How to Apply for 12A and 80G Registration of NGO under Income Tax Act

Posted on January 24, 2025 by Fastlegal Team

An NGO ( Society/Section 8 Company/ Trust ) can obtain registration under 12A so that no tax is levied on the Surplus Income of NGO and 80G registration can be obtained so that Donner can claim tax exemption up to 50% of amount donated subject to maximum 10% of Gross Total Income of Donner.

What is 12A Registration of NGO

Once NGO has obtained 12A registration, NGO gets Tax Benefits that the Surplus Income of NGO becomes non taxable.

What is 80G Registration of NGO

An Institution having 80G Registration provides tax benefits to donor up to 50% of donation made to such institution, subject to maximum 10% of Gross Total Income of Donor

Procedure for Registration under Section 12AA and 80G:

The Application is required to be made in form 10A and 80G
The Application is required to filed with Correct Information as regard to Institution , Such as Name , Address and KMP, Date of Incorporation
Details of Author(s)/Founder(s), like PAN , Name , Address
Details of Trustees/Office Bearers/Directors as on the date of filing of application
Objects of Institution such as Relief to poor , Medical , Education etc
The Application should be accompanied with
- Annual Accounts of Last Three Year or Accounts from the Date of Incorporation or Formation Certificate of Incorporation, Registration or Trust Deed Note on Activities of Institution

Once the Application is Submitted, the Income Tax Department Exemption ward will issue questionnaire asking for some more documents and
Information:

Sample Questionnaire :

1 A declaration that no part of the income of the Trust/ Society/ Non Profit Company enures, directly or indirectly for the benefit of any person specified in section 13(1)(c) of the Income Tax Act, 1961 and that no part of the income or property of the Trust/ Society/Company was ever used or applied for the benefit of any person specified in section 13(1)(c) of the Income Tax Act, 1961, duly signed by the Authorized Signatory.

2 A note specifying the main area of your charitable/ religious activities and a projection/ plan for the main charitable/ religious activities to be undertaken in the next two years.

3 Please attach a ‘No Objection Certificate’ from the owner of the premises from which you are operating along with proof of his ownership.

4 Please attach a certified copy of annual accounts since inception/ during last three years.

5 Please attach a certified copy of the Trust Deed/ Memorandum of Assosiation and produce original copy for verification.

6 Please attach a copy of the proof of identity of the main Trustee/ President or Secretary of the Trust/ Society/ Non Profit Company.

7 Please attach a note on activities conducted since inception/ during last three years.

8 Please attach details of donations made since inception/ during last three years.

9 Please attach details of donations received, including corpus donation, received since inception/ during last three years.

10 Please attach details of your bank accounts including name of the bank, branch, type of account and number of account

11 Please file an undertaking that there will be no infringement to the 1st proviso to section 2(15) of the Income Tax Act, 1961.

12 Please specify the category of charitable purposes provided in section 2(15) of theIncome-Tax Act, 1961 in which your case falls, i.e., whether your objective is relief ofthe poor/ education/ yoga/ medical relief/ preservation of environment (includingwatersheds, forests and wildlife)/ preservation of monuments or places of artistic/historic interest/ advancement of any other object of general public utility/ religiousactivities.

13 Your Trust Deed/ Memorandum of Association does not have Irrevocability Clause.Please include this clause in your Trust Deed/ Memorandum of Association and file acertified copy of the amended Trust Deed/ Memorandum of Association.

14 Your Trust Deed/ Memorandum of Association does not have a clause that thebeneficiaries are a section of the public and not specific individuals. Please includethis clause in your Trust Deed/ Memorandum of Association and file a certified copyof the amended Trust Deed/ Memorandum of Association.

15 Your Trust Deed/ Memorandum of Association does not have any clause providingthat in the event of dissolution of Trust/ Society/ Non Profit Company,the funds/assets of the Trust/ Society/ Non Profit Company will be transferred only to someother Trust/ Society/ Non Profit Company having similar objectives. Please includethis clause in your Trust Deed/ Memorandum of Association and file a certified copyof the amended Trust Deed/ Memorandum of Association.

16 Your Trust Deed/ Memorandum of Association does not have any clause providingthat the funds/ property of the trust will be used only for the objectives of theTrust/Society/ Non Profit Company. Please include this clause in your TrustDeed/Memorandum of Assosiation and file a certified copy of the amended TrustDeed/Memorandum of Assosiation.

17. If the Trust Deed/ MOA etc. are in vernacular language, please furnish certified translatedcopy of entire Trust Deed/ MOA in English/ Hindi.

