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Public companies have inherent advantages over private companies, including the ability to sell future equity stakes and increased access to the debt markets. A Public Limited Company is Incorporated and Governed by the Indian Companies Act 2013. Public Limited Company is a Purely Separate Legal entity distinct from its members and directors. It has the advantage of limited liability, greater stability and recognition. The Basic Requirement for a Public Limited Company in India is to have Minimum Three Directors and Seven Shareholders.

  • Public Companies can issue shares to the public through the stock exchanges or stock market.
  • These can also raise additional capital by issuing debentures and bonds from the public on the basis of their financial performance.
  • These are commonly known as publicly traded companies or publicly held companies.
  • Shares of these companies are freely transferable that provides more liquidity to its shareholders.

2. What are the benefits or advantages of a public limited company?

  • LIMITED LIABILITY: It is an important benefit of incorporation, once shareholders have paid for their shares; the members of the company have no further liability to contribute towards debt incurred by the company.
  • SEPARATE LEGAL ENTITY: A company is a legal entity and a juristic person established under the Act. Therefore a company has legal capacity to own property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
  • ACCESS TO FINANCE: A Public Company can easily obtain finance from banks and other financial institutions as these types of institutions are more willing to extend finance to this type of company than to smaller forms of business entities.
  • BRAND AWARENESS : Since these types of companies are often listed on stock exchanges, people will be easily and quickly recognize the brand or name of the company.
  • MORE CAPITAL: Since a public company can sell its shares to the public thus the potential capital that can be raised is larger. A sole proprietorship or ordinary business partnership cannot usually raise the same amount of capital without additional leverage.
  • CAPACITY TO SUE AND BE SUED: The Company being legal person has full right like a natural person to institute legal proceedings against or to bring a suit in a court of law and also can be sued in its own name.
  • FREELY TRANSFERABLE: Shares of these types of companies are freely transferable that provides more liquidity to its shareholders.
  • CONTINUITY OF MANAGEMENT: The management of a company might be separate from its ownership. Management of the business can then continue in spite of any changes in shareholders. Employees can be promoted to senior management positions without necessarily holding any shares in the company. They can also be given shares as an incentive.
  • OWNING PROPERTY: A company being a legal person, can acquire, own, enjoy and alienate property in its own name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.
  • ABILITY TO TAP FINANCIAL MARKETS: The biggest advantage to these types of companies is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (cash) for expansion of business activities.

3. What is the procedure to incorporate a public company?

There are two ways of company Incorporation in India.

  • Through Normal Mode (INC-1)
  • Through Fast Approval Mode (INC-29)

Through Normal Mode (INC-1)

  • To collect papers (Photos, Id & Address Proofs) from clients.
  • To apply for their Digital Signatures (DSC).
  • To apply For their Director identification number (DIN).
  • To Reserve the desired name for company Incorporation.
  • To draft all the incorporation documents.
  • To get all the documents signed, stamped and notarised.
  • To File Incorporation Forms with the Registrar.
  • Get COI (Certificate of Incorporation)
  • Apply for Pan Card of the company.
  • To handover all the papers to clients for further processing.

Through Fast Approval Mode (INC-29)

  • To Collect Papers (Photos, Id & Address Proofs, Address proof of Premises) From Clients.
  • To draft all the incorporation documents.
  • To get all the documents signed, stamped and notarised.
  • To apply for their Digital Signatures (DSC).
  • To apply For their Director identification number (DIN).
  • To File Integrated form for incorporation with the Registrar.
  • Get COI (Certificate of Incorporation)
  • Apply for Pan Card of the company.
  • To handover all the papers to clients for further processing.

4. What is the Time Frame for Company Incorporation?

Through Normal Mode. It usually takes 10-15 days after receipt of all the necessary Documents, The breakup of the Number of days is as follows:

Activity Days
Taking Digital Signature of Directors 1 Day
Taking Directors Identification Number (DIN) 1 Day
Reservation of the name of the Company 5 Days
Preparation of other Document such as MOA, AOA, Forms etc 2 Days
Filling of Documents with Authorities 1 Days
Getting Final Certificate of Incorporation 5 Days
Total Number of Days 15 Days

 

Through Fast Approval- It Usually Takes 4-5 days after receipt of all the necessary Documents.

