Since agriculture is the backbone of the Indian economy, this sector employs more than 50% of India’s total labor force and accounts for nearly 17-18% of the country’s GDP. In 2002, Producer Company Registration in which the concept of “producer company” was introduced to solve the urgent problem of farmers and farmers collectively referred to as producers. This article will tell you more about the manufacturing company registration process, training, and benefits.
Definition of Producer Company
A producer company allows farmers’ cooperatives to function as legal entities dependent on the Corporate Law Department.
The purpose of the manufacturing company involves all or part of the following issues:
Production,
Harvest,
Procurement,
Qualification,
Pooling,
Handling,
Marketing,
Selling,
Import/Export of primary products.,
Members of producer companies can carry out these activities independently or through other facilities:
Processing, including preserving, drying, brewing, distillation, harvesting, canning, and product packaging
Manufacturing or sales of equipment supply/machinery
Providing education to mutual assistance between members and others.
Provide technical services, consulting services, training, R&D, and all other activities to promote the interests of its members.
The generation, transmission, and distribution of energy, the recovery of land and water resources, their use, protection, and communications related to primary products.
Insurance of producers or their primary produce,
Promoting techniques of mutuality and mutual assistance,
Social measures or benefits that are beneficial to members are determined by the board of directors.
Other activities may in any way contribute to the observance of the principle of mutual benefit among members.
The financing of acquisitions, processing, marketing or other activities described in paragraph (aj) includes the provision of credit lines or other financial services to its members.
Formation and Producer Company Registration
A production enterprise should include:
Ten or more people, each of which is a manufacturer;
Two or more production bases; or
An association of ten or more individuals and manufacturing organizations. Manufacturing companies must comply with the targets set by the law.
The registrar will issue the registration certificate within 30 days after receiving the required documents.
Steps: How to Form a Producer Company
The procedure for registering a manufacturing company is almost the same as for a limited company:
Step 1
Receive the digital signature certificate (DSC) and director identification number (DIN) of all directors, and provide self-verified copies of documents, such as PAN, Aadhaar card, and contact information,
Step 2
File the proposed enterprise call in FORM-1A with the RoC of the respective country(state) at the side of the prescribed fee. Notify the RoC Availability of the name.
Step 3
Necessary documents, If the MoA includes the company’s assets and the amount of registered capital, the AoA includes the company’s articles of incorporation.
Step 4
Submit other documents, such as the formal statement on Form B. 1 stating compliance with all relevant issues related to the establishment of the company; an oath signed by the subscribers of the proposed company The book requires approval from directors, utility bills, and NOC.
Step 5
After the certificate is issued, the company becomes a legal entity like a limited company. Under no circumstances can you become a joint-stock company.
Operating a Producer Company Registration
The basic requirements that a manufacturing company must meet are below. They abide by the following rules:
Every manufacturing company must have at least 5 directors and a maximum of 15 directors.
After the company is registered, the directors must join within 90 days.
Likewise, the directors may be appoint or elected by the members in the annual general meeting (AGM)
Each appointed director must follow the relevant provisions for a term of at least one year and a maximum of 5 years.
The general meeting of shareholders held once a year, and you will receive a notice stating the meeting agenda, MoM (minutes of the meeting), audited balance sheet, and other information. The notice will be issue no later than 15 months between the date of the annual general meeting and the date of the next general meeting.
In addition, the first general meeting of shareholders held within 90 days from the date of registration.
The overall balance sheet, P&L accounts, and records are check at each general meeting of shareholders’ and directors’ reports. It submitted to the Registrar within 60 days after the general meeting of shareholders.
If the manufacturing company forms the producer companies, these companies are represente by the executive director and president.
In addition, proper books of account are maintaine for cash flows, expenses, sales and purchases of goods, assets and liabilities, labor costs, and income statements.
Internal audits must be conducted by auditors in a certain frequency and manner under the methods prescribed by the company’s articles of association and per the Institute of Certified Public Accountants 1949.
