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25
May
17
One person company compliance in India

Compliance is a term or we can say a provision to maintain company’s annual filing, books of account and other statutory requirement. It is mandatory information needed to be informed to the central government. People need to spend some money on their Company so that their company runs uniformly without any legal barrier.

One Person Company is liable to certain Compliance which needs to be completed with a month from Date of Incorporation. Company should accept foregone reality that compliance will help entrepreneurs to do business with comfort and ease. The concept of OPC was evolved to eradicate the limitation of a sole proprietorship which was introduced in Companies act, 2013.It is one of the newest and one of the most popular form of Company. In OPC Person enjoys commencement of Business without any involvement of any other person.

In comparison with Private Limited Company OPC have lesser compliance formalities. Below are mandatory compliance requirement.

Corporate Stationary

After OPC registration it is recommended to purchase the following stationary for use with OPC compliance matters.

Name Board is the requirement of the company. Companies including an OPC are required to paint or affix the name of the company and address of its registered office outside every office or place in which it carries on business.

Company’s Rubber Stamp is a round rubber bearing name of the company and straight rubber stamp bearing the name of the company along with designation of the authorised signatory can be purchased from the local vendor. It is required for the execution of various legal documents like Board Resolutions, bank account opening forms, cheques, etc.

Letterhead is a printed heading which should be mentioned including name and registered office address of the OPC. It consists of all the forms of invoices, notices and other official documents of the company.

In case of OPC ‘‘One Person Company’’ must be mentioned in brackets below the name of the company, wherever its name is printed whether it has been affixed or engraved.

OPC PAN Application

Obtaining PAN card is the first step after incorporation of any corporate legal entity. PAN can be applied online after incorporation to receive the PAN allotment letter. The letter must then be signed by the OPC Director, sealed with company rubber stamp and couriered to the NSDL office. PAN Card will be issued in about 15 days after receipt of the hard copy PAN application from the applicant.

Opening OPC Bank Account

Proprietorship bank account opening is a bit tricky but opening bank account for a OPC is very simple. Additional tax registrations or documents are required to open a bank account for a OPC. According to the Reserve Bank of India’s KYC norms, the following are the documents required to open a current account in the name of a OPC:

  • Self-attested copies of OPC Certificate of incorporation
  • Memorandum of Association and Articles of Association 
  • Open Bank for Company
  • Copy of the telephone bill;
  • Copy of PAN allotment letter;
  • Identity proof of the Director

Documents submitted for opening of bank account must be self-attested with seal of the company. Hence, its important to obtain company seal and company letterhead after incorporation of the OPC.

Appointment of Auditor

Appointment of the Auditor of the Company is a requirement, it can be individual; practising Chartered accountant within 30 days of incorporation. In case of OPC as well, an Auditor must be appointed by the Director of the OPC for auditing of financial statements of the company.

OPC Annual General Meeting

All companies other than a OPC is required to hold a AGM(Annual General) each financial year with not more than fifteen months elapsing between the date of one annual general meeting of a company and that of the next. However, in case of a OPC where there is only one director on the Board of Directors, then it is sufficient for the resolution by one Director be passed and entered in the minutes-book. The signed and dated resolution by Director of a OPC is deemed to be the meeting of the Board of Directors for all the purposes under the Companies Act. Also, provisions relating to quorum for meetings of Board do not apply to a OPC where there is only one Director on its Board of Directors.

OPC Financial Statements

All companies are required to prepare and file with the ROC, the following financial statements:

  • Cash flow statement for the financial year
  • Balance sheet as at the end of the financial year;
  • Profit and loss account;
  • Statement of changes in equity, if applicable;
  • Explanatory note forming part of any document.

Compliance in OPC is needed for the rapid growth and it is necessary that it stays clear of unnecessary legal paraphernalia. Falling in line with the compliance system ensures that in certain cases it can all be sorted with a warning but when the issue is a graver one, the companies end up paying fines for not following the compliance.

Reasons why should OPC be compliant

Improved Public Relations- Marketing and advertising becomes easy after fulfilling all the legal obligations. Company become Job Creator encouraging more and more people becoming part of the Company. Good compliance management creates good reputation in the market.   

Employee retention There are many compliance issues that deal with the benefit of the employees, some these even talk about protecting the employees. For a company that adheres to these guidelines, it becomes easy to retain the employees as the workforce of the company feels home in the company and strives to work for the betterment of the business and the product.
Thus, for a One Person Company, which anyway is bound by a lot of compliance guidelines, it is paramount to manage all that. As in the longer run it showers the company with all the benefits that may or may not be visible in the beginning.

  • Smooth operations

Certain rules help more than they harm. Rules related to discrimination and harassment help create a better working environment for employees which can lead to better productivity. Also better security – financial as well physical – help employees provide more to the company.

