Registration Arena

  Process of c losing an LLP in India  The Limited Liability Partnership (LLP) is a modern type of business entity, established in 2008 by the Limited Liability Partnership Act, that combines the features of a company and a partnership.  In previous articles, we discussed the documents required for LLP registration and the registration process itself.  In this article, we will guide you through the process of closing an LLP in India. Although LLPs offer several advantages over other types of business entities, such as ease of incorporation and limited liability for members, these benefits do not necessarily translate into successful business operations.  This article will explain the Strike Off method of closure and provide an overview of other closure options. The process to close a Limited Liability Partnership An LLP can be closed in two ways: 1. Strike-off method- a. Voluntary Strike Off The LLP should not have been engaged in commercial activities for a p...

Registration Process for Wholly Owned Subsidiary (WOS) in India A Wholly Owned Subsidiary (WOS) is a company whose shares or voting rights are fully owned by another company, known as the parent company. It differs from a subsidiary because a WOS implies that the parent company owns 100% of the shares or voting rights, while a subsidiary means that the parent company owns 51% or more of the subsidiary company. Foreign companies can establish a Private Limited Company in India to conduct business or invest, which would be considered a Wholly Owned Subsidiary. However, this is subject to government regulations on Foreign Direct Investment (FDI) and other applicable provisions. Requirements of Wholly Owned Subsidiaries At least one director who is a resident of India : A Wholly Owned Subsidiary company in India must have at least one director who is a resident of India. The term "resident" refers to an individual director who has resided in India for an equivalent of or m...

Appointment of Director in a company Introduction A company director is an individual elected by the shareholders to manage the company's affairs in accordance with its Memorandum of Association (MOA) and Articles of Association (AOA). Since a company is a legal entity, it can only act through the representation of a natural person. Therefore, the Board of Directors, consisting of living individuals, is entrusted with the management of the company. Depending on the shareholders' needs, the appointment of directors may be necessary at various times throughout the life of the business. Who can be a Director of a Company in India? To become a director of a company in India, an individual must satisfy the criteria outlined in the Companies Act, 2013, and the Articles of Association of the particular company. The requirements of the Companies Act are uniform, whereas the provisions of the Articles of Association differ from one company to another. There are two types of directors th...

  How to Obtain a Well-Known Trademark In India, over 350,000 trademark applications were filed in the year 2019, and this number is expected to increase rapidly. By 2025, over 600,000 trademark applications are projected to be submitted annually. The Trade Mark Rules 2017 introduced a new process for declaring a trademark as "well-known."  To achieve this status, trademark owners can submit an application (TM-M form) to the Registrar. A well-known trademark receives special protection against infringement and passing off. Recognition as a well-known trademark is based on reputation, both domestically and internationally, and across borders. What is a Well-Known Trademark According to the Trademarks Act of 1999, a well-known trademark is a mark that has gained recognition among a significant portion of the public who use the goods or services associated with the mark.  This recognition is so strong that the use of the mark in relation to other goods or services is likely ...

International Trademark Registration What is International Trademark Registration? An International Trademark refers to a trademark that has been registered worldwide. Such a trademark provides its owner with the advantage of expanding its market and applying for protection in various countries by submitting a single application through the centralized system of the International Bureau of the World Intellectual Property Organization (WIPO). Advantages of International Trademark Registration A single application is required for multiple countries. International recognition of your brand The owner of a Registered Trademark has sole ownership of the trademark. Trademark registration creates an intangible asset, namely intellectual property, for the organization. No third party or competitor may use a registered trademark logo or mark. Once a trademark is registered, only maintenance and renewal fees, payable every ten years, need to be paid. How to register a Trademark ...

