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Stamp Duty on Power of Attorney (POA) in Rajasthan

Posted on by Fastlegal Team

In this article we will discuss the amount of Stamp duty payable on power of attorney (POA) in Rajasthan, In India stamp duty varies from state to state and every state has its own rates for payment of stamp duty.

There are different instances where Power of attorney can be executed, stamp duty payable depends accordingly

Stamp Duty

Stamp Duty on Power of Attorney (POA) in Rajasthan

Particulars (Type of Instrument) Amount of Stamp duty
When Power of Attorney is executed for the sole purpose of procuring the registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documentsRs. 100
When Power of Attorney is executed authorizing one person or more to act in a single transaction other than the case mentioned aboveRs. 100
When authorizing not more than five persons to act jointly and severally in more than one transaction or generallyRs. 200
Power of Attorney executed by Client in favour of
Stock Broker registered in SEBI for purchase of
securities		Rs. 200
When authorizing more than five persons but not more than ten persons to act jointly and severally in more than one transaction or generallyRs. 200
When given for consideration and
authorizing the attorney to sell any immovable property		6% of consideration
When given for consideration and authorizing the attorney to sell any immovable property
(Female SC/ST/BPL)		4% of Consideration (After Rebate)
when given for consideration and authorizing the attorney to sell any immovable property;
(Female other than SC/ST/BPL)		5% of Consideration (After Rebate)
When given for consideration and authorizing the attorney to sell any immovable property;
(Disabled 40% & above)		5% of Consideration (After Rebate)
When power of attorney is given without consideration to sell immovable property to the father, mother, brother, sister, wife, husband, son, daughter, grandson or grand daughter of the executantRs. 2000
when power of attorney is given without consideration to sell immovable property to any other person 0.5% of market value of property (After Rebate )
When given to promoter or developer by whatever name called for construction on, or
development of, or sale or transfer (in any manner whatsoever) of, any immovable property, (Sale
power not given)		1% of market value (After Rebate)
When given to promoter or developer by whatever name called for construction on, or
development of, or sale or transfer (in any manner whatsoever) of, any immovable property, (with
Sale power)		1.5% on
proportionate part
and 1% on remaining
part of market value
Authentication Power of Attorney (any other Case)Rs. 50


How to Pay Stamp duty on Power of Attorney

Stamp Duty on Power of Attorney in Rajasthan can be paid both in Online and offline Mode, In case of Offline Mode you need to visit to Registered Stamp Vendor office and Purchase the stamp Paper of applicable amount and in case of Online mode , you may purchase stamp paper through registered office of stock holding corporation and authorized stamp vendors.

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What is One Person Company (OPC) and How to Register One Person Company (OPC)

Posted on by Fastlegal Team

In this article today we will discuss the one-person company (OPC) ,  what is one person company (OPC) and how we can register or incorporate a one-person company in India

 the Companies Act 1956 does not provide the incorporation of one person company with the new enactment of the Companies Act 2013 the one person company concept was introduced and the procedure and incorporation of one person company as he started from the Inception of Companies Act 2013 from April 2014 onwards major provisions of the companies it was introduced to be effective and one person company (OPC) procedure for incorporation have been started. 

The concept of one person company is simple that a single individual can also incorporate a company without having any other shareholders with him or partners. An individual can incorporate a one-person company and that one-person company will be incorporated as a private limited company and can thereafter be converted to that normal private limited company having a minimum of two shareholders if the individual was to convert at a future date.  

Before the Inception of the one-person company, there was the only option with a single individual to run a proprietorship concern and the most disadvantage for the proprietorship concern is that it has unlimited liability, Running a business under one person company provides an individual with limited liability protection. 

OPC

Procedure to register a one-person company (OPC)

The procedure for registration of one person company for a normal private limited company is more or less same except the measured trains between these are there in case of one person company only a single individual will be the director and shareholder of the company while in case of other there is a requirement of minimum 2 directors and shareholders while in case of one person company you will require one person has your nominee as well.

Information required for One Person Company (OPC) Registration : 

  • Name of Company
  • Address of Company
  • Business Activity to carried on by Company 
  • Mobile Number and Email id of One Person Company
  • Director of One Person Company
  • Shareholder of One Person Company
  • Nominee in One Person Company

Name of Company: 

Unlike a normal private limited company, one person company name should also and with the private limited file including the word OPC in its name, Name of one person company should be unique and there should not be any other company registered in a similar name or there should not be any registered trademark in the name of the one-person company. TM that we will search will depend on the category of business activity of the one-person company.

Address of Company

Unlike any other company one person company should also have its own registered office address within 30 days of its Incorporation so you can incorporate a one-person company while providing the communication address and thereafter within 30 days of registration of the company, you can provide the registered office address for the company. If your one-person company is already having a rest office address you can provide that at the time of incorporation as well.