22
May
17
Compliances for Foreign Companies in India

Foreign Companies have seen India as the Ocean of opportunity. Since India is rich in natural resources as well as the Human resource. Many foreign Companies want to headquarter or have headquartered their office in India. Foreign Company registration is a mandatory protocol for every company to establish Business in India. There are various additional compliance that companies need to maintain under the Companies Act, 2013.

Compliance is a term used in corporate entity for the maintenance of the company. Companies need to spend some money on compliance so that the company’s Business should run uniformly. Under compliance there are filing of certain forms and information from time to time to central government as statutory requirement. Compliance is a combined word for all the filings that need to be done to keep your company in good standing with the government authorities.           

Form FC -1

Any foreign company registered in India needs to file Form FC1. This form should be filed within the time period of thirty days of the establishment of Business in India. The application must be supported with the attested copy from the RBI which should follow the terms of Foreign Exchange Management Act or Regulation and sanction is necessary from other regulators. 

Financial Statements

All foreign companies registered in India are required to organize financial statement of its Indian business operations in agreement with Schedule III of the Companies Act, 2013. Thus foreign companies are required to furnish the following information/statements together with the financial statements of the company to be filed with the Registrar of Companies:

  • Statement of associated party transaction
  • Statement of repatriation of profits
  • Statement of fund transfer which shall be any relation with fund transfer between place of Business of a company
  • The documents that are referred to above in this rule must be delivered to the Registrar of Companies within a period of six months from the end of the financial year of the foreign company.

Audit of account of Foreign Company

Foreign Companies in India must get their accounts audited by the individual practicing chartered accountancy in a firm or LLP in India.  Foreign companies must get its accounts, pertaining to the Indian business operations organized in agreement with the necessities of clause

Form FC-3

Form FC-3 is required to be filed with Registrar of Company in the case of foreign companies. It is mainly for detailing the list of places of business of the foreign company along with the financial statements of the company.

Annual Return

Foreign Company must file the annual return and document the Annual return of the organization in Form FC-4 within sixty days from the last day of its budgetary year. Any record which ought to be conveyed from an outside organization can be conveyed to the Registrar of Companies with locale over New Delhi.

Authentication of Translated Documents

Necessary documents which are to be with ROC must in English Language. In the event that any interpretation is made out of India, it must be validated by the mark and the seal of the authority with guardianship of the first or a Notary of the nation where the organization has been joined. Where such interpretation is made in India, it might be confirmed by a supporter, lawyer or pleader qualified for show up confronting any High Court and a testimony, of an equipped individual having, in the estimation of the Registrar.

15
May
17
How to Import Food Products in India

Humans being have the ability to adapt and self-manage when facing physical, mental, psychological and social changes. Being healthy is one of the important aspects that people should focus on. Healthy foods are one of the no divisible parts of our health. Each one of us should follow safety measures to make ourselves healthy in our life full of convolution. Hence, there should be availability of safe and wholesome food for human consumption 

To ensure this Government of India regulates various departments and agencies to regulate the import of food products in India. Food Safety and Standards Authority of India (FSSAI) is one of the prime body which lays down the standards, regulate and control the import of food products in India. FSSAI has obtained some of the Standard Operating Procedures for clearance of imported food products. In case the import of the food products are not as per the FSSAI regulations and prescribed procedures the consignment will be rejected and will not be allowed to be traded in India.

An individual or an entity must be cognizant of the FSSAI regulations and procedure relating to the import of food product.

Requirement of License and Registration prior to import

  • Business firm should be either Company or LLP. It is more preferable to those are having the credible form of business having limited liability.
  • Firm should have proper indirect tax registration or VAT Registration with concerned authority for sale of products in India.
  • There is a necessity Importer Exporter Code (IE Code) issued by Director General of Foreign Trade.
  • Need of product approval in case of import of non-standardised products.

Delegation of Authority

Consignment should pass various stages for clearance and reach to the domestic market is

  • Custom Department should clear Application for Custom Clearance.
  • Application of NOC (No Objection Certificate) or Provisional NOC to Food Import clearance system (FICS) of FSSAI.
  • Scrutiny of documents by an Authorised officer of FSSAI or NOC.
  • Visual inspection of the consignment and sampling thereof by the Authorised officer of FSSAI.
  • Laboratory analysis of samples collected.
  • Issuance of NOC or Provisional NOC by Food Import clearance system (FICS) of FSSAI.
  • Finally, Custom clearance of the consignment.

Procedure of above stages to be followed

Custom Department should clear Application for Custom Clearance. When the shipment arrives in India the importer or CHA shall file an application for Clearance of shipment with Department of Customs. After it files the necessary documents for generation of Bill of Entry to receive an Examination order for the consignment. There will be generation of examination order by Electronic Data Interchange (EDI) system of Customs, requiring NOC from FSSAI.

