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Royal Bird



Crowd Funding is a method of raising capital through the collective effort of investors as well as other Resources. Who contribute a small amount, online via social media and crowd funding platforms to finance a new business for Idea Development. Its for Start-ups only.

1. Easily Reach To Investors:

Have access to thousands of accredited investors and share fundraising campaign.

2. Public Relations and Marketing:

Sharing campaign through social media, newsletters and other online marketing tactics.

3. Efficiency:

Centralize and streamline the fundraising efforts. Instead of duplicating efforts by printing documents, compiling binders, and manually updating each one when there’s an update, we can present everything online in a much more accessible format.

4. Validation:

Presenting your concept or business to the masses affords an excellent opportunity to validate and refine your offering.

Required Documents:


Business plan:

A comprehensive business plan is a 20-50 page document that goes over each and every detail of a business. This includes the problem your company solves or addresses, the solution you provide, your target market size, team background, etc.

Executive Summary:

An executive summary is a one-page document that details the most important aspects of your business plan, including problem, market size, solution, and a brief team background. Brevity and concise writing are crucial when writing an executive summary because it's a document meant for quick reference and to pique initial interest.

Pro Forma Income Statement:

A pro forma income statement lists business assets, costs, revenue, as well as projected assets/liabilities. It should give a detailed picture of your company’s current and projected financial status.

Pitch Deck:

A pitch deck is generally a PowerPoint presentation that walks potential investors through the key components of your startup. Traditionally, a pitch deck is used as a presentation tool when speaking to investors during a meeting. In a crowdfunding campaign, your pitch deck will need to be slightly more informational since you won’t be there personally to deliver the information to potential investors.

Octapass Registration



Octa Pass stands for "Open Console Technology Application for Public Access Security Sysyem". Peer-to-Peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.
With peer-to-peer lending, borrowers take loans from individual investors who are willing to lend their own money for an agreed interest rate. The profile of a borrower is usually displayed on a peer-to-peer online platform where investors can assess these profiles to determine whether they would want to risk lending money to a borrower. A borrower might receive the full loan amount or only a portion of what he asked for from an investor. In the case of the latter, the remaining portion of the loan may be funded by one or more investors in the peer lending marketplace. In peer-to-peer lending, a loan may have multiple sources and monthly repayment has to be made to each of the individual sources.

Series A financing:
It is the first round of financing given to a new business once seed capital has already been provided. This is when external investors are given company ownership for the first time. It is also known as round A financing. The investors involved in the Series A round come from more traditional venture capital firms. Series A preferred stock is often convertible into common stock in certain cases such as an Initial public offering (IPO) or the sale of the company.

Series B financing:
It is the second round of financing for a business through any type of investment including private equity investors and venture capitalists. Series B rounds are all about taking businesses to the next level, past the development stage Investor’s help start-ups get there by expanding market reach. Series B appears similar to Series A in terms of processes and key players.

Octapass Lending Approval



Octa Pass stands for "Open Console Technology Application for Public Access Security Sysyem". Peer-to-Peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.
With peer-to-peer lending, borrowers take loans from individual investors who are willing to lend their own money for an agreed interest rate. The profile of a borrower is usually displayed on a peer-to-peer online platform where investors can assess these profiles to determine whether they would want to risk lending money to a borrower. A borrower might receive the full loan amount or only a portion of what he asked for from an investor. In the case of the latter, the remaining portion of the loan may be funded by one or more investors in the peer lending marketplace. In peer-to-peer lending, a loan may have multiple sources and monthly repayment has to be made to each of the individual sources.

Series A financing:
It is the first round of financing given to a new business once seed capital has already been provided. This is when external investors are given company ownership for the first time. It is also known as round A financing. The investors involved in the Series A round come from more traditional venture capital firms. Series A preferred stock is often convertible into common stock in certain cases such as an Initial public offering (IPO) or the sale of the company.

Series B financing:
It is the second round of financing for a business through any type of investment including private equity investors and venture capitalists. Series B rounds are all about taking businesses to the next level, past the development stage Investor’s help start-ups get there by expanding market reach. Series B appears similar to Series A in terms of processes and key players.

Octapass Repayment



Octa Pass stands for "Open Console Technology Application for Public Access Security Sysyem". Peer-to-Peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios. With peer-to-peer lending, borrowers take loans from individual investors who are willing to lend their own money for an agreed interest rate.
The profile of a borrower is usually displayed on a peer-to-peer online platform where investors can assess these profiles to determine whether they would want to risk lending money to a borrower.
A borrower might receive the full loan amount or only a portion of what he asked for from an investor. In the case of the latter, the remaining portion of the loan may be funded by one or more investors in the peer lending marketplace.
In peer-to-peer lending, a loan may have multiple sources and monthly repayment has to be made to each of the individual sources.

Series A financing:
It is the first round of financing given to a new business once seed capital has already been provided. This is when external investors are given company ownership for the first time. It is also known as round A financing. The investors involved in the Series A round come from more traditional venture capital firms. Series A preferred stock is often convertible into common stock in certain cases such as an Initial public offering (IPO) or the sale of the company.

Series B financing:
It is the second round of financing for a business through any type of investment including private equity investors and venture capitalists. Series B rounds are all about taking businesses to the next level, past the development stage Investor’s help start-ups get there by expanding market reach. Series B appears similar to Series A in terms of processes and key players.
There are several documents that are essential for a successful equity crowdfunding campaign. These include a business plan, executive summary, pro forma income statement, and pitch deck. Below you’ll find a brief summary of each necessary component.

Name Availability Check



Company name should always be unique. It should not copied from any other company name because it should be already trademarked or register a private limited company with that name.
Even internet entrepreneurs have to check that on that company name already domain name is booked or not. You can claim the domain name after taking the trademark also but initially, you have to secure your brand name.
Private Limited is most of the popular business formation. While we are choosing the company name, we have to check out with Ministry of Corporate Affairs data.
MCA Website has all the companies data which is available online. So you can check out the company name by ROC Registration Number/ Existing company LLP/CIN or company name keyword.
Company Name Search Link – MCA Website for Company Name Search

Proprietorship Company



A Sole proprietorship is a business which is owned, managed and controlled by a single person. It is one of the most common forms of business in India, utilized by small businesses operating in the unorganized sectors. The proprietorship is recognized by other registrations, such as a service or sales tax registration. It has too many shortcomings, such as unlimited liability of proprietor, and it does not have continuous existence. For these reasons, it is considered by small merchants and traders as a business structure. Sole Proprietorship Registration is done through Capital Flow

Choose proprietorship because
  • A Sole Proprietorship is cheaper as compared to OPC.
  • Easy to establish with fewer formalities.
  • A proprietorship with income of less than Rs. 2.5 Lakhs per annum is not required to pay income tax.

Key points on proprietorship registration

No Foreign Funding

Proprietorship business can't be supported with remote cash (No FDI). Proprietorship business can be set up and keep running by Indians.

Tax Benefit:

The business wage of the proprietorship is incorporated into the ITR of the proprietor, subsequently more duty sparing in the budgetary year.

Simple to Start, Easy to Close

It can start promptly and there is no compelling reason to enlist it. So also, it can be shut without looking for any authorization.

Registration for your business

Acquire Tax Deduction Account Number (TAN)

Registration under Udyog Aadhar (MSME)

Shops and Establishment Registration
Registration with Professional Tax Department within 30 Days
Import Export Code (IEC) from DGFT in India
Goods and Services Tax (GST) Registration
Trademark Registration of Business Name, Brand and Domain Name.

Required Documents:- (All copies of documents should be self-attested by the customer)

Address Proof (Utility bill must be less than 2 months old)
Individual PAN
Aadhaar copy
Proprietorship Name
Address Proof Of premises
Rental agreement certification
NOC (If the premises is not owned by the customer)
List of sales/services to be carried out
Cancelled cheque
1 Photograph of individual
Phone number, E-mail Id of proprietor
For foreign nationals, apostilled or notarized copy of passport must be submitted mandatorily.


Proprietorship Registration Procedure


Selection of Name

As expressed before there is no compelling reason to enlist a proprietorship firm in India. In any case, the name of firm ought to be cross-checked with the trademark registry to keep away from any encroachment or going off the others Trademark or brand name.
Each Business is required to agree to the arrangements of Tax reasoning at a source, to make the instalment of the gathered TDS and document the TDS return, TAN number is required. TAN is an extraordinary number apportioned by the Income Tax Department.

MSME - UDYOG Aadhar

Udyog Aadhar Number empowers a unit/business visionary to look for online administrations being offered by branches of the legislature of India. It replaces the old strategy for the enlistment of MSME by documenting EM-I/II.

Shops and Establishment Registration

Each shop or business foundation is required to get itself enlisted with the state government. The application for enlistment must be documented within 30 days of beginning a business in India.

Open a Bank A/c

To execute the business, a proprietorship concern must open a present record for the sake of the proprietorship firm. For this, you should approach any bank panel for help or call us.

Partnership Firm Registration



It is a legal form of business between two or more individuals where, the management and profits are shared between them. To start a Partnership Registration Procedure partners need to enter into Partnership deed. Partnership firm’s deed is created by attaching an appropriate value of stamp paper with the agreement, which can be notarized further.
It is mandatory to the partners to get the firm registered. The registration of Firm can be obtained by filing the deed and Know Your Customer (KYC).