Activity Days
Preparation of all Document such as MOA, AOA 1 Day
Taking Digital Signature of Directors 1 Day
Taking Directors Identification Number (DIN) 1 Days
Filling of Documents with Authorities 1 Days
Getting Final Certificate of Incorporation 1 Days
Total Number of Days 5 Days

5. What are the Charges for Incorporating a Company?

Fees for the incorporation decide on company capital, state and total number of directors.

 

6. What is the minimum paid up capital requirement for Incorporating a Public Company?

A public company must have a minimum paid up capital of Rs.5,00,000 (Five lakh).

7. How many Persons are required to incorporate a company?

  • The Minimum numbers of 7 persons (members) are required to incorporate a company (It may be noted that there is no restriction of maximum number of members in case of public company)
  • Legally minimum 3 directors are required and 7 shareholders are required.
  • These two persons can act in both capacity as directors and as shareholders.

8. Whether shares can be transferred or not in case of public company?

In case of public company there is no restriction on the transferability of the shares. Shares can be easily and quickly transferred from one person to another.

9. How a public company can go for subscription of its shares?

A public company is free to invite public for subscription of its shares by issuing a prospectus (which means any document or notice, circular, advertisement or other document inviting offers from the public for subscription or purchase of any securities of a body corporate).

10. Can a public company further issue its shares directly to general public?

No, firstly a public company has to offer the further issue of shares to its existing shareholders as right shares. Further issue of shares can only be offer to general public with the approval of existing shareholders in the meeting of shareholders only.

11. What is the validity of Certificate of Incorporation Issued by the ROC?

Once a Certificate of Incorporation is issued by the ROC, it is valid for the lifetime of the company unless it goes for winding up.

1.WHAT ARE DIFFERENT TYPES OF TRADEMARKS THAT MAY BE REGISTERED?

  • Any name (including personal or surname of the applicant or predecessor in business or the signature of the person), which is not unusual for trade to adopt as a mark.

  • An invented word or any arbitrary dictionary word or words, not being directly descriptive of the character or quality of the goods/service.

  • Letters or numerals or any combination thereof.

  • Devices, including fancy devices or symbols

  • Monograms

  • Combination of colors or even a single color in combination with a word or device

  • Shape of goods or their packaging

  • Marks constituting a 3- dimensional sign.

  • Sound marks when represented in conventional notation or described in words by being graphically represented.
     

2. WHAT ARE THE BENEFITS OF REGISTERING A TRADEMARK?

  • The registration of a trademark confers upon the owner the exclusive right to the use the trademark in relation to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R), and seek the relief of infringement in appropriate courts in the country. 

  • The exclusive right is however subject to any conditions entered on the register such as limitation of area of use etc. 

  • Also, where two or more persons have registered identical or nearly similar marks due to special circumstances, such exclusive right does not operate against each other.

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1.Who need OSP Registration?

Business Process Outsourcing (BPO) Services Call Centres, Customer Care, Telemarketing & Technical Support Services Data Entry, Processing, Accounting Outsourcing Service Payroll Management & Administration Services are required to take OSP License.

2.What are the main requirements for obtaining OSP Licences?

  • To obtain a OSP Registration in India, it is mandatory for the entity to be a Private Limited Company. The following are the documents necessary for OSP Registration in addition to the application in the prescribed format:
  • Certificate of Incorporation of Private Limited Company
    • Memorandum of Association (MOA) and Articles of Association (AOA)
    • Board of Resolution or Power of Attorney authorizing the authorized signatory
    • Name of Business and Activities Proposed
    • List of Directors
    • Present Shareholding

3.Is documents submitted in department should be signed?

Answer: All the documents must be certified with seal by either Company Secretary or one of the Directors of the Company or Statutory Auditors or Public Notary.

4.What is the Time Frame for taking OSP License?

Answer: 30-45 days in case of osp license after receipt of all the necessary Documents, The breakup of the Number of days is as follows

 

Activity

Days

Preparation of Document

2 Days

Filling of Documents with Authorities

1 Day

Department takes time for issue License

30 Days

Getting Final OSP License

7 Days

Total Number of Days

40 Days

5.What are the Charges for taking a OSP License?