Application of NOC (No Objection Certificate) or Provisional NOC to Food Import clearance system (FICS) of FSSAI.- After the bill has been generated of Bill of Entry and examination order shall make an application 

Preliminary documents required to make such an application is as under:

  • Import Export Code issued by DGFT
  • FSSAI Licence issued under FSSAI Act 2006
  • Bill of the Entry
  • Examination order is generated by Electronic Data Interchange (EDI) system of Customs
  • Product approval, if required

There is a need for preliminary documents apart from additional documents specific to the product are required to be submitted with Food Import clearance system (FICS) of FSSAI, e.g.

  • Sanitary Import Permit Issued by Department of Animal Husbandry if products is a livestock product
  • Import Permit issued by Ministry of Agriculture, Governments of India, if the product is a primary agriculture produce or horticultural produce
  • Certificate of origin issued at the place of manufacturing or processing etc. by Authorized Person or Agency of the food consignment.
  • Registration of import contracts for poppy seeds with Central Bureau of Narcotics;
  • Certificate of Origin shall contain information on Country of origin etc. if the consignor is from a different country;
  • Certificate of Analysis with composition certificate. In case of Wine & Whiskey Test certificate is required;
  • Phyto-Sanitary Certificate issued by the Plant Quarantine Department of Exporting Country in case of horticulture produce or primary agriculture with fumigation endorsement
  • End-use declaration.
  • List of transit country.
  • Pumping Guarantee Certificate in case of edible oil imported in bulk.
  • Stuffing list, Packing List.
  • Commercial invoice as mentioned in the Bill of Entry.
  • Temperature Chart or Report or Graph, if the food consignment trans-shipped under the Cold Chain Technologies (CCT) from the port of origin to the point of import.
  • Bill of lading as mentioned in the Bill of Entry for sea consignment.
  • Air Way Bill as mentioned in the Bill of Entry for air consignment
  • Declaration by an undertaking from the manufacturer that the representative sealed sample is from the same batch of the consignment in case of aseptic package;
  • Radio Activity Certificate, if irradiation is used;
  • In addition to the documents listed above, the importer/ CHA shall submit the documents filed with the Department ofCustoms at the time of export as well as copy of the rejection certificate, if any, along with reasons for it issued by the officials of importing country before its re-export where it is a case of re-import.
  • High Sea Sale Agreement;
  • Submission any other report (s) or documents (s) or undertaking (s) or Affidavit (s) as directed and as specified by the Authorized Officer of by the Food Authority from time to time

Scrutiny of documents by Authorised officer of FSSAI or any Authorised person from the department

Each and every document needs to be verified from the authorised officer of FSSAI. The documents should be submitted by the importer thereafter. In this process officer may ask for any clarification if required in the matter. In case the things are pending after due verification and scrutiny the documents are found to be in order the authorise officer raises a demand for the requisite fee as per number of samples applied for clearance.

Visual inspection of the consignment by the Authorised officer of FSSAI

Authorised officer shall inform the date and time of visual inspection of the consignment which shall be duly acknowledged by importer/CHA.This will on the deposit of demand of fee raised by the importer/ CHA. After the visual examination and  ensurance about the remaining balance shelf life the authorised officer shall draw two samples in the presence of importer or his representative and shall seal and label it.

Laboratory analysis of samples collected

According to the standards and parameters the samples shall be analysed by the laboratory as per the prescribed under Food Safety and Standards Act 2006 and regulations. The report shall be send to the officerwith a conclusion whether the product tested conforms to the standards and parameters prescribed under Food Safety and Standards Act 2006 and its regulations.

Issuance of No objection certificate

NOC will be issued on the basis of the laboratory report for its conformance or non-conformance standards and parameters prescribed under FSS act 2006 and regulations, NOC or NCC (Non Conformance Certificate) is generated.

Custom clearance of the consignment

Finally when No Objection Certificate (NOC) is issued by the FICS  of FSSAI is duly submitted by the authorised person to the Customs authorities with the Department of Customs the consignment is cleared for trade or use in India.

13
May
17
Benefits of Annual  filing

Company is a business entity made up of Association of people to carry commercial or industrial enterprise. Opening up and running a company is not an easy task. People should keep many things in mind while and after setting up a company. There are requirement of many documents, permits when going through several registrations. Formation of Company requires several taxes and other types of filings.

Keeping records of all these events with all the certificates and acknowledgments slips are to be kept carefully. In some ways it is helpful as the solid evidence and it also helps you to file certain documents. All these documentations are carried out under The Companies Act, 2013. It is similar to the act you are required to go through company annual filing.

