Author: Fastlegal Team

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PM Narendra Modi’s Independence Day 15th August 2018 Speech Highlights

Posted on by Fastlegal Team

On 72nd Anniversary of India’s Independence PM Narendra Modi addressed the nation at Historic Red Fort, Here are some key Highlights form Narendra Modi Speech :

Prime Minister Narendra Modi has announced a manned mission to space by 2022 and the launch of the PM Jan Aarogya Abhiyan which will run parallel with the Ayushman Bharat healthcare scheme. Denouncing incidents of rape, the PM says news of death penalties awarded to rapists will deter those with barbaric thoughts. He also hit out at the opposition for “stalling” the triple talaq bill in Parliament, but says he will “continue to fight for the rights of Muslim women”. On Jammu and Kashmir, Modi says his government will continue to follow the path of ‘Insaniyat, Jamuriyat & Kashmiriyat’ for peace envisioned by former PM Atal Bihari Vajpayee. Presenting his four-year report card on India’s 72nd Independence Day, Modi says India used to be a ‘sleeping elephant’, but has started walking and running now. The PM has also pitched for ‘social justice’ and highlighted the “constitutional protection” to Backward groups. The Independence Day address is the last in the PM’s current tenure and focusses as much on politics as on policy.

 

Source : https://www.news18.com/news/india/independence-day-2018-live-will-follow-vajpayees-mantra-of-insaniyat-jamuriyat-kashmiriyat-says-pm-1844927.html 

 

Happy Independence Day India

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IBC Application for initiation of corporate insolvency resolution process by operational creditor

Posted on by Fastlegal Team

Persons who may initiate corporate insolvency resolution process:

Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor in the manner as provided under this Chapter.

Meaning of Operational Creditor:

Operational creditor means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred.

Meaning of Operational Debt:

Operational debt” means a claim in respect of the provision of goods or services including employment or a debt in respect of the payment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority.

In this article we will discuss about how operation creditor make Application for initiation of corporate insolvency resolution process against the corporate debtor

Section 8 (1) of Insolvency and Bankruptcy Code, 2016 :

An operational creditor may, on the occurrence of a default, deliver a demand notice of unpaid operational debtor copy of an invoice demanding payment of the amount involved in the default to the corporate debtor in such form and manner as may be prescribed. ( Demand Notice will be in Form 3 )

In accordance with this section Operational Creditor is required to send Demand Notice on the default of Payment by Debtor in the prescribed form along with the required evidences of debt due.

Section 8 (2) of Insolvency and Bankruptcy Code, 2016 :

The corporate debtor shall, within a period of ten days of the receipt of the demand notice or copy of the invoice mentioned in sub-section (1) bring to the notice of the operational creditor –
(a) existence of a dispute, [if any, or] record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute;
(b) the payment of unpaid operational debt-
(i) by sending an attested copy of the record of electronic transfer of the unpaid amount from the bank account of the corporate debtor; or
(ii) by sending an attested copy of record that the operational creditor has encashed a cheque issued by the corporate debtor.

Now Debtor shall within 10 days of receipt of demand notice make inform to the Creditor of :

  • Existence of dispute, if any, or
  • Pendency of suit or arbitration proceedings, or
  • the payment of debt due, or
  • send an attested copy of Electronic Transfer of unpaid amount
  • send an attested copy of record that payment has already been encashed

Meaning of Demand Notice : 

“Demand Notice” means a notice served by an operational creditor to the corporate debtor demanding payment of the operational debt in respect of which the default has occurred.

If the information or Payment as par Section 8(2) is not received within 10 days :  

Application by operational creditor.—(1) An operational creditor, shall make an application for initiating the corporate insolvency resolution process against a corporate debtor under section 9 of the Code in Form 5, accompanied with documents and records required therein and as specified in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Application is required to be made in Form 5

The applicant under sub-rule (1) shall dispatch forthwith, a copy of the application filed with the
Adjudicating Authority, by registered post or speed post to the registered office of the corporate debtor

Documents required to be attached along with Form 5:

  • Copy of the invoice / demand notice as in Form 3 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 served on the corporate debtor.
  • Copies of all documents referred to in this application.
  • Copy of the relevant accounts from the banks/financial institutions maintaining accounts of the
    operational creditor confirming that there is no payment of the relevant unpaid operational debt by the operational debtor, if available
  • Affidavit in support of the application in accordance with the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
  • Written communication by the proposed interim resolution professional as set out in Form 2 of the
    Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. [WHERE APPLICABLE]
  • Proof that the specified application fee has been paid.

