Legal Formation / Company Formation
Proprietorship Firm / Shops / Stores
Sole proprietorship firms are considered as individuals owning businesses. Sole proprietorship refers to a business where there is no distinction between the owner and the business entity. A sole proprietor is also known as a sole trader, individual entrepreneur, and various other names.
MSME Registration
Shop and Establishment Act License
Goods and Services Tax (GST) Registration
Office Address Proof
Documents required for the registrations
- Aadhar Card: Aadhar card number is necessary for the official registration. This is important to link business along with the other details which are linked with Aadhar card
- PAN (Permanent Account Number) card: PAN card is needed at the time of proprietorship registration to file Income Tax Returns. Thus, it is also mandatory to get a GST registration number (if applicable)
- Bank account number: The bank account linked with office transactions needs to be submitted. This can also be applicant’s personal account, if he/she do not have a separate bank account for business
- Registered office proof: The certified office proof is needed for any registration mentioned above. Registered office proof is discussed in detail above
Partnership Firm
Partnerships are a common form of business organization in India
How to create a Partnership Deed?
The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed.
A partnership deed agreement may be written or oral. However, practically oral agreement does not have any value for tax purposes and therefore the partnership agreement should be written. The following are the essential characteristics of a partnership deed:-
- Name and Address of the firm as well as all the partners
- Nature of business to be carried on
- Date of Commencement of business
- Duration of Partnership (whether for a fixed period/project)
- Capital contribution by each partner
- Profit sharing ratio among the partners
The above are the minimum essentials which are required in all partnership deeds. The partners may also mention any additional clauses. Some of the examples of additional clauses which may be mentioned in the partnership deed are mentioned below:-
- Interest on Partner’s Capital, Partners’ Loan, and Interest, if any, to be charged on drawings.
- Salaries, Commissions etc, if any, payable to partners
- Method of preparing accounts and arrangement for audit
- Division of task and responsibility i.e. the duties, powers and obligations of all the partners.
- Rules to be followed in case of retirement, death and admission of a partner.
How to register a Partnership Firm in India
Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.
However, in case the partnership deed is not registered, they may not be able to enjoy the benefits which a registered partnership firm enjoys.
Registration of Partnership Firm may be done before starting the business or anytime during the continuance of partnership. However, where the firm intends to file a case in the court to enforce rights arising from the contract, the registration should be done before filing the case.
The procedure for Registration of Partnership Firms in India is fairly simple. An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated. The following documents are also required to be submitted along with the application:-
- Application for Registration of Partnership in Form No. 1
- Duly filled specimen of Affidavit
- Certified True Copy of the Partnership Deed
- Ownership proof of the principal place of business or rental/lease agreement thereof.
The application or statement must be signed by all the partners, or by their agents especially authorised in this behalf. When the registrar is satisfied with the points stated in the partnership deed, he shall record an entry of the statement in a register called the Register of Firms and issue a Certificate of Registration (Sec 59).
The Register of Firms maintained at the office of the Registrar contains complete and up-to-date information about each registered firm. This Register of Firms is open to inspection by any person on payment of the prescribed fees (Sec 66).
Any person interested in viewing the details of any firm can request the Registrar of Firms for the same and on payment of the prescribed fees, a copy of all details of with Firm registered with the Registrar would be given to the applicant
It should however be noted that registration with the Registrar of Firms is different from Registration with the Income Tax Deptt. It is mandatory for all firms to apply for Registration with the Income Tax Department and have a PAN Card.
After obtaining a PAN Card, the Partnership Firm would be required to open a Current Account in the name of the Partnership Firm and operate all its operations through this Bank Account.
Private Limited Company Formation
We provide extensive services for setting up a Private Limited Company Formation in India. We follow well defined service plan and are supported by professionals holding rich industry experience. Incorporation of Company in India includes Private Ltd. Incorporation Company Registration India. Moreover, we also emphasize on every detail while maintaining close proximity with clients regarding best legal advice.
STEP BY STEP FORMALITIES
Company Formation in India is not tough when you have the best consultants by your side. with our guided expertise and you will see that you do not need to worry about a thing. So, go ahead for Formation of Private Limited Company Formation in India without having to worry about a thing.
Persons desirous of forming a company must adhere to the step by step procedure as discussed below:-
- Apply for Directors Identification Number and Digital Signatures.
- Selection of type of the company.
- Selection of name for the proposed company.
- Drafting of Memorandum and Articles of Association.
- Stamping, digitally signing and e-filing of various documents with the Registrar.
- Payment of Fees.
- Obtaining Certificate of Incorporation.
- Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.
- Obtaining Certificate of Commencement of business (in case of public limited companies).
FORMATION OF PUBLIC LIMITED COMPANY
We have rich experience in providing services for Formation of a Public limited company, Incorporation of Company in India, Online Company Registration in India and Company Registration in India. As per the governing rules, the incorporation of the corporate formalities is that the same everywhere India.
