Compliance for the Private Limited Company: Companies Act 2013

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Compliance for the Private Limited Company

The reason behind the introduction of the new Companies Act 2013 was to take a big step towards globalization and it was promulgated to meet the changing environment regarding business. It is more progressive and more sound technologically.

Private Limited Company is the most popular form of business being practiced; it is a very complex affair too. The Companies Act 2013 provides mandatory Compliance that has to be followed for successfully running a Private Limited Company. Non compliance of principles can lead to heavy penalties. Thus it requires professional help to manage it.

Section 2(68) defines Private Company “as a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed, and which by its articles: –

1. restricts the right to transfer its shares;
2. except in case of One Person Company, limits the number of its members two hundred:

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Provided further that—

1. persons who are in the employment of the company; and
2. persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and
3. prohibits any invitation to the public to subscribe for any securities of the company;

All the above features and policies must be complied with for starting a Private Company.

Section 3 (1) b describes the minimum number of members required for starting a private company by saying “two or more persons, where the company to be formed is to be a Private Company.”

All the Private Company must have have their own memorandum and articles of association as prescribed under section 4 and 5 of Companies Act 2013 respectively.

Section 4 also make its compulsory for a company to use the word private limited everywhere while describing the name of Private Company.

A company must acquire a Corporate Identity Number and a Permanent Account Number before starting its daily affairs. The company also must appoint the minimum number of directors also as per as the provisions of the statute.

Also there are certain restrictions on Private Companies which they have to follow otherwise there are penalties, like Private Company cannot issue their securities directly to the public.

After incorporating the Private Limited Company there are certain general practices and compliances that have to be followed for successfully managing a Private Limited Company on daily basis.

Other Mandatory Compliances

Statutory Audit of Accounts – The Companies Act mandates statutory audit of accounts by a Chartered Accountant at the end of every financial year. It is submitted before the ROC (Registrar of Companies) by the auditor.

Appointment of Auditor – An auditor must be appointed within one month of date of incorporation of the company and shall hold the office for 5 years and new auditor should be selected after 5 years.

Filing of Annual Report– After the holding of annual general meeting within 60 days of such meeting annual report for the period of 1st April to 31st March must be filed.

Annual General Meeting – Every Private Limited Company should hold its annual general meeting within six months from the date of closing of the financial year.

Section 134 of The Companies Act 2013 requires the preparation of director’s report with all the necessary information required.

All the above Compliance have to be followed for the successful management of private companies. And such compliance should be done easily with the help of professionals both manually and with the help of online expertise.

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How to Protect your Brand Name?

Protect your Brand Name

Brand name means unique name, symbol, logo, design, sound, graphics, color or shapes which distinguishes one brand name with another. A brand name is establishes by investing a lot of effort. Thereby, protecting it comes under the same task. People or companies try their best that their chosen brand is not a part of another’s companies.

So, when we talk about protecting the brand name, there comes the trademark. It means that providing your Brand a shield which would not be infringed by any other companies. By trade marking of brand name means that registering your brand name under the Trademarks Act. Now once you registered your trademark, no one can use that name or symbol, logo, sounds, tagline etc. for his own purpose.

How to Protect?

The strongest type of protection for brand is registering through trademark. Brand works like an identity of the business of a company.

• Choose your name first of your entire product. Then make a list and compare your name with another’s same product.
• Research other similar names online. Look whether customers will get confuse or not with your name with another.
• Create your own unique mark. Use your label name to create a stylized mark. A stylized mark includes a select type of font, size and color.
• To make people aware of your brand name. You must put the label on your product. Distribute it as far as possible so that commerce sector identifies your name before and it will create a common law. Even before registration.
• Register your trademark on the state level. Fill the application form and submit it.
• Registration should be done by the authorized person.
• Submit it by on line or off line. Could even sign on a legal document or an affidavit can also be issued.
• Protect your brand name from unnecessary infringement.

Conclusion

Be very careful in registering your brand name. Because it is good to see that no one should copy your brand but it is also necessary to see whether your brand name doesn’t match with any other. This would be Trademark Infringement. Thus, it is always recommended to apply Trademark with the help of a Trademark Attorney only.

In case of any query, please feel free to contact us here. www.AapkaConsultant.com   AapkaConsultant.

Promoters of a company

A promoter considers a thought for setting-up a specific business at a given place and performs different conventions required for beginning an organization. A promoter might be an individual, firm, relationship of people or an organization. The people who help the promoter in finishing different lawful customs are proficient individuals like Counsels, Solicitors, Accountants and so on and not promoters.