There are certain documents included under Annual filing with Registrar of Companies. Following documents are balance sheet, profit and loss account statement, annual return and Compliance Certificate. Most of the documents are filed by filing some forms which can be filed online also. It also ensures that you are keeping records of all the important happenings of your company properly. This helps you to run your company without any disturbance and point out any possible loopholes or mistakes. MCA web portal includes the detailed guidelines of annual filing.

 Following are the Procedure for Annual return filing

Business image is an important aspect for any company. People only trust those company those are free from any court case. History has been a proof for many companies that lost their trust from public due to court case or any other form of crime. This may lead to drop in sales in products and services. Compliance is one of parameter to ensure that a company can upholds positive image and has consumer trust. Public Audience gets attracted towards it which will help to build genuine customer and gain their loyalty. Business with sponsors, advertisers, and government requirements gets a help all this effort.

Company that fulfils all the formality of Annual Compliance through successful corporate compliance management generally gets signed quickly and easily.

Time Limit

Sno.

Form type

Time Limit

Purpose

1

ADT – 1

Within 15 days of Appointment of Statutory Auditor (Normally Annual General Meeting)

Intimation of Appointment of Statutory Auditor

2

AOC-4

Within 30 Days of AGM

For filing financial Auditor’s Report and Director’s Report with ROC

3

MGT – 7

Within 60 days of AGM

For intimating list of director, Shareholder, Change if any 

 

Benefits with reference to Legal Consequence:

  • Avoid lawful results of extra expenses, punishment, detainment
  • It fills in as a notice to open, of any data required to be given by the organization under any demonstration
  • It may fill in as a substantial confirmation or proof in the official courtroom

Benefits with reference to other than lawful Consequences:

While drafting Board's Report, Companies incorporate some extra data in it which may incorporate

  • Companies include Management Discussion in their board report which fills in as a medium of indispensable data to people in general. Organization through this, conveys different tentative arrangements and running tasks, future prospects, qualities of the organization, steps taken or to be taken by organization to defeat its shortcomings and different other data which makes great picture at the top of the priority list of open, government and administrative experts
  • Transparency: In case an organization take after every single lawful arrangement of the Act in a moral way, it implies it keeps up straightforwardness among open and makes a picture of moral organization in brains of open, administrative and government
  • As these reports are recorded with Government specialists and ensured by experts, it can make more certainty to the general population about the Company and builds up a decent picture according to partners
11
May
17
What is ISO 9001:2015?

ISO is a non-governmental independent organization to protect standards in many countries. International Organisation of Standardization is an international body for setting standards of products in Business. There are particular standard that are set for manufactured products and technology to food safety, agriculture, and healthcare. ISO helps to increase the productivity and minimize errors and waste of the product. People have good Trust on ISO products and services standardized by them are safe, reliable and are of good quality. 

ISO certification is a process that certifies a particular product or services. If Success is achieved in ISO certification this leads to an advantage in operational activity, costing and services. In most of the phase, it is easy to optimize the operations. A holistic approach is used for improving operations. This helps in growth of business by providing a consistent and reliable standard.

ISO standards are recognised all over the world. ISO certified businesses are highly recommended the market. ISO certificates are required in the tender of Public Sector Contract. This is becoming a trend as people realize the value of certification. It is a marketing asset and should be promoted in all your marketing messages.

ISO 9001 is the international standard that clearly identifies requirements for a quality management system (QMS).Measure of Standards are used by the  Organizations to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements. ISO 9001 is the most popular in the category of ISO 9000 series and the only standard in the series to which organizations can certify.

International Organization for Standardization (ISO) published ISO 9001 in 1987,  A current version of ISO 9001 has also been released in September 2015.

People who should use the ISO 9001:2015-QMS Revision

ISO 9001:2015 is a particular standard that applies to any organization, regardless of size or industry. Internationally more than10 Lakh organizations and 160 countries have applied for ISO 9001 standard requirements to their quality management systems. 

Following are standards that ISO 9001 follow: 

  • Improve the efficiency of processes
  • Organize processes
  • Continually improve

Organizations are encouraged to use ISO 9001:2015 under ISO 9001. Under this list there are many other form including organizations that are certified to ISO 9001:2008, but also any organizations involved in training or certifying others.

Topics Covered under ISO 9001:2015

ISO 9001 is mainly based on the plan-do-check-act methodology and provides a process-oriented approach for documentation and review of the structure, responsibilities, and procedures required to achieve effective quality management in an organization. There are certain specific sections of standard containing information on topics such as:

  • Responsibilities of management
  • Documentation of a quality manual, document control, and determining process interactions.
  • Requirements for a quality management system, Product realization, including the steps from design to delivery
  • Analysis, Measurement and improvement of the QMS through activities like internal audits and corrective and preventive action
  • Management of resources, including human resources and an organization’s work environment  

Changes presented in the 2015 update are proposed to guarantee that ISO 9001 keeps on adjusting to the changing conditions in which associations work. A portion of the key updates in ISO 9001:2015 incorporate the presentation of new wording, rebuilding a portion of the data, an accentuation on hazard based thinking to upgrade the utilization of the procedure approach, enhanced appropriateness for administrations, and expanded authority necessities.