18. Photocopy of PAN card(s) of the organisation along with the original PAN card forverification.

19. Copies of Income Tax Returns filed for last three years along with computation and AuditReport in Form No. 10B.

20. If represented through authorized representative, duly discharged letter of authorityalongwith name, address, mobile no. and e-mail address may be furnished.

21. Details of charitable or religious activities actually carried out by the organisation since its inception. In case no such activities have been carried out in any of earlier financial years, please furnish such details for the current financial year till date along with the documentary evidence

22. In case of schools/ hospitals, whether necessary the permission from the State Govt./ Local bodies has been obtained? File a copy of same.

23. In the case of any change in trustee/ member/ principal officer/ address of the organisation, copy of relevant change report from Charity Commissioner/ Registrar of Companies may be filed.

24. If any donation from foreign country is received then submit the details of registration under FCRA alongwith donation received and purpose thereof.

25. Please furnish online Acknowledgement receipt of Form No. 10G/ If applied

A hearing is required to be attended for submitting the documents and information as per questionnaire.

Once the CIT, Exemption is satisfied about the Grant of Registration under Section 12A and 80G , he may grant the Registration or call for more such information to the satisfaction of CIT.

Fastlegal Provides 12A and 80G Registration Services in Rajasthan , Please call 9782280098 or email at support@fastlegal.in

How to Register Social Media Marketing Agency Business

Posted on January 24, 2025 by Fastlegal Team

In this article we will discuss starting social media marketing agency business in India, with the growing popularity of social media and perfect targeting mediums that provided by the social media websites, social media marketing agency business is now gaining popularity has the traditional form of advertising means are costly and provides the less conversation, what are the hand if you are doing a social media marketing with the very minimum cost you can start getting the actual customers that you need.

Social media marketing spending amounts to increasing the main requirement of the agencies who can handle the social marketing agency business for the clients.

Following steps are involved for starting social media marketing agency business

1. Learning the social media marketing:

If you’re starting the social media marketing business you need to know

how the social media marketing works, what are the steps involved, how you can acquire more targeted customers to your clients need,

To learn everything that social media marketing provides this will take time to get expert knowledge in the social media marketing but the first step involved is to get the learning how it works, there a penalty of online courses available or you can get it out by doing it yourself with experimenting the Facebook ads, Google ads, etc.

2. Setting up of website and social media accounts for your social media marketing agency

once you get some understanding about how the social media marketing works to start out by setting up you on the website and social media pages

3. Getting the first client

Getting the first client for the social media marketing business is not an easy task, to get the first client you need to do some promotional activities, the best thing that you can do is to offer a free service for first clients for a period of initial months this will help the client to have faith on you and once you prove the results, you will be getting a testimonial for your next clients

4. Getting your agency registered as a private limited company

Once you start out the actual business operations you can go for starting out your own private limited company and get all the activities of your agency get done through the bank account of the private limited company, you should raise all the invoices in the name of your company and accept payments in the bank account of the company.

You can get the payment gateway integration with your company bank account on accept payments via payment gateways

5. Maintaining the Regular Compliances for your Company

As you register your business as a private limited company you need to do certain compliance as per the government regulations, it is very much mandatory to do them all the government compliance is on time to get your business running smoothly, you can take help of consultants to manage your compliance very easily, please note that known maintaining the legal compliances can make you in trouble as there are very high penalties for non-compliances.

Fastlegal provides business registration and legal compliance Management services to all type of businesses, if you need any help you can directly email at mail@fastlegal.in or call us at 9782280098

How to Play Teen Patti and Other Games You May Not Have Known About

Posted on January 16, 2025 by Fastlegal Team

Many countries have devised their version of different games, some are original while others are based on an existing game, and upgraded. One of these is the popular South Asian game known as ‘Teen Patti’, which is also known as ‘three cards’ in English.

Steps Involved in Playing Teen Patti

As mentioned above this is a popular game in South Asia, and is a gambling game that many enjoy. It is played with a normal deck of 52 cards, not including the Joker. It is typically played with real money and can be played by up to 6 players and no less than 3 players.

Played with either no limit or pot limit, this game is similar to the game of Poker or Texas Hold ‘em, the goal of each player is to maximize the value of their individual pots and to win by either having the best three cards or laying down your hands.

First, you select a dealer: once you draw cards, the dealer is selected and the person with the highest drawn cards gets to play that position. However, don’t be dismayed as everyone gets a turn to be a dealer. This will go clockwise and, in every round, a dealer is chosen.