Following documents are required for the registered office address of the One Person Company (OPC) : 

  • Electricity Bill 
  • Rent Agreement , if office is on rent 
  • NOC from Owner 

Business Activity to carried on by (OPC) Company : 

The business activity of one person’s company should be clearly mentioned in the main objects of the memorandum of association of a company, Main objects mentioned in the memorandum of association of the company is something that a company can only carry on. At the time of incorporation of a one-person company e memorandum and articles of association are required to be submitted for approval to the registrar. 

Mobile Number Email id of One Person Company (OPC) : 

The director and shareholder of one-person companies to designate one email id and mobile number has email id and mobile number of one person company so that all the communication that he may receive on that email id and mobile number from register and other related authority is where the email ID is provided.  the email id and mobile number can be of the director and shareholder himself for he may designate any Other ID is the email ID of a one-person company. 

Director of One Person Company (OPC) : 

In one person company a single individual can also become a director of that company the director of the one-person company is someone who runs the operations of the company operate the bank account in behalf of the company and  carry on their duties as per the provisions contained Companies Act 2013

Following documents are required for the Director of One Person Company (OPC) : 

  1. PAN card 
  2. Aadhar Card
  3. Bank Statement/ Telephone/Mobile Bill 
  4. Photo
  5. Mobile number
  6. Email Id 

Shareholder of One Person Company (OPC)

A shareholder or member of a one-person company is a person who is the sole owner of the one-person company and has all the shares of the one person company with him only. 

Nominee in One Person Company (OPC) : 

Nominee in one person company is a person in home the shares of one person company will ways in the event of the date of the sole owner of the one person company at the time of registration application form INC 3 is required to be signed by the nominee to become nominee in the one person company

Step by Step Procedure for One Person Company (OPC) Registration

  • Submit all the required documents to Company Regisration Consultant ( you may email us at support@fastlegal.in)
  • Apply for Digital Siganture
  • Signing of Nominee Form and other realted documents
  • Application to registrar for Incorporatin of One Person Company
  • Approval by registrar
  • Issue of Certificate of Incorporation
  • Issue of PAN and TAN
  • Issue of ESIC and EPFO Registration
  • Generation of Bank Account Number of One Person Company

Can One Person Can Incorporate Two One Person Company (OPC)

No, As per Provisions of Companies Act, 2013 a signle individual can only incorporate only one one person company, if he resigns or sold shares of eariler incorporated One Person Company than New OPC Can be Incorporated by him.

Can One Person Comany (OPC) can have Two or more Director

Yes, One Person Company can have two or more Directors but cannot have more than one shareholder/member

Can One Person Company purchase Shares or Other Company or can invest in shares of other company

No, One Person Company cannot make Investment in other Company

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Recruiting Agent Registration

Posted on by Jitendra Sharma

Recruiting Agent as an Entity

Recruiting Agent(RA) is an entity offering to provide, employment in any country or place outside India on behalf of the Employer. It is required that prospective applicants get themselves registered with the Overseas Employment Division of MEA. Once registration is approved by MEA the applicants are eligible to offer employment to Indian citizens through eMigrate.

To get registered as RA the applicants need to fill ‘Recruiting Agent Registration Form’. This form capture applicant’s basic details with respect to Administrative Details, Registrars of Companies(ROC) details, office details, Address of Jurisdiction Police Office, Financial details, Company turnover over the last five years.

The applicant is required to upload the following documents :

Mandatory document for all applicants (Proprietorship, Partnership, Company)

Common to all :

Attestation Mandatory (from central or state Government gazetted officer) :

  1. Photograph of the Managing Director(MD)/Managing Partner(MP)/Proprietor.
  2. Copy of PAN Card of Agency/Proprietor, MD/MP/Directors/Partners.
  3. Copy of the Education Certificate of MD/ Mg. Part/Proprietor.
  4. Copy of the Education Certificate of MD/ Mg. Part/Proprietor.
  5. Copy of RC under Shop and Establishment Act.

Attestation Optional :

  1. Assets and liabilities Statement of MD/MP/Propriet or for last 3 years assessed by certified CA with membership number and address.
  2. Specimen signature of MD/Mg. Part/Proprietor duly attested by a Gazette officer.
  3. Blue Print of the layout plan of the office Duly signed and stamped by the government approved architect with registration and membership number.
  4. Valuation Report of Assets in office premise by a registered Valuer with registration number and membership number.
  5. Copy of Latest Land line Telephone Bill in the name of Agency.
  6. Trade Testing Certificate along with Photograph.
  7. Duly Notarized Affidavit that agency has not been involved in any recruitment business before.

