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
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.
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 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
1. Two Photograph of the registered office of the company. The first photo of the registered office shall be taken from outside of the premises, whereas the second photo needs to be taken from within the registered office premises showing at least one director / KMP who shall be signing the e-form INC-22A.
2. Photo clicked by GPS Camera ( for GPS camera download NOTECAM application in your mobile)
3. DSC of two director of the company (dsc of the director is mandatory who is in the photo)
4. Board of the company is to be placed on registered office premise
5. MAIL ID of the company for OTP verification.
ATTACHMENT:- EXTERNAL & INTERNAL PHOTO OF THE REGISTERED OFFICE AS SPECIFIED ABOVE.
NOTE: –FOR FILING OF INC-22A DIN OF ALL THE DIRECTORS SHOULD BE ACTIVE AND LAST YEAR ANNUAL FILING IS TO BE COMPLETED.
Form MSME
· Initial Return for the amount outstanding as on 22nd January, 2019
30/05/2019
All companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty-five days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a return to the Ministry of Corporate Affairs
1. Total outstanding amount due (exceeding 45 days) as on 22nd January 2019 towards micro and small enterprises.
2. Format for disclosure:
• Financial Years
• Name of Suppliers
• PAN of Suppliers
• Amount Due
• Specify the date from which amount is due
Form MSME
·
· Half Yearly Return for the amount outstanding as on 31st March, 2019.
30/05/2019
1. Total outstanding amount due (exceeding 45 days) as on 31st march 2019 towards micro and small enterprises.
2. Format for disclosure:
• Financial Years
• Name of Suppliers
• PAN of Suppliers
• Amount Due
• Specify the date from which amount is due
Form DPT-3
· One time return
29/06/2019
Onetime Return for disclosure of details of outstanding money or loan received by a company but not considered as deposits in terms of rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.
Outstanding balances of all items fall under rule 2(1)(c) of deposit rules particularly following:
· Any amount received as a loan or facility from any banking company or from the State Bank of India or any of its subsidiary banks or from a banking institution notified by the Central Government.
· Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or the relative of the director of a private company.
· Any amount received by the company from any other company
· Any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit.
NOTE:- Reporting of the details of outstanding sums of receipt of money not considered as deposit as per the rule 2(1)(c) for the period starting from 1st April, 2014 to the 31st March, 2019.
Attachment: – Auditor Certificate Outstanding balances of rule 2(1)(c) of deposit rules for the period of 1st April, 2014 to the 31st March, 2019.
Form DPT-3
Annual return
30/06/2019
Annual Return
· Particulars of transactions by a company not considered as deposit as per rule 2 (1) (c) of the Companies (Acceptance of Deposit) Rules, 2014 (if any)
· Return of Deposit, (if any)
Outstanding balances of all items fall under the definition of Deposit and rule 2(1)(c) of deposit rules particularly following:
· any amount received as a loan or facility from any banking company or from the State Bank of India or any of its subsidiary banks or from a banking institution notified by the Central Government.
· Any amount received from a person who, at the time of the receipt of the amount, was a director of the company or the relative of the director of a private company.
· Any amount received by the company from any other company
· Any amount received from an employee of the company not exceeding his annual salary under a contract of employment with the company in the nature of non-interest bearing security deposit.
NOTE:- Reporting of the details of outstanding sums of receipt of money or loan as on 31st March, 2019.
Attachment: – Auditor Certificate regarding Outstanding balances for the period ending on 31st March, 2019.
DIR -3 KYC
(FORM IS NOT UPDATED)
30/06/2019
KYC of all Directors of all companies annually through the e-form DIR-3 KYC.
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.
In this article we will discuss Creating a free business email address from Zoho Mail is an easy and straightforward process. With Zoho Mail, you can create a professional business email address with your own domain name and have complete control over your email. In this blog post, we will show you how to set up a free business email address with Zoho Mail.
Creating a free business email address with Zoho Mail is a great way to give your business a professional look and feel. With Zoho Mail, you can easily create a custom business email address and have complete control over your email.
Steps to Create Free Business Email From Zoho Mail
Step 1: Create a Zoho Mail Account
To get started, you’ll need to create a Zoho Mail account. You can do that by visiting the Zoho Mail website and clicking on the ‘Sign Up’ button. Then, you’ll need to enter your name, email, and create a password for the account.
Step 2: Choose Your Domain
Once you’ve created an account, you’ll be asked to choose a domain for your business email address. You can either choose a domain from the list of available domains or create your own custom domain.