  Required Licenses to open a Restaurant in India The process of launching a restaurant in India can be quite daunting. However, with adequate knowledge of the necessary regulations and prerequisites, obtaining a license can become more manageable. To ensure a restaurant's smooth and lawful operation, a comprehensive list of licenses is required before its opening. Please refer to the detailed list below. 1. FSSAI License The Food License, commonly known as the FSSAI license, is one of the essential licenses that a restaurant must obtain before opening. This license is issued by the Food Safety and Standards Authority of India (FSSAI), and it holds paramount importance in determining a restaurant's eligibility to operate. More than just a license, the FSSAI license serves as an endorsement from the regulatory authority, assuring customers that the food served at the restaurant complies with India's food safety standards. Obtaining the FSSAI license can be done direc...

Input tax credit under GST The Input Tax Credit refers to the tax amount paid on purchases, which can be claimed when paying taxes on sales. While this provides a basic understanding, there are several important provisions under the GST law that should be considered. This article will explain these provisions in detail. What is an input tax credit? Under GST, the Input Tax Credit is subject to various sections and rules. This benefit is accessible to the supplier and helps to decrease their tax liability for sales. The fundamental requirements for Input Tax Credit are outlined in Section 16 of the CGST Act, while Section 17 imposes some restrictions on its availability. Additionally, Section 18 deals with how Input Tax Credit is handled during the transfer or shifting in a business entity. How does the Input tax credit mechanism work? GST is a value-added tax, which means that each individual in the chain is responsible for paying tax only on their value addition. To better und...

Difference between TM ( ™ ) and R ( ® ) symbol We often come across two symbols associated with Trademarks - ‘TM’ and ‘R’. Each symbolizes a different type of trademark. The ‘R’ symbol stands for a Registered Trademark, while ‘TM’ represents an Unregistered Trademark. The trademark itself can be a signature, symbol, logo, design, etc., followed by the symbol in superscript. A trademark is a form of intellectual property that provides the owner with exclusive rights to use and authorize others to use the trademark with the owner's permission, in exchange for adequate consideration. It serves as a means to identify the origin of a product. Registered Trademark A trademark that is officially registered under the Trademarks Act, of 1999 is known as a registered trademark. The registration of a trademark provides the owner with exclusive rights, including the sole use of the mark in relation to their products or services. The registration period for a trademark is ten years, afte...

Understanding the Differences between Copyright, Patent, and Trademark "In the context of intellectual property , the terms patent, copyright, and trademark refer to the exclusive rights granted to creators for their original works. These rights typically offer a period of exclusivity to the creator to use and distribute their work. The protection provided by copyright, patent, and trademark extends to the output resulting from the implementation of the idea in practice. Given the availability of multiple intellectual property rights, individuals often find it challenging to differentiate between them. This article aims to clarify the distinctions between Copyright, Patent, and Trademark." Copyright As soon as an author creates an original work, copyright protection is established. This exclusive right covers a wide range of works, such as paintings, photographs, music, books, and computer programs, among others, defined under the Copyright Law. Copyright laws protect the...

  Change of Partners in Limited Liability Partnership (LLP) The Limited Liability Partnership  is operated by its partners, who oversee all aspects of the business to achieve its objectives and vision. The addition or departure of partners does not affect the LLP's legal status, but it does impact the business's growth and the remaining partners' responsibilities. Any changes to the partners or their information require approval from the Ministry of Corporate Affairs. The process of adding a partner to an LLP The addition of a new partner to an existing LLP typically requires the approval of all current partners, unless the LLP agreement permits one partner to do so without the others' consent.  To join the LLP, the new partner must express their intention to do so, and after being admitted, the LLP must file Form 4 within 30 days. The form must be signed by an existing designated partner and accompanied by a certificate from a practicing company secretary or charte...

  Preparation and Maintenance of Statutory Registers The Statutory Registers comprise specific records of the Company’s Directors, Shareholders/Members, Loans & Guarantees, Deposits, Shares, etc. These registers are kept at the registered office of the Company. As per the Companies Act 2013, all businesses are required to maintain and update their records. The company should keep accurate documents and statements that depict the organization’s state of affairs at its registered office for each financial year, including all its subsidiaries and other locations. The law mandates the recording of transactions at the company’s registered office and branches, which should be maintained on an accrual basis, using a double-entry bookkeeping system.  Most businesses maintain their statutory registers in a loose-leaf binder or bound book. However, they can be maintained in any format such as a computer record. The Companies Act 2013 necessitates that every company submits these...