 

Fee for Filing Application by Operational Creditors : Rs. 2000

Connect with Fastlegal on IBC Support

[jotform id=”61411444894457″]

 

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Conversion of Private Limited Company into One Person Company

Posted on by Fastlegal Team

As Companies Act 2013 provides for Incorporation of One Person Company with single Shareholders, now this has enable that the existing Private Limited Companies can be converted to One Person Company (OPC).

Legal Provision relating to Conversion of Private Limited Company into OPC:-

Section 18 of Companies Act, 2013:

(1) A company of any class registered under this Act may convert itself as a company of other class under this Act by alteration of memorandum and articles of the company in accordance with the provisions of this Chapter.
(2) Where the conversion is required to be done under this section, the Registrar shall on an application made by the company, after satisfying himself that the provisions of this Chapter applicable for registration of companies have been complied with, close the former registration of the company and after registering the documents referred to in sub-section (1), issue a certificate of incorporation in the same manner as its first registration.
(3) The registration of a company under this section shall not affect any debts, liabilities, obligations or contracts incurred or entered into, by or on behalf of the company before conversion and such debts, liabilities, obligations and contracts may be enforced in the manner as if such registration had not been done.

Rule 7:

(1) A private company other than a company registered under section 8 of the Act having paid up share capital of rupees 50 lakhs or less or average annual turnover during the relevant period as defined in explanation to rule 8(4) is rupees 2 crore or less may convert itself into OPC by passing a special resolution in the general meeting.

(2) Before passing such resolution, company shall obtain No objection in writing from members and creditors.
(3) Company shall file copy of the special resolution with the Registrar of Companies within thirty days from the date of passing such resolution in Form No. MGT-14.
(4) Company shall file an application in Form No.INC-6 for its conversion into OPC along with fees as provided in in Companies (Registration offices and fees) Rules, 2014, by attaching the following documents:-
(i) Directors of the company shall give a declaration by way of affidavit duly sworn in conforming that all members and creditors of the company have given their consent for conversion, the paid up capital company is rupees 50 lakhs or less or turnover is less than rupees 2 crores as the case may be,
(ii) List of members and list of creditors,
(iii) Latest Audited Balance Sheet on the Profit and Loss Account and
(iv) Copy of No Objection letter of secured creditors.

E Form required to be Filed for Conversion of Private Limited Company into OPC:

  1. Form MGT-14 for Passing of Special Resolution
  2. Form INC-6 for Application for Conversion

Documents required to be attached with E Form INC-6 for Conversion of One Person Company into OPC:

Following Documents are mandatory for conversion of Private Limited Company into OPC:
 Affidavit
 Certified true copy of minutes, list of creditors and list of members.
 Copy of NOC of every creditors.
 Consent of the nominee in Form No. INC-3 along with all enclosures
 Copy of PAN card of the nominee and member.
 Proof of identity of the nominee and member.
 Residential proof of the nominee and member

 

Do you want to convert your Private Limited Company into OPC : connect at mail@fastlegal.in, or whatsapp at https://wa.me/919782280098 or call at 9782280098

 

[jotform id=”61411444894457″]

Private Limited Company Registration in Jaipur
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Abridged form of Directors Report for OPC and Small Companies

Posted on by Fastlegal Team

In the Recent Update from MCA , MCA has issued amended rules  for Companies in respect to Preparation of Board Report for OPC and Small Companies where ministry as provided relief to Company Directors for preparation of Board Report that will not require much information and provided mandatory points that are required to be disclosed in the board report.

The Board Shall be prepared on the basis on standalone Financial Statement and shall be in abridged form and contain the following points :

  1. The Web Address, if any where annual return has been placed
  2. Number of meeting of Board of Directors of the company held During the Financial Year
  3. Directors Responsibility Statement
  4. Details in respect of frauds reported by auditors
  5. Explanation and comments by board on qualification or adverse remarks by auditors
  6. Financial Summery of Company during the financial year
  7. Statement of Company affairs
  8. Material Changes form the date of Closure of Financial Year in nature of business of the company and their impact on financial position of the company.
  9. All details of Directors who were appointed and resigned during the year.
  10. All Details of Significant material order passed by Regulators
  11. Details with contracts and arrangements with related parties in Form AOC-2

Companies (Accounts) Amendment Rules, 2018 dated 31.07.2018 :

Download here

http://www.mca.gov.in/Ministry/pdf/companisAccountsRules_31072018.pdf

 

Do you own small Private Limited Company or One Person Company and need compliance support for Annual and Event Based legal Filings – Connect at 9782280098 or email at mail@fastlegal.in

[jotform id=”61411444894457″]

 

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How to Start BPO Business in India

