Registration Arena

  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...

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...

  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...

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...

  Private Placement of Securities under section 42 of the Companies Act 2013 Introduction Companies have various methods of raising share capital, one of which is private placement. It is a technique that involves offering shares or other securities to a designated group of individuals, as determined by the company's board. Unlike a public offering through the issuance of a prospectus, private placement does not involve soliciting the general public. According to a publication by the Reserve Bank of India (RBI), private placement typically involves offering securities to fewer than 50 persons and is exempt from the requirement of filing an offer document with the Securities and Exchange Board of India (SEBI) for review. Definition as per the Companies Act, 2013 Section 42 of the Companies Act talks about the offer or invitation for subscription of securities on private placement. Section 42(3) defines Private Placement as, “Private Placement” means any offer or invitation to ...

  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 ...