Then you place an ante: an ante is collected for each of the players, this is to form an initial pot which the players will compete for. The pot is usually capped at equaling 1024 times when played with a limit, however, you can also play without a limit. This game does not necessarily need to be played in the physical but can also be played online, and when playing online, you can place the ante via a 3 Patti real money paytm cash deposit, and each player will deposit their amount.

Once this is done, then you get your cards: the dealer will hand out the cards to each player. He deals three cards facing down to himself and then to each player in a clockwise direction.

The acting starts: Now that the game has started, the first player on the left-hand side goes, and he can choose to play a blind card, without seeing his cards, or if decided at the beginning of the game with his cards seen. If he plays without seeing the cards, he can do three things, either he can choose to fold, raise to double the pot or call the ante. If he chooses to play with his cards seen, he can double the ante, fold or raise to quadruple it. The bet he makes is known as the ‘stake’.

It’s the next player’s turn: when it’s the turn of the next player, the acting continues. Each of the players will have an option to fold, raise or call either through cards seen or hidden (blind). Depending on the stake the previous player has placed, the next player can bet on it and set a newer stake. If he chooses to place a blind it can be either x1 or x2 the stake amount if it is blind, however, if it is a seen card then he can place a bet of x2 or x4 the stake. The new stake is always either always half as much as the existing one.

A side-show: when there are at least three players left in the game, and after two of the consecutive ‘seen players’ play their turn, then they can request a side-show with the previous player. If you are that player you can either deny or accept the request. In the event the player accepts the request he will secretly show his cards to the other opponent and the one with the worst hand ranking will be eliminated and the game will continue.

Teen Patti Hand Rankings

From the best hand to the worse hand the below are the hand rankings for Teen Patti:

Best hand: Set / Trail / Trio. Three like cards irrespective of suit or colour (for example 9-9-9 of diamonds or A-A-A heart and spade)
Second best hand: Straight Flush or Pure Sequence. Three successive cards of the same suit and colour (for instance, K-Q-J of clubs or A-2-3 of hearts)
Third best hand: Run / Sequence / Straight. Three consecutive cards of unlike suits (for instance, A-2-3 or K-Q-J of a spade, heart, and diamond)
Fourth best hand: Flush / Color. Three cards of the same colour and suit, but not in a sequence (for instance, 9-4-3 of spades or A-K-K of hearts)
Fifth best hand: A Pair. Two cards of the same rank regardless of colour or suit (for instance A-A-9 or 5-5-J)
Worst hand: High Card. Three cards that are not in a sequence, of the same value or the same suit (for instance, A-9-4 with two diamonds and one spade)

Hopefully, you get the gist of the game, and if it’s too complicated to play using real cards, there is always the option of playing online!

Below are some of the other games that originated from their own countries that you may never have heard of:

United Kingdom – Pass the Parcel

Starting with games in the United Kingdom, one that’s a popular and traditional game is “Pass the Parcel”. Involving music and merriment alongside some crumpets and tea. This is a game that requires some preparation and is worth every effort. The basic idea is someone places a prize inside a box and wraps it up strategically, so no one can tell what’s inside.

The parcel is passed around a circle and once the music stops you remove one layer of the wrapping, and the music continues, till the person who removes the last layer of wrapping paper gets the prize! Pretty simple, ey? But so much fun, the anticipation keeps everyone going. Did we mention the DJ or person in charge of the music is blindfolded?

Brazil – Luta De Galo

“Luta De Galo” is a game that originated from Brazil, in Portuguese, it means “Fight of The Roosters”. If you are into an adventurous and funny game, this would be it. Ever wanted to act like a chicken? This is a hilarious game that doesn’t involve any fighting, funny enough. However, you will need props that include a rag, a bandana, a small towel, and a handkerchief to play with.

Nigeria – Ten Ten

The wildly popular game Ten Ten is a popular one in Nigeria and is a clapping game that’s so nice, they named it twice. Similar to the game we all have played at least once in our lifetimes, “Rock Paper Scissors”, the only difference is it is played with your feet, with some added singing and clapping. It sure helps with enhancing your hand-eye coordination, to get you into the rhythm of things.

No OSP Registration Requirement for Running BPO/Call Centres as per New OSP Guidelines

Posted on January 14, 2025 by Fastlegal Team

Department of Telecommunications has issued new OSP guidelines for Other Services Provide (OSP) where Registration for Other Service Providers (OSP) requirements has now done away with, you can just register your Private Limited Company/LLP or Partnership Firm or Obtain Shop and Establishment Registration and can start your own Call Centre, Also, as per the guidelines OSP has to take care that there should not be any Toll Bypass and Recordings and Call Logs to be maintained for period of 1 years .

