieve its objectives. For every startup Board of Directors takes necessary steps to ensure that there is no mismanagement in the company.

Independent Director

Independent Directors are the Directors who are brought from outside to participate in Board Meeting of a company and must not be having any material or pecuniary interest in the Company. Only those who are not having any material or Pecuniary interest in the Company determined by the Board to Directors to become Independent Director of the Company. He is given sitting fees in the Board meetings of the Company.

Appointment of Independent Directors

Appointment of Independent Directors in a Listed and Unlisted Companies is very easy and the same is approves in the meeting of shareholders and Independent Directors are appointed as per the provisions under Companies Act, 2013 and they are as follows-

For Listed Companies- at least one third of the total Directors should be independent Directors.

For unlisted Companies- At least there should be two Directors who are Independent in case of unlisted companies.

Public companies should be having paid up share capital of 10 crores or more.
Public companies must be having turnover of Rs. 100 crores or more.
And public companies who should be having in aggregate, outstanding loans, debentures, and deposits exceeding 50 crore Rupees or more.

Term of Appointment

The appointment is for a term of 5 years commencing from the date of appointment and ending on 6th Annual general meeting of the company following the date of appointment. Such appointment can be terminated at any point of time according to the Companies Act, 2013.

The time period of the Independent Director must not exceed two consecutive periods of 5 years each and can be extended for a second term only after passing a special resolution.

Re-appointment of Independent director

According to the companies Act, 2013 Independent Directors can be reappointed only after the expiry of the second term but such reappointment can be done only after the expiry of three years.

Independent Directors always makes sure that the affairs of the company are conducted in a best way so that organisational objectives can be achieved easily.

Want to form a company or get appointed in a company as a director , consult BIATConsultant – #1 Business Consultant In India

November 28, 2018

What is the role of Company registrar of Companies in the Incorporation process

The Company Registration process in India includes Companies Secretaries, Chartered accountants and some other individuals. In this blog we will discuss the role of Registrar of Companies in incorporation process.

Role of Company Registrar

Registrar of Companies has very important role to play in Incorporation of Companies. All documents are sent to the Registrar of Companies only. He decides everything like whether Company’s name can be incorporated or not. There are three Categories which are divided in to 3 parts and they are as follows:-

Document Accumulation– Once Registrar receives all the documents and application, then he will cataloguing it responsibly for future assessment.

Document Assessment- Once the Registrar receives all the documents then he will check whether all the documents are in order or not. And for Document assessment he will check whether all documents are present or not. And whether the documents are as per the rule of Ministry of Corporate Affair. And he will check that whether the application is filed right or not.

The certification- Once the Registrar checks every document that whether all the documents are present or not and all the documents are on record or not. And after checking all documents he will decide whether to certify the company or not. After certification of the company, documents are given to the Applicant. Only Chartered Accountant and Companies secretaries and some other people are authorised to apply for Incorporation of the Company. Because they are the experts and will advice you on correct things.

In BIATConsultant there are team of experts which can guide you in Company incorporation process.

November 26, 2018

What Is Said To Be Dormant Status Of The Company

Dormant status of the Company

The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.

Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year. Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.

Here are some Rules regarding Dormant Company

MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.

MSC 2- Certificate of Registrar- Registrar will issue the Certificate.

MSC 3- Return of Dormant Company- By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.

MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.

MSC 5- Certificate of Application status- In this certificate of Application status is being issued.

There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.

And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.

Want to register a company in India ? Hire #1 business consultant in India – BIATConsultant .

August 30, 2018

Process Of Company Registration In India

Steps to form a Private Limited company

A Private Limited company is a Company or a small entity which is held privately. And it limits the liability of the owners to their shares i.e. in case of loss occurred by the company in future then the owners will only liable to their shares. In Private Limited company minimum shareholders should be two and maximum 200 shareholders should be there, and they are restricted to trade their shares publically.

Advantages of Forming Private Limited Company

That forming a private limited company limit the risk to the personal asst of the owner. Therefore if a company is a small entity then it is always recommended to form a Private Limited Company as there is no ris to the personal asset as in case in a Limited Company.
Private Limited Company is a separate legal entity which means that Company is responsible for the management of its assets and liabilities, debtors and creditors.
A company has a Perpetual succession which means that even on the death of the Partner the company continues to exist unless it is legally dissolved.

Also Read : Process Of Trademark Registration In India

Steps for forming a Private Limited Company Registration

First step is to obtain Digital Signature Certificate which is required for filing the forms for company registration. The registration process is online and the forms requires the Digital Signature. You must obtain the digital signature which is certified either by Government or by the Authorized Agencies. The cost of obtaining agencies varies from agencies to agencies. DSC is obtained under class 2 or class 3, under class 2 identity of a person is verified against a pre-verified database, whereas under class 3, person should be present himself before the registering authority to prove their identity.
Next step is to apply for DIN (Director Identification Number) Number, for a Director. DIN Number is basically obtained to be a Director of the following Company .There are three ways for filing DIN and they are as follows:

File form DIN 3- this form requires basic details of the Proposed Directors along with the Documentation Like PAN Card, AAdhar Card etc.
With filing spice in this maximum three Directors can apply for DIN. if a company wants to incorporate with more than 3 Directors and 3 Directors does not have their DIN Number then in that case applicant has to incorporate their company with 3 Directors only and and have to incorporate new Directors later on after incorporation of a company.
If you want to register a company with Biatconsultant then there is no need to apply for separate DIn Number as it is included with the registration process only.

For name approval you have to incorporate your company Via Reserve Unique name (RUN). the Ministry of Corporate Affairs has introduced this RUN facility according to which name for approval is given to the MCA and if Ministry has rejected the name i.e. if the name of the company is not approved then second chance is given. So BiatConsultant helps you to find with the unique name so that there is less chance for approval of a name for incorporaion of a company.

If under spice form, name is not approved by the ministry then no second chance is given and you have to file fresh application and there is no fee.