In case of company :

  1. Resolution (Acknowledged by ROC) passed to authorize one of the director to act as MD and to sign papers on behalf of the company.
  2. A copy of Memorandum of Association.
  3. A Copy of Articles of Association.
  4. A copy of the Certificate of registering the company.

In case of Partnership :

  1. Attested Copy of Partnership Deed.
  2. True Extracts from the registrar of firms in support of registration of the partnership deed.
  3. Resolution passed to authorize one of the partner to act as Mg. Part and to sign papers on behalf of the firm.

Conditional Mandatory document :

In case of partnership, company and if Balance sheet available selection is ‘Yes’:

  1. A copy of the balance sheet as at the close of the previous financial year.

If ‘Income Tax return not available for Company/Firm/ Proprietor/MD/ MG. Part/ Partners/ Directors’ selection is ‘yes’:

  1. Income tax return of Company/Firm/Proprietor, MD/Mg. Part, all directors/partners for last 3 years.

If the ownership of office is Leased/Rented :

  1. Registered and Notarised Lease/Rent agreement.
  2. Latest Lease/Rent Receipt.
  3. NOC from owner of office (if office is leased/ rented) on duly notarized affidavit.

If the office is owned :

  1. Ownership Deed/Proof of office premise.

In case UID is provided :

  1. Attested copy of Aadhar Card of Proprietor/ MD/Mg. Part,Directors/Partners

RA Registration Fee

For unlimited capacity:

RA can make a payment of Rs. 25000/- only through Payment -> RA Registration fee.

For the capacity of 100 recruitment:

RA can make a payment of Rs. 10000/- only through Payment -> RA Registration fee.

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Step by Step Process for Online Trust Registration in Rajasthan

Posted on by Fastlegal Team

In this article we will discuss Charitable online Trust Registration in Rajasthan, trust is a form of NGO in which you can carry on non-profit activities to help society to grow at a larger scale.

Activities to be carried on by trust is governed by the trust deed, that is what is mention under the trust deed are the activities that trust can carry on

Following charitable activities can be carried on generally by trust:-

  • Promotion of education
  • Promotion of health
  • Promotion of sporting activities
  • Promotion for the betterment of society
  • To Increase self-employment by skill development
  • To provide medical relief to organize medical camps and to arrange medicines for poor
  • To promote cleanliness, to preserve environment and plantation of trees etc
Online Trust Registration in Rajasthan

Step by Step procedure for Online Trust Registration in Rajasthan:

  1. Declaration of trust: any person can declare trust with some property for the purpose of promotion of its objects. The person who declared trust is called settler
  2. Name of Trust: name the trust may end with the word “trust , Foundation etc.” I.e. you may have a name like “Shri shyam Charitable Trust”
  3. Address of the trust the address of the trust will decide its jurisdiction for registration and applications for under income Tax Act.
  4. Trustee: the settlor will declare the name of the trustees who sell accept all the terms mention in the trusted and act as a trustee to the trust.
  5. Board of Trustees: the trustees will be known as board of trustees and will be e designated has President, vice president secretary and treasurer
  6. Terms and conditions regarding managing of Trust funds
  7. Powers of the trustees
  8. Duration of trust etc..
  9. Once the above mentioned things are settled we have to draft the trust deed and get it signed from the settlor and trustees of the trust.
  10. The trust deed should be on non judicial stamp paper of rupees 500
  11. The trust deed should also be notarized.
  12. Application for registration of Trust deed to Devsthan Vibhag:
  13. The Charitable Trust is registered under the Rajasthan public trust act under the jurisdiction of Devasthan vibhag, for registration with devsthan vibhag an application is required to be submitted along with trust deed and ID and address proof of trustees and settlor
  14. Publication of Notice in Newspaper for objections from Concerned or Interested persons 
  15. The Newspaper notice is published that require any interested person may object the trust registration application within period of 60 days of publication.
  16. Hearing by Devasthan Vibhag : After the Expiry of Period of 60 days , Trustee is required to present for personal Hearing at Trust Office 
  17. Grant to Certificate of Registration of Trust 

Documents Required for Online Trust Registration in Rajasthan

  • Aadhar Card and Pan Card Copy of Settler
  • Aadhar Card and Pan Card Copy of Trustees
  • Electricity Bill of Office of Trust
  • Rent Agreement of office of Trust in any
  • Photo of Settler
  • Photo of Trustees

Important Clauses of Online Trust Deed for Public Charitable Trust :

When drafting a trust deed for Online Trust registration in Rajasthan, it is essential to include specific clauses to ensure clarity and legal compliance. Here are some important clauses to consider:

  • Name Clause: Defines the official name of the trust.
  • Address Clause: Specifies the registered office of the trust.
  • Objects Clause: Outlines the objectives and purposes of the trust.
  • Trustees Clause: Lists the names and roles of the trustees.
  • Powers of Trustees: Describes the powers, rights, and duties of the trustees.
  • Beneficiaries Clause: Identifies the beneficiaries of the trust.
  • Funds Utilization: Specifies how the trust’s funds will be used and managed.
  • Amendment Clause: Provides procedures for amending the trust deed.
  • Dissolution Clause: Details the process for dissolving the trust and handling remaining assets.