The New OSP Guidelines have been issued on 23rd of June, 2021 by Department of Telecommunication for ease in Business of Running Call Centres and BPO’s across India

New Guidelines

No Registration Requirements with DOT
NO Static IP Requirement for Work From Home
No Security Deposit for Work From Home
Bank Guarantee Not Required
All Types of Business Entities Private Limited/LLP/Partnership/Proprietorship permitted
Exemption to Non Voice Based OSP
Voice Traffic Flow allowed between Domestic and International OSP

Old Guidelines

Mandatory Registration Requirement
Static IP Requirement for Work From Home
Security Deposit Required for Work from Home
Bank Guarantee required
Only Private Limited and LLP were permitted
Non Voice Based OSP were Covered
Voice Traffic Flow not Allowed

Chapter – 1 Definitions

The terms used in this document, unless the context otherwise requires, have ‹he following meaning”.

“Authority’ means Department of Telecommunications or its designated field wits (Licensed Service Areas or LSAs).

‘Company’ means an Indian Company, registered under the Indian Companies Act, 2013 or a Partnership Firm or an organization registered under Shops and Estat3lishments Act.
‘LLP’ means a Firm incorporated and registered under Limited Liability Partnership Act- 2008 in India.

‘Other Service Provider’ (OSP) is an Indian company, registered under the Indian Companies Act, 2013 or an LLP (Limited Liability Partnership) registered under LLP Act, 2008 or a partnership firm or an organization registered under Shops and Establishment Act providing voice based Business Process Outsourcing (BPO) services to their customers located worlci-wide including in India.

‘Voice based BFO services’ means call centre services provided by the OSPs wherein the customers access the network of the OSP through PSTN/PLMN/ISDN.

‘OSP Centre’ means the infrastructure of an OSP at a location in India.

‘Point of Presence’ (POP) is a location where OSP places equipment like Private Automatic Branch Exchange (PABX), Interactive Voice Recording System {IVRS) etc., to act as an extension of OSP Centre for Collecting information, converting, carrying and exchanging the telecom traffic related to its services.

‘Telecom Service Provider’ (TSP)/ Telecom Licensee means an entity who has been granted a valid licence under Section-4 of the Indian Telegraph Act, 1885 to provide Telecom Service as per the License in a Licensed Service Area (LSA).

’Telecom Resource’ means Telecom facilities provided by TSFs and used by the OSPs including, but not limited to Public Switched Telecom Network (PSTN), Public Land Mobile Network {PLMN), Integrated Services Digital Network (ISDN), Leased Lines (NPLC/ IPLC), MPLS VPN, internet leased lines, Broadband connectivity {wireline/ wireless), BRA/PRi lines to carry traffic.
Toll Bypass: Toll bypass for the present guideline shall mean illegal carriage of voice traffic infringing upon the jurisdiction of authorised TSPs in the following ways:
- Voice calls between public network (PSTN/ PLMN/ ISDN) in India and Foreign country by transiting it through their own network,
- Voice calls between public network (PSTN/ PLMN/ ISDN) of one city and the other city in India by transiting it through their own network.

Chapter – 2 General Guidelines for OSPs

Registration: The distinction between international OSPs and domestic OSPs has been removed and no registration will be required for OSP centres in India.
Bank Guarantee: No Bank Guarantee whatsoever will be required for any facility or dispensation under these Guidelines.
Special Dispensations for OSP:
- For the OSPs the collection, conversion, carriage and exchange of the incoming PSTN/PLMN/ISDfiI traffic is permissible over any wide area networking technology like MPLS VPN/NPLC or SD-WAN over NPLC/MFLS VPN interconnecting the different OSP Centres.
- The OSPs ale allowed to carry the aggregated switched voice traffic (incoming/ outgoing) between their POP and their OSP centre in India over any wide area networking technology like IPLC/NPLC/MPLS VPN or SD-WAN (over IPLC/NPLC/MPLS VPN) and transiting it betwee.n other OSP centres in India over NPLC/MPLS VPN or SD-WAN (over NPLC/ NtPLS VPN).
- lnterconnectivity of voice calls between two or more OSP Centres of the same Company or group of companies or unrelated companies is permitted for OSP operations.
- Interconnection of Remote Agent to the OSP centre is permitted using any technology including broadband over wireline/wireless.
- An OSP having multipIe centres may obtain internet connection from authorised TSP at a centralised location anywhere in India. Fhis internet can be accessed from other OSP centres of the same company or Group companies Using NPLC/ MPLS VPN or SD-WAN (over NPLC/MPLS vPNj.
- Entities that are not carrying out voice-based business process outsourcing services shall not be regulated under the OSP Guidelines.
Inspection and reports: The OSPs have to self-regulate their operations in such a manner that there is no toll bypass and infringement on the jurisdiction of authorized TSPs. There is no requirement to submit any report/ information to the DOT HQ or its field units on normal routine basis. However, the OSPs have to maintain Call Data record (CDR), Usage Data Record (UDR) and System *OSS for alt customer calls for the required period as mentioned in Chapter-5 ”Security Conditions” and submit it to LEAs/ DOT, if requested. No audit/inspection on routine basis of the OSP centres shall be carried out by DoT