Benefits of founding a manufacturing company
Manufacturing companies enjoy the following benefits:
Each member of the company receives a sum of money, in which the value of one or more products allocate to them determined by the directors. Distribution in cash or through equity. This may depend on the conditions under which board.
Members can obtain bonus shares proportional to the withholding amount.
In addition, the provisional income regulations and the remaining amount after the regulations are form can be allocate as sponsorship bonuses and participation in business activities in the form of cash or shares.
The members of the manufacturing company are also entitle to receive financial assistance not exceeding 6 months through the credit line.
Loans and guaranteed loans, as stated in the terms, stipulate repayment within 3 months, up to 7 years.
If you are looking for your Producer Company Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.
Registration of Online homemade food business, If cooking food is your passion, now is the best time to turn your passion into a mature career. Turn your hobby into a profitable business by selling homemade food in the comfort of your home.
Online homemade food business, shopping at home?
In this article, we will reveal the secrets of successfully starting a grocery store at home, highlighting the different permits you need to obtain and other legal requirements you need to meet to get started.
Register with FSSAI?
When you sell homemade food online, you need to make sure that people trust your business. Obtaining an FSSAI license is the easiest way to gain credibility and trust. FSSAI registration proves to your customers that you comply with the highest quality and hygiene standards when preparing food at home. You can provide your FSSAI registration number on the online portal used to sell groceries to assure your customers that you will not jeopardize their safety.
Do I need to register with FSSAI to sell homemade food online?
According to the Food Safety Act 2006, all food operators in India must be registered with FSSAI. Therefore, if you want to sell homemade food online in India, you need to register with FSSAI. If you are a small-scale business, you only need to register with FSSAI. If you want to operate a large-scale business, you need a license.
FSSAI license or registration is also subject to company bills. The three options for people who wish to sell homemade food online are as follows:
If the annual bill is less than 12 lakh, please use Form A to register.
The government permit is billed annually on Form B: find 12 to 20 lakh.
Obtained a central license through Form B, with annual sales exceeding 20 lakh.
If the restaurant operates in multiple states, the headquarters must also purchase additional central licenses. However, in most cases, the homemade grocery store is a small local business and only requires FSSAI registration. Documents required to obtain an FSSAI license.
Documents that may be required to obtain an FSSAI license:
Form A/Form B duly filled out and signed.
2 Passport size photo.
The PAN card of the alleged owner.
Confirm the venue address.
Certificate of Registration/Articles of Association or Articles of Association
Grocery List Form
Declaration form
Authority letter
Form IX: The Board resolution
Howtoopenan online grocery store:
Before starting such a business, you must first conduct a market analysis to understand exactly what to do and how to sell. And look for ways to position yourself as a tool to fill this gap by making it your unique selling proposition.
you need to find local sellers and suppliers who can help you ship groceries at competitive prices. Develop brand-specific packaging and labeling systems to differentiate you from the competitors.
Then register your grocery store with FSSAI.
If you want to expand your activities in the future, you will need to register for consumption tax, as this may exceed the tax exemption limit.
Before proceeding, please consult your local health department and community for more information about legal requirements.
Cooperate with other food e-commerce platforms, or you want to deliver it yourself. If you want to use the platform, please register on their portal and complete the verification process.
Otherwise, you need to set up your website or application to accept orders. Create a website and publish your menu and product prices. To determine competitive food prices, compare your products with those of competitors by analyzing the market.
If you want to choose online payment instead of the cash on delivery option, you may also need to work with payment platforms to ensure smooth transactions.
First, establish a good reputation for customers and provide them with discounts and offers to spread your message about yourself.
Remember to be creative in branding and marketing. Finally, you should continue to develop innovative marketing strategies to help you grow your brand and business organically.