Beginning with ISO 9001:2015

Associations and people that utilization ISO 9001 are urged to move to the 2015 update as quickly as time permits. Be that as it may, the International Accreditation Forum (IAF) and the ISO Committee on Conformity Assessment (CASCO) have consented to a three-year move period from the production date of ISO 9001:2015.

Regardless of whether you are starting your ISO 9001 voyage or transitioning to the 2015 update, your initial step is to buy a duplicate of ISO 9001:2015.

Benefits of ISO 9001

ISO 9001 helps associations guarantee their clients reliably get superb items and administrations, which thus brings many advantages, including fulfilled clients, administration, and representatives.

Since ISO 9001 indicates the necessities for a viable quality administration framework, associations find that utilizing the standard helps them:

  • Organize a QMS
  • Create fulfilled clients, administration, and representatives
  • Continually move forward

ISO 9001 likewise gives budgetary advantages, for example, cost reserve funds.

Perused other ISO 9001 contextual analyses to see the execution advantages of utilizing the standard.

ISO 9001:2015 is also used as the  "Business Administration Instrument"

"ISO 9001 offers more than quality advantages. The standard ought to be considered as a business administration apparatus an association can use to drive esteem, enhance its operations and decrease its dangers."

 

Accomplishing ISO 9001 accreditation

ISO 9001 is the main standard in the ISO 9000 arrangement to which associations can confirm. Accomplishing accreditation implies that an association has exhibited the accompanying:

  • Follows the rules of the ISO 9001 standard
  • Fulfils its own prerequisites
  • Meets client prerequisites and statutory and administrative necessities
  • Maintains documentation

Confirmation to the ISO 9001 standard can improve an association's validity by demonstrating clients that its items and administrations meet desires. In a few occurrences or in a few ventures, accreditation is required or legitimately ordered.

The confirmation procedure incorporates executing the necessities of ISO 9001:2015 and after that finishing a fruitful enlistment center's review affirming the association meets those prerequisites.

  • Registrar's expenses for ISO 9001 enrollment, reconnaissance and recertification reviews
  • Current level of conformance with ISO 9001 necessities
  • Amount of assets that the organization will devote to this venture for advancement and usage
  • Amount of bolster that will be required from an expert and the related expenses

Preparing in the ISO 9001 standard

Preparing can give a chance to audit the ISO 9001:2015 standard and apply quality administration standards in a practice domain. Experts in charge of creating, actualizing, reviewing, and dealing with an ISO quality administration framework or quality experts keen on refreshing their archived ISO 9001-based QMS can take ISO 9000 instructional classes, which incorporate courses concentrated on ISO 9001 and quality administration frameworks. Moreover, associations hoping to enhance worker execution and representatives looking to consistently enhance will likewise discover ISO 9000 preparing significant.

Past renditions of ISO 9001

Initially distributed in 1987, ISO 9001 experienced amendments in 1994, 2000 and again in 2008. The most recent update was distributed in September 2015.

  • ISO 9001:1994 included changes to altogether enhance the provision on control of plan and advancement, and to give a few different elucidations. The 1994 arrangement additionally somewhat adjusted the part of ISO 9002 and 9003… .
  • The ISO 9001:2008 modification can be considered as a revision to clear up issues that had been raised amid the utilization of ISO 9001:2000. It incorporated a few changes to the content however no extra necessities.

ISO 9001:2015 determines prerequisites for a quality administration framework when an association:

Necessities to exhibit its capacity to reliably give items and administrations that meet client and appropriate statutory and administrative prerequisites, and

Every one of the prerequisites of ISO 9001:2015 are bland and are proposed to be relevant to any association, paying little heed to its sort or estimate, or the items and administrations it gives.

11
May
17
Why Trademark is Important for Your Business?

Trademark is a form of intellectual property. Trademark reserves the right to the owner and protect all of its ideas and inventions. It is like a standard signature which shows the first impression in the market. Trademark registration in India is a good option for all the company to register its trademark.

Trademark can be logo, symbol, or word which let you stand differently in the market. It is another way of referring to brands. Consumers first identify the trademark for their purchase. Trademark creates first reputation of any brand for Business growth. Following are reasons why is trademark important for your Business   

Trademarks is an effective tool of communication- By looking at the trademark audience identifies the emotional attributes of any company. Trademark reveals the message of the Business Brand. It creates intuition about product and services of the company. Trademark or design do not need exactly related to the type of product or service. It can be in any language English, Chinese, Spanish, Russian, Arabic or Hindi.