Chapter -3: Guidelines for sharing infrastructure, Use of Distributed Architecture of EPABX and Interconnection

Sharing the Infrastructure: Sharing the infrastructure including EPABX and PSTN/PLMN lines of OSP Centres for office use is permitted.

Foreign EPABX: EPABX at foreign location is allowed for the OSPs, However, the OSP will take all the necessary measures to comply with the requirements of relevant provisions of Indian laws. In addition, the OSP shall maintain a copy of CDR/ UDR and System logs at any of its OSP centres in India.

Use of distributed architecture of EPABX for OSP centres across India:
- OSPs can have a distributed architecture of EPABX (main EPABX at a centralized location and media gateways at Individual OSP Centres) for their OSP centres Across India ,where the EPABX owned by OSP OSPs may place their self owned EPABX in 3rd party data centres in India . OSPs can also take EPABX services from the TSPs.
OSP centres which do not make outgoing calls to the PSTN/PLMN in India may atso use a centralised media gateway.

4. Interconnection:

Chapter-4 Work-From-Home (WFH)/ Work-From-Anywhere (WFA)

The concept of Work-From-Home is being encouraged under these guidelines and has been extended to allow work From-Anywhere in India. This facility of Remote Agent Position (i,e. Work-From- Home/Anywhere) is permitted with the following conditions:

The agents at home/ anywhere in India shaIl be treated as Remote Agents of the OSP Centre.

Interconnection of remote agents to the OSP centre is permitted using any technology including broadband over wireline /wireIess,

The remote agent of an OSP centre may connect directly with the centralised EPABX/ EPABX of the OSP/ EPABX of the customer.
The OSP shall be responsible for any violation related to toll-bypass.

Chapter -5 Security Conditions

The OSP shall not engage in the provision of any Telecom Services.

For EPABX installed at locations different than the OSP Centre, the remote access of aid CDRs, System log, configurations of I PABX and touting tables shall be made available on demand from Authority/ Law Enforcing Agencies from at least one of the OSP centres.

OSP will take all the necessary measures to comply with the requirements of relevant provisions of Indian laws.
On specific instances of infringements such as carriage of objectionable, obscene, unauthorized messages or communications infringing copyright, intellectual property etc. in any form on their networks, the OSP shall ensure that the carriage of such material on the networks is prevented immediately.
The OSP shall extend support to the Authority in tracing any nuisance, obnoxious or malicious calls, messages or communications transported through its equipment and network.
OSPs shall be required to preserve the CDRs for all the voice traffic carried using the EPABX. OSP shall maintain a copy of CDR and System logs at any of its OSP centres in India, The CDRs shall be segregated for each OSP centre/ media gateway. It shall be possible to view the CDR data along with details of the agent manning the position by remote login to CDR machine/ server. The time-stamp in the CDRs in the system(s) of the OSP shall be synchronized with the Indian Standard Time.

The CDR/ UDR/ system logs etc. should Contain all relevant information which is essential for the LEAs for tracking/forensic purpose. The CDR/ UDR shall consist of Calling Number, Calted Number, Date, Start Time, End time/ duration, Identity of the Device used for making the call (MAC ID, Device signature etc.), User identity {login name) initiating the session, MGW identity/ Soft-switch ID and Trunk ID etc, System log shall consist of User/ login identity, date & time of login, date & time of logout, commands/ activities performed, response of command/ activities.

For Remote Agents, the OSP shall ensure that the system logs are tamper-proof and the CDRs/ all logs of the activities carried ot3t by the Remote Agent shall be maintained for one year.

