Online Company Registration in Delhi2022-04-06T13:06:13+05:30

Private Limited Company Registration in Delhi

Private Limited Online Company Registration in Delhi is one of the popular options to start a business amongst startups and emerging businesses. It is a corporate entity that is easy to register, manage and run. Private Limited Company can induct up to 200 shareholders wherein liability of each member is limited.

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    Online Company Registration

    A private limited company, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 200 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when Online Company Registration happens. Private limited online company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014

    Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. It is one of the most popular legal structure option for businesses in India. A Private limited company registration requires a minimum of two members and a maximum of two hundred members. A director of a private limited company has limited liability to creditors. In case of a default, banks / creditors can sell only company’s assets but not the personal assets of a directors. A Private limited company is considered one of the most popular corporate entity amongst the small, medium and the large businesses in India due to its various advantages. Start-ups and growing businesses choose for online company registration in India because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.

    About Service

    The process for Online Company Registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. A natural person can be a director and as well as shareholder, where a corporate legal entity can only be a shareholder. In addition to that, foreign nationals, foreign corporate entities or NRIs are also allowed to be the Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the preferred choice of entity for foreign promoters.

    Advantages Of Online Company Registration

    • Limited Liability

      Businesses often need to borrow money. In a General Partnership, partners are personally liable for all this debt. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In an LLP, only the amount invested in starting the business would be lost; all personal property would be safe.

    • No limit on owners of business

      An LLP requires a minimum 2 partners while there is no limit on the maximum number of partners ; this is in contrast to a private limited company wherein there is a restriction of not having more than 200 members.

    • Dividend Distribution Tax (DDT) not applicable

      In the case of a company, if the owners to withdraw profits from company, an additional tax liability in the form of DDT @ 15% (plus surcharge & education cess) is payable by company. However, no such tax is payable in the case of LLP and profits of a LLP can be easily withdrawn by the partners.

    • Reduced Compliance

      An LLP only requires audited annual returns to be filed if it has a turnover of greater than Rs. 40 lakh or capital contribution of over Rs. 25 lakh. It also needs to communicate fewer business transactions and structural changes than a private limited company.

    • Owning Property

      A LLP being an artificial judicial person, can acquire, own, enjoy and sell, property in its name. No Partner can make any claim upon the property of the LLP – so long as the LLP is a going concern.

    Minimum Requirements For Online Company Registration

    • Minimum 2 Shareholders

    • Atleast 1 of the designated partners shall be an Indian Resident

    • Minimum 2 Partners

    • DPIN & DSC’s for all the Designated Partners

    • Minimum Contribution of 2 Rupees

    What Is Included In Our Online Company Registration Package?

    • DIN for 2 Directors

    • Name search & approval

    • Company PAN /TAN Card

    • Company Master File Kit

    • DSC for 2 Directors

    • MOA and AOA

    • Company Registration Certificate

    • Supporting Document for opening Bank Account

    Procedure For Online Company Registration

    • Application of DSC DIN

      First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used for filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.

    • Name approval

      You need to provide 2 different options for your company name to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business

    • MOA & AOA drafting & submission of forms

      Once name is approved, one needs to draft Memorandum of association and Articles of Association. All required details are filed to MCA in Spice forms once the drafting is completed.

    • Get incorporation certificate, PAN and TAN

      It typically takes 7-12 days for company registration and get the incorporation certificate. Incorporation certification is a proof that company has been created. PAN and TAN will be received from Income Tax department physically in 15-20 days approximately.

    • Bank Account

      You can submit the Incorporation certificate, MOA, AOA with a bank to open your bank account.

    Documents Required For Online Company Registration

    • Identity and Address Proof

      Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

    • Registered Office Proof

      All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or gas bill or water bill or telephone bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.

    • List of documents to be submitted by the Director and the Shareholders

      Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
      Scanned copy of Voter’s ID/Passport/Driver’s License
      Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
      Scanned passport-sized photograph

    • For the Registered Office

      Scanned copy of Latest Telephone or Electricity or Gas Bill or Water bill
      Scanned copy of Notarized Rental Agreement in English
      Scanned copy of No-objection Certificate from property owner
      Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

      Note: Your registered office need not be a commercial space; it can be your residence, too.

    FAQ

    How much time is required for filing a copyright application?2022-02-01T11:51:52+05:30

    On average, it takes 10-15 working days to file a copyright application. However, after application, the Copyright Office will process the copyright on its end and will examine whether your copyright qualifies for registration or not. It may take certain months of time for the completion of the registration process at the Copyright Office.

    How long does it take for a copyright to be registered?2022-02-01T11:51:28+05:30

    It generally takes about 8-12 months for copyright to get registered, the processing time at Copyright Office generally depends on many factors. If the copyright gets objected or opposed by someone, it may take a much longer time.

    Is the registration of copyright mandatory in India?2022-02-01T11:50:52+05:30

    No, Copyright comes into existence as soon as a work is created, and no mandatory registration is required. However, the certificate of registration of copyright and the entries made in the register shall serve as prima facie evidence in a court of law with reference to disputes relating to ownership of copyright. Therefore, it is always advisable to copyright the work in India.

    What is the validity of copyright?2022-02-01T11:50:22+05:30

    The general term of a copyright is 60 years. In the case of original literary, dramatic, musical and artistic works, the 60-year period is counted from the year following the death of the author. In the case of cinematograph films, sound recordings, photographs, posthumous publications, anonymous and pseudonymous publications, works of government and works of international organizations, the 60-year period is counted from the date of publication.

    Whose rights are protected by copyright?2022-02-01T11:49:56+05:30

    Copyright protects the rights of authors, i.e., creators of intellectual property in the form of literary, musical, dramatic and artistic works and cinematograph films and sound recordings.

    Whether unpublished works are registered?2022-02-01T11:49:33+05:30

    Yes, both published and unpublished works can be registered under copyright.

    Whether Computer Software or Computer Programme can be copyrighted?2022-02-01T11:48:52+05:30

    Yes, Computer Software or programme can be registered as a ‘literary work’. ‘Source Code’ and “Object Code” have also to be supplied along with the application for registration of copyright for software products.

    Whether websites can be copyrighted?2022-02-01T11:48:23+05:30

    A website usually consists of different rudiments which may be copyrightable subject that falls within any one of the classes of works under the Copyright Act, 1957. The component parts of a website can be in different forms of digital files such as text, tables, computer programmes, compilations including computer databases (“literary works”); photographs, paintings, diagram, maps, charts, or plan (“artistic works”); works consisting of music and including graphical notation of such work (“musical works”); “sound recordings” and “cinematograph films”. The website as a whole is not subject to copyright protection.

    Can I get Copyright registration for the Application or the App?2022-02-01T11:47:45+05:30

    An App is a complete, self-contained computer program that is designed to perform specific tasks. An App usually has primarily dynamic content and is designed for user interaction. It may be used directly or indirectly in a computer or hand-held electronic device. An App may be registered as a computer program under literary works, and the applicant is required to submit the source and object code.

    It is important to note that the registration will cover any screen displays generated by that program, provided that the computer program (code) generating the screen display is submitted by the applicant. Mere snapshots of screen displays of an app are not eligible for copyright protection.

    Is there an opportunity given for a hearing in case of rejection of copyright?2022-02-01T11:47:02+05:30

    Yes, an opportunity of hearing is given to the applicant and concerned parties. However, only after hearing, it may be decided to register the work or to reject it.

    Can I assign or transfer my copyright to another person or entity?2022-02-01T11:46:17+05:30

    Yes, the owner of a copyright may assign or transfer copyright to any person, either wholly or partially and either generally or subject to limitations.

    What is the difference between Trademark and Copyright?2022-02-01T11:45:47+05:30

    A trademark is an intellectual property that is being assigned to a word, logo, device, etc. but on the other hand, copyright is assigned to protect your unique content such as books, music, videos, songs, or computer software.

    How much time is needed for conversion into company in India?2022-01-28T01:19:18+05:30

    On average it takes 1-2 months of time for completion of conversion. However, this is dependent on the workload of the government authorities.

    Do I need to be physically present during this process?2022-01-28T01:18:37+05:30

    There is no such requirement, all the required documents are filed electronically, so you would not need to be physically present. You would just need to send us scanned copies of all the required documents and forms.

    Who can be a member of a Public Limited Company in case of conversion?2022-01-28T01:18:04+05:30

    Existing members of Private Limited Company whether individual or a body corporate shall become the member/shareholder of the private limited.

    How many members are required for conversion into Public Limited Company?2022-01-28T01:17:37+05:30

    There should be minimum of 7 members for conversion of Private Limited Company into Public Limited Company.

    Who can be the director of company on conversion?2022-01-28T01:17:05+05:30

    The existing directors/shareholders of Private Limited Company may become directors in the Public Limited Company on conversion.

    Can a company with secured loan convert itself?2022-01-28T01:16:35+05:30

    Yes, a Private Limited Company with secured loan may convert itself into Public Limited Company after obtaining No Objection Certificate (NOC) from such creditor.

    What is the maximum number of shareholders and directors that a Public Limited Company may have?2022-01-28T01:15:55+05:30

    There is no upper limit on the number of members/shareholder but there can be maximum of 15 directors in Public Limited Company, for further increase special approval of shareholder is required.

    Is the consent of shareholders required for conversion of Private Limited Company into Public Limited Company?2022-01-28T01:15:25+05:30

    Yes, consent of majority of members is mandatory for conversion of Private Limited Company into Public Limited Company.

    Is it required to have a Public Limited Company’s books audited?2022-01-28T01:14:57+05:30

    Yes, a public limited company should get its book audited and file the same with the Registrar of Companies (ROC) every year.

    What is the minimum capital for conversion into Public Limited Company?2022-01-28T01:14:24+05:30

    There is no minimum capital required. However, a minimum capital of Rs. 07.00 should be there if there are 7 shareholders.

    How is a public limited company different from a private limited company?2022-01-28T01:13:49+05:30

    A public limited company is a company that is not a private limited company and can be formed for any lawful purpose by 7 or more persons. The securities of a public company may be quoted on a Stock Exchange. Its number of members is not limited to 200 and can induct unlimited members.

    After conversion into public limited company can I bring an initial public offer (IPO) and issue shares to the general public?2022-01-28T01:13:14+05:30

    Yes, after conversion you can bring an initial public offering (IPO) and issue shares to the public by complying with the procedure prescribed under law and regulations issued by SEBI

    Do I need to hold my equity shares of an unlisted public company in dematerialized form?2022-01-28T01:12:47+05:30

    Yes, you need to hold the equity share of an unlisted public limited company in dematerialized form only. All unlisted public companies are obliged to get their shares converted into Demat form.

    What are the post conversion compliances for a Public Limited Company?2022-01-28T01:12:00+05:30

    A Public Limited Company shall have to file a reconciliation of the share capital audit report on half yearly basis to the ROC, it is also required to file board resolutions and general meeting resolutions to the concerned ROC. The eligible public company also needs to follow provisions related to Independent Director, rotation of auditors, appointment of KMP etc. apart from regular annual compliances.