The Companies Act, 1956, under Section 3 (1) (iv) defines a Public Company as follows:
- It isn’t a private Company
- The paid up capital is at a minimum of Rs 5 Lac or higher, as may are prescribed
- Is actually a private company, but may be a subsidiary of a public company
- Deemed Public Companies that are literally Private Companies. There are certain Private Companies that are deemed public under section 43 A,
Private Companies deemed to be Public Companies
- If 25% or more of its paid up share capital is held by one or by quite one corporate body.
- When the typical annual turnover (over the last three years) is over 25 Crores.
- If deposits are renewed or accepted from the general public post a call for participation that’s made through an ad.
However, the companies Act (Amended) 2000, which is in effect from December 13, 2000 should intimate the Registrar and revert to their original status of being a private Ltd. company.
Step By Step Procedure
- Selection of nature of the company
- Selection of name for the proposed company
- Applying for ascertaining the availability of the selected name
- Approval of the name
- Submitting the application for the Identification Number of the Directors and the Digital Signatures
- Drafting the Memorandum and Articles of Association.
- Role of Registrar – Stamping, digitally signing and e-filing different documents.
- Payment of Fees.
- Acquisition of Certificate of Incorporation.
- Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form (in case of public companies) for obtaining the certificate of commencement of business.
- Procurement of Certificate of Commencement (for Public Limited Companies).
What is a Trust?
As per the Indian Trust Act 1882, a Trust is an arrangement where the owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary).
Such a property is transferred by the trustor to the trustee along with a proclamation that the trustee should hold the property for the beneficiaries of the Trust.
Thus, Trusts can be classified into two categories:
Public Trust
It is a trust whose beneficiaries include the public at large. Further, a Public Trust can be further subdivided into Public Charitable Trust and Public Religious Trust.
Private Trust
A private Trust is the one whose beneficiaries include families or individuals. Further, a Private Trust can be subdivided into:
- Private Trusts whose beneficiaries and their requisite shares both can be determined
- The Private Trusts whose both or either the beneficiaries and their requisite shares cannot be determined
12A and 80G Certificates
A Trust or an NGO can acquire 12A certificate from the Income Tax Department. Thus, a Trust acquiring such a certificate is exempted to pay income tax for the entire lifetime on its surplus income.
Also, an NGO must obtain 80G certificate. This certificate allows donors, that is persons or organizations making donations to an 80G certified NGO, to avail deduction. Thus, such a deduction is given to the donors under section 80G of the Income Tax Act.
Legislation Pertaining to Trust
A Trust is governed by Indian Trusts Act, 1882 across India. However, each state can formulate its own Trusts Act to govern such non – profit organizations in its own state.
Further, a Trust can receive funds and projects much like a Society. However, its quite challenging to get funds or projects immediately after a Trust gets registered.
Therefore, to obtain funds or acquire projects, a Trust needs to meet certain eligibility criteria. Such criteria may include relevant experience, performance of a Trust, its age and such other parameters.
Furthermore, a Public Charitable Trust has to be registered with the office of the charity commissioner who has jurisdiction over the Trust. Hence, following is the procedure for its registration.
Registration Process for Public Charitable Trust
Choose an Appropriate Name for the Trust
This is the first step in registering the Trust. Additionally, the name so suggested should not come under the restricted list of names as per the provisions of the Emblems and Names Act, 1950.
Decide the Settlers or Authors and Trustees of the Trust
There is no defined provision with regards to the number of settlers/authors. However, in most of the cases there is typically one author.
Further, there is no limit on the maximum number of trustees. But a minimum of two trustees are necessary to form a Trust. Also, the author generally cannot be the trustee. And he needs to be a resident of India.
Formulate Memorandum of Association (MOA) and Trust Deed of your Trust
A Trust Deed is legal evidence of your Trust’s existence and it contains the rules and regulations of your Trust. This document also contains the bylaws regarding the changes, removal or addition of the Trustees.
Memorandum Of Association (MOA)on the other hand represents the charter of the Trust. It defines the relationship of the Trustor with the Trustees and specifies the objectives for which such a Trust is formed. Such a document should contain the names, addresses and occupations of all the members along with their signatures.
Documents Required to be Submitted at the Time of Registration
- Trust Deed
- Self attested copy of the proof of identity of the settler (Aadhaar card, passport, voter ID, driving license or any such photo ID)
- Self attested copy of the proof of identity of each trustee (Aadhaar card, passport, voter ID, driving license or any such photo ID)
- PAN card
- Proof of the registered office address of the Trust (electricity/water bill or registration certificate)
- Non Objection letter signed by the landowner
Prepare Trust Deed on a Stamp Paper
As a Trust, you need to prepare the Trust Deed on stamp paper. The value of this stamp paper is of a certain percentage of the total value of the Trust’s property. Further, this percentage varies from state to state.