Fees for DOMESTIC OSP LICENSE 25000 Rs. (including Govt fees of Rs. 1000)

Fees for INTERNATIONAL OSP LICENSE 30000 Rs. (including Govt fees of Rs. 1000)

6.What is the Validity of OSP licence issued by the Department?

Once a OSP Registration is approved, the license is valid for a period of 20 years – unless otherwise expressly mentioned. 

1.Who need OSP Registration?

Business Process Outsourcing (BPO) Services Call Centres, Customer Care, Telemarketing & Technical Support Services Data Entry, Processing, Accounting Outsourcing Service Payroll Management & Administration Services are required to take OSP License.

2.What are the main requirements for obtaining OSP Licences?

  • To obtain a OSP Registration in India, it is mandatory for the entity to be a Private Limited Company. The following are the documents necessary for OSP Registration in addition to the application in the prescribed format:
  • Certificate of Incorporation of Private Limited Company
    • Memorandum of Association (MOA) and Articles of Association (AOA)
    • Board of Resolution or Power of Attorney authorizing the authorized signatory
    • Name of Business and Activities Proposed
    • List of Directors
    • Present Shareholding

3.Is documents submitted in department should be signed?

Answer: All the documents must be certified with seal by either Company Secretary or one of the Directors of the Company or Statutory Auditors or Public Notary.

4.What is the Time Frame for taking OSP License?

Answer: 30-45 days in case of osp license after receipt of all the necessary Documents, The breakup of the Number of days is as follows

 

Activity

Days

Preparation of Document

2 Days

Filling of Documents with Authorities

1 Day

Department takes time for issue License

30 Days

Getting Final OSP License

7 Days

Total Number of Days

40 Days

5.What are the Charges for taking a OSP License?

Fees for DOMESTIC OSP LICENSE 25000 Rs. (including Govt fees of Rs. 1000)

Fees for INTERNATIONAL OSP LICENSE 30000 Rs. (including Govt fees of Rs. 1000)

6.What is the Validity of OSP licence issued by the Department?

Once a OSP Registration is approved, the license is valid for a period of 20 years – unless otherwise expressly mentioned. 

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1. Which is the office where do I have to go for marriage registration certificate and during which hours?

For marriage Registration, one can go to the office of Sub-Divisional Magistrate in whose jurisdiction any of the husband or wife resides, during 9.30 a.m. to 1.00 p.m. on any working day.

2. How much time it takes place for response from department?

Normally it takes 15 days in case of registration of marriage under Hindu Marriage Act and 60 days under Special Marriage Act.

3. Is it mandatory to register marriage?

In 2006, the Supreme Court made it compulsory to register the marriage for the women protection.

4. Within how many days after marriage do I need to apply for marriage registration?

The parties to a marriage shall apply for marriage certificate within a period of 30 days from the date of marriage.

5. What are the laws under which marriages can be registered?

There are two laws under which marriage registration can be done:

  1. Hindu Marriage Act
  2. Special Marriage Act

6. To whom does the Hindu Marriage Act applies?

It applies to Hindu, Sikh, Jain, Buddhist, Brahma and all other who follow Hindu religious customs.

7. To whom does the Special Marriages Act applies?

It applies to all, irrespective of religion, caste and language.

8. What is the time limit for the registration of Marriage?

Marriage under Hindu Marriage Act can be registered at any time after marriage. There is no time limit.

9. What is Tatkal Marriage Certificate?

Tatkal Marriage Certificate ensures a single-day authorization of the marriage under which the registration process will be undertaken on priority. It enables citizens to register their marriage and get a certificate issued within 24 hours on payment of Rs.10, 000 as a fee.

10. Can a marriage performed already according to religious customs be registered under Special Marriage Act?

Yes a marriage performed already according to religious customs can be registered under Special Marriage Act.

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1. What are the supporting documents that are required to be filed for Udyog Aadhaar Registration?

No supporting documents are required to be filed for Udyog Aadhaar Registration

2.If an enterprise doesn’t have Aadhaar Number, can it apply for Udyog Aadhaar Registration?

The Udyog Aadhaar Registration can be done online by individuals themselves in case they have an Aadhaar number. However, those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum in offline mode (i.e. on paper form), with the General Manager (GM) of the concerned District Industries Centre (DIC).