    How much time is needed for setting up a Private Limited Company by conversion of Sole Proprietorship in India?2022-01-24T12:08:36+05:30

    On average, it takes 15-20 days for conversion, 2 different approvals (Name Approval & Final Approval) are required from government bodies. However, this is dependent on the workload of the Central Registration Centre (CRC), MCA.

    Do I need to be physically present during this process?2022-01-24T12:07:51+05:30

    There is no such requirement, all the required documents are filed electronically, so you would not need to be physically present. You would just need to send us scanned copies of all the required documents and forms.

    Who can be a member of a Private Limited Company in case of conversion?2022-01-24T12:07:04+05:30

    Any individual or organization can become a member/shareholder of the private limited company, including foreigners/NRI. However, such a person must be 18+ above in terms of age and should have a valid PAN card. Therefore, the sole proprietor along with any other person can become member of the Company.

    How many directors are required for a Private Limited Company?2022-01-24T12:05:27+05:30

    There should be a minimum of 2 directors in a Private Limited Company, out of which atleast 1 director should be a permanent resident of India.

    Can the sole proprietor become a director of company on conversion?2022-01-24T12:01:27+05:30

    Yes, the sole proprietor may become a director in the company on conversion.

    How should I choose a name for a Private Limited Company?2022-01-24T12:00:35+05:30

    For incorporation of a company, a unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). The applicant may keep the name of sole proprietorship concern with the word “Private Limited” if such name is not resembling any existing company/LLP/trademark and such name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article – https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/

     

    What is the minimum capital needed to form a Private Limited Company?2022-01-24T11:59:29+05:30

    There is no minimum capital required as such prescribed. However, one needs to start a company with a minimum capital of Rs. 02.00 if there are 2 shareholders.

    Is the consent of sole proprietor required for conversion into company?2022-01-24T11:57:51+05:30

    Yes, the consent of sole proprietor is mandatory for conversion into company.

    What is the difference between a director and a shareholder?2022-01-24T11:56:59+05:30

    A shareholder or member is an owner of a company who holds certain shares in the company and his name is entered in the register of members of the company. Whereas, Director is a person who manages the day-to-day function of a business. Director and shareholder may or may not be the same person.

    What is Memorandum of Association (MOA) and Articles of Association (AOA)?2022-01-24T11:56:20+05:30

    The Memorandum of Association (MOA) is a document that sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world.

    The Articles of Association (AOA) are the company’s bye-laws or rules and regulations that govern the management and internal affairs and the conduct of its business. Both the documents are required to be registered with the Registrar of Companies at the stage of incorporation of the company.

    Is it required to have a company’s books audited?2022-01-24T11:55:26+05:30

    Yes, a private limited company should get its book audited and file the same with the Registrar of Companies (ROC) every year.

    Whether Capital gain is applicable on conversion of sole proprietorship to company?2022-01-24T11:54:31+05:30

    Capital gain on conversion of sole proprietorship firm is not applicable only if the conditions as per Income Tax Act 1961 is satisfied, otherwise a sole proprietor has to pay capital gain tax.

    What is a slump sale agreement ?2022-01-24T11:53:40+05:30

    Sump Sale is a sale of business venture/undertaking as a whole for a lump sum consideration without values being assigned to the individual assets or liabilities. A slump sale agreement is executed between the seller and purchaser to complete sale/transfer of business.

    Can a minor person become a director or shareholder of a Private Limited Company?2022-01-24T11:52:35+05:30

    No, a minor cannot become a director or shareholder in a company. However, a minor can become a member/shareholder of a company through gift and/or inheritance, but he cannot enter into an agreement to buy shares.

    Can I register a Private Limited Company on my home or residential address?2022-01-31T12:48:17+05:30

    Yes, you can register the company at your residential address. You need to submit the utility bill of your home address along with the No Objection Certificate from the owner of the premises.

    Is there any renewal of Private Limited Company?2022-01-24T11:49:47+05:30

    No, there are no renewal required, registration of company is one time process, however yearly annual compliances are required to be followed.

    Is there any stamp duty required for company formation and how it is paid?2022-01-24T11:46:56+05:30

    Yes, there is a stamp duty to be paid during incorporation. The stamp duty depends on authorized capital, and it is different for each state. The stamp duty is generally paid online during the incorporation process.

    How will I get documents like Certificate of Conversion, MoA, AoA, PAN, TAN, etc.?2022-01-24T11:46:15+05:30

    You will receive these documents in soft copy via email as well as we shall send you a printout of these documents at your address.

    What are the mandatory compliances for Company?2022-02-01T20:55:38+05:30

    Know about mandatory compliances here

    How much time is needed for conversion of company into an LLP in India?2022-01-22T14:52:42+05:30

    On average it takes 1-2 months of time for completion of conversion, 3 different approvals are required from government bodies, one for name confirmation, second for incorporation and conversion, and last one for LLP Agreement. However, this is dependent on the approval from Government Authorities.

    Do I need to be physically present during this process?2022-01-22T14:52:11+05:30

    There is no such requirement, all the required documents are filed electronically, so you would not need to be physically present. You would just need to send us scanned copies of all the required documents, forms, and LLP agreement.

    Is it mandatory for all shareholders to become partner in the LLP?2022-01-22T14:51:37+05:30

    Yes, all the shareholders/members of the Company shall become the partners of the LLP on conversion.

    How many minimum shareholders are required in the company to convert into LLP?2022-01-22T14:51:12+05:30

    There should be a minimum of 2 shareholders/members in the company for conversion into an LLP, if there are more than 2 shareholders than all the shareholders/members of the Company shall become the partners of the LLP on conversion

    Who can be a designated partner of an LLP on conversion?2022-01-22T14:50:42+05:30

    The partners of LLP shall have to nominate minimum 2 designated partners amongst them.

    What is the difference between a partner and a designated partner?2022-01-22T14:50:11+05:30

    A partner is a person or body corporate who has invested capital towards LLP and agrees to share profits and losses, risks, and rewards amongst each other as per the LLP agreement. On the other hand, designated partner can be only an individual who has a valid DIN and is recognised as such in LLP agreement, who shall oversee the day-to-day functions of the LLP, similar to the role of director in a company.

    Can a company with open or unsatisfied charge convert into LLP?2022-01-22T14:49:30+05:30

    No, a company with open or unsatisfied charges cannot convert itself into LLP.

    Is it required to file Balance sheet, annual return and Income Tax Return (ITR) before conversion of company into LLP?2022-01-22T14:48:57+05:30

    Yes, at least one balance sheet and annual return should have been filed by the company after its incorporation and all the pending filings has to be completed.

    Does an LLP have continuous existence?2022-01-22T14:47:38+05:30

    Yes, similar to a private limited company, LLP shall have perpetual succession as per law. However, it is pertinent to note that statutory annual compliances are required to be completed by LLP mandatorily. In case of non-compliance Registrar of Companies (ROC) shall be bound to strike off the name of LLP.

    Can I convert my private limited company into LLP with a completely different name or new name?2022-01-22T14:46:52+05:30

    No, private limited company or unlisted public company can be converted into LLP with the same name as that of the company at the time of conversion.

    Is the consent of secured creditor required for conversion of company into LLP?2022-01-22T14:46:21+05:30

    Yes, the consent of secured creditor is mandatory for conversion of company into LLP

    What is an LLP Agreement?2022-01-22T14:45:51+05:30

    LLP Agreement means any written agreement between the partners of the LLP or between the LLP and its partners which determines mutual rights and duties of the partners and their rights and duties in relation to that limited liability partnership. It defines the roles, responsibilities, rights, and powers of the partners to LLP and to each other, it clarifies the managerial, operational as well administrative responsibilities and sets clear methodologies for decision making, adding a new partner and disassociation of existing partner, etc.

    Is it required to have an LLP’s books audited?2022-01-22T14:45:13+05:30

    There is no mandatory audit required for LLP. It is required only in those cases where the turnover of the company exceeds Rs 40 lakhs or where the contribution exceeds Rs 25 lakhs.

    Do the partners need to pay capital gain tax on conversion of Company to LLP?2022-01-22T14:44:35+05:30

    On conversion of Company to LLP, capital gains tax shall not be applicable if the transfer satisfies the conditions prescribed under Income Tax Act 1961.

     

    Is it required to execute a contract or deed for transferring the movable or immovable properties of the government?2022-01-22T14:43:37+05:30

    No, as per LLP Act movable, immovable and intangible property of the company including all assets, interests, rights, privileges, liabilities, obligations relating to the company and the whole of the undertaking of the company shall be transferred to limited liability partnership (LLP) without any contract or deed.

    Whether LLP is required to file a yearly annual return?2022-01-22T14:42:56+05:30

    Yes, LLP is required to file annual returns (LLP Form 11) and a Statement of Account & Solvency (LLP Form 8) every year with ROC. Also, a designated partner holding DIN/DPIN is required to file DIN KYC with ROC every year.

    How will I get documents like Certificate of Conversion, PAN, TAN, LLP Agreement, etc.?2022-01-22T14:42:11+05:30

    You will receive these documents in soft copy via email as well as we shall send you a printout of these documents at your address.

    What are the mandatory compliances for LLP?2022-01-22T14:38:31+05:30

    Know about mandatory compliances here – https://registrationarena.com/annual-compliance-of-llp/

    How much time is needed for setting up a Wholly Owned Subsidiary (WOS) in India?2022-01-20T00:35:07+05:30

    On average, it takes 12-15 days for completion of registration of Wholly Owned Subsidiary (WOS), 2 different approvals (Name Approval & Final Approval) are required from government bodies. However, this is dependent on the workload of the Central Registration Centre (CRC), MCA.

    Do I need to be physically present during this process?2022-01-20T00:34:07+05:30

    No, company registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who can be the shareholder/member of a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:33:16+05:30

    A Foreign Company can incorporate a Wholly Owned Subsidiary (WOS) Private Limited Company with majority stake, while the remaining stake shall be issued to a person/body corporate/trust nominated by a foreign company who shall hold the share in beneficial interest on behalf of the company. This is in order to satisfy the minimum shareholder criteria of number two (2) in case of Private Company and seven (7) in case of Public Company as per the Indian Companies Act.

    How many directors are required for the formation of a Wholly Owned Subsidiary (WOS) in India?2022-01-20T00:31:06+05:30

    There should be a minimum of 2 directors for the formation of a Wholly Owned Subsidiary (WOS) Private Limited Company or 3 directors for the formation of a Wholly Owned Subsidiary (WOS) Public Limited Company, out of which at least 1 director should be a permanent resident of India.

    Does a Wholly Owned Subsidiary (WOS) Company in India have continuous existence?2022-01-20T00:30:16+05:30

    Yes, Wholly Owned Subsidiary (WOS) Company in India shall have perpetual succession as per law. However, it is pertinent to note that statutory annual compliances are required to be completed by company mandatorily. In case of non-compliance, Registrar of Companies (ROC) shall be bound to strike off the name of company.