In crowded market place it’s hard to distinguish your business from your competitors. It is an efficient commercial communication tool to capture customer attention and make your business, products and services stand out. People should be able identify particular brand’s service by looking at the trademark. On social media trademark creates particular image of the brand.

Trademarks are the valuable asset which can be appreciated in value over time. It is mainly  for Business growth. It provide value to the core business. Trademarks can lead the way for expansion from one industry to another industry for eg. from personal care to clothing or eye ware. Trademark can lead to the acquisition of your business by a larger corporation. It can be used as a property asset, similar to real estate, that can be bought, sold, licensed (like renting or leasing) or used as a security interest to secure a loan to grow your business.  

Trademarks make things easier-Trademark is an asset which makes hiring easier. It helps to inspire positive feelings in people’s minds. Due to this, employment opportunities are more attractive to candidates. Collecting certain facts Employee can have better retention and better feelings for the brand and the products and services offered.

Provide uniqueness to a brand -Trademark is a unique asset used for particular brand product or service. Trademark is particular logo that should catchy in each aspect of visually as well as audible or would you rather go for a logo that is hard to remember or understand and doesn't describe your brand.  Choice would be simple and everyone would go for the former option.

Trademark keeps the brand from crowd- It’s uniqueness keeps the logo catchy to the audience. It is basically it has everything mentioned above, then it gives your brand an edge over anyone else. Depending upon the logo, anyone can tell which brand does a product belongs .

Trademark protects your product name- Company having registered can use it publically to show ownership over your product. Registered trademark provides the right to use it on all the products registered under your ownership and it also proves that the product belongs to you and you have all the rights to sell, modify or use that product however you want.

10
May
17
Compliance of Private Limited Company

Annual compliance is the mandatory formality for every Company. Companies need to spend some money for your Compliance. Private limited Company needs to abide certain mandatory compliances in order to function smoothly. In this article, you will get the answer all the queries which you might have with regard to annual compliance filing for a private limited company It is not an easy task to run a company since there so many procedures need to do Business. In a company, there is so many departments which director has to supervise such Marketing, Sales, IT, Operations etc. Due to this Private limited Companies are advised to follow compliance so that it face any problem in future. 

According to companies act, 2013 there are certain changes which came into existence.There are some changes in the guidelines for the private limited companies but the majority of the compliances continue to be what they were under the previous law ie. Companies act, 1956.

Following are the formalities that Companies need to file

  • Notice of the AGM
  • Director’s report
  • Auditor’s report
  • Balance Sheet

Annual compliance is mainly two way process broadly, is a two time process. Firstly,  When the process commences, there are certain steps to be followed like the appointment of the auditor, preparation of share certificates, preparing statutory certificates. These are steps for a company is good to initiate the process. Another process or we can say the second step is annual filing that is a bit tricky and requires a certain degree of effort.

There are certain compliances that are quarterly in nature and must not be confused with annual compliances. These must be completed after every 90 days .

  • Conducting the board meeting
  • Notifying regarding the board meeting
  • Preparation of the attendance of the board meeting
  • Also updating the statutory register if need be

Read more about Board meeting is an event or discussions which should be help at-least four times in a year. This meeting is mainly for directors of the company. Meeting must be signed and Minutes need to maintained in Registered office.   

Annual general meeting needs to be held every year. This is mainly held for shareholders and the primary agenda of the meeting is financial statement, declaration of dividends and many other agenda. This meeting should be held at the place in the registered office. 

Filing Annual Return is the most important aspect annual compliance filing. An annual return consists of following pointers

  • Shares, debentures and different shareholding patterns of the company.
  • Details regarding companies registered offices, principal business, subsidiary and associates.
  • The members and debenture holders along with the changes that have happened since the last financial year.
  • Loans on the company
  • Remuneration of important dignitaries
  • The promoters, directors, key managers and the changes that have occurred since the last financial year.
  • Penalty or punishment (if any) imposed on the company or its directors or key managers.

Event based Compliances

These are kinds of directors based on the triggered event. It is also very important task needs too fulfilled within a particular time period.  In case of crossing of deadline penalties could be added. Following are compliances needed to be fulfilled 

  • Allotment of Share
  • Transfer of Share
  • Receipt of share Applicant money
  • Appointment of Managing Director/Whole time Director
  • Appointment and Resignation of director.
  • Change in Bank signatories
  • Change in Statutory auditors

Cost on Non Compliance

Non-Compliance can create many problems for the business sector and especially among start-ups which are considered. Following are the types of non compliance. 