REQUIREMENTS TO START A PARTNERSHIP FIRM


Least Two Person

Two men is expected to end up noticeably the partners of the firm.And 20 members are permitted to be partners in a firm.

Minimum Capital

Base capital is endorsed, it must be founded on the business necessities. The Stamp Duty on the deed depends on the measure of capital.

NO FDI is permitted

Outside interest in an organization business isn't allowed. In the firm, just Indian subject can turn into the accomplice and begin the association business.

Extraordinary Name

Name of the firm ought to be extraordinary, and it must not be same or like the name of any current trademark which is enlisted or connected to.


Documents Required to Register a Partnership Firm:- (All copies of documents should be self-attested by the customer)


A signed copy of the Partnership Deed, duly notarized.
Signature of all the partners on Form No 1 duly attested by CA / Advocate.
Colour Photographs of all the partners of the firm.
Pan Card, ID Proof and Address Proof (Aadhar is Must) of all partners.
Premises Proof where the registered office of the firm shall be situated.
No objection certificate in the form of an affidavit from the owner of the premises.


Partnership Firm Procedure:


Selection of Name

A Partnership firm should begin with a different name by pronouncing the same in the consent to be the name of the firm by the partners. Care must be taken while choosing the name of the firm to keep away from any contention with another person trademark. We educate that the name regarding the firm must be cross-checked with the registry of trademarks to keep away from any encroachment or going off the others Trademark or brand name.

Partnership Deed Drafting

The Partnership Agreement is the constitution of the firm which decides the relationship of partners among themselves and also the connection of partners versus firm. The assertion additionally sets out the techniques for adding other partners or for removal of partners. The capital, Interest on Capital, Partners Salary, and benefit sharing proportion are a portion of the transcendent things in the understanding which should be deliberately drafted.

Partnership Deed Notarisation

A Partnership Deed must be very much drafted, and the mark of the partners be made on the understanding within the sight of observers before a Notary Public. This brings assurance and sets up that the understanding of association is made with the free ascent of the gatherings and within the sight of witnesses.

Partnership Firm Registration

In spite of the fact that the association demonstration 1932, does not make the enlistment of firm obligatory, However on account of impediments forced by segment 59 of the demonstration. It is emphatically prescribed to get the firm enlisted in endorsed way. While making an application for enlistment the KYC of the accomplices, the duplicate of the deed, KYC of the premises and a NOC from the proprietor of premises is submitted.

PAN Card of the Firm

PAN is the abbreviated form of Permanent Account Number, which is a ten-digit alphanumeric number allotted to the assessment of the income tax by the Revenue Office ( ITO). It is a unique number which identifies the firm before the IT Department. Form No 49A need to be filed along with the copy of partnership deed to get the PAN Card. It takes around a week time.

TAN Number Allotment

An obligation is made to deduct the expense while making instalments over the span of business. The TDS rates are indicated independently which runs between 1 - 20% relying on the exchange. The TDS so deducted is stored with the Income Tax Department and points of interest are recorded with the quarterly return of TDS. To consent to the arrangements of TDS, a TAN number is designated by the Income Tax Department.

One Person Company (OPC)



The idea of One Person Company [OPC] is introduced by The Companies Act, 2013, consequently empowering Entrepreneur(s) carrying on the business in the Sole-Proprietor type of business to go into a Corporate Framework.
One Person Company is a mixture of Sole-Proprietor and Company form of business and has been provided with concessional/relaxed prerequisites under the Act.


Highlights of One Person Company (OPC)


1. Max One Shareholder:

An individual, who is an Indian citizen and occupant in India, will be qualified to incorporate a One Person Company. Explanation: The expression "Occupant in India" implies a man who has stayed in India for a time of atleast 182 days during the promptly preceding one calendar year.

2. Nominee for the Shareholder:

The Shareholder might nominate someone else who should turn into the shareholders if there should arise an occurrence of death/inadequacy of the first shareholder. Such nominee should give his/her consent and such consent for being assigned as the Nominee for the sole Shareholder. An individual, who is an Indian citizen and occupant in India can be a nominee for the sole individual from a One Person Company.

3. Director:

Must have at least One Director, the Sole Shareholder would himself be able to be the Sole Director. The Company may have a maximum number of 15 directors


Terms and conditions of OPC

  1. A person might not be qualified to join more than a One Person Company or become a nominee in one such organization.
  2. Minor can't be a member or part or nominee of the One Person Company or can hold shares with beneficial interest.
  3. An OPC can't be joined or changed over into an organization under Section 8 of the Act. [Company not for Profit].
  4. An OPC can't do Non-Banking Financial Investment exercises incorporating the interest in securities of any body corporate.
  5. An OPC can't change over intentionally into any sort of organization unless two years have terminated from the date of consolidation of One Person Company, except threshold limit (paid up share capital) is expanded past Rs.50 Lakhs or its annual turnover amid the important period surpasses Rs.2 Crores i.e., if the Paid-up capital of the Company crosses Rs.50 Lakhs or the normal yearly turnover amid the significant period exceeds Rs.2 Crores, at that point the OPC needs to constantly record shapes with the ROC for transformation in to a Private or Public Company, with in a time of Six Months for breaching the above limits.

Required Documents:- (All copies of documents should be self-attested by the customer)


Identity and Address Proof

PAN is mandatory. For foreign nationals, apostilled or notarized copy of passport must be submitted mandatorily.

Residence proof documents like bank statement or electricity bill must be less than 2 months old.

A recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

Steps to Incorporate One Person Company (OPC)

  1. Obtain Digital Signature Certificate [DSC] for the proposed Director(s).
  2. Obtain Director Identification Number [DIN] for the proposed director.
  3. Select suitable Company Name, and make an application to the Ministry of Corporate Office for accessibility of name.
  4. Draft Memorandum of Association and Articles of Association [MOAand AOA].
  5. Sign and record different reports incorporating MOA and AOA with the Registrar of Companies electronically.
  6. Payment of Requisite expense to Ministry of Corporate Affairs and furthermore Stamp Duty.
  7. Scrutiny of reports at Registrar of Companies [ROC].
  8. Receipt of Certificate of Registration/Incorporation from ROC.

Limited Liability Partnership (LLP)



LLP is another corporate business form that gives the advantages of limited liability of an organization and the adaptability of a partnership. The LLP can proceed with its existence independent of changes in partners. It is capable of going into contracts and holding property in its own name. The LLP is a different legal entity, is liable for its benefits however obligation of the partners is constrained to their agreed commitment in the LLP. Further, no partner is at risk because of the independent or un-approved activities of different partners, therefore singular partners are protected from joint obligation made by another partner's wrongful business choices or misconduct.


Qualification for LLP registration in India:


Minimum Two People:

An LLP can be begun by no less than two partners, however there in utmost to the most extreme number of partners.

Minimum Capital:

Based on the business necessity the partners must settle on the capital of the LLP, as the govt expense relies upon it.

Resident Designated Partner

One designated partner of LLP must be resident in India by remaining for no less than 182 days in India during the budgetary year.


Unique Name of LLP

The name of LLP should not look like with the name of any current organization, LLP or a trademark.


Documents Required For LLP Registration:- (All copies of documents should be self-attested by the customer)


  • Two front-facing color photographs of all partners or designated partner.
  • Pan Card of each partner, The name must match with IT database.
  • Identity Proof of each partner, (Aadhar Card, Passport, Driving License or Voter ID Card).
  • Address Proof (Bank Statement or Passbook, electricity bill, telephone bill, or any utility bill).Proof of the registered address of the LLP (Sale Deed, electricity bill, tax paid receipt or any other utility bill).
  • No objection Certificate from the owner of the premises where the registered office of the LLP shall be situated.
  • Documents Must be self-attested and attested by a Gazetted Officer, Post Master or a Bank Manager.

Step - Wise Process To Register an LLP in India:


Digital Signature of Partners:

DSC is also called physical or paper authentications in computerized design. As the application for LLP Registration is documented online with Digital Signatures of the assigned partners, subsequently the procedure begins with the issuance of the advanced mark for all the assigned partners. Photograph, ID and Address confirmation is to be submitted along with Form for the issuance of DSC.

DPIN Number allotments for the Partners:

It is a permanent number issued by the enlistment centre of organizations, as an extraordinary distinguishing proof number to the chief of an organization or assigned partner of the LLP. No individual can hold an office of the assigned partner unless he is issued a DPIN. For apportioning of DPIN, an application to ROC is made with Photo, Attested ID and Address evidence appropriately authenticated by CA, CS or CMA.

Endorsement of a name for the LLP by the ROC:

Name of each organization or LLP must be unique, new and must not be same or as an effectively registered organization, LLP or a Trademark. After the DSC and DPIN assignment, an application is made to the ROC for endorsement of the name; the registrar is vested with optional powers concerning the endorsement of the name. Our guides will assist you while choosing the name of the organization or LLP.

Issuance of Registration Certificate of LLP:

Everything that is described beneath at long last finishes into the enrolment of the organization with the issuance of the certification of Incorporation. With e-form, DPIN, name Approval, and Incorporation related documents like affidavits; declarations are recorded or files at once. The authentication of incorporation is the convincing proof of the registration of the organization.