Step 3: Enter Your Account Information
Once you’ve chosen a domain, you’ll need to enter your account information such as your name, email address, and password. Make sure to double-check that all the information is correct before proceeding.
Step 4: Verify Your Email Address
Once you’ve entered your account information, you’ll need to verify your email address. Zoho Mail will send a verification link to the email address you provided. All you have to do is click on the link and your business email address will be ready to use.
Step 5: Setup Your Business Email
Now that your business email address is verified, you can start setting it up. You can customize your email address by adding filters, labels, aliases, and more. You can also set up advanced features like auto-reply and vacation messages.
And that’s it! You’ve successfully created a free business email address with Zoho Mail. Now, you can start using your new business email address to communicate with customers, partners, and other stakeholders.
The Ministry of Corporate Affairs has launched a one time settlement scheme for LLP’s ” LLP Settlement Scheme 2020″ , This scheme allows one time settlement period for LLP such defaulting LLP’s that are not able to file Form3, Form4, Form8 and Form 11 within due date.
Non filing of LLP forms incur Additional fee of Rs. 100 per day with no maximum cap, with this there were lot’s of LLP’s missed the returns and now incurred huge additional fee.
Under the LLP settlement scheme 2020 these LLP can benefit by filing Form 3, Form 4, Form 8 and Form 11 from 16th of March 2020 to 13th of June 2020 with additional fee of Rs. 10 per day subject to maximum Rs. 5000 per form.
*MCA has made modifications to the Scheme and now Returns can be filed up to 30th Sept 2020 without any additional Fee
The LLP settlement Scheme is applicable to all defaulting LLP’s, for which documents and return which were due for filing till 31st October, 2019.
The Amendment to Settlement Scheme Extended the Due Date to 31st August 2020, so any default till 31st August 2020 can be filed with normal filing fee.
Which forms can be filed through LLP settlement Scheme 2020:
Under this scheme LLP can file its overdue returns since incorporation, Following forms can be filed under the scheme
(i.) Form-3- Information with regard to limited liability partnership agreement and changes, if any, made therein;
(ii.) Form-4- Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner and consent to become a partner/ designated partner;
(iii.) Form-8 -Statement of Account & Solvency (Annual or Interim);
(iv.) Form-11- Annual Return of Limited Liability Partnership (LLP).
Fee to be Paid for Filing Due/Pending Returns
Under the LLP settlement scheme 2020 these LLP can benefit by filing Form 3, Form 4, Form 8 and Form 11 from 01st April 2020 to 30th September 2020 without any additional fee.
Fastlegal provides LLP return Filing services, if you have any requirements , Please contact us at mail@fastlegal.in or call us at 9782280098
In this article share about the procedural aspects of recovery of debts due from the corporates under the insolvency and bankruptcy codeInsolvency and bankruptcy code provides that if the debt due to the corporate debtor (Company or LLP) is more than the amount of rupees one lakh than the operational creditor can send the demand notice for repayment of such debt and if no reply is received within a period of 10 days or there is no existence of dispute between the corporate debtor and operational creditor operational creditor may file and application for commencement of insolvency proceedings with NCLT upon corporate debtor under Section 9.
Step by step procedure to be followed for recovery of debt due from corporate debitor and application to nclt under section 9
Serving of demand notice by operational creditor
On the occurrence of a default, operational creditor may send demand notice to the debtor for the amount involved in the default.
Notice by corporate debtor to operational creditor within period of 10 days of the receipt of the demand notice for copy of the invoice demanding payment
once the corporate debtor receives a notice from the operational creditor either corporate debitor will make the payment to the invoice demand notice or if there is an existence of any dispute to the invoice he will intimate the same to the operational creditor, please note the disputes should be prior to the sending of notice.
Application by operational creditor to NCLT – if the payment has not been made by the corporate debit or there is no existence of dispute for payment between the operational creditor and corporate debtor then the operational creditor main file application to nclt for initiation of corporate insolvency resolution proceedings upon corporate debtor
Appointment of interem resolution professional
Acceptance of application by NCLT
Commencement of CIRP from the date of admission of application
Once the CIRP proceedings has been initiated upon the corporate debitor, the management of the corporate debtor goes with the insolvency professional that is interim resolution professional and the powers of the board of directors of the company gets suspended.
Consult with Fastlegal – Email us at mail@fastlegal.in
The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December 1985.
APEDA or Agricultural & Processed Food Products Export Development Authority is a government organization, established in 1985 through an act for the development and promotion of export for the scheduled products. The scheduled products are the one that are mentioned under the APEDA act and the exporters of these products are required to be registered under APEDA. This organization is liable to provide financial assistance, information and guidelines for the development of scheduled products.