Important considerations when opening an online grocery store at home:
FSSAI licenses are valid for one to five years. According to FBO regulations, all family catering companies must apply for an extension at least 30 days before the license expires. If they fail to complete by the deadline, they will have to pay a fine of ₹100 for each day of extension. Therefore, all online food companies need to track the expiration date of their licenses.
If the authorities discover that a food company is not registered with FSSAI or does not comply with its conditions, there is a risk of serious legal consequences. Unlicensed work can result in imprisonment or a fine of up to 5 lakh. Selling low-quality food can be fined up to 5 lakh.
If you want to expand your grocery store in the future, registering may help. In this case, it is best to register as a sole proprietorship, LLP, or partnership.
India’s food safety laws are slightly different. Therefore, it is best to contact a local prosecutor with experience in municipal regulations. This is necessary so that you can meet all requirements.
In some cases, you may need another license to open a grocery store. The following are some of the licenses you may need:
What is Shop & Establishment Registration In Delhi
Most of the businesses in India including shops, restaurants, cafes, etc.; are regulated under the provisions of the Shop & Establishment Registration In Delhi Act. To regulate the work environment, as well as the rights of the workers, are being protected, it is mandatory to get your business registered under the Shop and establishments Act. However, the rules and regulations vary from state to state, in which the act aims at providing proper working conditions to the laborers and taking care of their holidays, wages, and rights. The License is issued to the following establishments:-
Business
Trade
Professions Registered under the Shop and Establishment Act.
The Shops and Establishment act makes sure that both organized and unorganized sectors are providing appropriate working conditions to the laborers. Such as the applicant (Establishment) has to file an online application concerning his state’s official portal.
What are the Aspects Regulated as per the provisions of the Act?
The Shop and Establishment Act has made various provisions to regulate the aspects relating to the working of shops and establishment in India. Following are Some Key Aspects Regulated by Them:-
Maximum working hours of the employees/ labors
Time duration allotted for meals and rest
Regulating laws to prohibit child labor in factories and other establishments
Women employment
Number of compulsory weekly holidays provided to the employees
Close/off days of the establishments/shops
Opening and closing hours of the establishments/shops
Wages to employees for the holidays
Accidents coverage policies
Preventive measures against fire
Proper ventilation and lighting for workers
Clean and hygienic premises for the workers
Conditions and timing for the payment
Regulation of deductions on the payments
Leave Policy
Dismissal
Also, Employee’s proper record keeping
Note: Additionally, any more information related to the Shop and Establishment Act can be gathered on the relative state government portal.
What are the Benefits of Registration?
Legal Recognition : Shops and Establishment license provides legal recognition to the respective establishment/shop.
Acts As A Business Proof : For further business registration in India, the Shops and Establishment license acts as a business proof.
Helpful In Opening The Bank Accounts And Other Formalities : The registration of Shops and Establishments becomes necessary for reasons like opening a bank account in the name of the establishment/shop.
Provides A Platform For Raising New Investment : The Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capitals for the proposed business establishment.
Avails The Government Benefits : By getting the shop and establishment license, the entrepreneur can avail of the government benefits in different stages of business.
Saves Time : As the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.
Who are Eligible to Obtain a Shop and Establishment License in India?
Wholesalers or the retailer’s shops and establishments
Service Centers
Warehouses, Storerooms, and Godowns
Additionally, any other working places
Hotels
Eateries and restaurants
Entertainment houses, Amusement parks, Theaters, etc
What are the Documents Required for the Shop & Establishment Registration In Delhi?
Documents required for Shop and Establishment License –
Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
Documents such as a Passport size photograph of the employer
The affidavit, Cancelled cheque, and also Bank statement,
As well as a photo of the establishment/ shop along with the employer
In the case of rented property, a copy of the rent agreement
Additionally, Any utility bill of the working premises.
Other Documents Required As Per The Establishment Or Business Entity
In this case of a trust, a list of the number of trustees
Certificate of incorporation, MOA, and AOA as per the Companies Act,
In this case of co-operative societies, as a list of number of members and chairman
Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.