LLP Agreement drafting and Filing with the ROC:

The partners of the LLP tie themselves concerning their common rights and commitment, capital commitment ratio, profit sharing ratio in a report which is known as LLP Agreement. After joining of LLP the partners need to execute the same and document a copy with the registrar of organizations within 30 days of Incorporation, failing leads to a penalty of Rs. 100 day is imposed for every day of postponement.

PAN, TAN Number of LLP and Bank A/c Opening:

Income tax Department designates a unique 10 Digit alphanumeric number as a permanent account number, otherwise called PAN Number. To agree to TDS arrangements each taxpayer needs to get a Tax Deduction Account Number. These identification numbers are must, to work and comply. The opening of a bank account is the last step in setting up a business.

Private Limited Company



Private Limited Company is the most prominent type of corporate legal entity in India. Private limited organization registration is administered by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. Any two lawful individuals can open a private limited organization while it must be limited to 200 individuals. To register a private limited company, at least two shareholders and two directors are required. An individual can be both a shareholder and a director, while a corporate legal entity must be a shareholder. Further, foreign nationals, outside corporate legal entities or NRIs are permitted to be Directors and Shareholders of a Company with Foreign Direct Investment (FDI), settling on it the preferred decision of entity for foreign promoters. Our Dedicated Private Limited Registration specialist is accessible to help you in the registration of your business crosswise over India.


Qualification for private limited company in India:


Least Two People:

Two individuals are needed to become the shareholder / director of the company. However, the number of shareholders is limited to 200.

Minimum Capital: 1 Lakh

Minimum capital is required, it is based on the business requirements. The registration expense depends on the measure of capital.

One Resident Director:

At least one director of the company must be resident in India. A person is said to be a resident, when he stays in India for at least 182 days in the FY.


Unique Name:

Name of the organization ought to be one of a kind, and it must not be same or like the name of any current organization or a trademark.


Documents Required For Pvt Ltd Registration:- (All copies of documents should be self-attested by the customer)


  • Two front-facing colour photographs of directors / shareholders.
  • Pan Card of each director, the name must match with IT database.
  • Identity Proof of each director, (Aadhar Card, Passport, Driving License or Voter ID Card).
  • Address Proof (Bank Statement or Passbook, electricity bill, telephone bill, or any utility bill).
  • Proof of the registered address of Company (Sale Deed, electricity bill, tax paid receipt or any other utility bill).
  • No objection Certificate from the owner of premises where registered office of the company shall be situated.
  • Documents Must be self-attested and attested by a Gazetted Officer, Post Master or a Bank Manager

Step - Wise Process To Register a Private Limited Company in India:


Digital Signature of Director:

DSC is a physical or paper certificate in digital format.

Director Identification Number:

It is a unique number issued by the registrar of organizations.

Name Approval of Company:

Name of each organization or LLP must be one of a kind, new and should not be same or like an effectively registered organization, LLP or a Trademark.

MOA and AOA of Company Memorandum of Association (MOA):

The promoters need to receive and sign MOA and AOA, which is then filed with the ROC.

Company Incorporation:

The authentication of incorporation is the definitive confirmation of the registration of the organization.

PAN, TAN and Bank Account:

Income tax Department designates a special 10 Digit alpha numeric number as a permanent account number, otherwise called PAN Number. Each citizen need to get a Tax Deduction Account Number. Opening of a bank account is the last step.

Public Limited Company



A Public Limited Company (PLC) is the legal assignment of a limited liability company which has offered shares to the overall public and has limited liability. A PLC's stock is offered to the overall public and can be procured by anybody, either privately, amid the first sale of stock or through exchanges on the stock exchange. A public limited company (PLC) is the legal assignment of a limited liability company which has offered shares to the overall population and has the restricted risk.
Public Limited Company is a type of organization which offers its shares to the overall population. It gives the constrained obligation to its owners and shareholders.
The Capital required is 5 Lakh and GSTIN is Mandatory. Annual Filings are also required. The base number of shareholders can be 7 and the minimum number of directors required is 3 and most extreme is boundless.


Reasons to register a Limited Company:


Separate Legal Entity

A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has the wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.

Easy Transferability

Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

Owning Property

A company is a juristic person, can acquire, own, enjoy and alienate property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.


Uninterrupted Existence

A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.


Borrowing Capacity

A company enjoys better avenues for the borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.


Documents required for public limited company:- (All copies of documents should be self-attested by the customer)


Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarized copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

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

Signed Incorporation Document:

Signed digital signature application documents in hard copy. Other incorporation documents signed and uploaded as soft copy.

Process for Limited Company
  • To start a Company
  • Obtain director identification number (DIN) for all the proposed directors of the Indian Company
  • Obtain Digital Signature Certificate (DSC) for at least one of the proposed directors. To file all the forms electronically
  • File an application seeking approval for the proposed name of the company
  • Payment of registration fee to the ROC and submission of all the documents
  • Receipt of Certificate of Incorporation

Indian Subsidary



There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast-growing markets and have access to some of the best human resources in the world. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the company, subject to the FDI Policy of India. In addition, a minimum of one Indian Director who is an Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.
Investment and acquisition of equity shares of a Company can be broadly divided into two categories: investment under automatic route and investment under Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India. Investment in activities/industries where the automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. Capital Flow can be your legal and professional partner in India to get your New Company / Subsidiary in India started quickly and cost-effectively.


Documents required for registration of Subsidiary Company:- (All copies of documents should be self-attested by the customer)


1. Indian National

  • PAN Card (mandatory)
  • Address proof
  • Photo ID Proof

2. Foreign National

  • Passport (mandatory)
  • Address Proof (Document must be certified by the Indian Consulate)
  • Photo ID Proof (Document must be certified by Indian Consulate)
The minimum requirement to incorporate an Indian Subsidiary
  • Two directors
  • Two shareholders
Procedure to incorporate Subsidiary Company
  • Once the minimum requirements are fulfilled the owners can begin the incorporation procedure.
  • To start with incorporation as subsidiary company, two directors apply for DSC (Digital Signature Certificate), and all the directors must apply for DIN (Director’s Identification No.).
  • The applicant is required to apply for the name of the company in Form INC-1.

After obtaining name approval from ROC (Registrar of Companies), an applicant is required to file –

  • Form INC-7 (Application for Incorporation of Company (Other than One Person Company)
  • Form DIR-12 (Particulars of appointment of directors and key managerial staff; and
  • Form INC-22 (Notice of the situation) along with Memorandum and Articles of Association of the Company.
  • After filing of the incorporation documents, payment of online ROC fees and Stamp duty is done by the applicant. (This is based on the authorized capital of the company).
  • After the fees are paid, ROC verifies the filed documents. Form INC-22 and DIR-12 are approved via the Straight-Through-Process (STP) and the ROC verifies Form INC-7 in detail. The ROC may suggest some changes in the form or attachment.
  • Once the changes have been affected and the ROC is satisfied, Certificate of Incorporation is sent to the applicant via email.

If the aforementioned documents are available and the right procedure is followed, then there will not be any unnecessary delays and the company can be incorporated at the earliest. However, We at Capital Flow can help you to incorporate a subsidiary company easily.

Nidhi Company



Nidhi Company registration is basic and less complexed when contrasted with different kinds of finance companies like NBFC which require RBI permit to begin. A Nidhi Company can be started with an underlying capital of Rs.5 lakh and require at least seven individuals, to begin with. Nidhi Company registration also requires three directors at first. It takes around 15 to 20 days to get Nidhi Company enlisted in India.
Nidhi company is represented by Nidhi Rules, 2014. They are joined in the idea of Public Limited company and consequently, they need to agree to two arrangement of standards, one of a Public limited company according to Companies Act, 2013 and another is for Nidhi rules, 2014. No RBI approval is important to register the company, as RBI has particularly exempted this classification of NBFC in India to comply its centre arrangements, for example, registration with RBI and so forth. Each Nidhi might, inside a time of one year from the initiation must guarantee that it has at the very least 200 individuals.


Required Documents:- (All copies of documents should be self-attested by the customer)


  • PAN Card
  • ID Proof
  • Address Proof
Nidhi Company Registration:
  • Separate Legal Entity
  • Easy Management
  • Going Concern
  • Uninterrupted Existence
  • Better Credibility

Documents that are Required for Nidhi Company:

Identity and Address Proof:

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals apostilled or notarized copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof:

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

Signed Incorporation Documents:

Signed digital signature application documents must be submitted in hard copy. Other incorporation documents signed and uploaded as soft copy.

Nidhi Company Registration Process

Prepare DSC & DIN: The first step is to file for Digital Signatures (DSC) and Director Identification Number (DIN). It takes around one day to get the digital signatures and generally DIN can be filed on the same day.

File Name Approval: The second step is to file the name approval via form RUN approval and at-most you can give maximum 2 names for approval, The name must start with a unique word and must end with “Nidhi Limited”.

File for incorporation: The third step is to file the incorporation along with all necessary documents via form INC 32. The form is attached with all the important attachments like MOA, AOA, declarations etc.

Producer Company



The idea of Producer Company in India was introduced to allow cooperatives to work as a corporate entity under the Ministry of Corporate Affairs. In this article, we look at the method for registering a Producer Company in India, under the Companies Act, 2013. The Companies Act defines Producer as any individual occupied with any activity associated with or relatable to any primary producer .