3. Is it mandatory for existing enterprises having SSI Registration / MSME Registration to apply for Udyog Aadhaar Registration?

Such enterprises may or may not apply for UA registration

4. Can editing of information be done in UA data of an enterprise by District Industries Centre (DIC)?

No, there is no provision for editing of information in UA data by DIC

5. What type of Disclaimer is required for UA Registration?

UA Registration is filed only on self-declaration basis. Thus, there is no need of separate disclaimer.

6. Can an entrepreneur update any data on UAM portal?

No, an entrepreneur can’t update any data on UAM portal. It’s a one-time exercise only.

7. How can those states which have no Aadhaar Coverage apply for Udyog Aadhaar Registration?

Such states e.g. Assam can apply for Udyog Aadhaar Registration in offline mode.

1.Where licences to manufacture Drugs can be granted?

The licences to manufacture Allopathic Drugs/Homoeopathic medicines and also to repack/sell Drugs can be granted only in the recognised Industrial Areas of Delhi.

2.Where licences to manufacture Cosmetics can be granted?

Licence to manufacture Cosmetics can be granted only in Industrial areas w.e.f. 01/01/2000.

3.What are the main requirements for obtaining Retail Sales Drug Licences for the Chemist shop?

The applicant firm should have adequate premises of an area of not less than 10 sqr. mtrs., equipped with proper storage facilities for preserving the properties of drugs and are in charge of a Registered pharmacist with Delhi Pharmacy Council.

4.What are the main requirements for obtaining wholesale Drugs Licences?

The Applicant firm should have adequate premises of an area of not less than 10 sqr. mtrs and are in charge of a Competent Person who is a Registered Pharmacist/who has passed Matriculation or its equivalent with four year’s experience in dealing with Drugs or who holds a degree of a recognized university with one year’s experience in dealing with Drugs.

5.What is the Time Frame for taking Drug License?

 

Activity

Days

Preparation of Document such as Affidavits etc

2 Days

Filling of Documents with Authorities

1 Day

Department takes time for issue License

30 Days

Getting Final Drug License

7 Days

Total Number of Days

40 Days

 

6.What are the Charges for taking a Drug License?

Fees for Sale of the Drugs as Retailer & Wholesaler (Proprietorship Firm) - Rs. 5000 (excluding Govt fees of RS. 3000/- AND every inspection charges for site Rs. 1500-if required) 

Fees for Sale of the Drugs as Retailer & Wholesaler (Proprietorship Firm) - Rs. 6000 (excluding Govt fees of RS. 3000/- AND every inspection charges for site Rs. 1500-if required) 

7.What is the minimum area and height of the premises required for retail cum wholesale licences?

The premises should be of an area of not less than 15 sqr. mtrs.

8.What should be location of the premises for grant of sale licences?

Licences for the sale of drugs can be granted in the commercial premises or other premises independent of residence.

1.How much time DO takes to scrutinize the application?

Time prescribed for scrutinization by DO is 15 days from final submission of application.

2.What does operating more than one state means?

If FBO has the food business’s premises situated in two or more state.

3.Can expired license be renewed?

No

4.Which Kind of business should be selected?

If you are manufacturer, Repacker & Relabeller then select from these kind of business according to your products-

1. Dairy Unit including milk chilling units.( for milk industry)

2. Vegetable oil processing unit.( For edible oil, refined oil solvent extracted oil & edible Fat products producer)

3. Slaughtering Unit.

4. Meat processing Unit.

5. All food processing unit including relabeller & repacker. ( for all food processing unit other than mention above) For other business select appropriate business , which will be carried out at the premise for which license is being applied from the available list. It may be more than one kind of business.

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1.What is Section 8 Company?

Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefitted out of those profits.

2.What are The Benefits or advantages to work as a private limited company?

Many privileges and exemptions are available to section 8 company under Company Law.

  • Exemption from requirement of Minimum Paid-up capital
  • Exemption of Stamp duty for registration
  • Registered partnership firm can be a member in its own capacity
  • Tax deductions to the donors of the Company u/s. 80G of the Income Tax

3.What is the Procedure to incorporate a company?

The Procedure to incorporate Section 8 Company is very Similar as in case of Private Limited Company except the difference that after name approval the requirement of applying for License under Section 8 of the Companies Act 2013 is also required.  