Posted on by Fastlegal Team

Business Process Outsourcing (BPO) Services has taken big boom in India in recent past, with the ease in trade barriers with foreign countries , many foreign firms outsource business activities to countries where easy and affordable man power is available, India is among the markets where this works out very well. Now a days most of Indian startups are setting up BPO services for their customer acquisition and  marketing of product and services to their clients. Here we will let you know how to legally start BPO business in India :

Process for Starting BPO Business in India:

  1. Business Registration: To setup BPO you are required to register your business as Private Limited Company in India or LLP or any other firm , Private Limited Company or LLP is required to be formed with the main object of BPO service like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call centre, network operation centre and other IT Enabled Services.
  2. Minimum Requirements for BPO Private Limited Company : Private Limited Company formation required minimum 2 Directors and 2 Shareholders, both can be same persons. incase if you are single owner than one person company can also be formed as single Director and Shareholder. Private Limited Company name should be unique and no other company or trademark should exits with the objective of BPO services, for formation or Registration of Private Limited Company PAN, Aadhar, Bank Statement , photo , mobile and email id is required for all Directors and Shareholders and for Company office address Electricity bill , rent agreement and NOC form  owner is required.
  3. Opening of Company Bank Account: Once the Company is registered its Directors or promoters should process for opening of Bank Account of the Company.
  4. Obtaining Other Service Provider (OSP) Licence Application for BPO business  in India (Not Required as per New Guidelines ) https://dot.gov.in/sites/default/files/2020_11_05%20OSP%20CS.pdf?download=1: OSP Registration is a must for service provides who provide service like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call centre, network operation centre and other IT Enabled Services, by using Telecom Resources. To obtain OSP Registration, an application must be made to the Department of Telecommunication in the requisite format along with the supporting documents. The following are the documents that have to be submitted along with the application fee:
  5. Documents Required for OSP Registration Application:
    • Certificate of Incorporation issued by Registrar of Company
    • Memorandum and Article of Association
    • Board resolution or Power of Attorney authorizing the authorised signatory with attested signatures.
    • A note on the nature of business / activities of the proposed OSP List of present Directors of the Company.
    • Present shareholding pattern of the company indicating equity details 
    • List of Directors of the Company
  6. GST Registration : GST Registration is required to be obtained once you have received the OSP Registration Certificate.
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Fastlegal provides BPO Registration Services in India – Please call at 9782280098 or email us at mail@fastlegal.in

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How to File Form DIR-3 KYC in India – Information and Documents Required for Filing Form DIR-3 KYC

Posted on by Fastlegal Team
As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through the eform DIR-3KYC. Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018
Eform DIR-3KYC (Application for KYC of Directors ) is now available on MCA web-portal for necessary compliance by every Individual having obtained DIN on or before 31st March,2018.

Documents Required for Filing Form DIR-3 KYC to MCA :

  1.  Aadhar Card
  2. Passport Copy, If obatined
  3. Current Address proof – Bank Statement / Utility Bill
  4. PAN based Digital Signature 

Information  Required for Filing Form DIR-3 KYC to MCA :-

  1. DIN (Director’s Identification Number) of Director
  2. Director’s Full Name as per PAN
  3. Father’s Name as per PAN
  4. Whether Indian Citizen or Not
  5. Nationality of Director
  6. For Foreign National, Nationality will be as declared in Passport
  7. Whether Resident in India or Not
  8. In case, Non-Resident – Passport will be mandatory
  9. Date of Birth as per PAN
  10. Gender
  11. Income Tax PAN (Mandatory for Indian Citizens)
  12. Valid Passport (If having), Passport Number needs to be entered
  13. Aadhaar Number (Mandatory in case of Indian Citizen)
  14. Personal Mobile Number and E-Mail Id for the Verification of OTP
  15. Permanent Residential Address
  16. Present Residential Address

DIR-3KYC Mandatory for Foreign Directors also.

Penalty if not filed within 31st August 2018 – Rs.5000

If Not filed within due date DIN of Directors will be deactivated and Directors will be disqualified to act as Director.
KYC mandatory even for disqualified Directors.
If you are presently not a Director or Designated Partner in any company or LLP  and obtained DIN earlier than also you are required to file Form DIR3KYC. 
Please note this is Annual KYC compliance required to be made before 30th April every Year.
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How to Register Sole Proprietorship Firm Online in India

Posted on by Fastlegal Team

Whenever an Individual does a business in India with his own, he is running his own firm i.e. Proprietorship Firm. Legally in India registration of Proprietorship firm is not mandatory, you can run proprietorship firm business without any Registration, but in this new era of KYC and certain rules and regulation for Banks, Banks do not process for Current Bank Account in the Name of Firm unless you have valid Firm Registration Certificate. Further if you are doing online business through e commerce marketplace you are mandatory required to have GST Registration for your Business.