Fastlegal provides Services for online Trust Registration in Rajasthan for any help please call us at 9782280098 or email us at mail@fastlegal.in

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How to Make Accounting Entries for Sales Invoices in Tally Accounting Software

Posted on by Fastlegal Team

Making accounting entries for sales invoices in Tally accounting software is a straightforward process. Tally is widely used for its user-friendly interface and efficient accounting features. Here’s a step-by-step guide on how to make accounting entries for sales invoices in Tally:

Step 1: Open Tally Software

Launch the Tally software on your computer and log in to your company’s account.

Step 2: Create Sales Ledger

If you haven’t created a sales ledger for your customer, you need to set it up. Follow these steps:

  1. Go to Gateway of Tally.
  2. Select “Accounts Info” > “Ledgers” > “Create.”

Enter the name of the customer under “Name” and choose the appropriate group, such as “Sundry Debtors.” Save the ledger.

Step 3: Create Sales Invoice

  1. Go to Gateway of Tally.
  2. Select “Accounting Vouchers” from the main menu.
  3. Choose “Sales Voucher” (Shortcut: F8).

Step 4: Enter Sales Invoice Details

  1. Party A/c Name:
    • Select the name of the customer from the list.
  2. Sales Ledger:
    • Choose the sales ledger you created earlier.
  3. Stock Item or Account:
    • Enter the name of the product or service sold.
  4. Rate:
    • Input the unit selling price.
  5. Quantity:
    • Enter the quantity of items sold.
  6. GST Details:
    • If applicable, enter the GST details for the sale.
  7. Narration:
    • Add any additional information or notes related to the sale.

Step 5: Save the Sales Invoice

Press “Enter” to save the sales invoice entry.

Step 6: View Accounting Entries

  1. To view the accounting entries, go to “Display” > “Daybook.”
  2. Select the date on which you created the sales invoice.

Here, you can see the accounting entries for the sales invoice, including the debit to the sales ledger and credit to the customer’s ledger.

Step 7: Verify Reports

To verify the sales entry in reports:

  1. Go to “Display” > “Statement of Accounts” > “Outstanding” > “Receivables.”
  2. Select the customer’s name to view the outstanding amount.

Congratulations! You’ve successfully entered a sales invoice in Tally. Repeat these steps for each sales transaction, and your financial records will be well-maintained in the software.

Remember that this guide assumes you’ve set up your Tally software and created the necessary ledgers. If you haven’t, it’s recommended to consult Tally documentation or seek assistance to ensure accurate and compliant accounting practices.

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PHED Contractor Enlistment in Rajasthan

Posted on by Fastlegal Team

In this article we will discuss about PHED Contractor enlistment in Rajasthan, the qualification for the enlistment of contractors with PHED is prescribed in Contractor Enlistment Rules. If any Company or Firm want to work on projects of PHED in Rajasthan, they are required to get enlisted in the department as their contractor.

Class of Civil Contractors for PHED Contractor:

  • AA Class
  • A Class
  • B Class
  • C Class
  • D Class

Who Will Enlist Contractors for PHED Contractor:

Contractor ClassEnlistment Authority
AA ClassChief Engineer of the Respective Engineering Department
A ClassChief Engineer of the respective Department
B ClassAdditional Chief Engineer of the respective Zone
C ClassSuperintending Engineer of the Circle
D ClassExecutive Engineer of the respective Division

Past Experience for PHED Contractor Enlistment:

Past experience for enlistment for various classes shall be as given below. When applying for enlistment, the contractors of all classes will be required to submit list of works executed, the amount of each individual work being not less than the amount indicated in col.3 of table given below under each class, the authorities under which the works were carried out and the time in which these were carried out.