Producer Company Registration

To register a Producer Company in India, the following individuals in any of the combination is necessary
Ten or more peoples, each of them being a producer; or
Two or more producer organizations.
A mix of at least ten or above people and producer organizations.

Reasons to Register a Producer Company:

Separate Legal Entity
Easy Management
Uninterrupted Existence
Owning Property
Better Credibility

Documents for producer company:- (All copies of documents should be self-attested by the customer)


Identity and Address Proof

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

Registered Office Proof

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

Signed Incorporation Documents:

Signed digital signature application documents in hard copy. Other incorporation documents signed and uploaded as soft copy.

Producer company incorporation process

The registration process for a Producer Company is then like a Private Limited Company. DSC and DIN should be obtained for the proposed first Directors of the Producer Company. When, DSC and DIN are acquired, application for name reservation can be recorded with the Registrar of Companies (ROC). The name of a producer company must end with the words "Producer Limited Company". When, name is affirmed by the ROC, application for incorporation can be recorded in the prescribed design for incorporating the Producer Company.
If the Registrar is happy with the application for incorporation of Producer Company, at that point he/she will approve the same and issue Certificate of Incorporation. Once, a producer company is incorporated, it should work like a private limited company subject to specific provisions. However, unlike a Private Limited Company, a Producer Company does not have a limit on the quantity of individuals.

Section-8 Company



In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a private limited non- profit company under Section 8 Company under the Companies Act, 2013. A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per the new Companies Act 2013, Section 25 (as per the old act) has now become Section 8.
To register a section 8 company in India, the process is similar to the incorporation of other companies (except an additional license is required). The applicant looking to start a section 8 company is required to file RUN approval for name availability. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form RD-1 is to be filed in order to obtain a license for such company. After obtaining license number, applicant can proceed further to incorporate a company by filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.


Reasons to Register a Section 8 Company:
Name

Section 8 Companies can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organisation, Federation, Chamber of Commerce, Development and more.

Management

Trusts are managed by Trustees as per a Trust Deed. Section 8 Company does not have the concept of Trustees. Hence, Section 8 Companies are managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.

Profits

Like a private limited company, a Section 8 Company will also have revenue, expenses, profits and losses. However, in a Section 8 Company the profits can be used only for the charitable or not-for-profit purposes mentioned in the MOA.

Transferability

The management of a Section 8 Company can be easily transferred from one person to another by altering the changing the composition of Board of Directors. Section 8 Company can also be controlled by shareholders.

Documents required for Section 8 Company:- (All copies of documents should be self-attested by the customer)


Identity and Address Proof

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

Registered Office Proof

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

Signed Incorporation Documents:

Signed digital signature application documents in hard copy. Other incorporation documents signed and uploaded as soft copy.

Steps to Incorporation Section 8 Company Registration process

Application of DSC & DPIN:

First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used of 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 to provides 3 different name options to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business

Approval of other authorities:

The Registrar of Companies may require the applicant to furnish the approval or concurrence of any department, regulatory body, appropriate authority, or Ministry of the Central or State Government(s) in relation to the work to be done.

MOA & AOA submission:

Once the licence is obtained, one needs to draft Memorandum of association and Articles of Associate. But the object of the company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscription statement.

Get Section 8 Company incorporation certificate:

It typically takes 15- 25 days to form a Section 8 company and get the incorporation certificate. The Certificate of Incorporation is proof that a company exists. It also includes your CIN (Company Incorporation Number).The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers.

Proprietorship Annual Compliance



Proprietorships of India have only the minimal statutory compliances, which are much lesser than those applicable to the private or public limited companies. It is mainly because of the fact that a proprietorship has a no separate legal entity different from its owner or proprietor, and this form of business entity does not avail the benefits of limited liability. The annual income of the proprietor is considered the annual income of the proprietorship firm.
Hence, like other business/service entities which are registered under the Ministry of Corporate Affairs, the sole proprietorship firms are not required to file any annual report or financial statements with the MCA. The main and major statutory compliances to be made by these proprietorship firms are thus tax related periodic and annual compliances. However, some more periodic or annual compliances may also be required for the purposes of business regulation/recognition.


Documents Required for Annual Compliances For Proprietorship:- (All copies of documents should be self-attested by the customer)

1. Invoices of Purchases and Sales during the year
2 .Invoices of expenses incurred during the year
3.Credit Card Statements if Expenses are incurred by Proprietor on behalf of proprietorship business
4.Bank Statements from 1 April to 31 March for all bank accounts in the name of Proprietorship Business
5.Copy of VAT or Service Tax returns file
6. Copy of TDS Challans Deposited
7.Copy of TDS Returns filed. (if any)

Process:

Documentation
GST returns
Finalization of Balance Sheet
Income Tax Return
Tax Audit

Partnership Annual Compliance:



A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnerships firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors.
Partnership Firms are required to file their income tax return each year. Under the Income Tax Act, the Partnership firm is treated as an entity separate from the Partners of the firm. Both registered partnership firms and unregistered partnership firms are required to file their income tax return. As per Income Tax Act, a partnership can be assessed as a Partnership Firm or an Association of Persons (AOP). Only those partnerships that have a written partnership deed can be assessed as a Partnership Firm. It is more beneficial to be assessed as a Partnership Firm than as an Association of Persons as certain deductions allowed for Partnerships are not allowed for Association of Persons and the tax liability could be higher.
This offer would protect your startup from unnecessary taxes, penalties by keeping your business in perfect compliance as you grow.


Documents Required:- (All copies of documents should be self-attested by the customer)

To file the income tax return of a partnership firm, book of accounts must be maintained and tax audit may have to be obtained based on various criterias, Invoices and Purchase Orders, all the Bank Statements.

The Partnership should ensure Process:

All its invoices and official correspondence bear the name of the registered Partnership firm.
Keep accounts and other records which will sufficiently explain the transactions and financial position for 5 consecutive years.
File an annual income tax return to show all income earned by the partnership and deductions claimed for expenses incurred in carrying on the partnership business;
Monthly, Quarterly TDS, GST Returns, Excise Compliance to be completed within schedule time frame .
The income tax return of a Partnership firm must be accompanies by the financial statements of the Partnership firm and the Partnership deed.
In certain cases, a tax audit may have to be conducted by a Chartered Accountant prior to filing the tax return of the Partnership firm.

Annual Compliance of LLP



The Annual Compliances LLP has to meet even if there is no business activity. It is also not relevant whether you have any business bank account. Even if you want to close your LLP, the compliances have to be duly met. Basic annual compliances are something that your business simply cannot afford to miss.


Filing of Annual Accounts – Every LLP is required to maintain the Books of Accounts as per Double Entry System. It has to prepare a Statement of Solvency (Accounts) every year ending on 31st March. If there are no transactions, then venture formation and allied expenses are to be booked. These expenses can be a part of LLP losses and these can be carried forward and set off in subsequent years.
LLP are required to file such Accounts in Form 8 to the Registrar. This form has to be filed within 30days from the end of 6months of such financial year. The accounts are to be filed on or before 30th October every year.
Moreover, the LLP whose annual turnover exceeds Rs. 60 lakhs or whose contribution exceeds Rs. 25 lakhs are required to get their accounts audited.Filing of Annual Return – Every LLP is required to file Annual Return in Form 11 to the Registrar of Companies (ROC). It has to be filed within 60 days from the closure of financial year. An LLP has to close its financial year on 31st March every year. So, the Annual Returns has to be filed on or before 30th May every year.

Filing of Income Tax Return Every LLP is required to close its financial year on 31st March every year as per the Income Tax Act and is also required to file their returns with the Income Tax Department.
The LLP whose annual turnover exceeds Rs. 60lakhs, are required to get their accounts audited under the Income Tax Act provision.
Due dates for an LLP to file their Income Tax Returns are as follows:
LLP whose accounts are not required to be audited under any law– 31st July every year
LLP whose accounts are subject to audit under any law– 30th September every year or such other dates as notified by the Income Tax authorities.


Required Documents:(All copies of documents should be self-attested by the customer)

Annual Return filings
Submit statement of the Accounts or you can say Financial Statements of the LLP

Private limited company annual compliance



Every Company incorporated in India has to mandatorily file necessary documents with the Ministry of Corporate Affairs. Yearly filing has to be done regarding submission of documents of financial statement, i.e. balance sheet, profit and loss account and annual return i.e. shareholding pattern. Company’s mission and history and summary of the Company’s achievements in the past year are recorded in the report which includes research advances, market share gains or honors awarded to the Company or its employees. Annual report provides financial details of the Company that serves as marketing tool for your Company. It shows the financial track record of the Company and record of the growth of the Company in past years is shown. we have separate wing of experts handling matters for Company Annual Filing, providing help at every single stage of the process.
A private limited company is required to file the required documents with ROC annually. It is also required to file Income Tax return, if applicable.
As a part of Annual Filing, companies incorporated in India - including subsidiaries of foreign companies, joint venture companies and others, under the Companies Act, 2013 and 1956 are required to file the following documents along with the e-Forms with the Registrar of Companies (RoC) with proper jurisdiction over the company:


Documents Required:- (All copies of documents should be self-attested by the customer)
Type of Document TYPE OF E-FORM Purpose of Filing of Form
Balance –Sheet Form AOC-4. Filing of Financial Statement with the ROC
Consolidated Financial Statement Form AOC-4 (CFS) Companies which have Subsidiary Company, Associate Company and Joint Ventures.
Profit & Loss Account Form AOC-4. Filing of Profit & Loss Account with the ROC
Annual Return Form MGT-7. To be filled by Companies having share Capital. To give information relating to directors and shareholder for the period of Financial Year.
Annual Return Form MGT-7 To be filled by companies not having share capital.
Director Report Director Report along with Following Annexure:
  1. AOC-2
  2. MGT-9
  3. Secretarial Audit Report
Application for KYC of Directors DIR-3 KYC For filing of KYC of directors.
Filing of CTC of Resolution Form MGT-14 (for the Companies except Private Limited Company) For the purpose of adoption of Balance Sheet and Director Report.