In all the above cases, CDRs / UDRs / System logs, etc. shall be maintained for a period of one year,

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For Company /LLP Registration for Running your Own BPO/Call Centre, Please Submit your request below

Compliance Due Dates for Mandatory Filings in the Month of October 2019

Posted on January 12, 2025 by Fastlegal Team

7th October – Payment of TDS for the Month of September 2019
11th October- GSTR1 – Monthly
14th October – Director KYC (DIR3KYC)
14th October- Auditor Appointment, if AGM held on 30th September and Auditor appointment is applicable
15th October- Payment of ESIC and PF Chalan
20th October- GSTR3B
28th October- AOC4 for Companies , if AGM held on 30th September 2019
30th October- LLP Form 8 ( for LLP)
30th October- MSME form for Reporting of dues to MSME Enterprises
30th October- Tax Audit

A Comprehensive Guide to Choosing Good Companies for Investment in India

Posted on January 11, 2025 by Fastlegal Team

Investing in the stock market can be a rewarding venture, but it requires careful consideration and research. For those looking to invest in India, a country with a burgeoning economy and a wealth of opportunities, making well-informed choices is crucial. In this blog post, we will explore ten essential steps to identify good companies worthy of investment in the Indian market.

1. Research, Research, Research!

Before you start investing your hard-earned money, delve into the world of research. This step cannot be stressed enough. Look beyond the surface and dive deep into the company’s background, financial reports, and market reputation. Websites like the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) can serve as valuable resources.

2. Analyze Financial Health

A company’s financial health serves as a barometer for its stability and potential growth. Study its balance sheets, income statements, and cash flow statements to assess its profitability, liquidity, and solvency ratios. Steer clear of companies with excessive debt burdens or inconsistent revenue streams.

3. Management Team Evaluation

A company’s leadership plays a pivotal role in its success. Scrutinize the management team’s experience, vision, and track record. Look for companies led by competent individuals who have successfully navigated challenges and have a reputation for transparent and ethical practices.

4. Uniqueness and Competitive Advantage

Seek companies that possess a unique selling proposition or a strong competitive advantage. Whether it’s proprietary technology, an innovative product, or a strong brand identity, a competitive edge can drive sustained growth and profitability.

5. Growth Prospects

Assess a company’s potential for growth in its industry and market. Look for businesses with expansion plans, a widening customer base, or strategic partnerships. Companies with promising growth prospects are more likely to yield higher returns over time.

6. Dividends and Earnings History

Stability in dividends and consistent growth in earnings are indicators of a company’s financial strength. Dividends are a share of the profits distributed to shareholders, making dividend-paying companies an attractive option for investors seeking regular income.

7. Analyze Industry Outlook

Understand the dynamics of the industry in which the company operates. Consider factors such as market trends, competition, regulatory environment, and potential risks. Invest in industries with favorable outlooks for sustainable long-term growth.

8. Valuation Comparisons

Compare the company’s valuation metrics, such as price-to-earnings ratio (P/E), price-to-book ratio (P/B), and dividend yield, with its peers and historical averages. A company with a reasonable valuation relative to its growth potential might make for a prudent investment.

9. Diversification for Risk Management

Diversification is a fundamental strategy to mitigate risk. Spread your investments across different sectors and industries, as this can reduce the impact of volatility in any particular market segment.

10. Embrace a Long-Term Perspective

Investing in the stock market requires patience and a long-term perspective. Avoid getting swayed by short-term fluctuations and focus on the company’s fundamentals and long-term growth potential.

Conclusion

Choosing good companies for investment in India necessitates a methodical approach. By conducting in-depth research, analyzing financials, assessing management, and understanding industry dynamics, you can identify companies with promising growth prospects and solid fundamentals. Diversify your investments, embrace a long-term mindset, and always seek guidance from financial advisors to make informed and confident investment decisions. Remember, the key to successful investing lies in informed choices and a commitment to staying updated with market trends. Happy investing!

How to do Startup Valuation for Startup Companies in India

Posted on January 10, 2025 by Fastlegal Team

In this articles we will share the Startup Valuation Method that is mostly used by Venture Capitalist and Angel Investors for valuing Startups. Startups are valued with different methods and approaches, this all depends on products, users, technology and revenue models.

Here Investor invests to earn return of their equity and they risk high on startups because early stage startups have no business experience, no established brand of their products and services, No Human Resources, illiquid Investments etc. The Future of Startups are uncertain, so valuing a startup can be little bit tricky.

Here we will discuss startup valuation at pre-revenue stage or revenue generation just commenced and gradually being scaled up.

