Registration Arena

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...

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...

  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, ...

Important Key Points for Multi-class Trademark Application Introduction When a Trademark is registered, it legally safeguards the registered brand name from unauthorized usage. The registration of a trademark is determined by the kinds of goods and services offered. The Ministry of Commerce and Industry classifies all goods and services into 45 categories.  To register a brand name under a trademark, it is necessary to know the appropriate trademark category. Additionally, a product may fall into more than one category. Filing separate applications for each category can be a lengthy procedure. What is a Multi-Class Trademark Application? In order to register a service mark or trademark across two or more product or service categories, a multi-class trademark application is used. This type of application enables the applicant to register their trademark in more than one category by filing a single federal trademark application. The most obvious advantage is that the applicant...

Significance of claiming a user date in a trademark registration application Trademark Registration in India follows the principle of prior use and first claim. This implies that the person who applies for a brand name first is granted priority for trademark registration. Including a user date in the Trademark Registration application is recommended to safeguard the trademark and prevent any potential infringement. In situations where two identical trademark applications are submitted, the applicant who can prove an earlier date of use is likely to have a stronger case compared to someone who has either applied on a proposed-to-be-used basis or claimed usage on a later date. Therefore, the user date is a crucial factor in securing absolute rights in Trademark registration. What is “User Date” in Registration of Trademark? The term "User Date" refers to the date when a brand name's user started using the name, whether or not the name was registered. For goods, the...

  How to Choose the Best Business Structure for Your Start-up? Introduction Selecting the appropriate legal structure for your company is among the most critical choices you will need to make at the outset of your business. Your selection will impact not just your tax payments but also the amount of documentation that your company will need to undertake and your own personal responsibility. Therefore, how can you determine which business structure is best for your new venture? To decide which business structure is suitable for your startup, you need to assess various aspects such as liability, tax implications, incorporation expenses, and ongoing administration and record-keeping requirements. In this blog, we will describe various business structures that you can adopt for your business. Sole Proprietorship The simplest form of business structure is  Sole Proprietorship , which typically involves a single individual who owns and runs the business. If you don't establi...

Alteration of Memorandum of Association The Memorandum of Association (MOA) is a legal document that sets out the constitution of a company and defines the company's objectives, powers, and scope of operations. The MOA is one of the documents required to be filed with the registrar of companies during the incorporation process. The MOA is a vital document that outlines the purpose of the company, its goals, and how it intends to operate. Types of MOA as per companies act 2013 As notified under Schedule I of the companies act 2013 following are the types of MOA that different types of companies can adopt: Table A: Company limited by shares Table B: Company limited by guarantee and having a share capital Table C: Company limited by guarantee and not having a share capital Table D: Unlimited company having a share capital Table E: Unlimited company not having a share capital The MOA mainly consists of the following clauses: Name clause–   The name clause generally co...

  Modification of Trademark in India Introduction A trademark is a recognizable symbol, design, or expression that identifies a company's products or services from those of others. It not only represents the brand but also safeguards the company's offerings from unauthorized use by others that could harm its reputation. However, mistakes may occur during the application process for trademark registration due to oversight by the applicant. Fortunately, the Trade Marks Act includes provisions to rectify errors and mistakes in the registration application. In India, it is possible to modify a trademark at any time before or after registration in order to correct any details that may be inaccurate. Modification of Trademark Before Registration After applying for a trademark, if an error or mistake is discovered in the application, the applicant can request to correct it by submitting Form TM-M along with the necessary fee and supporting documents. This is typically done to r...

  FAQs on Sole Proprietorship How much time is required for sole proprietorship registration in India? The length of time required to complete sole proprietorship registration typically takes 7-10 days. However, this duration may vary depending on the specific type of registration being applied for and the processing timeframe of Government Authorities. Do I need to be physically present during this process? No, the registration process for sole proprietorship is entirely conducted online. There is no need for you to be physically present, as all the necessary documents are submitted electronically. To initiate the process, you would only need to provide us with scanned copies of the required forms and documents. Who can be a proprietor of a sole proprietorship firm? Any individual person who is a citizen of India and has the required documents can become a proprietor of a sole proprietorship firm. Is it mandatory to register a sole proprietorship firm in India? Altho...

  FAQ on Private Limited Company Registration What is the duration required to establish a private limited company in India? The registration process for a Private Limited Company in India typically takes 7-12 days to complete, and involves obtaining two approvals - Name Approval and Final Approval - from government bodies. It is important to note that the duration of this process may vary depending on the workload of the Central Registration Centre (CRC) under the Ministry of Corporate Affairs (MCA). Is my physical presence necessary during this process? The process of company registration is entirely conducted online, thus, physical presence is not required. The necessary documents are filed electronically, and you would only need to send scanned copies of all the required forms and documents to us. Who can be a member of a Private Limited Company? Any individual or organization can become the member/shareholder of the private limited company including foreigners/NRI. ...

  Stamp Duty on LLP Agreement What Is an LLP Agreement? The LLP agreement must encompass detail regarding rules and regulations for its partners. Every LLP agreement ought to be stamped to ensure authenticity. The applicant needs to take the printout of the agreement on the non-judicial stamp. Stamp duty varies from state to state and also depends on the contribution of Capital. The LLP agreement serves as a legal document that covers all aspects of the partnership, from its incorporation to its dissolution. It includes details on the roles of partners, their mutual rights, profit sharing, and contributions. The LLP agreement also outlines the partnership's rules and regulations in greater detail. For instance, it may provide information on how new partners can be appointed and how their tenure will end. How is the LLP Agreement prepared? To prepare an LLP agreement, all partners of the Limited Liability Partnership must discuss, agree upon, and sign the clauses outlined i...

  Registration of Charges Introduction According to Section 2(16) of the Companies Act, a Charge is defined as an interest or lien established on the assets or property of a Company or any of its undertakings as security, and this definition also encompasses a mortgage. Additionally, the Companies Act mandates that all companies must register any Charges created by the Company and keep a record of them. What is Register of Charges ? To maintain a register of charges, as discussed earlier in Form No. CHG.7, every company must keep a record at their registered office. It is crucial to note the following additional points: The register must contain all details, including charges registered with the Registrar on any property, assets, or undertaking of the company, and particulars of the acquired property on which the charge is created. It must also record any modifications or satisfactions of charges. The entries in the register should be made immediately after creating, modifying, or ...

Restriction on Loans Provided by Private Limited Companies Introduction Managing a company's funds is a critical decision that requires careful consideration from the management. It is essential for them to identify potential sources of funding and effectively allocate these resources to generate passive income for the organization. To optimize excess funds, companies may explore various strategies, including lending to other businesses. Not only can this strengthen business relationships, but it can also result in interest income for the lending company. In this article, we will examine the legal limitations imposed on private limited companies when providing loans to individuals and other corporate entities . Legal Provisions The Companies Act 2013 includes two distinct sections regarding loans: Section 186 for inter-corporate loans and investments, and Section 185 for loans to directors and related parties. Although the term 'loan' lacks a specific definition...