S.No.ClassPast Experience for Enlistment
1.AA ClassSatisfactorily completed 2 works each costing not less than Rs. 1 crore during three years.
2.A ClassSatisfactorily completed 2 works each costing not less than Rs. 50 lac during three years.
3.B ClassSatisfactorily completed 2 works each costing not less than Rs. 10 lac during three years.
4.C ClassSatisfactorily completed 2 works each costing not less than Rs. 2 lac during three years.
5.D ClassNil

Class of Contractor and Amount of Work that can be done :


S. No. 
Class of contractors		Extent upto which qualified to tender for any, work
1AA classAny amount
2A ClassUpto Rs. 3.00 crores
3.B ClassUpto Rs. 1.50 crores
4.C ClassUpto Rs. 50 Lacs
5.D ClassUpto Rs. 15 Lacs

Registration fee Contractor Registration : 


Class of contractors		Amount of Registration Fee in Cash/Treasury Challan/Bank Demand Draft (Non-refundable)Amount of Security Deposit in form of Interest bearing deposit/FDR of Bank 
ClassAA
Rs. 30,000.00		8 Lakh
Class ARs. 22500.004 Lakh
Class BRs. 15000.002 Lakh
Class CRs. 6000.001 Lakh
Class DRs. 3000.00 50 Thousand 

Documents Required for PHED Contractor

  • Copy of PAN
  • Copy of Aadhar Card
  • Photograph
  • GST Registration Certificate
  • Address Verification of Firm/Company’s by police station/post/Councilor/Sarpanch (Verification must be attested)
  • Affidavit of a close relative of Proprietor/All partners/Directors
  • Two Certificates of work completed satisfactorily in last 3 years with work order and documents of T.D.S. deduction (26 A.S.) (amount in lacs)
  • List of machinery, plant, and documents of ownership and list of working staff on the stamp of Rs. 50 / – (rent nomination of machinery on the stamp of Rs. 500 /with Ownership documents)
  • Attested report(3B report) of latest GST return
  • Affidavit regarding Sales Tax on a stamp of Rs. 50/- and undertaking released by C.A.
  • Bank Confidential Report regarding

For Any help regarding PHED Contractor Enlistment Please call us at 9782280098

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Form MGT-7A: Simplified Annual Return Filing for OPCs and Small Companies

Posted on by Fastlegal Team

In India, compliance with the Companies Act, 2013, is a critical responsibility for all registered companies. The Ministry of Corporate Affairs (MCA) mandates the filing of annual returns to ensure transparency and accountability in corporate governance. To ease the compliance burden on smaller entities, the MCA introduced Form MGT-7A, a simplified version of the annual return form tailored for One Person Companies (OPCs) and small companies. This blog post provides a comprehensive overview of Form MGT-7A, its applicability, key features, filing process, due dates, and penalties for non-compliance, written from the perspective of a Company Secretary in India.

What is Form MGT-7A?

Form MGT-7A is an abridged annual return form introduced under the Companies (Management and Administration) Amendment Rules, 2021, effective from the financial year 2020-21. It is designed specifically for One Person Companies (OPCs) and small companies, as defined under Section 2(85) of the Companies Act, 2013. Unlike the more comprehensive Form MGT-7, which is mandatory for other companies, Form MGT-7A requires fewer details, making compliance simpler and less resource-intensive for smaller entities.

Definition of a Small Company

As per Section 2(85) of the Companies Act, 2013, a small company is a company (other than a public company) that meets the following criteria:

  • Paid-up share capital: Not exceeding ₹2 crore (or a higher amount as specified, up to ₹10 crore).
  • Turnover: Not exceeding ₹40 crore (or a higher amount as specified, up to ₹100 crore).

However, a company is not considered a small company if it is:

  • A holding or subsidiary company.
  • A company registered under Section 8 (non-profit organizations).
  • A company governed by a special act.

OPCs, by their nature, are single-member companies and are also eligible to file Form MGT-7A.

Key Features of Form MGT-7A

Form MGT-7A is designed to reduce the compliance burden on OPCs and small companies by requiring less detailed information compared to Form MGT-7. The key features include:

  1. Simplified Format: Unlike Form MGT-7, which requires extensive details about directors, key managerial personnel (KMP), and remuneration, Form MGT-7A focuses on essential information, making it easier to complete.
  2. No Mandatory Company Secretary Certification: For OPCs and small companies, Form MGT-7A does not require certification by a practicing Company Secretary. It can be signed using the Digital Signature Certificate (DSC) of a director.
  3. Key Information Required: The form captures the following details as of the close of the financial year:
    • Registered office details, Corporate Identification Number (CIN), Permanent Account Number (PAN), and principal business activities.
    • Particulars of associate companies (including joint ventures).
    • Details of shares, debentures, and other securities, along with the shareholding pattern.
    • Details of members, promoters, and debenture-holders, including changes since the previous financial year.
    • Details of meetings of members (for small companies), the board, and its committees, along with attendance records.
    • Details of penalties or punishments imposed on the company, its directors, or officers, and any appeals made.
    • Certification of compliances and disclosures as prescribed.
  4. Exemptions from Certain Disclosures: Unlike Form MGT-7, Form MGT-7A does not require details such as:
    • Composition of the board of directors or KMP.
    • Remuneration details of directors or KMP.
    • Detailed shareholder information (now submitted via an Excel template as of recent updates).
  5. Recent Updates (Effective July 14, 2025): The MCA has introduced changes to Form MGT-7A under the Companies (Management and Administration) Amendment Rules, 2025. These include:
    • Submission of shareholder and debenture-holder lists via a standardized Excel template.
    • A new section for gender-wise shareholder data.
    • A mandatory photograph of the registered office showing the external building and company name, as per Section 12 requirements.
    • Integration of Form MGT-8 fields for applicable companies, eliminating separate PDF uploads.