If you are looking for your Shop & Establishment Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.
Public Limited Company Registration In Delhi in which companies enjoy all the rights of a corporate entity with limited liabilities and is an ideal choice for small and medium scale enterprises who wish to raise equity capital from the general public.
Just like other companies, Public Ltd. The company is also registered as per the rules and regulations of the Companies Act, 2013. A Public Limited Company Registration In Delhi enjoys the benefits of limited liabilities for its members and has the right to sell its shares for raising the capital of the company.
It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.
It must have a minimum number of seven members whereas there is no limit for the maximum number of members.
It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.
What is the difference between the Public limited Company and the Private Limited Company?
There are various points of difference between both these companies. Here are some chief differences between both :
Point Of Difference
Public Limited Company
Private Limited Company
Members
Minimum: 7 Maximum: No Limit
Minimum: 2 Maximum: 200
Directors
Minimum: 3
Minimum: 2
Public Invitations
Yes
No
Minimum Capital Income
No
No
Issuance Of Prospectus
Required
Not Required
Name Differences
Must have “Limited” at the end of its name
Must have PVT LTD at the end of its name
Mandatory Statutory Meeting
Yes
No
Managerial Remunerations
There are no as such restrictions
Cannot exceed the limit of 11/% of the net profit
Stock Exchange
Is listed on stock exchange and stock trade is carried out publicly.
Not listed on stock exchange neither carry out stock trade publicly.
Benefits of Registration
Here are the benefits provided to the company with Public Ltd. company registration
Limited Liabilities For The Shareholders Of The Company
Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite it, the shareholders are responsible for their legal offenses. All the members, directors, and shareholders enjoy this right and their assets cannot be seized by any bank, creditors, or government bodies.
Perpetual Succession
A public limited company is considered a corporate body that has perpetual succession. This means in case of death, retirement, insanity, and insolvency of one or more members/shareholders/ directors, the company continues its existence.
Improved Capital Of The Company
In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.
Borrowing Capacity
A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most financial institutions find public companies more prominent than other unregistered companies.
Fewer Risks
Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.
Better Opportunities For Growth And Expansion Of The Company :
Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.
What are the basic requirements of Online Public Ltd. Company Registration in India ?
According to the provisions of the Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:
The proposed company must have a minimum number of 7 shareholders
The proposed company must have a minimum number of 3 directors
No minimum capital required
At least one director should have a Digital Signature Certificate
Memorandum of Association and Article of Association.
After approval from the Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”
Documents Required for Public Limited Company Registration
Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
Address Proof of all the proposed directors and shareholders of the company.
PAN card details of all the directors and shareholders
Utility bills such as telephone, gas, water, or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.
A NOC or No Objection Certificate from the landlord of the business place.
DSC or Digital Signature Certificate of the designated directors
To get start with Public Limited Company, reach CA in Delhi homepage.
Sole Proprietorship In Delhi| Process | Documents Required
A Sole Proprietorship In Delhi registration is a type of enterprise in which a business is owned and managed by an individual. In a sole proprietorship business, there is no legal difference between the owner and the business. To put it in another way a sole proprietorship is not a legal entity, where an is responsible for clearing off the debts of the business. The sole proprietorship is a preferable and popular business form. It is simple and easy to form a nominal cost.
A Sole Proprietorship In Delhi is a convenient and simplified way to commence a business in India. It is neither considered as a corporation nor a company where the business is owned by a single person who is the owner/director/shareholder of the proposed entity. Some common examples of proprietorship businesses are shops such as chemists, saloons, groceries, etc. An individual who wishes to sell his/her products or services can run their business as a sole proprietor and can enjoy the rights provided to a registered legal company. Most of the entrepreneurs find it as an ideal business entity and have registered their business under it.
The loss or profit of the company is considered as the loss or profit of the individual and the income of the company is considered as the income of the owner as per the Income Tax Act.