“A promoter is the one, who undertakes to form a company with reference to a given object and sets it going and takes the necessary steps to accomplish that purpose.” —Justice C.J. Cokburn

“A promoter is the person conscious of the possibility of transforming an idea into a business capable of yielding a profit; who brings together various persons concerned and who finally, superintendents the various steps necessary to bring the new business into existence.” —Arthur Dewing

CHARACTERISTICS OF A PROMOTER

1. A promoter conceives an idea for the setting-up a business.
2. He makes preliminary investigations and ensures about the future prospects of the business.
3. He brings together various persons who agree to associate with him and share the business responsibilities.
4. He prepares various documents and gets the company incorporated.
5. He raises the required finances and gets the company going.

KINDS OF PROMOTERS

PROFESSIONAL PROMOTERS

These are the people who represent considerable authority in advancement of organizations. They hand over the organizations to shareholders when the business begins. In India, there is absence of expert promoters. In numerous different nations, proficient promoters have assumed a vital part and pushed the business group, all things considered. In England, Issue Houses; In U.S.A., Investment Banks and in Germany, Joint Stock Banks have assumed the part of promoters apparently.

OCCASIONAL PROMOTERS

These promoters appreciate coasting a few organizations. They are not in advancement deal with a consistent premise but rather take up the advancement of some organization and after that go to their prior calling. For example, engineers, legal advisors, and so forth may glide a few organizations.

FINANCIAL PROMOTERS

Some budgetary organizations of lenders may take up the advancement of an organization. They for the most part take up this work when money related environment is ideal at the time.

LEGAL POSITION OF PROMOTER

The organizationof law has not given any legitimate status to promoters. A promoter is neither an operator nor a trustee of the organization since it is a non-substance before joining. Some legitimate cases have attempted to determine the status of a promoter. He remains in a guardian position.

The promoter shape and makes the organization and under his watch it appears. It is the obligation of the promoter to get greatest advantages for the organization. He ought not get mystery benefits from the organization. On the off chance that he offers his property to organization, then he ought to clarify his enthusiasm for such property.

Author: This blog is written by Ms. Ayushi Mishra, a passionate blogger & intern at  Aapka Consultant.

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HOW TO OPEN A SAVING ACCOUNT IN INDIA?

WHAT IS A SAVINGS BANK ACCOUNT?

In today’s world keeping hard cash at home is not the safest and smartest way to manage your finances. A savings account is a place where bank assures you that you can safely hand-over your cash to them.

WHY OPEN A SAVINGS ACCOUNT?

There are few characteristics of savings account:

• Most savings account in India require account holder name and a minimum amount in the account to continue the savings, or else they charge fine for the breach.
• Savings bank account in India usually charges higher interest rates then the rate of inflation to keep the real value of money stable throughout the year.
• Nowadays, savings account is feature packed, they offer bills payment, quick transactions etc.

DIFFERENT TYPES OF SAVINGS ACCOUNT AVAILABLE TODAY

Below is a list of few kinds of savings account present today:

1. REGULAR SAVINGS ACCOUNT– these are opened on the banks having most basic terms and conditions.
2. SALARY BASED SAVINGS ACCOUNT– These are often opened by banks on the request of large companies.
3. SAVINGS ACCOUNT FOR SENIOR CITIZENS– These accounts are opened for senior citizens with specific functionality and benefits.
4. SAVINGS ACCOUNT FOR CHILDREN AND MINORS– These accounts don’t generally have a minimum balance requirement and function in the same way.
5. EXCLUSIVE BENEFITS ACCOUNTS FOR WOMEN– This is the new offering from many banks to promote women empowerment.
6. ZERO BALANCE SAVINGS ACCOUNT– This type is a merging of savings account and current account.

HOW TO OPEN AN ACCOUNT

• Research about different banks who offer savings account and their interests rates, and find the one that matches your requirement.
• Take a copy of your identity proof, address proof, photographs, employment proof, age proof and move straight to the nearest branch of that bank.
• Once, reached the bank, tell the clerk that you wish to open a savings account, and he/she will give you the required form.
• Fill that form as required and submit that form with all the documents to the clerk.
• Then your form will be submitted for the application of process and your account will be opened and functional in between 1- 12 days.

FEW BEST SAVINGS ACCOUNT IN INDIA

• SBI SAVINGS ACCOUNT
• ICICI SAVINGS ACCOUNT
• HDFC BANK SAVINGS ACCOUNT

Author: This blog is written by Ms. Ayushi Mishra, a passionate blogger & intern at  Aapka Consultant.