This time the Balance Sheet and the Profit & Loss Accounts are to be filed as two separate documents with different e-forms;

Important Points to Remember

Each e-Form along with the relevant attachment should be less than 2.5 MB.
The Annual Return, the Balance Sheet and the Profit & Loss Account are filed as attachments to the respective e-Forms. So far, the users have been filing the attachments as scanned images of those documents. Please note that a scanned copy considerably increases the size of the document besides being more expensive. As such, you are advised to use the Text file/ Excel sheets as such, convert the same into PDF by using the PDF converter (the software is available on the portal for a registered user without any charge) and upload these attachments as PDF documents.
The MCA21 database in respect of Authorized Capital and Paid-up Capital may not be correct. The companies have been requested to apply for correction of Master Data in this respect. Since this process is taking time, the Ministry will be accepting the Authorised Capital and Paid-up Capital figures as declared by the companies in the respective forms pertaining to Annual Filings. Accordingly, the companies are requested to declare the correct amount on these points without waiting for formal correction in the database

PROCESS:

Maintaining Book of Accounts
Preparing Financial Statements of the Company
Appointing Auditor for the Company
Auditing the Financial Statement of the Company
Conducting Annual General Meeting
The annual return of the company must be filed within 60 days of the date on which the annual general meeting of the company was held.

TAX AUDIT



Tax audit is the verification of the books of accounts of an assessee to validate the income tax computation and compliance with the laws of Income Tax. Auditing of books of accounts must be carried out by a certified Chartered Accountant. In this article, we look at tax audit limit, section 44AB of the Income Tax Act and appointment of tax auditor.


Business

In case of a business, tax audit would be required if the total sales turnover or gross receipts in the business exceeds Rs.1 crore in any previous year. Under the Income Tax Act, “Business” simply means any economic activity carried on for earning profits. Section 2(3) has defined the business as “any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce and manufacture”.


Profession

In case of a profession or professional, tax audit would be required if gross receipts in the profession exceeds Rs.50 lakhs in any of the previous year. A profession or professional could be any of the following as per Rule 6F of the Income Tax Rules, 1962:

  1. Architect
  2. Accountant
  3. Authorised representative
  4. Engineer
  5. Film Artist – Actor, Cameraman, Director, Music Director, Editor, etc.
  6. Interior Decorator
  7. Legal Professional – Advocate or Lawyer
  8. Medical Professional – Doctor, Physiotherapist, etc.,
  9. Technical Consultant

As per the provisions of section 44AB/44AD of the Income Tax Act, 1961, every person carrying a business whose turnover exceeds Rs.1Cr./ 2 Cr. (as the case may be) or carrying a profession whose receipts exceeds Rs. 50 Lakhs in the financial year, must get his accounts audited before filing

The following books and accounts must be maintained by all professions and businesses mandatorily if they cross a threshold specified under Income Tax Act.

  1. A cash book (i.e., a record of all cash receipts and payments, kept and maintained from day-to-day giving the cash balance in hand of each day or at the end of a specified period not exceeding a month).
  2. A journal, in case of mercantile system.
  3. A ledger.
  4. Carbon copies of bills (whether machine numbered or otherwise serially numbered) exceeding Rs. 25 issued by the person and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by the person.
  5. Original bills/receipts issued to him in respect of expenditure (payment vouchers if bills/receipts are not issued and amount of expenditure does not exceed Rs. 50).

In addition to above, a person engaged in medical profession (i.e., a practitioner of any system of medicine – physicians, surgeons, dentists, pathologists, radiologists, vaids, hakims, etc.) has to maintain following items:

A daily case register in prescribed form (i.e. Form 3C), showing date, patient’s name, nature of professional services rendered (i.e., general consultation, surgery, injection, visit, etc.,) fees received and date of receipt; and
An inventory under broad heads, as on the first and last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.

Internal Audit



Internal Audit is a dynamic profession involved in helping organisations achieve their objectives. It is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organisation
Internal audits evaluate a company’s internal controls including its corporate governance and accounting processes. They ensure compliance with laws and regulations and accurate and timely financial reporting and data collection, as well as helping to maintain operational efficiency by identifying problems and correcting lapses before they are discovered in an external audit.


The following audits tools would be required to perform an internal audit:

Internal Auditor(s)
Audit plan
Audit checklist (recommended)
Audit schedule


Performing Internal in 6 steps
  1. Know what and when to audit
  2. Create an audit schedule
  3. Pre-planning the scheduled audit
  4. Conducting the Audit
  5. Record the findings
  6. Report the findings

Step #1: Know what and when to audit

Before conducting the internal audit, you should identify what processes are going to be audited. Understanding the scope and objectives of the audit process will help you create an audit schedule. As mentioned earlier, internal audit should be conducted based on the risks of the processes. The higher the risk in a specific area of the business the more frequent you would want to audit that business area. It is also essential to understand the nature of the business process you are planning audit so that you can decide the right time to audit the system.


Step #2: Create an audit schedule

Creating an audit schedule provides the departments with an advanced notice of the upcoming audit. The program will help them have the necessary documentation and records available for review and audit. The internal schedule will also the business of planning for resources required to conduct the internal audit. A surprise audit is not recommended as it may create a disengaged situation and stakeholders will feel threatened by the auditor. It is recommended you share the audit schedule and obtain approval and confirmation.


Step #3: Pre-Planning the scheduled Audit

Being prepared before a scheduled audit is essential as it will simplify and make the whole audit process effective. During the pre-planning phase, auditors need to send an audit plan to department providing information about the audit scope, objective, criteria and possible documentation evidence needed for the audit.
It is necessary that the auditor is prepared before the audit with a clear understanding of the policies and procedure that will be reviewed. For example; Before auditing a purchasing process, the auditor needs to understand the policies and procedures related to purchasing and also know what kind of evidence that he/she may review. This will significantly improve the efficiency of the audit process will also reduce the downtime


Step #4: Conducting the audit

Internal audit can be conducted by different methods such as documentation review, interviewing and observation. Based on the scope and objective of the auditor, the audit shall choose any methodology or combination of all to carry the internal audit. The internal auditor shall sight and examine sufficient hard-copy or electronic records to verify; evidence of compliance with the management system procedures; and effective implementation of process and internal control. You need to ensure the audit is conducted in a fair and unbiased manner.


Step #5: Record the findings

Recording the findings is vital in the audit process, and auditor needs to list all evidence sighted by record number or record data. The aim of documenting audit findings is to identify gaps in compliance and look at opportunities to fix the deficit and improve the process. Records may also include observation and notes from the interview process. It is recommended that the auditor provide a quick snapshot of the findings quickly at the end of the internal audit to ensure the auditee is aware and also has a chance to clear any questions.


Step #6: Report findings

All findings should be reported in an easy to read audit report. Audit reports serve evidence that an internal audit was conducted. These reports should be reviewed and approved by the department manager / top management. The report can also include an improvement / corrective action plan that should need to develop and implemented in the areas where gaps were identified. ISO recommends you use PDCA (Plan, Do, Check, Act) Management tool to facilitate and carry improvement process within the business.
To be successful, it is crucial that business meet the needs of their customer and can deliver products and service accurately without any error. All internal controls established by the organization needs to be maintained and effectively followed to support quality products and services. An internal audit is a management tool that organizations use to ensure that process meets requirements.

Statutory Audit



Statutory audit: It is as same as the purpose of any other type of audit to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.
The exact meaning of the statutory audit is “Providing true check of financial position of a company (Mostly for External sources) by following respective laws and regulations in the country.”
A statutory audit is a legally required review of the accuracy of a companies (or government's) financial statements and records. The purpose of a statutory audit is the same as the purpose of any other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.

1. In recent days audit was done to check the accuracy of the financial statements and to express a true and fair view on the financial statements.
2. The primary objective of the Statutory Audit is to ensure that the financial statement (such as balance sheet, profit & loss Account etc.) provides a true & fair view of the company financial state of affairs. As per the company’s Act it is mandatory for all the registered companies to get their books of Accounts audited by the practicing Chartered Accountants
3. Statutory audit means audit of statutory areas i.e. Income tax, Service tax, VAT ,ESI, Provided fund ,etc.