List of Registration you can obtain for Proprietorship firm in India:-

  1. Shop Act Registration  or Gumasta Licence : Registration under Shop and Commercial Establishment Act Commonly known as “Shop Act Registration” Most of the Banks open Current Bank Account for this Registration 
  2. GST Registration: As GST Registration is Mandatory Only if Gross Sales Exceeds Rs. 20 Lakh in any Financial Year , but you can voluntary take GST Registration,
    • GST Registration is Mandatory if you are selling products on E commerce Marketplace Websites like : Amazon, Flipkart, Snapdeal, Ebay, Esty etc.. also if you are running ads for your business promotion on popular Social Networking like Facebook , Twitter etc.
    • GST Registration is required by vendors if they are registered under GST , this makes easier for them to make uniformity in business transitions.

How to Register Sole Proprietorship Firm Online in India 2

  1. Udyog Aadhar Registration: Udyog Aadhar Registration is for MSME Enterprises, this registration will give recognition of MSME enterprise for your business,  if you are running proprietorship firm business and want to have Single Registration this is great deal to have in pocket. You can apply for MSME Registration with Fastlegal Team Members.

Opening of Current Bank Account in the name of Business : 

Once you get any of the above registration certificate , you can contact to the Bank with which you wish to open your current account.

Its all Done: Your Business is registered business entity now.  you can now do all the banking transactions in the name of your firm.

Benefits of Proprietorship firm:

  1. Fast and Cheaper Registration
  2. Less Legal Compliance
  3. Banking Transaction may be done in the name of the firm
  4. No Need to obtain different PAN for your business entity (Pan of the Proprietor shall be the business entity also)
  5. No need to file return of your income if your income does not exceed the maximum amount liable to tax (which is at present Rs. 250000/- and may be changed in every budget)
  6. You can keep any name of your Firm, But it is advisable to check Trademark Registration , if someone else has taken trademark than it is not advisable to take that name as Firm Name.
  7. You can also convert your proprietorship firm into Private Limited Company or LLP by becoming Shareholder of more than 50 percent of the Company.

https://fastlegal.in/blog/sole-proprietorship-firm/how-to-register-sole-proprietorship-firm/

Looking for Registration of Proprietorship Firm Online?

Just Submit your request in below Form and Fastlegal Team Members will contact you shortly for getting your Firm Registered as per your business needs, you just need to share Required documents and information Via E-mail.


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Step by Step Procedure for Private Limited Company Registration in India

Posted on by Fastlegal Team

Private Limited Company is the most common incorporated business organisation in India. It limits liability of its members & has a perpetual succession. For starting a Private Limited Company minimum 2 members and directors are required. In this article we provide a comprehensive guide to Private Limited Company registration as per the provisions of Companies Act,2013.

Type of Business Entities for doing business in India :

Private Limited Company :

Private Limited Company is the most popular structure for businesses and startups. Private Limited Company allows outside funding & Foreign Direct Investment easily. Private Limited Companies are required to hold Board Meetings,Register Secured Loans with Ministry of Corporate Affairs,Hold Members Meeting for Important matters,Make complete disclosures about important matters in their Board Report. Due to all these regulatory disclosures and requirements imposed on Private Limited Company by Company Law they tend  to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.

Limited Liability Partnership:

Limited Liability Partnership is suitable for Service based industry (for example-web designing,architects,doctors etc.). In comparison to general partnerships it limits the liability of its Partners. However, if you’re looking to raise venture capital or attract talent with employee stock options, private limited is the way to go as LLPs cannot easily accommodate it.

Partnership Firm :

General Partnership Firm is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for General Partnerships.

Procedure for Incorporation of Private Limited Company

Following are the steps involved in Incorporation of a Private Limited Company in India:

Obtaining Digital Signature: 

Digital Signature is required to sign Incorporation application and other forms for regular compliance needs,It is issued by certifying authority (like Sify,Vsign, Emudra etc.).

Following are the documents required for obtaining Digital Signature for Directors:

1.) For Indian citizens & residents:

a.) Copy of Pan Card

b.) Copy of Driving license/Passport/Aadhar Card/Voters’ Identity Card

c.) Dully filled and signed Digital Signature Form.

2. For Foreign Nationals:

a.) Copy of Notarized or Appostilled Passport if the country is a party to hague convention.

b.) Dully filled and signed Digital Signature Form.