Applicability of Form MGT-7A

Form MGT-7A is mandatory for:

  • One Person Companies (OPCs): Single-member companies incorporated under the Companies Act, 2013.
  • Small Companies: Companies meeting the paid-up capital and turnover criteria mentioned above.

All other companies, including private limited companies, public companies, and listed companies, must file Form MGT-7. Additionally, listed companies or companies with a paid-up share capital of ₹10 crore or more or a turnover of ₹50 crore or more must have their Form MGT-7 certified by a practicing Company Secretary in Form MGT-8.

Filing Process for Form MGT-7A

Filing Form MGT-7A is a straightforward process that can be completed electronically via the MCA portal. Below are the steps to file Form MGT-7A:

  1. Download the Form: Access Form MGT-7A from the MCA portal under the “Annual Filing e-Forms” category.
  2. Fill in the Details: Provide the required information, including:
    • Company registration details (CIN, PAN, registered office address).
    • Principal business activities.
    • Details of shares, debentures, and shareholding patterns.
    • Details of meetings, penalties, and compliance certifications.
    • For FY 2024-25 onwards, upload shareholder and debenture-holder details via the prescribed Excel template and attach a photograph of the registered office.
  3. Attach Required Documents: The following documents must be attached:
    • List of shareholders and debenture-holders (via Excel template).
    • List of directors.
    • Approval letter for any extension of the Annual General Meeting (AGM), if applicable.
    • Optional attachments, as needed.
  4. Digital Signature: The form must be digitally signed by a director of the company using a valid DSC and Director Identification Number (DIN). No Company Secretary certification is required unless specified for certain cases.
  5. Pre-Scrutiny Check: Use the “Pre-Scrutiny” button on the MCA portal to validate the form for technical errors. Rectify any issues before proceeding.
  6. Upload and Pay Fees: Log in to the MCA portal, upload the validated form under the “Upload e-Forms” section, and pay the prescribed filing fee. The fee varies based on the company’s nominal share capital:
    • Less than ₹1 lakh: ₹200
    • ₹1 lakh to ₹5 lakh: ₹300
    • ₹5 lakh to ₹25 lakh: ₹400
    • ₹25 lakh to ₹1 crore: ₹500
    • Above ₹1 crore: ₹600
  7. SRN Generation: Upon successful submission, a Service Request Number (SRN) is generated for tracking purposes. A challan detailing the fee payment is also issued.
  8. Acknowledgment: After processing by the Registrar of Companies (ROC), an acknowledgment is sent to the company’s official email address.

Due Dates for Filing Form MGT-7A

  • For Small Companies: Form MGT-7A must be filed within 60 days from the date of the Annual General Meeting (AGM). The AGM must be held on or before September 30 following the close of the financial year (March 31). Thus, the due date is typically November 29 each year.
  • For OPCs: The due date is within 60 days from the expiry of 180 days from the close of the financial year. For example, for the financial year ending March 31, 2025, the 180-day period ends on September 27, 2025, making the filing due by November 26, 2025.

If the AGM is not held, the form must be filed within 60 days from the date the AGM should have been held.

Penalties for Non-Compliance

Non-compliance with the filing of Form MGT-7A attracts significant penalties under the Companies Act, 2013. Since 2018, the penalty for delayed filing has been set at ₹100 per day of default, with no upper limit. This applies to both the company and its officers in default. Additionally, failure to file may lead to:

  • Adverse impact on the company’s compliance record.
  • Difficulty in obtaining approvals or engaging in certain business activities.
  • Potential disqualification of directors under Section 164(2) of the Companies Act, 2013.

To avoid hefty penalties, OPCs and small companies must ensure timely and accurate filing of Form MGT-7A.