Checklist statutory audit

1. Opening balance verification
2. Vouching, Cash vouching, Bank vouching, Cash Verification, Bank Reconciliation Statement, Purchase Vouching, Sale Vouching, Journal Vouching
3. Profit and Loss A/c

  1. In the case of profit & loss a/c care should be taken for the individual breakups of sale and services.
  2. Verify the various statutory dues such as GST, excise duties which has amore connection with sales and services and various periodic returns showing the payment due date and Input Tax Credit under GST should be accounted properly.
  3. Concentrate more on delivery dates and also on deliveries exceeding more than one month. That results delay in delivery.
  4. In the case of purchases verification whether the vat has been accounted separately vat input tax credit account.
  5. In the case of direct expenses and indirect expenses like rent, fees, royalty, salaries, commission, advertisement and other expenses concentrate on agreements and TDS Applicability.
  6. In the case of preliminary expenses the treatment showing whether it is capitalized within five years
  7. Minutes of the meeting should be verified showing the any resolutions for capitalization of expenses, managerial remuneration, loans, approving donations(Especially 50,000 or more)
  8. In case of foreign agency commission expense change in foreign exchange fluctuation should be accounted properly
  9. Any income from investment i.e. interest, dividend should be check bank account.
  10. Verification of valuation of closing stock whether closing stock valuation as per accounting standard-2

BALANCE SHEET

Share capital
To see any resolution pass for increase in share capital how many no. of share issued. Verify whether the share capital changes are there and whether the changes are authorized under proper resolution.

In the case of secured loans whether the loans have been issued under proper sanction and written representation from banks and confirmation of balances from banks

In case of balance sheet proper disclosure between the secured and unsecured loans should be done and document evidencing the receipt of the loan should be taken.

Verify deprecation on assets as per company act and income tax act after considering additions & deletions of assets.

Where fixed asset has been acquired from outside India and the rate of exchange changes after acquisition, the increase/decrease in the liability of the company for repayment of the whole or part of the money borrowed in any foreign currency for acquisition is adjusted in the cost of the asset

In case of companies other than investment companies or banking Companies, whether any of the shares, debentures or securities were sold at a price less than their purchase cost If so, obtain written explanation from management regarding justification for the same — section 227(1A)(c)


STATUTORY COMPLIANCES

A.- Collection and Remittance of CST & VAT
B - Collection and Remittance of Service Tax .
C - Deduction and Remittance of TDS
D - Deduction and Remittance of Provident FUND & ESI
E - Deduction and Remittance of Professional Tax

TDS Returns



TDS means Tax Deducted at Source. It is the amount deducted from payments of various kinds such as salary, contract payment, commission etc. This deducted amount can be adjusted against the tax due of the deductee.

TDS RETURNS TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee.

A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you.

TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such person must make an application within a month of deducting TDS for allotment of Tax Deduction and Collection Number (TAN) in Form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans etc. If a person fails to apply for TAN he may be penalized up to Rs. 10,000/-.

Different types of TDS forms are as follows:-

Form 24Q -TDS on Salaries
Form 26Q – TDS on payments other than Salaries
Form 27Q – TDS on payments made to Non-Residents
Form 27EQ – TCS

PAN of the deductor has to be given by Non-Government deductors. It is essential to quote PAN of all deductees.

Due dates for submission of quarterly TDS Return is 31st July for Q1, 31st October for Q2, 31st January for Q3, and 31st May for last quarter.

Payment can be made online on NSDL by selecting Challan 281 and making the payment using net banking. These TDS payments need to be made before filing the TDS return.
E-payment is compulsory for all Corporate assesses & non-corporate assesses who are liable for audit u/s 44AB.
Physical payment can be made using Challan 281 in the authorized bank branch.

Every person deducting tax as per provisions of section 203 is required to issue a certificate to the payee in respect of tax deducted by him along with certain other particulars. This certificate is called TDS Certificate. Even banks deducting TDS on pensions issue TDS certificates.

Types of TDS certificate to be issued in different cases:

Salaries: Certificate is to be issued in Form 16 containing details of TDS Payment, tax deducted at source and tax calculation based on which TDS was estimated. The certificate should be issued within 31st May of next financial year.

Non Salary Payments: Certificate is to be issued in Form 16A containing details of payment and tax deducted at source. The certificate should be issued within 15 days of due date of filing the return.

TCS: Certificate to be issued in Form 27D containing the Tax Collected & Paid details. Failure to issue certificate will result in the penalty of Rs. 100 for every day the failure continues but limited to the TDS amount.

Once a tax is deducted the deductor should deposit the tax deducted with Central Government within a time limit specified in the table below :

Type of Deductor Payments made between April – Feb Payments made in March
Government Without Challan: Same day
With Challan: On or before 7th of next month
Without Challan: Same day
With Challan: On or before 7th of next month
Other than Government On or before 7th of next month On or before 30th April
Other than Government (payment u/s 194IA) On or before 30th of next month) On or before 30th of next month


Required Documents:- (All copies of documents should be self-attested by the customer)
  • Bank Statement
  • Evidence of investments
  • 16A Form and TDS Certificate
  • Tax payment Challan and Self-assessment tax
  • Evidence of Investment in property
  • Required of documents on purchase and sale of assets
  • Required TDS Certificate
  • Required home loan Certificate
  • Last year tax return copy Next
  • Deductee PAN details
Process:

If the deductor opts for submission of return online, he would be required to sign the return through his digital signatures.

At the time of submission of the return, if your return is complete in all aspects, a provisional receipt/token no. would be issued. The provisional receipt/token no. is an acknowledgment of the fact that the return has been filed. In case of non-acceptance of your return, a non-acceptance memo would be issued stating the reasons for rejection

ESI Returns



Employee’s state insurance. It is a social security and health insurance scheme for Indian worker.

Documents required for registration of ESI Returns:- (All copies of documents should be self-attested by the customer)
  • Attendance register
  • Register for Form 6
  • Register of wages
  • Register of any accidents on the premises
  • Inspection book
  • Monthly challans and returns submitted for ESI
Process Required for the filing of ESI Returns:

Once the documentations are ready company can apply for registration by submitting the employer’s registration form (form-1)

A PDF format form is available on the website. Fill in the form and submit it to ESIC for registration on the official website.

Once verified, a registration number, a 17-digit unique identification will be provided to the organization. The ESI filings can be done once you receive the 17-digit number.

Employees registered under the scheme get an ESI card after submitting a form with photographs and details of family members.

Although the registration is permanent, and the number is valid for the lifetime of the company.

Any new changes, such as employee additions, need to be intimated to the ESI.

Professional Tax Registration



Professional Tax is a tax imposed by a portion of the state governments in India on people earning a wage from salary or rehearsing experts, for example, Chartered Accountant, Company Secretary, Lawyer, Doctor and so on and from the organization, LLP, Directors and Designated Partners.

The persons falling under the ambit of professional tax and the employers employing staff for their business need to acquire registration with proper department designated for compliance of professional tax in a specific state inside 30 days of coming under the domain of the applicability of professional tax. Every expert, the Directors of Company, Designated Partners of the LLP or some other employer is under obligation to seek registration as specified above and to ensure that expert professional tax is deducted from the pay of employees. The deducted professional tax from the employees must be kept in the suitable office assigned by the state government, and a return of professional tax must be recorded specifying the payment of professional tax. Each employer is under an obligation to deduct and pay tax on behalf of employees, for this reason, the employer should obtain the registration certificate from the departmental of professional tax within 30 days from the date of his liability.

Documents required for Professional Tax Registration:- (All copies of documents should be self-attested by the customer)

Certificate of Incorporation, MOA & AOA / LLP Agreement.

PAN card of Company/LLP duly attested by directors of the company.

Premises proof of Company and a NOC from the owner of such premises.

Bank Account of Company: Cancelled cheque and bank statement.

List of Directors, passport size Photographs of all Directors, Id and address proof.

Board Resolution or consent statement of partners

Attendance Register & Salary Register.

Process:

1. You need to send in PAN cards, identity and address proofs of the proprietor/partners/directors. Details of your employees also need to be submitted.

2. The Professional Tax application will be filed for all employees and submitted to respective authorities by our affiliate. Should all your documents be in order, this will take no longer than two working days.

3. Within 5 to 7 working days, we will give you a basic acknowledgment. If the documents are not in order or the inspector asks for additional documents, the process will be completed as soon as you submit the additional documents.

Name Change



The name of a company may have to be changed for a number of reasons including change of objective of the business, change of management, rebranding, etc., The name of the company can be changed at any time with the approval of the shareholders and Ministry of Corporate Affairs (MCA). In this article, we look at the procedure for the company name change. The change of name of a company will not create a new company or new entity.

Therefore, the change of company name shall not:

  • Affect any rights or obligations of the company
  • Render defective any legal proceedings by or against the company
  • Not affect any legal proceedings by or against the company and pending in the old name; they may continue in the old name

Required documents for the company name change:- (All copies of documents should be self attested by the customer)

  • Certificate of Incorporation subsequent to change in name of the Company
  • A statement of detailed reasons for the change in the name of the company
  • Three copies of the specimen of printed stickers for affixing on share certificates. (Showing new name)
  • Copy of receipt of payment of the Annual Listing Fees for the current year and arrears.
  • Brief details about the current line of business of the Company
  • Date of last name change of the Company & Details name change history from the date of incorporation.
  • An audited copy of the financial results for the last one-year
  • Names of stock exchanges where the company’s securities are presently listed
  • When a company changes its name and line of business, it should include the turnover, income etc.