4.What is the Time Frame for Company Incorporation?

The Minimum Time Taken To Incorporate a Section 8 Company is 20-30 days.

5.What are the Charges for Incorporating a Company?

Fees for the incorporation decide on company capital, state and total number of directors.

6.How many Persons are required to incorporate a company?

  • The Minimum number of 2 persons are required to incorporate a company.
  • Legally minimum 2 directors are required and 2 shareholders are required.
  • These two persons can act in both capacity as directors and as shareholders.

7.What is the difference between Directors and shareholders?

  1. In simple words,
  2. is the person who takes the responsibility to run the business and manages the day to day business of the company. Generally are the managers or agents of the actual owners of the company who act in fiduciary (trustworthy) position. Only individual persons can become directors.
  3. are the owners of the company who invest their monies in the company. Shareholders get part in the profits of the company in the form of dividend. They aren't responsible for the day-to-day management of the company, but they do have voting rights with which they can affect the decisions of the company. Any individual, company or other entity can become shareholder.

8.What is DIN?

Director Identification Number (DIN) is a unique identification number for an existing director or a person intending to become the director of a company. 

9.What is DSC?

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Certificates serve as proof of identity of an individual for a certain purpose. A digital signature certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally. Its valid for maximum 2 years.

10.What is the validity of Certificate of Incorporation Issued by the ROC?

Once a Certificate of Incorporation is issued by the ROC, it is valid for the     lifetime of the company unless it goes for winding up.

11.Who can form a Sec 8 Company?

  • Any person or association of persons (including a partnership firm)
  • Any existing company
  • One Person Company cannot be a Sec 8 Company (Rule 3(5))

12.What Type of Name can Be Applied For Section 8 Company?

Rule 8(7) pf the Companies Act says that a Section 8 Company must have any of the following names-

The name shall include the words

- Foundation

- Forum

- Association

- Federation

- Chambers

- Confederation

- Council

- Electoral Trust and the like etc.

The name does not include the words “Private Limited” or “Limited”

13.What is the Eligibility Criteria for Incorporating a Section 8 Company?

The main objects should ensure promotion of

- Commerce

- Art

- Science

- Sports

- Education

- Research

- Social Welfare

- Religion

- Charity

- Protection of Environment

- or any such other object

  1. Intends to apply its profits, if any, or other income in promoting its objects
  2. Intends to prohibit the payment of any dividend to its Members

14.WHAT ARE THE KEY CONDIOTIONS FOR SECTION 8 COMPANY:

  • Profit or Income of the Company shall be applied for the promotion of the main object.
  • Declaration of dividend or distribution of profit to the promoters is not allowed.
  • No member shall be appointed as a remunerated officer.
  • No remuneration / benefit shall be paid to a member being a servant / officer of the Company (except reimbursement of out of pocket expenses, reasonable interest on money lent or reasonable rent on the premises)
  • Subsequent alteration of MoA & AoA requires prior approval of Central Govt. (i.e. ROC)

15.What is the Procedure for Obtaining License from Central Government ?

  1.  FOR NEW COMPANIES

After Successful Reservation of Name with the Registrar the Applicant is required to file Application for License under Section 8 in Form INC-12 with Following Documents

  • Draft copy of Memorandum of Association as per Form INC 13
  • Draft copy of Articles of Association (Format not prescribed)
  • A declaration in by professional.
  • Details of promoters and Directors.
  • An estimate of the future annual income and expenditure of the company for the next 3 years specifying the sources of income and the objects of the expenditure
  • Declaration by the subscribers.
  • A statement specifying briefly the grounds/objects on which the application is made.

Hard copies of the above application with all the attachments along with 3 copies of MOA and AOA to be forwarded to ROC

IF APPROVED LICENSE ISSUED IN Form INC 16

1.Who can be a “Designated Partner”?

Every LLP shall be required to have at least two designated partners who shall be individuals and at least one of the designated partner shall be a resident of India.

In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

However following shall be consider as disqualification to appoint as Designated Partner:

  • Who has at any time within the preceding five years been adjudged insolvent; or

  • Who suspends, or has at any time within the preceding five years suspended payment to his creditors and has not at any time within the preceding five years made, a composition with them; or

  • Who has been convicted by a Court for any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months; or

  • Who has been convicted by a Court for an offence involving section 30 of the Act.