  • Start-ups are found to be on defaulter list of Registrar of Companies due to non-compliance
  • Start-ups incur unnecessary pay-out by way of interests and penalties.
  • Income Tax Notice to Start-up for tax demands or for non-compliance.
  • Shut down of their business within first 3 years of their operations.

Non-compliances creates multi-faceted consequences, such as  ranging from penalties, additional fines to prosecution. Following are some of the brief consequences to give a general idea:

  • Barriers in getting Funded
  • Availability of Bank loan
  • Roadblock in availability of Govt Tenders
  • Stamp of a Dormant Company
  • Liability of Directors
09
May
17
Women Director of the Company

India is a country of opportunities where all people have equal right. According to Indian Constitution people, All the citizen in India deserves equal right whether they are of any Caste, Religion or Gender. There are opportunities of some fields where women are less preferred. But now the scenario has been changed. Women are walking parallel with Men in every field whether it is Defence, Finance, Banking, Corporate or any other sector.   

Women are part of many board meetings of companies in and outside India. In India, there are certain provisions preferred/ privileged considering the fact of disadvantages in some ways. Companies are showing interest more and more on appointing professionals as women directors on the board, instead of inducting family members, including wives and daughters, as directors to meet a regulatory deadline that require listed firms to appoint at least one woman director on their boards. 

Importance and Role of Board of Directors

According to the Companies Act, 2013 there are certain provisions made for employing women directors on the Boards of the certain class of companies and it is a welcome move. Before we get more into it let’s pick a point of importance and role of the Board of directors. The Board of Directors is an important body. These are important persons elected by the shareholders and responsible for running the company.

Board of directors is collectively responsible for making policies for good governance. The Body should act in the best interests of the Company and Stakeholders. It mainly focuses on the accountability and responsibilities of directors by mandating certain disclosures such as evaluation of the performance of the board, CSR policy, whistleblower mechanism, risk policies etc in the Directors report.

Duties of Directors, Companies Act 2013

Companies Act, 2013 defines duties of directors and role of independent directors. It also cast a duty on the Board to device proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

There are certain provisions for appointment of woman director. Due to this there has been an increase in the maximum number of directors from existing limit of 12 to 15 and provided for an increase. According to the special resolution, it can be beyond 15 by a special resolution. Kept the power with Central Govt for prescribing minimum number of directors in case of certain companies or class of companies - prohibited insider trading - provided for stringent penalties for violation of duties and nondisclosure of interest in related party transactions

Why focus on Woman directors? 

According to the survey in North America, more than 700 reputed companies have the highest representation of women directors on board and have achieved better financial performance than those have less representation of women directors on Board. In the United States, women held about more than 16% of the board seats of companies. It is having a better percentage in European countries. These are listed companies which are a very dismal percentage. There has been thrust given by the New Act, 2013 is helping to improve the representation of women directors on the board.

According to the relevant Section is 149 of the Act, 2013. The provisions are mainly related to appointment of directors and matters such as the minimum and a maximum number of directors, type/class of directors to be appointed.

Rules have been displayed on the MCA website that indicates the following for appointment of women directors on the boards of companies:

  1. a) Every listed company shall appoint at least one woman director within one-year
  2. b) Every Public company that is having paid up capital of 100 crores or more or - a turnover of 300 crores or more have to compulsorily appoint within 3 years.

Point of view has made many things right. Companies have taken decisions and successfully built a good Business. In many situation Gender bias has affected many companies. According to the new Act a company should compulsory appoint at least one woman director and the company will have to search for good woman directors.

For more information about company registration visit Registrationwala.

09
May
17
Types of Copyright in India

Copyright is an exclusive right to any author/creator on his/her particular original work. It is form of intellectual property. Copyright entities may Literary, Dramatic, Musical notation, Software, Artistic and Copyright. It is a form of intellectual property is a legitimate idea which refers to form of protection conferred to the creator of original work. It contains expression and moral value of right and economy. Economic rights include the right to copy or publication a work or any substantial part of asset. It is a life time intellectual property.

Copyright of Literary Work

Books or Literary Work can also be copyrighted as soon as author pen down the book. It is an imperative for author with book stores mushrooming all over the place and online stores taking over the market. It prevents the stores, both online and physical, from buying or publishing copies. Books subsist itself as a copyright but still copyright registration builds an extra layer of protection. Many people might raise a question why to copyright a literary.

In case you write a story and save it on the system’s hard drive. In that case you do not have legal ownership towards the story written by you. But It is possible that I have got the same idea to write a story and co-incidentally it match with your story. Therefore to make full piece of right on the matter whether it is story, poem, book or any other literary you need to have a copyright of it. Copyright will make it your intellectual property.         