Options Available For Registration
Registering a Sole Proprietorship In Delhi business is a digital process that can be accompanied by the help of an expert. However, a person interested in registering as a sole proprietorship requires fulfilling some basic requirements like opening a bank account in the name of the business entity, etc.
Registration through Udyog Aadhaar under Ministry of MSME
Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. A Udyog Aadhaar is a unique identification number offered by the Ministry of MSME to business owners. Even a sole proprietor can apply for a udyog aadhaar along with all other entities such as company and partnership. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of Sole Proprietorship Registration under the MSME act.
Shop And Establishment Registration
Individuals must have shop and establishment licenses as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm. Here, shop means any premises:
a place where goods are sold, either by wholesale, retail, or
a place from where services are offered to customers.
It includes an office, godown, a store-room, warehouse, or workplace, whether in similar premises or otherwise, which is used in connection with such business/trade.
It does not include a factory, a residential hotel, commercial establishment, restaurant, eating house, theater, or another place of public entertainment or amusement;
If you have a shop under the definition given above, then you can register your sole proprietorship business by making an application to the local Municipal Corporation of your city under the Shop and Establishment Act.
Registration Under GST
GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration is another way to get your sole proprietorship business registered. If you are dealing in any kind of exchange of goods and services then you can apply for GST registration. It is a great method of getting an identity concerning your sole proprietorship. However, certain important considerations must be evaluated before opting for this method.
Every registered business has to compulsorily collect the tax from the customers & file the GST returns periodically. He doesn’t need to get registered & collect GST if a sole proprietor has a turnover of lesser than Rs. 40 Lakhs (subject to few exceptions)
PAN Card of the proprietor
Aadhar Card of the proprietor
Passport size photograph of the proprietor
Office proof
Bank Statement copy that contains the bank account number, IFSC code, and address
Trademark Registration
Trademark Registration is required in case you wish to trade your goods or services with a special name or brand. It is profitable where there is a threat of some misuse of the name or mark used in your business.
License/Certificates Required According To The Nature Of Business
Drug license
Regional Transport Office(RTO) permit
Mandi license
Labour license
FSSAI license registration -Food Safety and Standards Authority of India
Certificate issued by the Institute of Chartered Accountants of India, etc
An individual can select any of the below-given options for the registration:
A Sole Proprietorship In Delhi Registration is one of the best choices for entrepreneurs who wish to handle everything on their own. It is the most common form of business entity, where the small business owners generally start their businesses as Sole Proprietorship only. The benefit of a Sole Proprietorship Registration can be classified under two categories: those are 1) Entity type benefits 2) Registration benefits.
Fewer Compliances
Easy to start
Cost-Efficient
Absolute Control
Ease in opening the bank account in the name of the business
Separate Business Identity
Provides flexibility in carrying out business activities
Easy to start and close
Hassle-free business structures with very few compliances
Self- Accountability
Being your Boss
Decision-making power
Don’t have to share your income and profits with anyone
No disputes between the Members
Benefits of Registration
Simplest Form Of Business : We generally come across various shops in our local places carrying out small business operations. They are the Sole Proprietorships who do not involve any complexities & can easily behold by a single person.
Easy To Start : You must note that Sole Proprietorships do not need mandatory registrations under the eye of law. They only require licenses or registrations specific to the nature of a particular business. Therefore, any person can start his/her business very easily with a trading name of their own choice. Any trade name can be used until and unless it does not infringe with any brand name.
Require Lesser Investment : Sole Proprietorships’ business needs a minimal amount of investment to start at the initial phase. Therefore, it is a great opportunity for that entrepreneur who wishes to set up a business with low investments as no minimum capital is prescribed for starting a Proprietorship business.
No Sharing Of Earned Profits : The sole proprietor is the only person who manages and operates the whole business, which means that 100% of the profits belong to only him/her. It is profitable to note that no one else is entitled to a share in the profits earned.