    How should I choose a name for a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:29:29+05:30
    • For incorporation of a company, a unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). The name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article –https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/
    • The foreign company can use its name or registered trademark as coin word for the name of Wholly Owned Subsidiary (WOS) Company. It can also add the word “India” in its name.
    • The Foreign company may also keep a unique or completely different name for its Wholly Owned Subsidiary (WOS) Company.
    How many names can I submit for name reservation to MCA?2022-01-20T00:28:49+05:30

    Initially, you can submit 2 names for name reservation to MCA, out of which 1 name will be approved based on availability. If the initial 2 names are rejected, then one more chance of re-submission for applying fresh 2 names is provided. So, in total, 4 names can be applied in a single application.

    What is the minimum capital needed to form a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:28:03+05:30

    There is no minimum capital required. However, in order to start a Wholly Owned Subsidiary (WOS) Company a minimum capital of Rs. 02.00 (In case of Private Limited Company) and Rs. 07.00 (In case of Public Limited Company) shall be required.

    Can directors and shareholders be the same person in the company?2022-01-20T00:27:22+05:30

    Yes, directors and shareholders can be the same person in a company. But if you want to have separation in ownership and management, then you can appoint a different individual as shareholders and directors.

    Can a minor person become a director or shareholder of a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:25:39+05:30

    No, a minor cannot become a director or shareholder in a company. However, a minor can become a member/shareholder of a company through gift and/or inheritance, but he cannot enter into an agreement to buy shares.

    What is Memorandum of Association (MoA) and Articles of Association (AoA)?2022-01-20T00:24:57+05:30

    The Memorandum of Association (MOA) is a document that sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world.

    The Articles of Association (AOA) are the company’s bye-laws or rules and regulations that govern the management and internal affairs and the conduct of its business. Both the documents are required to be registered with the Registrar of Companies at the stage of incorporation of the company.

    While incorporating a Wholly Owned Subsidiary (WOS) Company, what is the maximum number of shareholders and directors that I can keep?2022-01-20T00:22:19+05:30

    You can incorporate a Wholly Owned Subsidiary (WOS) Company with a maximum of 200 shareholders and 20 directors (In the case of Private Limited). In the case of Public Limited Company, there can be upto 20 directors and there is no upper limit on the number of members.

    Is it required to have Company’s books audited?2022-01-20T00:21:33+05:30

    Yes, a company should get its book audited and file the same with the Registrar of Companies (ROC) every year.

    Can I register a Wholly Owned Subsidiary (WOS) Company on my home or residential address?2022-01-20T00:20:58+05:30

    Yes, you can register the company at your residential address. You need to submit the utility bill of your home address along with the No Objection Certificate from the owner of the premises.

    Can NRIs/Foreign Nationals become Director and Shareholder in a Wholly Owned Subsidiary (WOS) Company in India?2022-01-20T00:20:20+05:30

    Yes, NRIs and Foreign National can become directors and shareholders in a Wholly Owned Subsidiary (WOS) Company along with the required documents, also they can hold majority shares in the company. However, at least one Director on the Board of Directors should be a permanent resident of India.

    Can I induct any other Company, Body Corporate LLP, as a shareholder in my company?2022-01-20T00:19:19+05:30

    Yes, you can induct or allot shares to any other Private Limited Company, Public Company, LLP, Body Corporate, Registered Society.

    How will I get my Incorporation documents like Certificate of Incorporation, MoA, AoA, PAN, TAN, etc.?2022-01-20T00:18:28+05:30

    You will receive these documents in soft copy via email as well as we shall send you a printout of these documents at your address in India.

    How can I verify whether my Company is registered or not?2022-01-20T00:17:49+05:30

    You will receive a certificate of Incorporation of Company approved by Government, alternatively, you can also check the Corporate Identification Number (CIN) and the name of the company on the Ministry of Corporate Affairs (MCA) portal under “View Company/LLP Master Data” option.

    Is GST mandatory for a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:17:06+05:30

    GST registration is required for those businesses whose aggregate turnover crosses the prescribed limit or such business that does the inter-state supply of goods/services, etc. So, every company has to check whether it supplies goods to different states or qualifies for the prescribed turnover limit or any other conditions as specified under GST laws. For more information, you can visit – https://registrationarena.com/gst-registration/

    How is a public limited company different from a private limited company?2022-01-20T00:16:23+05:30

    A public limited company is a company that is not a private limited company and can be formed for any lawful purpose by 7 or more persons. The securities of a public company may be quoted on a Stock Exchange. Its number of members is not limited to 200 and can induct unlimited members.

    Is there any renewal process for a Wholly Owned Subsidiary (WOS) Company?2022-01-20T00:14:31+05:30

    No, there is no renewal of a Wholly Owned Subsidiary (WOS) Company, once it’s registered it will be valid for a lifetime. However, you have to do mandatory compliance every year.

    Can I change the registered office address of the company later on?2022-01-20T00:13:51+05:30

    Yes, you can change the registered office address of the company after the company is registered, by following the prescribed procedure as per law.

    Can I keep the virtual office or Co-working space as the registered office address of my company?2022-01-20T00:13:06+05:30

    Yes, you can keep virtual office or co-working space as registered office address of the company by providing utility bill of such office premises along with No Objection Certificate (NOC) from the owner. However, you have to make sure that you have the facility to receive and acknowledge letters, notices, and documents from various authorities at that address. Also, you have to paint or affix the company’s name and address outside the office.

    Is there any stamp duty required for the incorporation of a company and how it is paid?2022-01-20T00:12:28+05:30

    Yes, there is a stamp duty to be paid during incorporation. The stamp duty depends on authorised capital, and it is different for each state. The stamp duty is generally paid online during the incorporation process.

    What are the prohibited sectors for a Wholly Owned Subsidiary (WOS) Company as per Foreign Direct Investment (FDI) Rules in India?2022-01-20T00:11:47+05:30

    In India, FDI is prohibited in the following sectors :

    1. Lottery Business including Government/private lottery, online lotteries, etc.
    2. Gambling and Betting including casinos etc.
    3. Chit funds
    4. Nidhi company
    5. Trading in Transferable Development Rights (TDRs)
    6. Real Estate Business or Construction of Farm Houses (‘Real estate business’ shall not include development of townships, construction of residential /commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014.)
    7. Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
    8. Activities/sectors not open to private sector investment e.g.(I) Atomic Energy and (II) Railway operations (other than permitted.
    9. Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business, Gambling and Betting activities.
    Is FEMA Compliance and RBI reporting required even if the Foreign Direct Investment (FDI) is through the Automatic Route?2022-01-20T00:10:37+05:30

    Yes, a company that receives Foreign Direct Investment (FDI) must comply with the FEMA provision and needs to file Form FC-GPR with RBI within 30 days from the date of receipt of money in respect of the shares allotted. Further, equity shares, debentures, or preference shares of Wholly Owned Subsidiary (WOS) should be issued within 60 (sixty) days from the date of receipt of the money. In case, if the instruments are not issued within 60 days, the amount of consideration so received should be refunded within fifteen (15) days to the non-resident investor.

    Whether any annual return for Wholly Owned Subsidiary (WOS) Company is required to be filed with RBI ?2022-01-20T00:09:52+05:30

    Yes, Wholly Owned Subsidiary (WOS) Company needs to file FLA return to RBI before 15th July after the end of the relevant financial year.

    How much time is needed for conversion of LLP into company in India?2022-01-11T11:44:30+05:30

    On average it takes 1-2 months of time for completion of conversion, 2 different approvals are required from government bodies, one for name confirmation, second for incorporation and conversion into Company. However, this is dependent on the workload of the Central Registration Centre (CRC), MCA.

    Do I need to be physically present during this process?2022-01-11T11:44:05+05:30

    There is no such requirement, all the required documents are filed electronically, so you would not need to be physically present. You would just need to send us scanned copies of all the required documents and forms.

    Who can be a member of a Private Limited Company in case of conversion?2022-01-11T11:43:41+05:30

    All the partners of the LLP whether individual or a body corporate shall become the member/shareholder of the private limited.

    How many minimum partners are required in the LLP to convert into Private Limited Company?2022-01-11T11:43:08+05:30

    There should be a minimum of 2 partners in the LLP for conversion of LLP into Private Limited Company, but for conversion of LLP into Public Limited Company there shall be atleast 7 partners.

    Who can be the director of company on conversion?2022-01-11T11:42:37+05:30

    The designated partners of LLP may become director in the company on conversion.

    Can an LLP with secured loan convert into Company?2022-01-11T11:42:14+05:30

    Yes, an LLP with secured loan may convert itself into LLP after obtaining No Objection Certificate (NOC) from such creditor.

    While converting into private limited company, what is the maximum number of shareholders and directors that I can keep?2022-01-11T11:41:48+05:30

    While converting into private limited company, there can be maximum of 200 shareholders and 15 directors.

    Is the consent of partners required for conversion of LLP into company?2022-01-11T11:41:25+05:30

    Yes, the consent of a majority of partners is mandatory for the conversion of LLP into the company.

    What is Memorandum of Association (MoA) and Articles of Association (AoA)?2022-01-11T11:40:32+05:30

    The Memorandum of Association (MOA) is a document that sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world.

    The Articles of Association (AOA) are company’s bye-laws or rules and regulations that govern the management and internal affairs and the conduct of its business. Both the documents are required to be registered with the Registrar of Companies at the stage of incorporation of the company.

    Is it required to have a company’s books audited?2022-01-11T11:39:52+05:30

    Yes, a private limited company should get its book audited and file the same with the Registrar of Companies (ROC) every year.

    Is newspaper advertisement required for conversion of LLP into Company?2022-01-11T11:39:16+05:30

    Yes, a notice about conversion shall be published in newspapers of English and vernacular language seeking objections.

    What are the mandatory compliances for Company?2022-02-01T21:06:03+05:30

    Know about mandatory compliances here

    Who can be a partner of a Partnership Firm?2021-12-23T15:58:52+05:30

    Any individual who is competent to enter into a contract or a body corporate established under the law may be a partner of a Partnership Firm.

    Does a Partnership Firm have separate existence?2021-12-23T16:02:22+05:30

    No, a partnership firm does not have a separate existence apart from its members.

    How can a person become a partner of a Partnership Firm?2021-12-23T16:02:36+05:30

    All the person who has given their consent as a partner in the Partnership Deed/Agreement shall become partners of the Firm. Post incorporation, new partners can be admitted to the firm as per rules and requirements prescribed under the Partnership Deed/Agreement.

    How should we keep the ending word name of a Partnership Firm?2021-12-23T16:03:06+05:30

    The ending word of Partnership Firm can be as per liberty of partners, it may contain words such as “And Associates”, “And Company”, “Enterprises” etc.

    How can I protect the unique name of my Partnership Firm?2021-12-23T16:03:27+05:30

    In order to protect your unique name, you can apply for trademark registration of the Partnership Firm name.

    What is a Partnership Deed/Agreement?2021-12-23T16:04:12+05:30

    Partnership Deed or Partnership Agreement means any document between the partners of the firm which determines the rights, duties, roles, responsibilities, liabilities of the partners, it clarifies the managerial, operational as well administrative responsibilities and sets clear methodologies for decision-making, adding a new partner and disassociation of existing partner, etc. The agreement can be either in written or oral form.

    Can a Partnership Deed/Agreement be registered at a later date?2021-12-23T16:04:32+05:30

    Yes, an unregistered partnership can be registered at any time after its formation.