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Eligibility for the New Startup Scheme in India

Prime Minister Mr. Narendra Modi on 16th Jan 2016, announced certain benefits and schemes to promote start-ups in India. The event was ‘Startup India, Stand up India’. Startup India is a flagship initiative of the Government of India mainly to promote and ensure proper nurturing of start-ups in India. This will not only promote new start-ups but will also create new employment opportunities.Various benefits can be availed because of this theme. To meet the objectives of this initiative, Government of India announced an action plan which is divided in 3 main areas namely Simplification and Handholding, Funding Support and Incentives, Industry-Academia Partnership and Incubation. However, to get those benefits the start-up needs to be eligible as per the given criteria

The criteria for eligibility of any company to avail benefits under newly launched startup scheme go as follows:-

• Business entity must be Pvt. Ltd. Company / Partnership firm/ LLP
• It should not be older than 5 year
• Turnover in preceding year should not exceed 25 Crore
• It should not be formed by splitting off or reconstruction of existing business
• Startup should work towards innovation, development, deployment or commercialization of new / significantly improved product, process or service driven by technology or intellectual property
• Aim of startup is to develop a new product, Service or process from existing one.
• Obtain certificate from Inter Ministerial Board set up by DIPP to validate innovative idea and which is supported by either of the following seven

Apart from the above stated points the following recommendations and requirements also needs to be fulfilled:

• Recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India
• An incubator, which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation
• Recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator recognized by GoI or
• Should be funded by an Incubation Fund/ Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI that endorses innovative nature of the business or
• Should be funded by GoI as part of any specified scheme to promote innovation or
• Should have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted
• An incubator, which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation

Thus, if your start-up fulfills the given criteria you can easily avail the benefits of this scheme.

Good luck with your start-up!

1. To get trademark for your Brand name click here
2. To get ISO Certification click here
3. To register your company click here

Author: This blog is written by Ms. Eishani Behl, a passionate blogger & intern at  Aapka Consultant.

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Startups Intellectual Property Right Protection Scheme

Startups Intellectual Property Right Protection Scheme

Intellectual Property Rights are very important asset for Startups in India and it is important to protect them by taking effective measures. Intellectual Property Rights are very effective tool for any Business Organisation to boost Industrial Competitiveness. Various business groups should focus to protect their IP (Intellectual Property) along with other important things. The Startup India Action Plan 2016 through the “Scheme for Facilitating Startups Intellectual Property Protection” promotes Intellectual Property Registration. The scheme for facilitating Startups Intellectual Property Protection is made to protect Patent, Trademarks and Designs of Startups.

Scheme for Facilitating Startups Intellectual Property protection (SIPP)

The scheme is released by the Office of Comptroller General of Patents Designs and Trademarks on 22nd April 2016 with the objective to protect and promote Intellectual Property Rights awareness for Startups in India. By this scheme the appointment of experienced and registered Trade Marks /patent Agents as Facilitator to guide and help the Startups in matters relating to protection of Intellectual Property. The Startups shall not have to pay any kind of fees for availing services from the Facilitators because they are directly paid by the Central Government. The Objective of this Scheme is to assist the Startups in protection and promotion of their Intellectual Property by providing good IP services. This Scheme is designed to promote awareness and adoption of Intellectual Property Rights.

Intellectual Property Facilitators

For the effective implementation of the scheme the Controller General of Patent, Trademark and Design appoint Facilitators to assist the Startups in protecting the Intellectual Property Rights. There is a list of persons who can be appointed as Facilitators:

• Any Patent Agent registered with the Controller General of patent, Design, Trademark (CGPDTM)
• Any Trademark Agent registered with the Controller General of Patent, Design, Trademark (CGPDTM)
• Any Advocate as defined under The Advocates Act, 1961 who is actively involved in filing and disposal of applications for Patents, Trademarks and Designs.
• Government Departments, Organisation, Agencies.

Functions of Facilitators

The functions of Facilitators are decided by the Controller General of Patent, Design, and Trademark (CGPDTM). The Facilitators provides following Intellectual Property Protection Services to the Startups:

• It provides general advice on different Intellectual Property Rights to Startups.
• It provides assistance in filing and disposal of the Intellectual Property applications related to Trademarks, patents, designs.
• It provides assistance for inventions of Startups.
• It prepares and files responses to examination reports and other notices, letters by the IP office.
• It appears at hearing on behalf of the Startup.
• It contests opposition by other parties.
• It provides information on protection and promotion of IPR to Startups in other Countries.

These are the basic functions of Facilitators which they are bound to perform during their duty. The facilitators can be removed from the office by Controller General of Patent, Design, and Trademark (CGPDTM) if:

• He receives any information about the professional misconduct of Facilitator.
• He receives any complaint from the Startups.

Intellectual Property Rights are very important tool for a Business Organisation in achieving the success. It is the main reason why we should protect the IPR in Startups. Every Startup should have the knowledge of protecting the Intellectual property (Patent, Trademarks, and Designs etc). For the protection of Startup IP the Central Government had taken a good initiative by making the scheme for facilitating Startups IPR. For the effective enforcement of the scheme the Government appointed facilitator. These Facilitators provides the advice and assistance to Startups in protecting the Intellectual Property. They also provide awareness to the Startups to protect their Intellectual Property Rights. Overall this Scheme is objected to protect the Startups Intellectual Property Rights.

Author: This blog is written by Ms. Harshita Jangid, a passionate blogger & intern at  Aapka Consultant.

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Startups Intellectual Property Right Protection Scheme