Steps Involved in the Process of Company Name Change:

1. Holding a board meeting to pass the resolution.
2. Checking for the availability of company’s name.
3. Passing special resolution for the change of name.
4. Submitting the application for the approval of company name change.
5. Issuing of the new certificate of incorporation.
6. Making changes in Memorandum of Association and Articles of Association.
7. Change in the object requires alterations or amendments in the Memorandum of Association of the Company. The significant element of the memorandum is contained by the main object clause due to the fact that the clause represents the business nature of a company. It concludes that change in main objects implies the change in the business nature of the company.

The following forms need to be filed:

1. The existing company needs to reserve the name through ‘RUN’.
2. After the name is approved, MGT-14 (necessary resolution for alteration of Memorandum of Association and Articles of Association (MOA and AOA) needs to be filed.
3. eForm INC-24 (Application for approval of Central Government for the change of name) needs to be filed to give effect to change in name.

Registered Address Change



As per section 12 of the Companies Act 2013, a company is to have a registered office from the fifteenth day of its incorporation to be able to receive and acknowledge all communication and notices that are addressed to it. Further, verification of the registered office must be furnished to the Registrar within a period of 30 days of company incorporation.


Rule 27: Notice and verification of change of situation of the registered office

The notice of change of the situation of the registered office and the verification of the same shall be filled in form INC 22 along with the prescribed fees and shall be attached to the form above. The documents and the manner in which they are to be verified are mentioned in the terms of sub-section (2) of section 12. To verify the registered office of the company, the documents are to be attached in the prescribed format with the form INC- 22 both for giving intimation of the registered office at the time of incorporation and any time there are changes in the registered office.


Required Documents:- (All copies of documents should be self attested by the customer)

1. In case the registered office owned by the company itself, the conveyance deed of the property in the name of the company is required.
2. In case the registered office is taken on lease/rent by the company, the lease deed or the rental agreement and rent receipts (in case of rental) is required. The rent receipt cannot be older than one month.
3. In case the office is owned by the director or any other persons and the premises are not on lease by the company, the company needs to attach proof that the company is permitted to use the place as its registered office. This may be in the form of a ‘No Objection Certificate’ from the owner.
Copies of the utility bills mentioned below need to be attached in all the above cases. These bills should bear the name of the company along with the address that is to be used as the registered address of the company. These should not be more than 2 months old.

  • Mobile phone bill
  • Telephone bill
  • Electricity bill
  • Gas bill

Change of Registered Office with a Different ROC but Same State

In case the company wants to change the registered office from the jurisdiction of one ROC to the other ROC, it has to apply for the approval of the Regional Director (RD) in the manner prescribed in form INC- 23. Once the Regional Director confirms this change, it has to file the same confirmation the ROC within 60 days. The ROC shall confirm the change of the address within 30 days of the filing.
Change of Registered Office to Another State
The company needs to attach the Memorandum of Association to change the registered office from one state to another. A special resolution needs to the be passed by the company for alteration of the MOA. This resolution needs to be filed with the ROC in form MGT-14 within 30 days of the resolution being passed. To change the registered office from one state to another, the company needs to get the approval of the CG in form INC- 23. The documents to be attached along with the application in form 23 are mentioned below.

  • A copy of the special resolution sanctioning the alteration by the members of the company.
  • A copy of the memorandum and articles of association
  • A copy of the notice convening the general meeting along with a relevant explanatory statement.
  • A copy of the minutes of the general meeting wherein the resolution authorizing the alteration.
  • A list of creditors and debenture holders.
  • A copy of board resolution or Power of Attorney.
  • Document relation to the payment of application fee.

Add Directors



Additions of Directors can be required for a company from time to time based on the requirements of the shareholders of the business. Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons. Thus, only living persons can be Directors of a company and the management of a company is entrusted to the Board of Directors.

To appoint a director, the person proposing to become a Director must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians, and Foreign Nationals can obtain DIN and be appointed as Director of a company in India.


Types of Directors in a Company:

Managing Director

Director, who by virtue of Articles of Association of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of managed of affairs of the company.

Executive Director

Director, who is in full-time employment of the company Executive directors are deeply involved with the management of the company and managing affairs of the company.

Ordinary Director

A simple Director who attends the Board Meetings of a company and participates in the matters put before the Board of Directors. These Directors are neither whole-time Directors or Managing Directors.

Additional Director

Additional Director is appointed by the Board of Directors between two annual general meetings subject to the provisions of the Articles of Association of a company. Additional Directors can hold office only up to the date of next annual general meeting of the Company.

Alternate Director

Alternate Director is someone appointed by the Board of Directors in a general meeting to act as a Director called the original director during his/her absence for a period of not less than three months. Generally, alternate Director is appointed for a person who is a Non-Resident Indian or Foreign Collaborators of a company.


Documents required for the addition of Directors are:- (All copies of documents should be self attested by the customer)

CIN number

Company name

Address proof of the company

Address proof of the director

Id proof of the director

DIN of Director if he is Holding a Valid DIN


PROCESS:

Filling the application with company details

Date of director’s appointment

New director details

New director service address

New director resident address

Consent to act as a director

Signature

Remove Directors



Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Director of a company may need to resign or the Board of Directors or Shareholders may want to remove a Director for many reasons. In such cases, a Director can resign or be removed by filing the intimation of change of Director with MCA. The procedure for the resignation of director and removal of Director by the Board or Shareholders vary. A Director can resign from a company by giving a notice in writing to the company and the Board is required to file the necessary filings with MCA within 30 days. A Director can also send a copy of the resignation letter to the ROC directly by filing a different set of forms.


A director may be removed by:

An ordinary resolution adopted at a shareholders' meeting by the persons entitled to exercise voting rights in the election of that director. The director concerned must be given notice of the meeting and the resolution, at least equivalent to that which a shareholder is entitled to receive, regardless of whether the director is a shareholder. The director must be afforded a reasonable opportunity to make a presentation in person or through a representative to the meeting before the resolution is put to a vote.
A resolution of the board because it has determined that the director in question has become ineligible or disqualified in terms of section 69 of the Act, is unable to perform the functions of a director and is unlikely to regain that capacity within a reasonable time or has neglected or been derelict in the performance of the functions of a director.
An order of the court confirming the resolution of the board or removing the director from office if the court is satisfied that the director is ineligible or disqualified, incapacitated, or has been negligent or derelict.


Documents required for Removal of a director:- (All copies of documents should be self attested by the customer)

CIN number

Company name

Address proof of the company

Address proof of the director

Id proof of the director

Copy of Resolution Passed to remove Director


Procedure for Removal of directors:

A special notice under section 115 (resolution requiring special notices) is required to be given to the company for removal of directors, at least 14 days before the date of meeting at which it is to be moved exclusively of the day on which notice is served and the day of the meeting.
On receipt of notice of a resolution to remove a director, the company shall forthwith send a copy thereof along with a representation if any received from the director concerned and if a copy of the representation is not sent as aforesaid due to insufficient time or for the company’s default, the director shall be entitled to be heard on the resolution at the meeting.
Hold and convene a general meeting to remove a director by passing an ordinary resolution.
Advice the Chairman that the resolution can be moved only if the person who has given notice of the resolution is present and moves the same at the meeting and that the director sought to be removed has got a right of being heard at the meeting even if he is not a member of the company.
If the resolution is carried, inform the director concerned about that fact of his removal.
In the case of a listed company, inform the stock exchange/s where the securities of the company are listed about the removal of the director.
File Form DIR 12 within 30 days of the removal of the director with the Registrar of Companies.

Increase Authorised Capital



The authorized capital of a company is the maximum amount of share capital for which shares can be issued by a company. The initial authorized capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The authorized capital can be increased by the company at any time with shareholders’ approval and by paying an additional fee to the Registrar of Companies.
To begin the process for increasing authorized capital a resolution must be passed by the Board of Directors. In the Board Resolution, authorization must be provided for increasing the authorized capital of the company and making the necessary changes to the MOA and AOA of the company.


Authorized capital is increased by:

The authorized capital of a Company determines the value and number of shares a Company can issue to its shareholders.
Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.
The authorized capital of a company can be easily changed by paying additional government fee, as prescribed by the Ministry of Corporate Affairs.
Most promoters incorporate their company with an authorized capital of Rs.1 lakh or Rs.10 lakh and issue shares with a value of Rs.1 lakh or less to founding members.
The increase in authorized capital of a Company must be approved by the Board of Directors of the Company.


Documents required for Increase Authorize Share Capital:- (All copies of documents should be self attested by the customer)

Certified true copy of resolution along with a copy of the explanatory statement under Section 102
Altered memorandum of association (Mandatory in case any change in MOA).
Altered articles of association


Process Required for Increase Authorize Share Capital:

For Increase in Authorized Share Capital
Calling for Board Meeting
Issue Notice of the Extra-ordinary General Meeting (EGM)
ROC Form filing
Concerned Registrar of Companies (ROC) will check the E-forms and attached documents and will approve the increase in authorized share capital.

Share Transfer



The transfer of shares from one person to another by executing a share transfer deed. The ownership of a company limited by shares is held by the shareholders of the Company. The shareholders, in turn, appoint Directors to manage the affairs of the Company. Hence, ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can, therefore, be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company's shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer. We help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.