Recent Amendments (Effective July 14, 2025)

The MCA’s notification dated May 30, 2025, introduced key changes to Form MGT-7A to enhance filing accuracy and transparency:

  • Excel Template for Shareholder Data: Shareholder and debenture-holder details must now be submitted via a standardized Excel template, similar to PAS-3 filings, ensuring uniformity and ease of processing.
  • Gender-Wise Shareholder Data: A new section requires companies to provide gender-wise shareholder information, promoting demographic transparency.
  • Registered Office Photograph: Companies must attach a photograph of the registered office showing the external building and company name, aligning with Section 12 requirements.
  • Integration of Form MGT-8: For applicable companies, Form MGT-8 fields are now integrated into Form MGT-7A, eliminating the need for separate PDF uploads.
  • Support for CIRP/Liquidation: Companies undergoing Corporate Insolvency Resolution Process (CIRP) or liquidation can now file Form MGT-7A directly via the MCA V3 portal.

These updates, effective for filings related to the financial year ending March 31, 2025, aim to streamline compliance and improve data accuracy.

Importance of Form MGT-7A

Form MGT-7A serves as a critical tool for maintaining transparency and accountability in OPCs and small companies. It provides stakeholders, including shareholders, creditors, and potential investors, with essential information about the company’s operations, governance, and financial health. Key benefits include:

  • Regulatory Compliance: Ensures adherence to the Companies Act, 2013, and MCA regulations.
  • Transparency: Provides a snapshot of the company’s non-financial health, ownership structure, and management.
  • Ease of Compliance: The simplified format reduces the administrative burden on small companies and OPCs.
  • Stakeholder Confidence: Accurate and timely filing enhances trust among investors, regulators, and other stakeholders.

Practical Tips for Company Secretaries

As a Company Secretary, ensuring seamless compliance with Form MGT-7A requires careful planning and attention to detail. Here are some practical tips:

  1. Verify Eligibility: Confirm that the company qualifies as an OPC or small company based on the latest paid-up capital and turnover thresholds.
  2. Use the MCA Help Kit: Leverage the MGT-7A help kit on the MCA portal for guidance on filling out the form accurately.
  3. Prepare Documents in Advance: Compile all required documents, including shareholder lists and registered office photographs, before initiating the filing process.
  4. Check for Updates: Stay informed about MCA notifications, such as the recent amendments effective July 14, 2025, to ensure compliance with the latest requirements.
  5. Engage Professionals: While Form MGT-7A does not require Company Secretary certification, engaging a practicing Company Secretary or chartered accountant can ensure error-free filing, especially for companies with complex structures.
  6. Track Deadlines: Use compliance calendars to monitor AGM and filing deadlines to avoid penalties.

Conclusion

Form MGT-7A is a game-changer for OPCs and small companies, offering a simplified and cost-effective way to meet annual return filing requirements under the Companies Act, 2013. By reducing the compliance burden and focusing on essential information, it allows smaller entities to prioritize their core business operations while maintaining transparency and accountability. As a Company Secretary, staying updated on MCA amendments, such as those effective from July 14, 2025, and ensuring timely and accurate filing of Form MGT-7A is crucial for fostering good corporate governance and avoiding penalties. For seamless compliance, consider leveraging professional services or MCA resources to navigate the filing process with confidence.

For further assistance or queries on Form MGT-7A filing, feel free to contact a practicing Company Secretary or visit the MCA portal at www.mca.gov.in.

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How to Declare and Pay Dividends in Accordance with Companies Act 2013

Posted on by Fastlegal Team

In this blog post we will discuss on process for declaration of Dividend and payment of Dividend in Accordance with Companies Act, 2013, Declaring and paying dividends is a significant aspect of a company’s interaction with its shareholders. In India, the procedure of dividend declaration and payment is governed by the Companies Act, 2013. Below is a step-by-step guide on how to declare and payment dividends for companies operating under this act.

Step 1: Ascertain Profit Availability

Before declaring any dividend, the board of directors must ensure that there are sufficient profits. As per the Companies Act, dividends can be paid out of:

  • Current financial year’s profits
  • Profits from previous financial years after providing for depreciation
  • Money provided by the government for dividend payment in government companies

Ensure that adequate provisions are made for all unpaid dues, depreciation, and contingencies.

Step 2: Hold Board Meeting in Process for Declaration of payment of Dividend

A meeting of the Board of Directors should be convened by giving notice to all the directors of the company as per Section 173 of the Act. In this meeting, the board should:

  • Consider the profit and loss accounts
  • Decide the quantum of dividends
  • Fix the date for Annual General Meeting (AGM)

Record the minutes of the meeting as per Section 118 of the Act.

Step 3: Declare Dividend at AGM

The shareholders of the company must approve the dividend at the Annual General Meeting:

Process for Declaration of Dividend
  • The board’s recommended dividend is put forward to the members in the AGM
  • The declaration is subject to the approval of shareholders
  • The dividend declared should not exceed the amount recommended by the Board

Step 4: Deposit Dividend Amount

Within 5 days of the declaration, the company must deposit the total amount of dividend in a separate bank account as per Section 123 of the Act.