Minimum Legal Compliances : It is important to note that the sole Proprietorships are not administered by any specific law; therefore the legal compliances are automatically minimal by their nature. They do not need to avail the Certificate of Incorporation or Registration Certificate from the concerned authority. Subsequently, the compliances depend upon licenses or registrations taken by a specific sole proprietorship. To make it simpler, sole proprietorship have to comply with the GST return filing if it registers itself under GST law, or any other related laws. Therefore, there is no such obligation of uploading the Annual report or other reports on the website of the Ministry of Corporate affairs.
Minimum Income Tax : In general, no separate tax is needed to be paid because the Sole Proprietorship involves only a Sole proprietor. Sole Proprietorship and the Sole proprietor are meant to be the same or the purpose of calculation of tax liability. The assets & liabilities of the Sole Proprietorship are the assets as well as the liabilities of the Sole Proprietor. By the Income Tax Act, the sole proprietor is needed to file his/her IT returns, showing the profits earned in the business in that IT return itself. It must be noted that the tax is calculated at income tax slab rates as applicable to an individual, therefore any separate return is not required for the Sole Proprietorship firm.
Information Remains In Private Hand : Unlike Limited Liability Partnerships, Companies, etc. where audit reports and financial statements are made public for the users via the MCA (Known as Ministry of Corporate Affairs) portal, the financial reports of Sole Proprietorships remain in private hands. Also, the list of all sole proprietorships is not easily available with the Government officials/websites.
Own Decision Making : It is important to note that there is no chance of a conflict of ideas or any sort of decisions since the Sole Proprietorship is managed & operated single-handedly. Sole Proprietors has the sole right to do whatsoever he/she thinks to do is correct for the business.
No Requirement For Audit : Sole Proprietorship is not obligatory to get its accounts audited in every financial year under the eye of law. However, the audit will depend upon the nature of the business & the threshold turnover limits that have been specified for the conduct of the audit for that particular firm.
Documents Required for Sole Proprietorship In Delhi
Aadhar Of The Proprietor: The proprietor of the proposed firm has to submit a scanned copy of his/her aadhar card. Aadhar card is required to register any business in India. A person cannot file an Income-tax return unless his/her PAN card is linked with an aadhar card. In case you don’t have an aadhar card or its information does not match with a PAN card, get it corrected before the submission.
PAN Card Of The Proprietor: In addition to the Aadhar card, a PAN card is also a mandatory document for a proprietorship business registration. PAN card is issued by the Income-tax department t of India which contains a unique PAN card number. All the details of the prerequisite documents should match with the details of the PAN card.
Current Bank Account Details: If the proprietor owns a PAN and Aadhar card, then he is liable to open a bank account in the name of his company. In addition to these documents, he would require identity and address proof. Documents regarding GST registration are also required to open a current bank account.
Office Proof: A proprietor can carry out his business activities at any owned or rented place. He has to provide proof of his registered office, documents worked as proof are: In case of owned property: any utility bill such as electricity bill, gas bill, water bill, etc. along with the NOC. The bill should not be older than two months in case of Rented property: lease/ rent agreement along with the NOC from the landlord. Additionally, few registrations given as follows are required for the registration purpose of the proposed firm:
SME Registration: Individual requires registering as an SME (small and medium enterprise) as per the provisions of the MSME Act. For it, you have to submit an online application. However, it is not compulsory but is beneficial for the company, especially during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of SMEs registered under the MSME act.
Shop And Establishment Registration: Individuals must have a shop and establishment license as per the local laws. It is issued by the municipal parties based on the number of workers/ employees in the firm.
Registration Under GST: GST registration is mandatory to carry business activities in India. Even if you are doing online business, you would require a GST number. GST registration can be done in 5 working days with the following documents:
PAN Card of the proprietor
Aadhar Card of the proprietor
Passport size photograph of the proprietor
Office proof
Bank Statement copy that contains the bank account number, IFSC code, and address
Post Compliances :
One has to file annual Income Tax returns on time.