    Is it required to get Partnership Firm’s books audited?2022-05-19T13:26:19+05:30

    There is no statutory audit for Partnership Firm. However, it shall get its book audited as per Income Tax Laws if its turnover crosses the specified threshold.

    Can I register a Partnership Firm on my home or residential address?2021-12-23T16:05:06+05:30

    Yes, you can register Partnership Firm at your residential address. You need to submit the utility bill copy of your home address along with the No Objection Certificate from the owner of the premises.

    Can NRIs/Foreign Nationals become partners in a Partnership Firm in India?2021-12-23T16:06:08+05:30

    Yes, NRIs and Foreign National can become partners in a Partnership Firm with the required documents and by complying with the FEMA Guidelines.

    Can I admit any other Company or Body Corporate as a partner in my Partnership Firm?2021-12-23T16:06:00+05:30

    Yes, you can admit any Private Limited Company, Public Company, LLP, or a Body Corporate as a partner in your Partnership Firm.

    Is GST mandatory for a Partnership Firm?2021-12-23T16:05:51+05:30

    GST registration is required for those businesses whose aggregate turnover crosses the prescribed limit or such business that does the interstate supply of goods/services. So, every Partnership Firm has to check whether it supplies goods to different states or qualifies for the prescribed turnover limit or other conditions as specified under GST laws.

    How much time is needed for setting up a Section 8 company in India?2021-12-07T23:26:09+05:30

    On average it takes 15-20 days for completion of registration, 2 approvals are required from governmental bodies. However, this is dependent on the workload of the Central Registration Centre (CRC), MCA.

    Do I need to be physically present during this process?2021-12-07T23:25:06+05:30

    No, company registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who can be a member of a Section 8 Company?2021-12-07T23:24:30+05:30

    Any individual, organization, company, LLP, corporates, HUF, association of person, partnership firm, etc. can become the member/shareholder of the Section 8 Company. An individual person can also be a foreigner/NRI, but such person must be 18+ above in terms of age and should have a valid PAN card.

    How many directors are required for the formation of a Section 8 Company?2021-12-07T23:23:54+05:30

    There should be a minimum of 2 directors in Section 8 Company, out of which at least 1 director should be a permanent resident of India.

    How should I choose a name for a Section 8 Company?2021-12-07T23:23:11+05:30

    For incorporation of a Section 8 Company, a unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). Such name shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral trust, and the like, etc. The name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article – https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/

    How many names can I submit for approval?2021-12-07T23:22:27+05:30

    Initially, you can submit 2 names for approval out of which one name will be approved based on priority. If the initial 2 names are rejected then again fresh 2 names can be applied. So, in total 4 names can be applied in a single application

    What is the minimum capital needed to form a Section 8 Company?2021-12-07T23:21:46+05:30

    There is no minimum capital required. However, one needs to start a company with a minimum capital of Rs. 02.00 (In case of Private Limited Company) and Rs. 07.00 (In case of Public Limited Company)

    I am the only director and shareholder; can I form a Section 8 Company alone?2021-12-07T23:21:00+05:30

    No, there should be at least 2 directors/shareholders for incorporation of Section 8 Company.

    Can a person already a director in a private limited company or public limited company become a director of a Section 8 Company?2021-12-07T23:20:16+05:30

    Yes, a person already a director in a private limited company or public limited company can become a director or shareholder in Section 8 Company. Directorship in Section 8 Companies will not be counted for calculating the ceiling with respect to the maximum number of directorships i.e., twenty (20).

    Can a salaried person or a person in employment become director of a Section 8 Company?2021-12-07T23:19:29+05:30

    Yes, a salaried person or person in employment can become director of a Section 8 Company. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company. However, if there’s a restriction in becoming a director of a company, one can hold shares in a company and become a shareholder alternatively.

    What is the difference between a director and a shareholder?2021-12-07T23:18:55+05:30

    A shareholder or member is an owner of a company who holds certain shares in the company and his name is entered in the register of members of the company. Whereas Director is a person who manages the day-to-day function of a business. Director and shareholder may or may not be the same person in a company. The appointment of the Director is in hands of the shareholder of the company.

     

    Can a minor person become a director or shareholder of a Section 8 Company?2021-12-07T23:18:15+05:30

    No, a minor cannot become a director or shareholder in a section 8 company. However, a minor can become a member/shareholder of a company through gift and/or inheritance but he cannot buy shares.

    What are the Memorandum of Association (MoA) and Articles of Association (AoA)?2021-12-07T23:17:29+05:30

    The Memorandum of Association is a document that sets out the constitution of a company and is therefore the foundation on which the structure of the company is built. It defines the scope of the company’s activities and its relations with the outside world.

    The articles are its bye-laws or rules and regulations that govern the management and internal affairs and the conduct of its business. Both the documents are required to be registered with the Registrar of Companies at the stage of incorporation of the company.

    While incorporating a Section 8 Company, what is the maximum number of shareholders and directors that I can keep?2021-12-07T23:16:42+05:30

    You can incorporate a Section 8 Company with a maximum of 200 shareholders and 20 directors (In the case of Private Limited Section 8). In the case of Public Limited Section 8 Company, there can be upto 20 directors and there is no upper limit on the number of members.

     

    Is Section 8 Company required to have its books audited?2021-12-07T23:16:09+05:30

    Yes, just like any other company, Section 8 Company should also get its books audited and file the same with the Registrar of Companies (ROC) every year.

    Can Section 8 Companies receive contributions from overseas citizens or non-residents?2021-12-07T23:15:37+05:30

    Yes, Section 8 Companies can receive contributions or donations from non-residents, foreigners, overseas citizens. However, there are certain requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 (FCRA) before receiving any such contributions or donations.

     

    Can I register Section 8 Company on my home or residential address?2021-12-07T23:15:03+05:30

    Yes, you can register Section 8 Company at their residential address. You need to submit the utility bill copy of your home address along with the No Objection Certificate from the owner of the premises.

    Can NRIs/Foreign Nationals become Director and Shareholder in a Section 8 Company in India?2021-12-07T22:51:22+05:30

    Yes, NRIs and Foreign National can become directors and shareholders in a Section 8 Company along with the required documents, also they can hold majority shares in the company. However, at least one Director on the Board of Directors should be a permanent resident of India.

    Can a Section 8 Company raise capital through foreign direct investment?2021-12-07T22:50:40+05:30

    Yes, a Section 8 Company can raise capital through FDI, subject to compliance with FEMA Regulations.

    Is Section 8 Company considered as small company?2021-12-07T22:49:58+05:30

    No, a section 8 company cannot be considered as a small company.

    How will I get my Incorporation documents like Certificate of Incorporation, MoA, AoA, License Copy, PAN, TAN, etc.?2021-12-07T22:49:17+05:30

    You will receive these documents in soft copy via email as well as we shall send you a printout of these documents at your address.

    Can I do Section 8 Company registration myself?2021-12-07T22:48:25+05:30

    No, you have to take help from a Professional CS/CA/CMA/Advocate/Consulting Firm for registration of the company as it will require certification from these professionals.

     

    What are the exemptions given for Section 8 Company by MCA?2021-12-07T22:47:15+05:30
    • Section 8 Company is not required to appoint a qualified CS professional as its company secretary.
    • It is not required to appoint an Independent Director
    • Directorship in Section 8 Companies will not be counted for calculating the ceiling with respect to maximum number of directorships.
    • Section 8 Companies are not required to have a Nomination and Remuneration Committee nor a Stakeholders Relationship Committee.
    • Secretarial Standards are not applicable on a Section 8 Company
    • Section 8 company can call a General Meeting by giving at least 14 days’ notice as against 21 days’ notice.
    • Section 8 Company can appoint more than 15 Directors without passing a special resolution.
    • Quorum for Board meeting of a Section 8 Company shall be either 8 members or 25% of total strength of the Board, whichever is less.
    Is GST mandatory for a Section 8 Company?2021-12-07T22:46:15+05:30

    GST registration is required for those businesses whose aggregate turnover crosses the prescribed limit or such business that does the inter-state supply of goods/services. So every company has to check whether it supplies goods to different states or qualifies for the prescribed turnover limit or any other conditions as specified under GST laws.

    Is there any renewal process or charge for a Section 8 company?2021-12-07T22:45:19+05:30

    No, there is no renewal of a private limited company, once it’s registered it will be valid for a lifetime. However, you have to do mandatory compliance every year.

    Will there be any physical verification of the registered office address by the Registrar of Companies (ROC)?2021-12-07T22:44:27+05:30

    There is no physical verification of the registered office but if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company.

    Is there any relaxation in the payment of stamp duty during incorporation of a Section 8 Company?2021-12-07T22:39:57+05:30

    Stamp duty is a subject matter of an individual state. Some of the states have provided privileged rates for stamp duty on registration of MOA and AOA and incorporation of Section 8 Company.

    Can a One Person Company (OPC) convert into a Section 8 Company or vice versa ?2021-12-07T22:39:09+05:30

    No, a one person company cannot be converted into Section 8 company and also a Section 8 company cannot be converted into One Person Company (OPC).

    Can a company registered under Section 8 be converted into any other company?2021-12-07T22:38:29+05:30

    Yes, a Section 8 Company can be converted into any other company by following due procedure as per law.

    How much time is needed for removal of director in a company?2021-11-10T13:30:02+05:30

    On average, it takes 4-5 working days for removal of director by filling Form DIR-12. However, this is also dependent on the approval by government authority.

    Is physical presence of director required during the filing of forms for removal of director?2021-11-10T13:29:39+05:30

    No, the process is a completely online. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who has the authority to accept the resignation of an outgoing director in the company?2021-11-10T13:29:16+05:30

    The Board of Directors shall acknowledge the receipt of resignation of outgoing director and intimate the Registrar of Companies (ROC) in Form DIR-12.

    What shall be the effective date of resignation by the director?2021-11-10T13:28:51+05:30

    The resignation of a director shall take effect from the date on which the notice is received by the company or the date (if any) specified by the director in the resignation notice (whichever is later).

    What is the time limit for filing Form DIR-12?2021-11-10T13:28:30+05:30

    The time limit for filing Form DIR-12 is 30 days from the date of passing resolution in general meeting/board meeting.

    Can a director be liable even after he resigns from the Board of Directors?2021-11-10T13:28:07+05:30

    The director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.

    Is filing of Form DIR-12 mandatory after resignation or removal of director by the company?2021-11-10T13:27:41+05:30

    Yes, filing of form DIR-12 by the company to Registrar of Companies (ROC) is mandatory for resignation or removal of director.

    Is filing of Form DIR-11 mandatory for resignation of director?2021-11-10T13:27:16+05:30

    No, filing of form DIR-11 is voluntary for resignation of director.

    Is Digital Signature Certificate (DSC) mandatory for an outgoing director during the removal?2021-11-10T13:26:49+05:30

    No, Digital Signature Certificate (DSC) of an outgoing director is not required during the removal process.

    Can a Director with Deactivated DIN resign from the company?2021-11-10T13:26:22+05:30

    Yes, a Director with Deactivated DIN can also resign or be removed from the company.