  What is a Letter of Undertaking in GST? A Letter of Undertaking (LUT) is a document used in the context of the Goods and Services Tax (GST) in India. Under the GST regime, a registered person who exports goods or services can export them without paying any integrated tax (IGST) by furnishing a LUT to the tax authorities. The LUT is a declaration made by the exporter to the effect that they will fulfill all the requirements under the GST Act and the rules made thereunder. By furnishing a LUT, the exporter assures the tax authorities that they will export the goods or services in accordance with the applicable laws and will not make any supplies that are not in conformity with the GST Act. To be eligible to furnish a LUT, an exporter must fulfill certain conditions, such as having an income tax PAN, having filed GST returns for the previous period, and not having been prosecuted for any offense under the GST Act. The LUT must be furnished in the prescribed form and manner and m...

What Trademarks cannot be registered in India? Trademark registration paves the way for products and services to be uniquely identified. It differentiates between products and services. Trademark registration is a crucial step in establishing a unique identity for products and services. It serves as a differentiator in the marketplace and provides the trademark owner with exclusive rights to their trademark while safeguarding against infringement. This protection is essential for building goodwill, customer loyalty, and valuable assets. To ensure effective brand naming, it's important to have a clear understanding of what can and cannot be trademarked. In this article, we'll explore the limitations of trademark registration in India and provide guidance on choosing a brand name. Absolute Grounds for Refusal of Registration Void of distinguishing characteristics In Indian trademark law, the requirement of distinctiveness is strictly interpreted. A trademark that lacks...

Quarterly Return Filing and Monthly Payment of Taxes ( QRMP ) in GST To assist small taxpayers with a turnover of less than Rs. 5 crores, the Central Board of Indirect Taxes and Customs (CBIC) introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the GST . This scheme allows registered individuals who need to furnish Form GSTR-1 & GSTR-3B and have an aggregate turnover of up to Rupees 5 crores to file GSTR-3B on a quarterly basis and pay tax on a monthly basis. They can do so by using a simple challan in FORM GST PMT-06. The government is empowered under the Central Goods and Services Tax (CGST) Act of 2017 to notify a specific group of registered individuals who must file a return every quarter or part thereof as prescribed in the CGST Rules, 2017.   According to the CGST Act, 2017, notified individuals must pay the tax due to the government within a prescribed time frame, taking into account particulars such as inward and outward suppl...

Ordinary Resolution vs. Special Resolution A resolution is a formal means by which a company record decisions made during a meeting of its members. Most decisions that affect a company are required to be made through a resolution. Additionally, the company's Articles of Association, which serve as its constitution, may contain specific provisions outlining which decisions must be made through a resolution. Ordinary Resolution An ordinary resolution is one that has more votes in favor than against it, with a majority of over 50% of the members, including shareholders or directors, who attend the General Meeting either in person or by proxy. The resolution can be passed by a show of hands, polling, or electronically. Proper notice of the meeting must be given to members, and those who do not participate in voting are not considered. Typically, an ordinary resolution is required to conduct routine business at the Annual General Meeting (AGM). Ordinary resolutions are required f...

Can a Director of one company be an employee of another Company? Who is a Director? A Director is an individual elected by the company to exercise the statutory affairs of the company and he is the one who is responsible for the management of the company’s affairs. The scope of authority of the director is limited by the provisions of the companies act 2013 and clauses in articles of association of the company. Types of Directors? Let’s understand the different types of directors that businesses usually have. Residential Director Independent Director Additional Director Small shareholders Director Alternate Director Nominee Director Shadow Director In general, there are two categories of directors: "executive" and "non-executive." An executive director may be the only director of a company and has a significant personal interest in the company's success, often as a major source of income throughout their working life. On another side, ...