APEDA registration is necessary as it is responsible for export promotion and development of scheduled products such as Vegetables, Fruits, Poultry products, Meat, dairy products, biscuits, confectionery, bakery products, jaggery, honey, and sugar products, chocolates, cocoa products, floriculture products, pickles, papads, and chutneys, etc.
Objectives of APEDA Authorities
In accordance with the Agricultural and Processed Food Products Export Development Authority Act, 1985, (2 of 1986) the following functions have been assigned to the Authority.
Development of industries relating to the scheduled products for export by way of providing financial assistance or otherwise for undertaking surveys and feasibility studies, participation in enquiry capital through joint ventures and other reliefs and subsidy schemes;
Registration of persons as exporters of the scheduled products on payment of such fees as may be prescribed;
Fixing of standards and specifications for the scheduled products for the purpose of exports;
Carrying out inspection of meat and meat products in slaughter houses, processing plants, storage premises, conveyances or other places where such products are kept or handled for the purpose of ensuring the quality of such products;
Improving of packaging of the Scheduled products;
Improving of marketing of the Scheduled products outside India;
Promotion of export oriented production and development of the Scheduled products;
Collection of statistics from the owners of factories or establishments engaged in the production, processing, packaging, marketing or export of the scheduled products or from such other persons as may be prescribed on any matter relating to the scheduled products and publication of the statistics so collected or of any portions thereof or extracts there from;
Training in various aspects of the industries connected with the scheduled products;
Such other matters as may be prescribed.
Products Included(APEDA is mandated with the responsibility of export promotion and development of the following scheduled products:)
Fruits, Vegetables and their Products.
Meat and Meat Products.
Poultry and Poultry Products.
Dairy Products.
Confectionery, Biscuits and Bakery Products.
Honey, Jaggery and Sugar Products.
Cocoa and its products, chocolates of all kinds.
Alcoholic and Non-Alcoholic Beverages.
Cereal and Cereal Products.
Groundnuts, Peanuts and Walnuts.
Pickles, Papads and Chutneys.
Guar Gum.
Floriculture and Floriculture Products.
Herbal and Medicinal Plants.
Basmati Rice has been included in the Second Schedule of APEDA Act.
In addition to this, APEDA has been entrusted with the responsibility of monitoring the import of sugar as well.
APEDA also functions as the Secretariat to the National Accreditation Board (NAB) for implementation of accreditation of the Certification Bodies under National Programme for Organic Production (NPOP) for organic exports. “Organic Products” for export are to be certified only if Produced, Processed and Packed as per the standards laid down in the document – “National Programme for Organic Production (NPOP).”
APEDA’S PRESENCE
APEDA has marked its presence in almost all agro potential states of India and has been providing services to agri-export community through its head office, 12 Regional offices.
If you wish to export the scheduled products, APEDA registration is necessary.
In addition to this, the exporters will get various financial assistance through the schemes formulated by APEDA.
It provides other services such as advertisement, packaging development, database up-gradation, surveys, etc. and hence it helps the exporters in brand publicity.
APEDA provides guidelines to exporters about the different products and countries to consider exporting in the future.
There are multiple training programs organized by the APEDA for various schedules products. It would, therefore, help improve their business.
Registered members can participate in training programs organized by APEDA for various scheduled products and thereby improve their business.
Certification Agencies:-
PRODUCTS
CERTIFICATION AGENCIES
Floriculture and seeds
Dept. of Horticulture/DIC/SIA/FSSAI
Fruits & Vegetables
Dept. Of Agriculture/Horticulture/DIC/SIA/FSSAI
Groundnut/Pulses/Guar gum
DIC/SIA/FSSAI/Udyog Aadhaar Memorandum issued by Ministry of MSME
With the ease in incorporation procedure for Company , MCA has come out with another notification that waives off filing of form INC-12 for Section 8 Companies, form INC -12 was required to be filed to ROC after obtaining name approval of the Company for obtaining Licence for Section 8 Company. Once the Licence for Incorporation of Section 8 company is obtained , the Company Incorporation application in SPICE form can be filed.
Now MCA has substituted the Form INC -12 with SPICE form and SPICE form to be amended accordingly.
Further in case of draft memorandum , the word Memorandum , further this also eases the incorporation process , as draft MOA was required to be filed with INC-12 earlier when applying for section 8 Company licence.
In case of Existing Company Company wants to Apply for conversion into section 8 company , the form INC -12 will be required to file for Application for grant of License to an existing company under Section 8