    Who can remove the director of a company?2021-11-10T13:23:44+05:30

    The shareholder of the company can remove the director of a company as per the requirement under the meeting duly held.

    Can a director be removed from the company without his consent?2021-11-10T13:22:30+05:30

    Yes, a director can be removed from the company without his consent, after giving him a reasonable opportunity of being heard.

    Whether shareholders’ approval is required for the removal of a director from the company?2021-11-10T13:21:11+05:30

    Yes, shareholders’ approval under the general meeting is required for the removal of the director from the company.

    What are the grounds for Disqualifications for Appointment of Director under Section 164?2021-11-10T13:18:53+05:30

    A person shall not be eligible for appointment as a director of a company, if –

    1. He is of unsound mind
    2. He is an undischarged insolvent
    3. He is adjudged insolvent/applied to be an insolvent
    4. He is convicted by court for an offence and imprisoned for at least 6 months and post imprisonment 5 years has not been elapsed.
    5. He/she has been convicted of any offence and sentenced in for a period of seven years or more, he shall not be eligible to be appointed as a director in any company.
    6. Court and tribunal has declared him disqualified for appointment of director.
    7. He has not paid any calls on shares of company held by him.
    8. He is convicted of any offence dealing with related party transaction and 5 years has not elapsed
    9. He does not have Director Identification Number (DIN) or holds a Deactivated DIN
    What are the grounds for Vacation of Office of Director under Section 167?2021-11-10T13:18:11+05:30

    A director shall vacate his office as a director of a company in following cases :

    1. He incurs any of the disqualifications specified in section 164
    2. He absents himself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence of the Board.
    3. He acts in contravention of the provisions of section 184 relating to entering into contracts or arrangements in which he is directly or indirectly interested.
    4. He fails to disclose his interest in any contract or arrangement in which he is directly or indirectly interested, in contravention of the provisions of section 184;
    5. He becomes disqualified by an order of a court or the Tribunal
    6. He is convicted by a court of any offence, whether involving moral turpitude or otherwise and sentenced in respect thereof to imprisonment for not less than six months.
    7. He is removed in pursuance of the provisions of Companies Act 2013
    8. He having been appointed a director by virtue of his holding any office or other employment in the holding, subsidiary or associate company, ceases to hold such office or other employment in that company.
    What is Authorised capital?2021-11-03T13:22:19+05:30

    Authorised share capital is the maximum amount of share capital that a company can issue to its shareholders. The authorised share capital amount is mentioned in the Memorandum of Association (MOA) of the company.

    How much time is required for increasing the authorised capital?2021-11-03T13:21:54+05:30

    The increase of authorised capital transfer process takes approximately 7-10 days based on the availability of the required documents and information, subject to government approval.

    Do I need to be physically present during the filing process?2021-11-03T13:21:08+05:30

    No, all the required forms and returns are filed electronically, so you would not need to be physically present at all for filing purposes.

    Is there any stamp duty to be paid on the increase of authorised capital?2021-11-03T13:20:27+05:30

    Yes, stamp duty at the applicable rate (vary from state to state) has to be paid on the component of increase of authorised capital.

    Is shareholder’s consent required for the increase of authorised capital?2021-11-03T13:19:26+05:30

    Yes, the shareholder’s consent by way of ordinary resolution (if authorised by AOA) is required for the increase of authorised capital.

    What is the due date for filing Form SH-7?2021-11-03T13:18:20+05:30

    The Company must file Form SH-7 within 30 days from the date of passing resolution.

    What is the paid-up capital of the company?2021-11-03T13:17:50+05:30

    Paid-up capital is the actual amount of money that has been received from shareholders of the company.

    Do I need to change the MOA at the time of increase of Authorised Capital?2021-11-03T13:15:54+05:30

    Yes, altered MOA has to be submitted at the time of increase of Authorised Capital while filing Form SH 7.

    What if my company’s Articles of Association (AOA) does not have the necessary powers to increase the authorised share capital?2021-11-03T13:15:13+05:30

    If your Company’s Articles of Association (AOA) does not have the necessary powers to increase the authorised share capital, then the AOA has to be amended to provide for provision relating to the increase of its share capital by passing a special resolution.

    Is it required to file Form MGT-14 for an increase of authorised capital?2021-11-03T13:14:48+05:30

    In case, authorised capital is increased by way of alteration in Articles of Association (AOA), then a special resolution passed shall be filed in Form MGT-14.

    Can Registration Arena help me in increasing authorised capital?2021-11-03T13:14:19+05:30

    Yes, we can provide you with a complete package for increasing the authorised capital of the company as well as other Compliance services

    Is it mandatory to register a sole proprietorship firm in India?2021-11-02T17:59:30+05:30

    No, registration of sole proprietorship firm is not mandatory in India. However, in order to open a Bank Account or to obtain any kind of finance or to deal with business supplier a sole proprietorship firm should obtain some kind of registration.

    Does a sole proprietorship firm have perpetual succession or continuous existence?2021-11-02T17:58:53+05:30

    No, a sole proprietorship firm shall not have perpetual succession or continuous existence. A sole proprietorship firm shall be dissolved after death of sole proprietor.

    What is the minimum capital needed to form a sole proprietorship firm?2021-11-02T17:57:07+05:30

    There is no prescribed minimum capital for starting a sole proprietorship firm.

    Can a salaried person or a person in employment form a sole proprietorship firm?2021-11-02T17:55:43+05:30

    Yes, a salaried person or person in employment can form a sole proprietorship firm. However, one needs to check the employment agreement or terms of employment if it has certain restrictions.

    Is it required to have a Sole Proprietorship Firm’s book audited?2021-11-02T17:53:03+05:30

    It is not mandatory for a Sole Proprietorship Firm to get its book audited. However, it shall get its book audited as per Income Tax Law / GST Law if its turnover crosses specified threshold.

    Can I register my Sole Proprietorship Firm on my home or residential address?2022-05-19T12:43:14+05:30

    Yes, you can register the company at your residential address.

    Can NRIs start Sole Proprietorship Firm in India?2021-11-02T17:51:41+05:30

    Yes, NRI’s are allowed to start Sole Proprietorship Firm. However, such sole proprietor has to follow the FDI Guidelines and restrictions for same.

    How can I protect the name of my Sole Proprietorship Firm in India?2022-05-19T12:43:07+05:30

    You can protect the name of your Sole Proprietorship Firm or Brand name by applying for Trademark registration. For more details you can visit – https://registrationarena.com/trademark-registration/

    Do Sole Proprietorship Firm require TAN registration?2021-11-02T17:42:29+05:30

    TAN is Tax Deduction and Collection number which is required by a proprietor for deducting tax at source (TDS) as per Income Tax laws.

    Can I get Startup Registration for my Sole Proprietorship Firm?2021-11-02T17:16:52+05:30

    No, you cannot get Startup Registration for a Sole Proprietorship Firm. Only a Private Limited Company, LLP and a Partnership Firm are eligible for it. You can visit https://registrationarena.com/startup-india-scheme/ for more details

    How much time is required for changing the name of a company?2021-10-31T13:52:33+05:30

    The change of name shall take approximately 15-20 days, subject to ROC approval.

    How many times can I change the name of Company?2021-10-31T13:52:07+05:30

    You can change the name of company multiple times, there is no such restrictions provided in the Companies Act 2013.

    Is shareholder’s consent required for changing the name of company?2021-10-31T13:51:45+05:30

    Yes, the shareholder’s consent by way of special resolution is required for changing the name of company.

    Will I get a new Certificate of Incorporation after the change of name?2021-10-31T13:51:24+05:30

    Yes, the ROC shall issue a fresh certificate of incorporation with the new name and such change in the name shall be complete and effective only on the date of issue of a certificate.

    My company has not filed annual returns and financial statements, will I be able to change the name of the company?2021-10-31T13:51:02+05:30

    No, the company is not eligible to change the name of the company if it has defaulted in filing of annual returns or financial statements or payment or repayment of matured deposits or debentures or interest. However, the change of name shall be allowed upon filing necessary documents or payment or repayment of matured deposits or debentures or interest thereon.

    Do I need to need to write old name of the company on the name board, letterheads, invoices, etc. after changing the name of my company?2021-10-31T13:45:42+05:30

    Yes, you need to mention the old name of company (Ex. Formerly known as …… ) on the name board of the company, letterheads, business letters, invoices, bills of exchange, and other documents wherever the name of the company is mentioned for a period of 2 years of such change.

    Do I need to update the name of my company on various registrations after name change?2021-10-31T13:44:46+05:30

    Yes, you need to update the name of company on various places such as the name board of the company, letterheads, business letters, invoices, bills of exchange and other documents. The name also needs to be updated on PAN, TAN, GST Certificate, MSME certificate, Bank Account etc.

    How should I choose a name for my Company?2021-10-31T13:44:14+05:30

    A unique name of a company must be reserved with the Ministry of Corporate Affairs (MCA). The name should qualify guidelines as prescribed by MCA. To know more about name approval guidelines, refer to our article – https://www.registrationarena.com/name-approval-guidelines-as-per-companies-act-2013/

    How many names can I submit for name reservation to MCA?2021-10-31T13:43:42+05:30

    Initially, you can submit 2 names for name reservation to MCA out of which 1 name will be approved based on availability. If the initial 2 names are rejected then one more chance of re-submission for applying fresh 2 names is provided. So, in total 4 names can be applied in a single application.

    Can Registration Arena help in changing the name of my company on MCA Portal as well as PAN, TAN, GST, MSME registrations?2021-10-31T13:43:13+05:30

    Yes, we can provide you a complete package for changing the name of your company on MCA Portal, GST Records, PAN, TAN, MSME etc.

    What is a registered office address?2021-10-29T17:48:53+05:30

    The registered office address is a place or official address of a company which is used for receiving the official correspondence, notices, and documents from the government, investors, banks, shareholders, and the public.

    Can I register or shift my company to my home or residential address?2021-10-29T17:48:35+05:30

    Yes, you can register or shift the company to your residential address. You need to submit the utility bill of your home address along with the No Objection Certificate from the owner of the premises.

    Can I keep the virtual office or Co-working space as the registered office address of my company?2021-10-29T17:48:16+05:30

    Yes, you can keep virtual office or co-working space as registered office address of the company by providing utility bill of such office premises along with No Objection Certificate (NOC) from the owner. However, you have to make sure that you have the facility to receive and acknowledge letters, notices, and documents from various authorities at that address. Also, you have to paint or affix the company’s name and address outside the office.

    How many times can I shift the address of my Company?2021-10-29T17:47:58+05:30

    You can shift the office address multiple times, there are no such prescribed limit for shifting the office address.

    I have opened a new branch in a different city or state, do I need to update my registered office address ?2021-10-29T17:47:32+05:30

    No, the branch address is not required to be updated on the MCA portal, however, if you have shifted the registered office address of the company then you have to update the same.

    Is shareholder’s consent required for shifting the office address of the company?2021-10-29T17:47:13+05:30

    The shareholder’s consent is required for shifting the office address of the company where the change is outside the local limits of city, village, town, state, or change of ROC.