Minimum Requirements for Startup Valuation and Stake Diversion – Procedure

Expected Investment by Venture Capitalist or Angel Investor :

For Example are you an startup Founder and have recently get connected with Venture Capitalist or Angel Investor, He wants to I invest Rs. 100 lakhs in your startup, so How much Company Stake are you willing to divert to get Rs. 100 lakh into your business. We will find this out at later stage.

Expected Profits by Startup Company will earn

It is Important to know that what products or services startup entity have , how much it will earn in next year. We need to do some maths and got that company will earn profits of Rs. 300 Lakhs on fifth year.

Expected Return on Equity Investor expects from Startup entity

There is certain percentage return that Investor expects to earn from its Investment , say Investor wants to earn 20% return on Investment per year, 25% return on Investment per year.

The required Future Value of Investment = 100*(1.20) for 5th Year

if you calculate the Future Value this Comes out at = 248.83 at 20% and 305.18 at 25%

Valuation of Company at this time

5th Year Net Profit * PE Multiple

300*8 = 2400 Lakhs

How much Company Stake to be diverted

248.83/2400*100 = 10.36% stake

Fastlegal Provides Valuation Services for Startup Entities though IBBI registered Valuers, Email us your Requirements at support@fastlegal.in

Everything you need to understand about Limited Liability Partnership (LLP)

Posted on January 9, 2025 by Fastlegal Team

LLP Act, 2008 and same is applicable to whole of India.
Nature of LLP– Body Corporate, Legal Entity, separate from its partners, perpetual succession, change in partners does not affect existence, rights & liabilities.
Partnership act will not apply to LLP
Address of Partner- Individual – Residential Address, Body Corporate – Registered Address
Body Corporate – Company, LLP registered under this act, LLP incorporated outside India, Company incorporated outside India
Business includes every trade, profession, service, occupation.
Contribution – Tangible, Intangible, Movable, immovable, other benefits, money, promissory notes, Agreement to contribute cash or property, contracts for services performed or to be performed. obligation to perform (Form of contribution ) shall be according to LLP Agreement.
Creditors of LLP – Acts in reliance of an obligation described in LLP agreement, without notice of any compromise between partners may enforce original obligation against such partners.
Monetary vale of contribution of each partner shall be account and disclosed in the accounts of the LLP in prescribed manner
Entity
Financial Year 1 April to 31st March ( If incorporated after 30th Sept may end on 31st march of next year.)
Foreign LLP– Formed and incorporated outside India which establishes place of business in India.
LLP Agreement – Written Agreement between – Partners of LLP, LLP and Its Partners, which determines the mutual rights and duties of partners, rights and duties in relation to LLP
Name – Partner – Individual- First, middle, last. Body Corporate- Registered name.
Partners- Minimum 2, Maximum – no limit prescribed in Act.
There is no disqualification that body corporate can not become partner but there is disqualification for individual.
How can become a partner of LLP– Individual and Body Corporate in accordance with the LLP agreement. They have to make Contribution.
Designated Partner- If incorporation document specifies who are designated partners they shall be, Each of partner than all. Minimum 2 Partners required, responsible for the compliance of all the acts applicable to LLP. LKiable for all the penalties imposed under this act. Can become DP in accordance with the LLP agreement, Prior approval to act as DP is must before, Should have DPIN (DIN), Conditions- Insolvent – 5 years, Suspended payment to creditors, done offence convicted by court, done offence of fraud. LLP shall file particulars of every individual who has given consent to act as DP in prescribed form to ROC.
Change in designated partner- Designate new partner within 30 days of vacancy, if no partner is appointed all the partners will be designated partners ( this applicable if reduced below two)
Cessation from partnership by partner- 30 days notice to be given to other partner of his intention to resign. Notice of Resignation – to the person who is dealing with LLP or ROC otherwise he will be liable.
Partner of LLP is a agent of LLP but not of other partners
If the partner do not have authority to do some act, LLP is not bound for the act of partner.
LLP liable- If the partner is liable to any person for wrong act or omission on his part in the course of business of LLP.
Liabilities of LLP shall be met out of property of LLP.
Solely by reason of being partner, partner is not personally liable.
Partner is not liable for personal act, omission of any other partner.
Not Partner in real but holding out so- Liable to the extent of credit received by him.
Unlimited liability in case of fraud.
Whistle Blowing- Court or tribunal can waive the penalty, if satisfied – partners provided useful information during investigation.
Financial Disclosures- Accounts to be kept as par double entry system, Prepare statement of Accounts and solvency for the financial year and shall be signed by the Designated Partners of the LLP within 6 months form the end of the financial year and File with ROC,
Audit
Annual Return – To be filed to ROC within 60 days of closure of Financial year.
Compounding of offences- Only offences punishable with fine. By collecting a sum which may extent to the amount of maximum fine prescribed for the offence.
Assignment and transfer of Partnership Right – Right of a partner to share of the profit or loss of the LLP, and to receive distribution in accordance with LLP agreement are transferable either wholly or partly.
Transfer of right does not by itself cause disassociation of partner.
Transfer of right pursuant to this section does not itself, entitle the transfer or assign to participate in the management.
Conversion of LLP – Firm to LLP– IInd Sechedule, Pvt Company To LLP– IIIrd Sechedule , Unlisted Public Company to LLP– IVth Sechedule.
Partner may land money to LLP