2.How can a person become partner of an LLP?

Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP. Subsequent to incorporation, new partners can be admitted in the LLP as per conditions and requirements of LLP Agreement.

3.Whether every LLP would be required to maintain and file accounts?

An LLP shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. The LLP is Required to File Minimum 2 Forms per Year. Annual Return in Form 11 signed by Designated Partners is to be filed before 30th May of each year. The Statement of Account & Solvency in Form-8, essentially signed by the designated partners, is to be filed within 30days from the six months from the closure of the respective financial year i.e. by 30th October. If there is any delay filing of Form 8/ Form 11 then the penalty would be Rs. 100/- per day after the above specified period.

4.Whether audit of all LLPs would be mandatory?

Every LLP in India, whose annual turnover exceeds the magnitude of Rs. 40Lakhs or the total contribution of its partners gets above the limit of Rs. 25Lakhs, is mandatorily need to get its accounts audited every financial year. Provided also that where the partners of such LLP do not decide for audit of the accounts of the LLP, such LLP shall include in the Statement of Account and Solvency a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the form specified in Form 8.

5.Which documents are available for public inspection in the office of Registrar?

    • Incorporation document

    • Names of partners and changes, if any, made therein

    • Statement of Account and Solvency

    • Annual Return

    • But LLP Agreement is not available for public inspection.

6.Can Partnership Firm, Private Limited Company and Unlisted Public Company Converted to Limited Liability Partnership?

Yes, The Registrar shall, on conversion of a firm by filing Form 17, private company or an unlisted public company by filing Form 18 into limited liability partnership along with prescribed fees, issue a Certificate of Registration under his seal in Form 19.

In the event, Registrar has refused the registration, the applicant firm or private company or unlisted public company, as the case may be, may apply to the Tribunal within sixty days from the date of receipt of such intimation of refusal.

For the purposes of the proviso to sub-section (1) of section 58, where the firm, private company or unlisted public company has been converted into limited liability partnership, an intimation of such conversion to the concerned Registrar of firms or Registrar of Companies, as the case may be, shall be given in Form 14 within fifteen days of the date of registration of the LLP.

7.Difference between LLP & a Company?

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.

• The management-ownership divide inherent in a company is not there in a limited liability partnership.

• LLP will have more flexibility as compared to a company.

• LLP will have lesser compliance requirements as compared to a company.

8.What is the validity of DIN?

DIN is a unique number, allotted by Registrar and it is valid for the life time of the individual.

9.What activities cannot be carried out by LLP?

Currently activities related to financing , leasing , investment in securities cannot be carried on in LLP.

10.For which type of business LLP is suitable?

LLP is suitable for mostly all type of business whether small, medium and large but worldwide it is more popular in service sector.

11.What are things to remember while choosing name of the LLP?

    • The name should not be identical with the existing name i.e. Registered Business Entity

    • The name should not be prohibited

    • The name must have a business activity

12.Whether having a registered office for LLP is mandatory?

A. Yes, every LLP should have a registered office and a proof of the ownership or permission to use the same , must be filed at the time its incorporation.

13.Whether stamp duty will be paid on the LLP agreement?

Yes, stamp duty will be paid on the LLP Agreement, the amount of the same will depend upon the place of its execution because stamp duty differs from state to state.

1.What is a Partnership?

Partnership is an agreement between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others. A partnership can be for a fixed period of time or it may be limited to a specific project or it may be dissolved at will.

2. What are the necessary elements that are required to form a partnership?

1. There must be an agreement between two or more persons.

2. The agreement must be to share the profits of the business.

3. All partners together, or any one, on behalf of the others must carry on the   business.

 

3. What is the capital of a partnership firm?

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties.

4. Is a deed of partnership necessary?

It is not compulsory for a partnership deed to be in writing. Partnerships can also be oral.

5. Who can be partners?

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

6.If i am partner in a firm, what are my rights?

1. To take part in the business.
2. To share the profit or loss of the business.
3. To inspect and make copies of the books of the firm.
4. To receive remuneration for taking part in the business if specified in the partnership deed.
5. To receive interest on capital if specified in the partnership deed.

7.What are the duties as a partner in a firm?