    When do I have to give a newspaper advertisement for shifting the office address?2021-10-29T17:46:55+05:30

    The Company has to issue an advertisement in a vernacular newspaper and an English newspaper, if it shifts the office address from one state to another.

    Will there be any physical verification of the registered office address by the Registrar of Companies (ROC)?2021-10-29T17:46:34+05:30

    There is no physical verification of the registered office, but if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company.

    Do I need to update the office address on my various registrations and name board after shifting the office?2021-10-29T17:46:14+05:30

    Yes, you need to update the office address on various places such as name board of the company, letterheads, business letters, invoices, bills of exchange and other documents wherever the registered office address is mentioned. The address also needs to be updated on PAN, TAN, GST Certificate, MSME certificate, Bank Account etc.

    Can Registration Arena help in updating the registered office on MCA Portal as well as PAN, TAN, GST, MSME registrations?2021-10-29T17:45:40+05:30

    Yes, we can provide you a complete package for updating the registered office address from one place to another including MCA Portal, GST Records, PAN, TAN, MSME etc.

    Whether annual compliance is mandatory for all OPC’s?2021-10-28T10:05:55+05:30

    Yes, the annual compliance requirement is mandatory for all the One Person Company (OPC) registered. The annual compliance requirement does not depend upon the total turnover, profit/loss, or capital amount of the company. It is required to be done every year irrespective of turnover, profit/loss, or capital.

    What are the annual compliances for a One Person Company (OPC)?2021-10-28T10:05:38+05:30

    The annual compliances for One Person Company (OPC) shall include book-keeping and accounting, finalisation of accounts, preparation, and audit of financial statements, filing of income-tax returns, maintaining statutory registers, drafting of various forms, notices, and such other documents, filing of various forms to ROC, and such other event-based compliances as are required from time to time.

    Do I need to be physically present during this process?2021-10-28T10:05:18+05:30

    No, the process of annual compliance is a completely online process. All the required forms and returns are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents and information.

    My OPC has not done any business during the year, do I still need to file the annual returns?2021-10-28T10:04:57+05:30

    Yes, even if there is loss / no business in the company during the year, the filing of annual returns along with Income Tax Return (NIL) and such other applicable compliances are required to be filled by the OPC.

    What is a financial year in terms of annual compliance?2021-10-28T10:04:37+05:30

    The financial year shall mean the period ending on 31st March of the year. For Example, if a company is registered on 22nd April 2020, then its first financial year will end on 31st March 2021 (i.e., FY 2020-2021). For companies registered on or after 1st January onwards, then its first financial year will end on 31st March of the subsequent financial year. For Example, if a company is registered on 22nd January 2020, then its first financial year will end on 31st March 2021.

    Is the appointment of an auditor mandatory for OPC?2021-10-28T10:04:14+05:30

    Yes, every OPC is mandatorily required to appoint an Auditor within 30 days from the date of company registration. The company may appoint an auditor at the Annual General Meeting (AGM) for a period of 5 years.

    What are audited financial statements?2021-10-28T10:03:51+05:30

    Financial statements show the financial position of an enterprise. It consists of a Balance Sheet, Statement of Profit and Loss, etc. When these documents are audited by an independent auditor, it is known as audited financial statements.

    Are audited financial statements mandatory for annual filling?2021-10-28T10:03:02+05:30

    Yes, the OPC has to file audited financial statements with the government authorities.

    I have not filed annual ROC returns for the past financial year, whether my company is eligible to file annual returns in the current financial year?2021-10-28T09:55:45+05:30

    Yes, the company can file the pending annual returns in the current financial years with payment of applicable additional fees and penalties.

    Whether board meetings and annual general meetings are mandatorily required to be held by the OPC?2021-10-28T09:55:20+05:30

    Yes, as per the Companies Act 2013 and other applicable rules, there must be atleast one board meeting conducted in each half of the calendar year and the gap between 2 meetings should be atleast 90 days. However, it is not mandatory for the OPC to conduct Annual General Meeting (AGM).

    What is the purpose of Form ADT-1, Form AOC-4, and Form MGT-7A?2021-10-28T09:54:46+05:30

    Form ADT- 1 is an E-Form that is used by the company to intimate the Registrar of Companies (ROC) about the appointment of an auditor. Form AOC-4 is used for filing financial statements, board report, and other documents with ROC. Whereas, Form MGT-7A is used for filing annual return details to the ROC.

    Is Income Tax Return (ITR) mandatory to be filed every year by Companies?2021-10-28T09:54:21+05:30

    Yes, Income Tax Return (ITR) is mandatory to be filed by every company, irrespective of income or loss during the financial year.

    Is DIR-3-KYC form to be filed every year?2021-10-28T09:53:49+05:30

    Yes, DIR-3-KYC has to be filed every financial year by 30th September of next financial year, and it is valid till 31st March of such financial year

    What is Form DPT-3?2021-10-28T09:53:18+05:30

    DPT-3 is a Return of deposits is required to be filed every year by companies furnishing information about outstanding deposits and/or particulars of transactions not considered as deposits to the Registrar of Companies (ROC)

    Whether Registration Arena help me in Income Tax Return Filing services and paying the income tax to the Government?2021-10-28T09:47:30+05:30

    Yes, filing of regular income tax return, assessment of income tax payable, and payment of income tax is a part of annual compliance. We shall provide you a customized package with Income Tax related service.

    Whether Registration Arena can provide me Income Tax Audit services?2021-10-28T09:47:01+05:30

    Yes, we can provide you Income Tax Audit and Assessment services. We shall provide you a customized package with Income Tax Audit Service.

    Whether Registration Arena can provide me GST services like GST return filing, GST Advisory, GST Audit, and payment of GST to the Government?2021-10-28T09:46:36+05:30

    Yes, we can provide you various GST services like filing of regular GST Returns, assessment, and payment of GST, Claiming of Input tax credit, GST Audit, GST Advisory, etc. We shall provide you a customized package with GST related service.

    Whether Registration Arena can provide me TDS return filing services and payment of TDS to the Government?2021-10-28T09:45:58+05:30

    Yes, we can provide you various TDS related services like filing of regular TDS Returns, assessment, and payment of TDS amount, issuance of TDS Certificate, etc. We shall provide you a customized package with TDS related service.

    Whether Registration Arena can provide me Professional Tax Return filing services and payment of Professional tax to the Government?2021-10-27T16:41:23+05:30

    Yes, we can provide you various Professional Tax related services like filing of regular Professional tax returns, assessment, and payment of Professional tax amount etc. We shall provide you a customized package with TDS related service.

    Is a digital signature required for this process?2021-10-27T16:40:13+05:30

    Yes, a digital signature of the authorized director of the company is required for filling various forms to the Registrar of companies.

    What do transfer of shares mean?2021-10-20T11:41:19+05:30

    The transfer of shares shall mean the process of transferring the ownership or right in shares in a company from one person to another.

    When is the share transfer required in a company?2021-10-20T11:40:53+05:30

    The company may undergo share transfer process in cases when the shareholders want to change their shareholding pattern/structure, or when new investors or shareholders are inducted in the company.

    How much time is required for the share transfer process?2021-10-20T11:40:32+05:30

    The share transfer process takes approximately 7-8 days based on availability of the required documents and information.

    Can I transfer a certain portion of my shares i.e., partial transfer ?2021-10-20T11:40:05+05:30

    Yes, you can do partial transfer of shares.

    Is the physical presence of shareholder required during the process?2021-10-20T11:39:31+05:30

    The physical presence of shareholders may not be required during the process, however signature of transferring shareholders is required on the share transfer form.

    Can I transfer the shares to a Foreign or Non-resident shareholder?2021-10-20T11:39:09+05:30

    Yes, you can transfer the shares to a Foreign or Non-resident shareholder by complying with the FEMA Guidelines.

    I’m a director in a Company, if I transfer my shares will I still remain director in the company?2021-10-20T11:38:47+05:30

    Yes, you will still remain a director in the company. In the share transfer process only the shares of a company is transferred. A Director can exit a company by way of resignation from Board of Director (BOD) and complying with the resignation guidelines.

    Can a minor person become a shareholder of a Company?2021-10-20T11:38:22+05:30

    A minor can become a member/shareholder of a company only through gift and/or inheritance but he cannot enter into agreement to buy shares. Further, minor shall hold shares through his guardian and his guardian will act as a member on behalf of minor.

    Can a person under job or employment in Private Company or PSU or a government servant carrying on his practice be a shareholder in a company?2021-10-20T11:38:00+05:30

    Yes, a person under employment/job or a government servant carrying on his practice can be a shareholder in a company. However, one needs to check if there’s any restriction from employer, governing body, authority or ministry.

    Can I transfer shares to a Company / LLP / Body Corporate?2021-10-20T11:37:31+05:30

    Yes, you can transfer shares to any other Private Limited Company, Public Company, LLP, and Registered Society. However, Partnership firm cannot hold shares in any Company.

    Is there any stamp duty to be paid on the share transfer deed?2021-10-20T11:36:59+05:30

    Yes, stamp duty at the rate of 0.015% on the total value of consideration has to be paid on share transfer deed.

    Is there any stamp duty to be paid on the share certificates?2021-10-20T11:36:31+05:30

    Yes, stamp duty at the rate of 0.005% has to be paid on issue of share certificates.

    What is transmission of shares ? How it is different from transfer of shares?2021-10-20T11:35:33+05:30

    Transfer of shares is a voluntary process initiated by the shareholder and buyer, whereas transmission is brought about by operation of law. Transmission of share means registration of title of share in another person’s name on occurrence of certain events for example, devolution by death, succession, inheritance, insolvency etc. While transfer of shares is brought about by delivery of a proper instrument of transfer (viz, transfer deed) duly stamped and executed, transmission of shares is done by forwarding the necessary documents (such as a death certificate) to the company.

    What is the difference between a director and a shareholder?2021-10-20T11:35:04+05:30

    A shareholder or member is an owner of a company who holds certain shares in the company and his name is entered in the register of members of the company. Whereas Director is a person who manages the day-to-day function of a business. Director and shareholder may or may not be the same person.

    Can I transfer the shares held in Demat Form?2021-10-20T11:31:05+05:30

    Yes, shares held in Dematerialised form can also be transferred to another person by following the due process as per law.

    What is tax deducted at source (TDS)?2021-10-19T13:27:31+05:30

    Tax Deducted at Source (commonly known as TDS) is a system under which a tax is deducted at the origin of the income. It is deducted by the payer and remitted to the Government by the payer on behalf of the payee. TDS is applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc.

    Who is required to file TDS returns?2021-10-19T13:27:02+05:30

    Any person or business entity who is making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment and file the return of TDS after such deduction intimating the transaction nature, purpose, and amount of TDS deducted along with the PAN of the deductee.

    My business entity is not liable to deduct TDS under Income Tax Act, am I required to file TDS Nil returns?2021-10-19T13:26:44+05:30

    No, a business entity is not required to file TDS Returns if he is not liable or required to deduct any TDS amount.

    What is the due date for depositing the TDS amount to the government by the Deductor?2021-10-19T13:26:20+05:30

    Tax Deducted at Source (TDS) must be deposited to the government within 7th day of the subsequent (next) month. For example, TDS amount deducted in the month of September shall be deposited with the Government by 7th of October of that financial year. However, for certain transaction, the due date may vary.