Foreign Nationals Company Incorporation in India

Posted on January 7, 2025 by Fastlegal Team

Investment in India by Foreign Company will be in accordance with FDI Policy in India, so foreign nationals incorporating a company in India are required to check out the required permission ( how much FDI is allowed in India for particular Sector ) under the Foreign Direct Investment (FDI ) policy If we take an example of Technology Company, FDI policy permits 100% FDI policy under Automatic route.

1. Automatic Route

2. Approval Route

#1. Automatic Route: In this route, prior approval of Government is not required, the only intimation is required to RBI in the Form FC-GPR, FDI Policy provides sectors where FDI is allowed at what percentage of Equity Capital of the Company.

#2. Approval Route: This is route prior approval of government is required, where FDI is allowed under approval route under FDI Policy.

Foreign Nationals Company Incorporation Procedure :

With the Increase ranking of India in ease of doing business, Company Incorporation Process is the main reason due to governments efforts on simplification process in registering or setting up a company in India, Here is a step by step guide on setting up a company by Foreign Companies :

#1. Getting the Documents Notarized and Apostle of Foreign Nationals :

Indian companies Act requires that the Documents for foreign Directors and Foreign Investor or Shareholders should be notarised and Apostle, Documents may also be signed in India if the applicant is in India on Business Visa. Documents of foreign entities like

Certificate of Incorporation
Charter documents like MOA AOA,
Resolution by Board of Directors of Foreign Entities should be all in English Language and certified translated copy in English copy along with Notarised and apostle.

foreign nationals — Foreign Nationals Company Incorporation

#2. Indian Resident Director:

Indian companies act requires that every company in India should have at least on resident Director who is resident in India during the financial year, we at Fastlegal provides resident Director appointment services in India, you may avail our services if you do not have your own person.

#3. Registered Office Address for Company :

Every Company in India should have a Registered Office Address situated in India, you need to have one place as a Registered Office address. Fast legal helps in getting the registered Office address.

#4. Name Approval Application

Company name approval application is required to be made for availability of name of the company, the company name should be unique, no other company or LLP or trademark should be already there.

#5. Digital Signatures of Directors and Subscribers ( Foreign Nationals and Indian Resident Director ):

We need to obtain a digital signature in the name of Directors and shareholders from certifying authorities in India, Fastlegal team members help in getting the DSC. DSC is required for signing the incorporation documents that are required to be submitted to the Registrar of companies.

#6. Application for Incorporation of Company :

Once all the required documents of foreign nationals and Indian Resident Director are fine and digital signatures have been obtained than incorporation application is required to be submitted. All applications are verified by the registrar of companies and once he is satisfied with all the particulars of the application, he MCA issues a certificate of incorporation to the company.

#7. Company Bank Account :

The company bank account is now mandatory Opened along with the Incorporation application, Indian Company may open a separate Bank Account also.

#8. Funding of Subscription Money into company bank account :

Now subscription money for equity capital is required to be invested into the company by the subscribers to the company.

#09. Filing of Form FC-GPR to RBI

#10. Application for GST Registration

#11. Filing of Business Commencement Application to ROC

Once the Subscription money is entered in Companies Bank Account, the company is required to file business commencement application to Registrar of Companies online

Documents Required for Incorporation of Company by Foreign Nationals :

Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors.

For companies it will be :

Certificate of Incorporation,
Memorandum of Association,
Articles of Association,
Board Resolution duly passed for entering and forming Company in India and

for Foreign Directors :

Passport Copy,
Driving Licence and
Current Address proof in the form of a Bank Statement is required.

Please email us at mail@fastlegal.in or place your request below for your company formation requirements in India

FLA Return Due Date extended to 31st July 2019

Posted on January 3, 2025 by Fastlegal Team

*FLA return due date extended to 31.07.2019*

In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019 for convenience of reporting this year.