Step 5: Dividend Payment

  • The company should pay or dispatch the dividends within 30 days from the declaration date to the entitled shareholders
  • Electronic modes of payment are preferred
  • Ensure proper documentation and record-keeping of the payment

Step 6: Transfer to Unpaid Dividend Account

In the process for Declaration of Dividend , Any dividend amount that remains unpaid or unclaimed after 30 days of its declaration should be transferred to the ‘Unpaid Dividend Account’ as per Section 124 of the Act. The company should also inform the shareholders about this transfer.

Step 7: Transfer to Investor Education and Protection Fund (IEPF)

If any amount in the ‘Unpaid Dividend Account’ remains unclaimed or unpaid for a period of 7 years, the company shall transfer it to the Investor Education and Protection Fund established under Section 125 of the Companies Act.

Step 8: Maintain Statutory Registers and Records

The company must maintain the prescribed registers and records, including:

  • The register of dividends (Form SH-7)
  • Any documentation related to unpaid dividends

Step 9: Compliance and Reporting

  • File the necessary forms with the Registrar of Companies (RoC) within the prescribed timelines.
  • Ensure compliance with tax laws regarding dividend distribution tax (DDT), as applicable.

Step 10: Address Discrepancies and Grievances

The company should setup a mechanism to address any discrepancies and grievances that shareholders might have regarding dividend payments.

Following these steps in accordance with the Companies Act of 2013 helps ensure legal compliance and good corporate governance practices. It protects the interests of the shareholders and maintains the company’s reputation in the corporate ecosystem.

For additional information for in the process for declaration of dividend and payment compliance, always refer to the latest version of the Companies Act and consult with legal professionals.

Note: As of the writing of this article, the Corporate Laws in India are subject to changes, and as such, the process outlined above might have been updated. Please ensure to check the latest provisions in the Companies Act, 2013, and amendments thereafter.

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Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Posted on by Fastlegal Team

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY) provides subsidized loans through Financial institutions to facilitate the establishment of enterprises in the state and to provide new employment opportunities to all sections of the society.

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Role of Financial Institutions under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Under the scheme, loans will be provided for manufacturing, service and business enterprises through financial institutions like (Nationalized Commercial Bank, Private Sector Scheduled Commercial Bank, Scheduled Small Finance Bank, Regional Rural Bank, Rajasthan Financial Corporation, SIDBI and Urban Cooperative Banks).

Which Type of Enterprise is eligible

Along with newly established enterprises, pre-established enterprise will also be eligible for expansion / diversification / modernization projects.

Who Can Apply

Under the scheme Individual applicants as well as institutional applicants (self-help groups / societies / partnership firms / LLP firms / companies) will also be eligible. The establishment of the enterprise under the scheme will be Rajasthan State. The minimum age of the individual applicant shall be 18 years.

Loan Amount under Scheme

Under the scheme, loan up to Rs. 10 crore will be available for new Manufacturing and Service Enterprises and Rs. 1 Crore for units going for expansion/diversification/ modernisation . The maximum limit of loan for business will be Rs. 1 crore. The nature of the loan will be composite loan, term loan and working capital (including CC Limit). As per RBI guidelines, collateral security will not be needed on loans upto Rs. 10 lakh.

Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

The Interest Subsidy will be granted to the beneficiaries on the loan provided by banks which will be payable as follows for five years:

S.No.Maximum Loan AmountInterest Subsidy
1. Up to 25 Lakh8%
2. 25 Lakh to 05 Crore6%
3. 05 Crore to 10 Crore5%

Process

Under the scheme, the applications will have to be submitted online, whose process will be according to the guidelines prescribed for the implementation of the Scheme. Loan applications up to Rs. 10 lakh can be forwarded directly to the banks without any interview and the loans above Rs. 10 lakh will be forwarded to the bank after being scrutinized by the District Level Task Force Committee.

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How to Register Sole Proprietorship Firm in India

Posted on by Fastlegal Team
proprietorship registration

In India a Sole Proprietorship firm may be started by getting any of the following registrations:

Shop Act Registration  or Gumasta Licence for Proprietorship Firm Registration :

Registration under the Shop and Commercial Establishment Act is Commonly known as “Shop Act Registration” Most of the Banks open Current Bank Account for this Registration 

GST Registration for Proprietorship Firm Registration

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 in India 1

Udhyam Registration for Proprietorship Firm Registration

Udhyam 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 a great deal to have in the pocket. You can apply for MSME Registration with Fastlegal Team Members.

Proprietorship Firm Registration

Opening of Current Bank Account in the name of Business : 

Once you get any of the above registration certificates, 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 Registration:

  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)

Looking for Proprietorship Firm Registration 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.