    Do I need to be physically present during this process?2021-10-19T13:26:01+05:30

    No, filing TDS returns is a completely online process. All the required data are filed electronically, so you would not need to be physically present at all. You would just need to send us the required data online.

    How to deposit the TDS Amount?2021-10-19T13:25:38+05:30

    Tax Deducted at Source (TDS) has to be deposited using Challan ITNS-281 on the government portal.

    What is Form 26AS?2021-10-19T13:25:19+05:30

    Form 26AS is a statement which can be generated on Income Tax portal which shows the details of tax deducted at source, tax collected at source, advance tax paid by the taxpayer during the financial year. This information is specific to a Permanent Account Number (PAN).

    What is Form 16?2021-10-19T13:24:57+05:30

    Form 16 is the certificate of tax deduction at source (TDS) issued by the employers to their employees. An employee can use this form as a source of information while filing an income tax return (ITR). It is mandatory to provide this certificate to the taxpayer, just after the financial year.

    Is PAN of deductee mandatory for filing TDS return?2021-10-19T13:24:36+05:30

    Yes, a PAN card of deductee is required for TDS return purposes. However, in a case where the deductee don’t have PAN, then the payer is required to follow the provisions of Section 206AA and deduct tax at a higher rate.

    I have not received TDS certificate from the Deductor. Can I claim TDS in my income tax return (ITR)?2021-10-19T13:24:14+05:30

    ​​​Yes, the TDS amount deducted may be reflected in your Form 26AS and thereafter you can claim the credit of tax accordingly. However, the claim of TDS to be made should be strictly as per the TDS being reflected in Form 26AS. If there is any discrepancy in the tax actually deducted and the tax credit being reflected in Form 26AS, then you should intimate the same to the Deductor and should reconcile the difference. The credit granted by the Income-tax Department will be as per Form 26AS only.​

    What to do if the TDS credit is not reflected in Form 26AS?2021-10-19T13:23:51+05:30

    ​​​Non-reflection of TDS credit in Form 26AS can be due to several reasons like non-filing of TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. Thus, in case of non-reflection of TDS credit in Form 26AS, the payee has to contact the payer for ascertaining the correct reasons for non-reflection of the TDS credit in Form 26AS and the taxpayer cannot claim refund of such TDS.

    If I buy any land/building, then is there any requirement to deduct tax from the sale proceeds to be paid by me to the seller?2021-10-19T13:23:32+05:30

    ​​​​Yes, TDS has to be deducted in case of payment of sale consideration for immovable property (other than rural agricultural land) to any person at the applicable rate. No tax is to be deducted if the consideration is below Rs. 50,00,000.

    My salary is less than the tax exemption limit, will my employer deduct TDS on my monthly salary?2021-10-19T13:21:51+05:30

    No, if your salary is less than the tax exemption limit, then the employer is not required to deduct TDS on your monthly salary.

    When does the TDS provision apply for renting of property?2021-10-19T13:21:20+05:30

    Tenant of a property making monthly rent payment exceeding Rs. 240,000/- in a financial year is required to deduct tax at the applicable rate from the rent payable to the landlord.

    How can I get a refund of my Tax Deducted at Source (TDS)?2021-10-19T13:20:52+05:30

    As per Income Tax law, a person is eligible to receive TDS paid if he/she has paid excess tax to the government than his/her actual tax liability. ITR must be filed by such a person in order to claim the income tax refund for that financial year.

    If the payer does not deduct tax at source, will the payee face any consequences by the Income-tax Department?2021-10-19T13:20:33+05:30

    ​It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences.

    Is TAN of tax Deductor/Payer mandatory for filing TDS return?2021-10-19T13:20:08+05:30

    TAN of tax Deductor / payer is required to file TDS returns and forms. However, in case of few specified transactions such as TDS on rent or TDS on sale of house property, PAN can be used in place of TAN.

    Whether Section 8 Company can carry out microfinance activities?2021-10-16T19:52:56+05:30

    Yes, Section 8 Companies can carry out microfinance activities. The microfinance activities should be for the promotion of activities as stated in section 8(1)(a) of the Companies Act, 2013

    What is Income Tax?2021-10-11T19:36:03+05:30

    ​​Income tax is levied by the Government of India on the income of every person.

    What is the corporate tax in India?2021-10-11T19:35:37+05:30

    As per Income Tax Act, 1961, all companies, whether domestic or foreign are liable to pay corporate tax on the income earned by them. According to the law, a domestic company pays tax on its net income, whereas a foreign company pays tax only which is earned within India.

    Who is required to file Income Tax Returns (ITR) and pay income tax?2021-10-11T19:35:15+05:30

    Income tax is to be paid by every person. The term ‘person’ covers natural as well as artificial persons.

    Do I need to be physically present during this process?2021-10-11T19:34:50+05:30

    No, filing income tax returns is a completely online process. All the required data are filed electronically, so you would not need to be physically present at all. You would just need to send us the required data online.

    When do I have to pay the taxes on my income?2021-10-11T19:34:23+05:30

    ​​​​​The taxes on income can be finalized only on the completion of the previous year. However, to enable a regular flow of funds and for easing the process of collection of taxes, the Income-tax Act has provisions for payment of taxes in advance during the year of earning itself or before completion of the previous year.

    What is Form 16 for Income Tax in India?2021-10-11T19:33:59+05:30

    Form 16 is the certificate of tax deduction at source (TDS) issued by the employers to their employees. An employee can use this form as a source of information while filing income tax return (ITR). It is mandatory for employer to provide this certificate to the employee, just after the financial year.

    Do I need to attach any documents along with the Income Tax return?2021-10-11T19:33:38+05:30

    No, you don’t need to attach any documents along with the Income Tax return form such as Form 16, investment proof etc.

    I am earning my income through agriculture, is my income taxable and do I need to file ITR?2021-10-11T19:33:13+05:30

    ​​​​​​​​​Agricultural income is not taxable in India. However, if you have non-agricultural income, then you need to pay income tax and file your ITR as per provisions under Income Tax Act.

    Do Non-Resident Indians (NRI’s) living abroad need to pay income tax or file ITR in India?2021-10-11T19:32:48+05:30

    If you are a non-resident Indian (NRI) who resides and work abroad, then you need to file ITR and pay tax only on the income earned in India such as interest from fixed deposits and saving account, rental income from house, or property owned in India, etc.

    How can I get a refund of my Tax Deducted at Source (TDS)?2021-10-11T19:32:29+05:30

    As per Income Tax law, a person is eligible to receive TDS paid only if he/she has paid excess tax to the government than his/her actual tax liability. ITR must be filed by such person in order to claim the income tax refund for that financial year.

    What is advance tax?2021-10-11T19:32:07+05:30

    As per Income Tax laws, a salaried individual, freelancer, or businessman whose tax liability for the year is 10,000 or more should pay advance tax. Advance tax is calculated and paid in quarterly installments.

    What is rebate under section 87A and who can claim it?2021-10-11T19:31:47+05:30

    ​​​​​​​​​An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim a rebate under section 87A​. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A​ will be lower of 100% of income-tax liability or Rs. 12,500. In other words, if the tax liability exceeds Rs. 12,500, rebate will be available to the extent of Rs. 12,500 only and no rebate will be available if the total income (i.e., taxable income) exceeds Rs. 5,00,000.

    Can a return be filed after the due date?2021-10-11T19:31:27+05:30

    Yes, an income tax return be filed after the due date. However, a belated return attracts late filing fees under section 234F.

    If I have made any mistake or error in my income tax return, am I permitted to file a revised return to correct the mistake?2021-10-11T19:31:08+05:30

    ​Yes, A return of income can be revised at any time, 3 months before the end of the Assessment Year or before the completion of the assessment; whichever is earlier.

    I am a salaried person and don’t have a Form 16. Can I file my income tax return?2021-10-11T19:30:45+05:30

    Yes, you can file an income tax return without Form 16. You can use documents such as bank statements, salary slips for calculation of income tax.

    How much time is needed for appointment of director in a company?2021-10-10T18:29:08+05:30

    On average, it takes 4-5 working days for appointment of director by filling form DIR-12. However, this is also dependent on approval of government authority.

    Is physical presence of director required during the process of appointment of director?2021-10-10T18:28:41+05:30

    No, the process is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Who can be appointed as a director?2021-10-10T18:28:08+05:30

    Any individual holding a valid DIN and who is not disqualified from being appointed as director as per the provisions of act, is eligible to be appointed as director in a company.

    What is Director Identification Number (DIN)?2021-10-10T18:27:28+05:30

    DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company, upon making an application in form DIR-3 pursuant to section 153 & 154 of the Companies Act, 2013.

    Is Digital Signature Certificate (DSC) mandatory for a director to be appointed?2021-10-10T18:22:51+05:30

    Yes, any individual to be appointed as a director must have a valid DSC.

    Is DIN mandatory for a person to be appointed as director?2021-10-10T18:22:12+05:30

    Yes, an individual should hold a valid DIN before being appointed as a director in any company.

    Who appoints the director in a company?2021-10-10T18:21:38+05:30

    The shareholder of the company can appoint the director in a company as per the requirement under the meeting duly held. The board of directors can also appoint additional directors (by the articles of association) and they shall hold office only upto the date of next annual general meeting or the last date on which the annual general meeting should have been held (whichever is earlier). Such director can be regularised in the AGM with the consent of shareholders.

    Who can be appointed as managing director in a company?2021-10-10T18:21:10+05:30

    Any person holding a valid DIN can be appointed as managing director in a company.

    I am already a director in a company, can I become director in another company also?2021-10-10T18:20:39+05:30

    Yes, any individual holding a valid DIN can become a director in a maximum of 20 companies at a time.

    Can a person under employment become director of the company?2021-10-10T18:19:53+05:30

    Yes, a person can be a director in one company and an employee in another company. There is no provision in Companies act 2013 that prohibits the same. However, one needs to check his employment agreement or terms of appointment executed with the employer.

    Is it mandatory to allot shares to a director of a Company?2021-10-10T18:19:20+05:30

    No, it is not mandatory to allot or transfer shares to the Director of the Company. However, the company may voluntarily allot shares to him/her.

    Can a shareholder become Director of a Company?2021-10-10T18:18:30+05:30

    Yes, a shareholder can become a director of a company.

    Whether shareholders approval is required for appointing director in a company?2021-10-10T18:18:02+05:30

    Yes, shareholders approval under the general meeting is required for appointing director in a company.

    Can a person holding NRI status also become director of a company?2021-10-10T18:17:27+05:30

    Yes, any individual whether resident in India or not can become a director of a company in India with the required documents.

    Can a non-Indian citizen / foreign person become a director of a company in India?2021-10-10T18:16:53+05:30

    Yes, any non-Indian citizen or foreign person can also become a director of a company in India with the required documents.

    Who appoints an Additional Director?2021-10-10T18:13:47+05:30

    The board of directors can appoint additional directors (by the articles of association) and they shall hold office only upto the date of next annual general meeting or the last date on which the annual general meeting should have been held (whichever is earlier). Such director can be regularised in the AGM with the consent of shareholders.