In addition to this, you need to pay a fee of Rs. 1100. Out of this amount Rs. 100 is the registration fee and Rs. 1000 are the charges of keeping a copy of the Trust Deed with a sub – registrar.
Once you submit the papers, you can collect a certified copy of the Trust Deed within one week’s time from the registrar’s office.
Submit the Trust Deed with The Registrar
After receiving a certified copy of the Trust Deed, submit the same along with properly attested photocopies with the local registrar.
Further, the settler must put his signatures on every page of the photocopy of the Trust Deed. Also, it is mandatory for the settlers as well as two other witnesses to be physically present along with their identity proof (original as well as self attested photocopy) at the time of registration. However, physical presence of Trustees is debatable.
Obtain the Registration Certificate
After submitting the Trust Deed with the registrar, the registrar retains the photocopy and returns the original registered copy of the Trust Deed.
Then, after completing all the formalities registration certificate is issued within a minimum of seven working days.
What is a Society?
According to the Societies Registration Act, 1860, a Society is a form of an NGO. It is an organization formulated by a group of people generally for the promotion of a common cause without any monetary gain. Such causes may include:
- Endorsing science, literature, fine arts
- Disbursing effective knowledge
- Providing charitable help
- Formulating military orphan funds
- Establishing and maintaining libraries or reading rooms
- Establishing or maintaining public museums or galleries
- Undertaking social welfare and development
- Other charitable causes
Society Membership
Accordingly, a minimum of 7 individuals are required to register a society as against 2 individuals in case of a Trust.
Also, the registration application to be filed with the registrar of companies must include the Memorandum of Association. Furthermore, it should also contain rules and regulations of the society. Thus, the Memorandum must contain the following components:
- Name, area and address of the registered office of the society
- Name of members of the governing body
- Objects and names of promoters
Also, a document containing rules pertaining to termination of members, meeting of the society etc also needs to be submitted.
Advantages of a Society
- After getting registered, a Society is deemed as a separate legal entity.
- A society holds the right to lease, rent, buy or sell property; borrow money or enter into legal contracts in its own name.
- Society members are not personally liable for any debt or obligations. Unless the debt is obtained for activities undertaken to make a profit. Or the activities undertaken are illegal in nature.
- A Society is entitled to income tax exemption
Disadvantages of a Society
- Income Tax Department extends tax exemptions to societies for charitable part of activities undertaken by societies.
- This form of organization is certainly inappropriate for operations that need to be carried out for profit motive. This is because a society can function only for a charitable purpose.
- No system of equity investment or ownership exists for societies.
- Further, investors are reluctant to invest in societies as these organizations lack professionalism.
- Since societies are considered unincorporated bodies as per law, they are not allowed to accept deposits from public. Also, they are not allowed to collect savings from clients.
Registration of a Society
You need to apply for the registration of a society in the area of the registered office of your society. Following is the procedure for Society registration under Society Registration Act:
Choose an Appropriate Name for the Society
This is the first step in registering a Society. You must be careful while selecting a name as the Societies Registration Act 1860 prohibits using similar or identical names. That is the name of your society should not be similar to the names of other societies already into existence.
Additionally, the name so suggested should not come under the restricted list of names. This is as per the provisions of the Emblems and Names Act, 1950.
Formulate Memorandum of Association (MOA)
MOA represents the charter of the Society. It defines the relationship of its founding members with the other members of the society. MOA specifies the objectives for which such a Society is formed.
Such a document should be signed by each of its founding members. Further, the signing of the document must be in the presence of the following witnesses:
- Oath commissioner
- Notary Public
- Gazette Officer
- Advocate
- Chartered Accountant
- First Class Magistrate
Also, the MOA must have the official stamps and the complete address of each of the witnesses as well as the founding members. It must also include a table containing the (i) names, addresses and occupations of all the members of the society and (ii) the members of the general body along with their signatures.
Documents Required to be Submitted at the Time of Registration
Following are the documents required for registration of a ‘society’:
- PAN card of all the members of the society to formulated
- Proof of residence of all the members of the society. This can include Aadhaar card, driving licence, passport, utility bill.
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Cover Letter requesting registration of society signed by all the founding members
- Proof of the registered office address of the Society (electricity/water bill or registration certificate)
- Non Objection letter signed by the landowner
- Certified copy of duly passed resolution for registration of society
- Declaration by the President of the Society
- List of all the members of the governing body along with their signatures
Submission of Documents and Registration
The applicant must submit two copies of the MOA along with the rules and regulations document to the concerned registrar of societies within the state. Along with these documents, the applicant must also submit the requisite fees as specified by the state government.
Then, the Registrar signs the first copy as acknowledgement and returns it to the applicant after receiving application. But he keeps the second copy for approval. Once the registrar is satisfied with the documents filed, he issues an incorporation certificate and allots a registration number to the same.