Documents required for the share transfer is:- (All copies of documents should be self attested by the customer)

Consent Letter duly signed by the seller and buyer.
The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India
Certificate indicating fair value of shares from a Chartered Accountant
Declaration from the buyer to the effect that he is eligible to acquire
Declaration from the FII/sub-account to the effect that the individual FII / Sub-account ceiling as prescribed has not been breached
If the sellers are NRIs/OCBs, the copies of RBI approvals, if applicable, evidencing the shares held by them on repatriation/non-repatriation basis.
No Objection/Tax Clearance Certificate from Income Tax Authority/Chartered Account.


A process of Transferring Shares:

Shareholders are the legal owners of the shares of a company. Shareholders can be natural persons or corporate entities. They can also be NRIs or Foreign Nationals or Foreign Entities. Shareholders are the owners of a Company.
Directors of a company are appointed by the shareholders of a company to manage the affairs of a company. Directors are not owners of a company. However, Directors can also be shareholders and shareholders can also be Directors.
The article of association of a company defines the rights and responsibilities of shareholders and Directors. Articles of Association of a company can restrict the share transfer in a private limited company.
The authorized capital of a Company determines the value and number of shares a Company can issue to its shareholders.
Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.

MOA & AOA Agreements



A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders.The Memorandum of Association of a company must be changed whenever there are changes to the object, situation or capital or liability of a company. Changes to Memorandum of Association of a company can be required while changing name of a company, changing registered office from state to state.


Factors of MOA:

Lawful objects can be stated and included in the objects clause of the memorandum of association, whether the company engages in all those activities or not
The name of the company must be stated with the last word 'Limited' in case of limited companies and with the last two words 'Private Limited' in case of private limited company. The Companies Act, 2013 states that a company should not be registered with an undesirable name.
The Memorandum of Association must mention the State in which the registered office of the company will be located. Law of the company must be stated for determination of jurisdiction of Court, tax authorities and ROC.
The Memorandum of Association must state whether the company is limited by shares or by guarantee. Also, the Memorandum of Association must state that the liability of its members is limited. A company cannot increase the liability of its members without their written consent.
The Memorandum of Association of a company having to share capital is required to show the amount of share capital with which the company is going to be registered, and the division therefor into shares of fixed value.

Documents Required for MOA Agreement:- (All copies of documents should be self attested by the customer)

Name of parties involved
A brief description of the scope of work
Financial obligations of each party, if applicable
Dates agreement is in effect
Key contacts for each party involved

Process for MOA agreement:

The overall intent of the MOA
The Parties
The Period
Assignments/Responsibilities
Disclaimers
Financial Arrangements
Risk Sharing
Signatures

Add Partners



The changes in the Partners take place due to various requirements including the need for capital and expertise. Partners in an LLP are responsible for the carrying on the business of the LLP. Any person over the age of 18 years can become a Partner in an LLP.
Partners of an LLP are bound to carry on the business of the LLP to common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner.
Every Partner of an LLP is required to indemnify the LLP for any losses caused to it by a fraud in the conduct of the business of the firm.
All Partners have right to take part in the conduct of the business of the LLP and access to inspect and copy the book of accounts of the LLP.
The authority of a Partner to bind the LLP, in case of a transaction carried on, in the usual way business is carried on by the LLP, binds the LLP.
All property, rights, and interest in assets (tangible or intangible) acquired or developed with the money of the LLP are deemed to belong to the LLP.


Required Documents:- (All copies of documents should be self attested by the customer)

1DirectorIdentificationNumber (DIN)
1DigitalSignatureCertificate (DSC)
Drafting necessary Resolutions
Filing MCA Forms
Updated Master Data from MCA

Process for Add partner:

Please refer the Partnership Agreement of your LLP
If not, then you could simply Pass a resolution to the effect that a Partner is resigning
Another resolution for induction of a Partner
You need to intimate the same to MCA through Forms
Revising the Partnership Deed

Winding Up a Company



Winding up is the process of selling all the assets of a business, paying off creditors, distributing any remaining assets to the partners or shareholders and then dissolving the business. Winding up can refer to such a process either for a corporation or for a partnership.
The winding up of a corporation is a legal process that is regulated by corporate laws as well as a company's articles of association (or a partnership agreement in the case of a partnership). Winding up can be compulsory or voluntary and can apply to both public and private corporations and partnerships.


Documents required for Winding up a company:- (All copies of documents should be self attested by the customer)

The audited Balance Sheet and Profit & Loss Account commencing from the date of last audited balance sheet and profit and loss account and ending with the latest practicable date before the date of declaration.
A statement of the Company’s Assets and Liabilities as at that date
A copy of the report of the Auditors of the Company on the above two documents.
Form No. 57 in duplicate, duly verified by affidavit in Form No. 58
Form No. 151 & 152 is to be submitted by Liquidator declaring his appointment

The process for Winding up a company:

Step 1: Convene a Board Meeting with two Director or by a majority of Directors. Pass a resolution with a declaration by the Directors that they have made an enquiry into the affairs of the Company and that, having done so, they have formed the opinion that the company has no debts or that it will be able to pay its debts in full from the proceeds of the assets sold in voluntary winding up of the company. Also, fix a date, place, time agenda for a General Meeting of the Company after five weeks of this Board Meeting.
Step 2:Issue notices in writing calling for the General Meeting of the Company proposing the resolutions, with a suitable explanatory statement.
Step 3:In the General Meeting, pass the ordinary resolution for winding up of the company by an ordinary majority or special resolution by 3/4 majority. The winding up of the company shall commence from the date of passing of this resolution.
Step 4:On the same day or the next day of the passing of a resolution of winding up of the Company, conduct a meeting of the Creditors. If two thirds in value of creditors of the company are of the opinion that it is in the interest of all parties to wind up the company, then the company can be wound up voluntarily. If the company cannot meet all its liabilities on winding up, then the Company must be wound up by a Tribunal.
Step 5:Within 10 days of the passing of a resolution for winding up of a company, file a notice with the Registrar for an appointment of the liquidator.
Step 6:Within 14 days of the passing of a resolution for winding up of a company, give a notice of the resolution in the Official Gazette and also advertise in a newspaper with circulation in the district where the registered office is present.
Step 7:Within 30 days of General Meeting for winding up of a company, file certified copies of the ordinary or special resolution passed in the General Meeting for winding up of the company.
Step 8:Wind up affairs of the company and prepare the liquidators to account of the winding up of the company and get the same audited.
Step 9:Call for final General Meeting of the Company.
Step 10:Pass a special resolution for disposal of the books and papers of the company when the affairs of the company are completely wound up and it is about to be dissolved.
Step 11:Within two weeks of final General Meeting of the Company, file a copy of the accounts and file an application to the Tribunal for passing an order for dissolution of the company.
Step 12:If the Tribunal is satisfied, the Tribunal shall pass an order dissolving the company within 60 days of receiving the application.
Step 13:The company liquidator would then file a copy of the order with the Registrar.
Step 14:The Registrar, on receiving the copy of the order passed by the Tribunal then publish a notice in the Official Gazette that the company is dissolved.

Winding Up an LLP



The Central Government made the LLP (winding up and dissolution) rules 2012 (‘Rules’ for short) in supersession of the Limited Liability Partnership (Winding up and Dissolution) Rules, 2010. The Rules came into effect from 10.07.2012.
The Rules deal with two types of winding up of Limited Liability Partnership (‘LLP’ for short) namely voluntary winding up and winding up by the Tribunal. In this article, the procedure on the voluntary winding up of LLP is discussed in detail.


Resolution for voluntary winding up

Rule 5 provides that an LLP may be wind up voluntarily if the LLP passes a resolution to wind up the LLP. For this purpose the approval of three-fourths of the partners is necessary. If the LLP has creditors, whether secured or unsecured, in addition to the special resolution by the partners, the consent of the majority of the creditors are to be obtained in a meeting. A copy of the resolution passed by the LLP is to be filed with the Registrar in Form No. 1

Commencement of winding up

Rule 6 provides that a voluntary winding up shall be deemed to commence on the date of passing of a resolution for voluntary winding up.


Winding up of LLP can be initiated by a Tribunal for the following reasons:

The LLP wants to be wind up.
There are less than two Partners in the LLP for a period of more than 6 months.
The LLP is not in a position to pay its debts.
The LLP has acted against the interests of the sovereignty and integrity of India, the security of State or public order.
The LLP has not filed with the Registrar Statement of Accounts and Solvency or LLP Annual Returns for any five consecutive financial years.
The Tribunal is of the opinion that it is just and equitable that the LLP should be wind up.

Documents required for winding up of an LLP:- (All copies of documents should be self attested by the customer)

A Board Resolution in favour of winding up
Consent Letter of the Creditors
Report regarding the current valuation of the assets of the LLP, by a recognized Valuer
Statement of Accounts
Statement of Assets, Liabilities, Debts, etc. of the LLP at the time of closure
Affidavits from the Designated Partners
Indemnity Bonds

Process for Winding up an LLP:

Closure of Bank Account
Prepare a statement of Accounts
Partners meeting and Consent
Drafting of Affidavit & Indemnity Bond
Digital signature of at least one Designated Partner
Application filing for the closure of LLP

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