    Who is a Nominee Director?2021-10-10T18:12:33+05:30

    Generally, banks/financial institution or investors who provide equity or debt support to the company appoint their representative on the Board of the concerned company. These nominated persons are called the Nominee Director.

    Who is a Professional Director?2021-10-10T18:11:52+05:30

    Professional director is a person who has carries expertise in a particular domain and is appointed in professional capacity.

    Can a person have multiple DIN?2021-10-10T18:11:20+05:30

    No, an individual person shall have only one DIN.

    What is GST?2021-10-08T22:19:31+05:30

    GST is a destination-based tax on consumption of goods and services. It is charged at all stages, right from manufacture up to final consumption, with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and the burden of tax is to be borne by the final consumer.

    Who is required to file GST returns?2021-10-08T22:19:12+05:30

    Every person registered under GST is required to file returns under the GST law. If any person or business entity has not made any business transaction in a month, then too, it is required to file a NIL return.

    Do I need to be physically present during this process?2021-10-08T22:18:28+05:30

    No, filing GST returns is a completely online process. All the required data are filed electronically, so you would not need to be physically present at all. You would just need to send us the required data online.

    I have taken voluntary GST Registration and my turnover is less than Rs. 40 lakhs (In case of goods) or Rs. 20 lakhs (In case of services), do I still need to file GST Returns?2021-10-08T22:18:01+05:30

    Yes, any person who gets registered under GST shall file periodical returns as a normal taxpayer, irrespective of his turnover or transactions. If any person or business entity has not made any business transaction in a month, then too, it is required to file a NIL return.

    Who is eligible to file GST returns on a quarterly basis?2021-10-08T22:17:39+05:30

    All persons whose aggregate annual turnover (PAN-based) is up to Rs. 5 Crore in the current financial year and the preceding financial year (if applicable) are eligible to file GST Returns on a quarterly basis under the QRMP scheme. Also, dealers registered under Composition scheme are required to pay tax on quarterly basis and file returns on annual basis.

    What is Quarterly Returns with Monthly Payment (QRMP) Scheme?2021-10-08T22:17:17+05:30

    Quarterly Returns with Monthly Payment (QRMP) Scheme is for specific eligible taxpayers to file their Form GSTR-1 and Form GSTR-3B returns on quarterly basis, while paying their tax dues on monthly basis through a Challan.

    What is Invoice Furnishing Facility (IFF)?2021-10-08T22:16:52+05:30

    The Invoice Furnishing Facility (IFF) is a facility provided by Government to business entities under the QRMP Scheme. IFF is an optional facility where a business entity can choose to upload their Business-to-business (B2B) invoices every month. The maximum amount of invoices that can be uploaded shall be Rs. 50 lakhs.

    What is Form GSTR-1?2021-10-08T22:16:24+05:30

    Form GSTR-1 is a monthly Statement of Outward Supplies (Sales) to be filed by all normal and casual registered taxpayers making outward supplies of goods and services. This form has to be filed monthly by all persons, but if your turnover during the previous or current financial year is upto Rs. 1.5 Crore then it can be filed on quarterly basis.

    What is Form GSTR-3B?2021-10-08T22:15:59+05:30

    Form GSTR-3B is a simplified summary return, and the purpose of the return is for taxpayers to declare their summary GST liabilities for a particular tax period and discharge these liabilities. This form has to be filed monthly by all person, but if you have opted for QRMP Scheme then it can be filed on quarterly basis.

    Who can file NIL Form GSTR-3B?2021-10-08T22:15:18+05:30

    NIL Form GSTR-3B can be filed by a person or business entity if such person satisfies all these conditions:

    • He has NOT made any Outward Supply (Sale) and
    • He does NOT have any reverse-charge liability
    • He does NOT intend to take any Input tax credit and
    • He does have any Liability for that particular Tax Period.
    What is Form GSTR-2A?2021-10-08T22:14:44+05:30

    Form GSTR-2A is a system generated Statement of Inward Supplies (Purchases) for a recipient. It is generated in the below scenarios:

    • When the supplier uploads the B2B transaction details in their Form GSTR-1/GSTR-5
    • ISD details will be auto-populated on submission of Form GSTR-6 by their Input Service Distributor
    • TDS & TCS details will be auto-populated on filing of Form GSTR-7 & 8 respectively by the counterparty.
    • Auto-population of Import of goods from overseas, on bill of entry, as received from ICEGATE Portal of Indian Customs.
    How should a person under composition scheme file GST Returns?2021-10-08T22:14:20+05:30

    The composition scheme is an alternative method of payment of tax by small taxpayers whose turnover is up to Rs. 1.5 crore (Rs. 75 lakhs in case of few specified states). Service providers may also opt for  composition scheme where his total turnover limit is upto Rs. 50 lakhs. Such person is required to pay tax on quarterly basis in a challan-cum-statement (Form CMP-08) and file an annual return in Form GSTR-4.

    What is the Composition Scheme for Service Providers?2021-10-08T22:13:40+05:30

    The composition scheme for service providers gives an option to taxpayers having aggregate annual turnover up to Rs. 50 lakhs to pay tax at a nominal rate of 6% (3% CGST + 3% SGST).

    Is Digital Signature Certificate (DSC) required for filing GST Returns?2021-10-08T22:13:10+05:30

    The applicant may submit the GST return by using DSC or Aadhaar based E-sign or Electronic Verification Code. However, DSC is mandatory for Public Limited Company, Private Limited Company, Unlimited Company, Foreign Company, LLP, Foreign LLP, Public Sector Undertaking.

    Can I make any corrections or changes to the GST returns once it is filed?2021-10-08T22:11:58+05:30

    No, you cannot make any corrections or changes to the GST return once filed, it has to be corrected in the subsequent returns.

    What is GST?2021-10-08T11:15:28+05:30

    GST is a destination-based tax on consumption of goods and services. It is charged at all stages right from manufacture up to final consumption, with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and the burden of tax is to be borne by the final consumer.

    Who can apply for GST Registration?2021-10-08T11:15:02+05:30

    All classes of enterprises such as Proprietorship, Partnership firm, Hindu undivided family (HUF), Company, LLP, Cooperative Society, Trust by whatever name called can apply for the GST registration.

    What is GSTIN?2021-10-08T11:14:39+05:30

    GSTIN or Goods and Services Tax Identification Number is a unique 15-digit identification number allotted to every person who applies for GST Registration. One can check and verify the information available on the GST portal using the GSTIN.

    How much time is needed for getting a GST registration certificate in India?2021-10-08T11:14:11+05:30

    On average, it takes 5-7 days for completion of GST registration. However, this is also dependent on the time taken for approval by Government authorities.

    Do I need to be physically present during this process?2021-10-08T11:13:47+05:30

    No, GST registration is a completely online process. All the required documents are filed electronically, so you would not need to be physically present at all. You would just need to send us scanned copies of all the required documents & forms.

    Is Aadhaar Number mandatory for GST registration?2021-10-08T11:13:12+05:30

    The Aadhaar Number is optional for GST Registration. But if a person applies for GST registration without Aadhaar Number and Aadhaar Authentication, then the registration will be granted only after a physical verification is done of the principal place of business by the GST officer. Therefore, Aadhaar Number and Authentication is recommended for applicants.

    Is a PAN card mandatory for GST registration?2021-10-08T11:12:35+05:30

    Yes, a PAN card is mandatory for GST registration. The proprietor shall use his/her PAN for registration of the proprietorship firm and for all other types of enterprises PAN of the business entity shall be mandatory. PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of a self-attested copy of valid passport.

    Why is Aadhaar linked mobile number required for GST registration?2021-10-08T11:12:10+05:30

    Aadhaar linked mobile number is optional for GST Registration. However, if a person has applied for Aadhaar Authentication in GST Application then Aadhaar linked mobile number is mandatory for GST registration.

    Is it legal to carry on business without GST Registration?2021-10-08T11:11:42+05:30

    Yes, it is completely legal to carry on business without GST registration for a person whose business turnover is not exceeding specified turnover limit as given in the table above or supplying goods or services that are not liable to tax or is exempt from obtaining compulsory registration under GST law.

    Can a person charge GST on invoice without having GST registration?2021-10-08T11:11:03+05:30

    No, A person or vendor without valid GST registration cannot charge GST on an invoice.

    Can a person without GST registration claim ITC and collect tax?2021-10-08T11:10:39+05:30

    No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.

    Is the bank account of a business entity mandatory for applying GST Registration?2021-10-08T11:09:04+05:30

    Bank Account details are not mandatory for applying GST registration. But, it shall be added afterwards by filing an amendment application.

    A person is carrying out the business of supply of goods in multiple states and all supplies are below 40 Lakhs. But he makes an Inter-State supply from one state to another. Does he require GST registration?2021-10-08T11:08:36+05:30

    Yes, he is liable to register in the state where he is effecting supply if he is engaged in Inter-State supply of goods even if his aggregate turnover (All India basis) is less than 40 lakhs (20 lakhs or 10 lakhs in specified states).

    A service provider is carrying out the business of supply of services in multiple states through the Office located in Mumbai and turnover of all India supply is less than 20 lakh, does he require GST registration?2021-10-08T11:08:06+05:30

    No, he is not liable to register if he supplies services from his Head Office and his aggregate turnover (All India basis) is less than 20 lakhs (10 lakhs in specified states). However, if his turnover crosses 20 lakhs then he is liable to register under GST Act (Maharashtra) and pay CGST and SGST for services rendered to customer within the state and IGST on services rendered to customer outside the state.

    I’m having business premise in 2 states (Example Maharashtra and Gujrat), do I need GST registration in both the states?2021-10-08T11:07:42+05:30

    GST Registration is a state specific registration. If a person or business entity has business premise in multiple states then he shall be liable to get registered under each such state if his turnover crosses the prescribed limit.

    Is GST Registration mandatory to sell on online E-commerce Platforms such as Amazon or Flipkart?2021-10-08T11:07:16+05:30

    Yes, Sellers supplying taxable goods and services through E-commerce Platforms such as Amazon or Flipkart will be required to compulsorily obtain GST registration irrespective of the sales threshold.

    If I register voluntarily under GST though my turnover is less than 20 Lakhs, am I required to pay tax and file returns post registration?2021-10-08T11:06:43+05:30

    Yes, once you register under GST, you would be treated as a normal taxable person. You have to collect and pay tax from the First supply onwards and file a return from the 1st monthly itself.

    What is composition scheme under GST?2021-10-08T11:06:05+05:30

    The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 1.5 crore (Rs. 75 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate.

    Are there any government fees to be paid for GST Registration?2021-10-08T11:05:29+05:30

    No, there is no government fees for GST Registration.

    Whose Aadhaar number is required GST Registration?2021-10-08T11:05:05+05:30

    The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the authorized partner in the case of a partnership firm or LLP, Karta in the case of a Hindu Undivided Family (HUF) and authorized director in case of company.

    Is Digital Signature Certificate (DSC) required for GST Registration?2021-10-08T11:04:40+05:30

    The applicant has to sign the GST Applica