Copyright of Cinematography

Visual production of any moving object with sound is termed as cinematographic film. It needs a lot of hard work to produce cinema. Many people are associated in making films. Producer of cinema can claim copyright over it. There are certain rights provided to the producer of the film

  • To sell or resell it, to give it on hire
  • To make a copy, photograph or produce it in parts.
  • It also makes sure that the producer is the only one who has a right over taking the film to the public. However, the sound recording in the movie are not covered by the copyright of the movie.
  • Also the artistes the movie are not protected by the copyright of the film. 

People must remember that a cinematograph film can only be an adaptation of a particular literary work provided the copyright holder of the work has given his consent.

Copyright of Painting

Painting is an Artistic work which can be copyrighted. Artists or people working for an artistic work can copyright their creativity or abstract so that nobody steals their workpiece. Suppose you buy an original painting, artistic physical object etc. In that case you ‘own only the artwork’, not the copyright to it. Copyright of an object cannot be owned unless the artist signed over their copyright to the buyer. Buyers do not have the right to reproduce it and exploit it commercially. There have been laws made in many countries that follow the principle of ‘Work for Hire’ means that the work you created is an artwork of an employee of a company so the work actually belongs to the company. In case of freelancers, copyright remains with the artist. Basically this situation evolves more often when you produce original artwork for businesses and corporations.

Copyright of a Software

Copyright of Software is an extension of copyright law to machine-readable software. There are many of the legal principles and policy debates concerning software copyright to have close parallels in other domains of copyright law,

In India there are a number of distinctive issues that arise with software.

Software Developers uses Software Copyright and proprietary software companies to prevent the unauthorized copying of their software. Free and open source licenses also rely on copyright law to enforce their terms. Copyright licenses impose a duty on licensees to share their modifications to the work with the user or copy owner under some circumstances. No such duty would apply had the software in question been in the public domain.

 

Points of copyright to keep in Mind while remixing a song

Music notation can be copyrighted since Musician produce a unique Music by their hard work. People may copy or mix it to make their own song or music. In case you are making mash-up of your personal playlist, then your remix song could be costlier for you if a copyright holder sues you for infringement. Since, Remix songs are simply mixture and not the original work.

There certain issues faced in copyright of music

  • Reproduce work in any form,
  • Issue copy of the work;
  • Perform the work in public;
  • Make any films;
  • Sound recording in the work;
  • Translation of that work.

Read more copyright of music

There are certain points which should be kept in mind by making alteration without the previous consent of the owner.

 

08
May
17
Importance of Copyright over Trademark

We often confuse between copyright & trademark yet they have a few purposes of contrast which should be clarified before further registration. We need appropriate information about what the most ideal ways we can secure our ideas are. Knowing there are heaps of potential outcomes of your ideas being stolen by others in the market when you have something new and crisp that can undoubtedly make your business achieve the main, an appropriate comprehension of these terms appear to be fundamental. To start with the fundamental actuality must be clear in your mind that a copyright and a trademark secure are very unique.

What is a Trademark?

Trademark offers identity to a brand; it is a recognizable sign, word, outline or an expression which is utilized to distinguish the products or administrations of a dealer from those of others. A trademark helps in securing the brand name from being utilized or abused by the contenders; it also helps prevent confusion and manipulation of consumers, who come to associate with quality and attributes of a distinct brand in particular. A trademark is mostly located on the label, a voucher, or on the product itself.

What is a Copyright?

'A copyright can mean a law that gives you property rights for things you have made, be it a work of art, a photograph, a poem or a novel. The copyright law awards you possession with a various rights like:

  • The right to reproduce the work
  • The right to distribute copies
  • Right to display the work publically anywhere
  • And the right to prepare a derivative work

Advantages of Copyright over Trademark

  1. A copyright is automatic whereas a trademark has to be registered in order to get real protection.
  2. A copyright holder can keep or prevent others from utilizing his/her work while the trademark holder can't or may not keep others from utilizing the check publically.
  3. A Trademark is protected by both federal and state laws whereas in case of copyright, the laws are federal
  4. Copyrights can protect your work for the term of your life in addition to an additional 70 years. In the event of trademark, it is restricted to 10 years and has to be renewed after every 10 years
  5. Online infringement of copyright can be immediately taken care of under the Digital Millennium Copyright Act, however, this is not the situation with trademarks since it has a long legal process, both government, and state.

There are similarities between the two that have a tendency to confuse individuals:-

  • Both Trademark and Copyright gives the rights to the owner to prevent others from using their work
  • Both are protected with complex laws
  • They can exist all the while in some mark or design, even in shapes, colours or sizes.

Conclusion

Individuals totally makes trick of themselves by blending the two and may even wind up losing the market they as of now have. One ought to know how he can ensure protect his assets or respond to someone for claiming infringement. Another reason is that one who has the information can easily take advantage of those who don’t. Utilizing the distinction can help one in taking great business choices regarding product launches or for social media strategy.

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