1. Carry on the business.

2. be just and faithful to each partner.

3. Disclose true accounts of the firm.

4. Furnish full information of all things affecting the firm.

8. What are the limitations as a partner?

1. Submit a dispute relating to the business to arbitration.

2. Open a bank account on behalf of the firm in your own name.

3. Compromise or relinquish any claim or portion of a claim of the firm.

4. Withdraw a suit or proceeding filed on behalf of the firm.

5. Enter into partnership with an outsider on behalf of the firm.

6. Acquire or transfer immovable property belonging to the firm.

7. Admit any liability in a suit or proceeding against the firm.

9.What is Partnership at will?

If a partnership deed does not provide for duration or for dissolving the partnership in any manner, it is a Partnership at will.

10.What are the requirements for registration of a partnership firm?

1. Name of the partnership firm.

2. Place of business of the firm.

3. Names of any other places where the firm carries on business.

4. Date of joining of each partner.

5. Name and permanent address of the partners.

6. Duration of the firm. The statement must be signed by all partners or by their agents specially authorised in this behalf.

11. Can a new partner be admitted into the partnership firm?

A partner can nominate a successor to take his place in the event of death or retirement of the partner. The mode of introducing a new partner or successor is based on provisions in the partnership deed. A new partnership deed is required once the new partner is admitted into the firm.

12.Can a firm become a partner in another firm?

A partnership firm cannot become a partner of another firm because it is not a legal person. However the partners may be partners in another firm in their individual capacity.

Class 2

Name Change

GST

1. What does it mean to be ISO Certified?

ISO Certified means an organization has met the requirements in Quality Management System. It focuses on meeting customer expectations and delivering customer satisfaction.

2. What is an ISO Number?

ISO sequence is: 100, 200, 400, 800, 1600, 3200, 6400 and etc. The important thing to understand, is that each step between the numbers effectively doubles the sensitivity of the sensor. So, ISO 200 is twice more sensitive than ISO 100, while ISO 400 is twice more sensitive than ISO 200.

3. How to verify if a company is ISO Certified?

Firstly you may ask the company to give you a copy of certificate in order to verify a genuine certificate. Further you may ask about the company which has issued the certificate.

4. Does ISO certification ensure fraud protection?

No ISO certifications do not ensure fraud protection. ISO and other standards are targeted at various aspects of business, for example, ISO 9001 deals with quality management system, ISO 14001 deals with environment management system and so forth.

5. What is a certification body and/or accreditation body?

A certification body [also called a registrar] is an organization which issues certificate. An accreditation body is an organization which authorizes the certification body to issue the certificate. Normally an accreditation body is a member of International accreditation forum [IAF] but there are many “independent” accreditation bodies also.

1.What is One Person Company?

One Person Company a new company structure, contains the benefits of sole proprietorship and corporate status. It has only one member, as the Member cum Director and a nominee.

2.How can register a One Person Company?

One Person Company can be registered like Private Limited Company, where all the rules and regulation are laid down by the Ministry of Corporate Affairs.

3.How much capital do I invest to start a One Person Company?

The minimum capital requirement is Rs. 1,00,000/- but this amount differ from your investment. Authorized capital and investment are not one and the same. You can invest as many as you can, but when you want to incorporate a company legally, it has to be started with Rs. One lakh as capital.

4.How many Directors can we have in One Person Company?

A minimum of 1 is required while starting a One Person Company, but you can have up to 15 Directors for your OPC.

5.Who can be a nominee for a One Person Company?

Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.

6.Who is Director of a Company?

A Director is the person who manages and control the affairs of the company. A Director is the brain of a Company. They occupy a pivotal position in the structure of the company. Directors take the decision regarding the management of a company collectively in their meetings known as Board Meetings.

7.How can I change a nominee for my company?

A Nominee can be changed with the proper intimation and filing of necessary forms with Registrar of Companies

8.Can Foreign Direct Investment allowed for One Person Company?

No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.

9.Who cannot form a One Person Company?

A Minor, Foreign citizen, Indian Non resident, a person incapacitate to contract are restricted from Forming a One Person Company.

10.Can a One Person Company converted into Private Limited Company?

Yes, it can be converted into Private Limited Company, if the One Person Company has exceeded the threshold limit by filing necessary forms.