Name Approval Application in E form RUN:

Application for Name approval may be filled using E-FORM RUN . Care must be taken while applying for Name approval, Name of proposed Company must not resemble with an already registered Company and a Registered Trademark or with the mark for registration of which Trademark application has been filled.

We will help you to check the name availability for your new Company.

Preparation of Incorporation Documents:

  • Form INC -9 ( Declaration from First Subscribers and Directors )
  • Form DIR-2 (consent to Act as Director )
  • E MOA
  • E AOA

What is E MOA and E AOA :

  • E MOA is Memorandum of Association of the Company i.e. Constitutional  Document  in which Name of the Company , State of Registered Office of the Company, Main Objects of the company, Share Capital of the Company and Liability of Members are mentioned.
  • E AOA is Articles of Association of the Company i.e. in which Rules and Regulations for governing of the Company is mentioned.

Our Team will help you to get your E MOA and AOA drafting as your requirements.

Shareholding (Ownership)  in the Proposed Company , how it is decided :

In this case if you are two persons starting a New Company it is important that what ownership you will held in the proposed Company , Lets take and Example – We will Incorporate a Private Limited Company which will have Share capital Divided into 10000 Equity Share Shares of Rs. 10 Each in this case We divide 5000 Share each to both the persons , the ownership will be 50-50% for both the persons. Ownership decides the voting rights of members in the proposed Company.

In New Company Share are subscribed by mentioning the no of shares in the Subscription page of MOA of the Company and it is witnessed by  Company Secretary, Chartered Accountant or Cost Accountant in Practice.

Subscribing to Memorandum and Articles of Association:

By subscribing to Memorandum and Articles of Association members agree to become member of Proposed Company. Following are the manner for Subscribing to Memorandum and Articles of Association:

1.) If all the members are Indian resident Individuals:

Subscriber sheets of Moa & Aoa must be signed by respective individuals stating the shares subscribed against their name in Moa Subscriber Sheet.

2. If members include Body Corporate or only Body Corporate are members:

Subscriber Sheet must be signed by nominee of Body Corporate who is authorized by a resolution passed by Board of Directors for subscribing on behalf of Company and other individual subscribers.

3. In case foreigner are members of proposed Company:

 Subscriber Sheet of Moa & Aoa is required to be signed by respective individual or nominee of Body Corporate and must be Notarized by Notary Public of that Country if the country is not a party to Hague convention if that country is a party of Hague convention than it must be appostilled accordingly.

Filling of Incorporation Application to CRC:

Once all the above processes are completed than incorporation application may be filled using the forms available on website of Ministry of Corporate Affairs.

Obtaining DIN and Name Approval can directly be made through SPICE form. GST Registration can also be applied along with Spice form through AGILE.

Opening of Company Bank Account :

It is very much advisable to open a Company Current Bank Account as soon as company is registered, and deposit the subscription money to company bank account .

Filing of Form INC 20A for Commencement of business of Company :

The Company has to file form INC 20 A for Commencement of Business of the Company , Company cannot Commence and exercise borrowing powers if company does not file form INC 20A .

Place your Request for Private Limited Company Registration Online in India

Call us directly at 9782280098

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Nidhi Company Software in India

Posted on by Fastlegal Team

Nidhi Company is Finance Company which lends money and accept deposit form its members only. Every Nidhi Company has to follow Provisions of Nidhi Rules and Companies Act, 2013. It is very important that all the procedure relating to admission of members, allocation of shares, creating schemes for Loans, disbursements of loans, Opening of Savings Account, RD Account and FD Account are carried out in simple and hassle-free manner that you feel very little need for managing legal compliance and focus on your business.

Fastlegal Nidhi Software :

Fastlegal has its own in-house Nidhi Software which was built by top it experts and Company Secretaries to its clients, Fastlegal Nidhi Software has all the features that are required for finance business. following are main features of Fastlegal Nidhi Software :

  1. Member Addition and Reporting in Single Click
  2. Share Allotment and Transfer to members
  3. Automatic Share Certificate Printing
  4. Automatic Share Transfer form Printing
  5. Member Application Form Printing
  6. Loan Account Opening and Management with Automatic EMI Scheduler and informer
  7. Savings, RD and FD account Opening with Bond and Statement Printing
  8. SMS Gateway
  9. Compliance Alerts at every step
  10. Automatic Half Yearly and Yearly Return Preparation
  11. Real-Time update for change in Nidhi Rules and automatic updation
  12. Data Backup and Restore Options
  13. Facility to create Multiple Users for Different Roles
  14. Approval Facilities
  15. KYC Uploading Facilities …. many more

Get Free Demo For Fastlegal Nidhi Software 

Call : 9782280098 Or Email Us At Mail@Fastlegal.In