One has to file his GST in case they have GST registration
If liable for TAX audits, the individual should deduct TDS (tax deducted at source) from employees income and file TDS returns
FAQ- Frequently Asked Question
Who can start a Sole Proprietorship?
Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.
How long does it take to establish a business with Sole Proprietorship?
A Sole Proprietorship business does not take more than 15 days to set up and start functioning. This simplicity makes it popular among small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.
What businesses are commonly run as Sole Proprietorships?
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewelry shops are sole proprietors, but it is not recommended.
Aside from a current account, is there no need for any other registration?
This depends on the business you’re in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North-Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under the Shops and Establishments Act.
Is it cheaper to run an LLP than a private limited company?
Yes, it is much cheaper to run an LLP than a private limited company. Mostly because compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as private limited companies, in their first year on registrations and compliance work.
What if I wish to convert from Sole Proprietorship to Private Limited Company or Partnership?
The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.
To get started with Sole Proprietorship, reach out to Chartered Accountants on CA in Delhi‘s homepage
A partnership firm is a business structure in which two or more individuals manage and operate a business by the terms and objectives set out in a partnership deed that may or may not be registered.
A Partnership Firm Registration In Delhi enables a well-recognized business structure formed with the mutual consent of all the partners for a profitable purpose. The firm is managed, owned, and controlled by a set of people that are known as partners and have some shared capital in the firm. A partnership firm is done under the Partnership Act, 1932 with very little documentation and formalities.
Partnership firms are distinguished as registered and non-registered firms. It is not mandatory to register but it is advisable to do so. The firm offers various benefits that do not apply to non-registered ones.
Basic Clarification
An association of two or more people who have decided to indulge in business activities is regarded as a partnership firm. The motive of such an organization is to earn profit. Members of such a partnership firm are called partners. All the partners share the profits and losses in the proportion of their respective owners.
In a partnership firm, the amount of money contributed is often huge because each partner can contribute to the total amount of capital required. The decision-making process in a partnership firm is a collective business. Every partner should be on the same path before taking any decision. Without firm registration, two partners cannot start their business venture.
Things to Consider While Naming the Partnership firm
As long as you satisfy the below-mentioned terms & conditions, any name can be given to a partnership firm. The conditions are given below:-
The name shouldn’t be too identical or similar to an existing firm operating the same business actions,
The name shouldn’t contain words like a crown, empress, emperor, empire, or any other words which show approval or sanction of the government.
Benefits of Partnership Firm Registration in Delhi
Easiest Business Structure : Partnership firms are one of the easiest business structures that can be started by formulating a partnership deed for which is necessary. Hence it can be started when the partners are ready and with minimum documentation, whereas other firms require at least 10-15 days covering up all the formalities like obtaining DSC, DPIN name approval, etc.
Ease In Decision Making : It’s easier and faster to decide on a firm registration as you don’t have to follow regulations to pass a resolution. A partner can perform transactions on behalf of the firm without any consent of other designated partners.
Raising funds : Incompetence to other firms such as proprietorship firms, funds can be easily raised in a partnership firm. Multiple partners are capable of making a more feasible contribution. It must be noted that banks consider a partnership firm more favorable for sanctioning credits and loans.
Easy Management Without Any Disputes : All the partners are assigned works and responsibilities as per their capability, as mentioned in the partnership deed. Partnership deed helps in avoiding any type of conflicts between the partners.
Ability To File Case Against Third Parties : The designated partners of the registered Partnership Firm can file a case against Third Parties to resolve disputes that have been aroused during business operation or any other case relating to the Partnership Firm in India. You must also note that any unregistered Partnership firm loses the right to file the case against a third party to resolve any disputes till the procedure of Partnership Deed Registration has been completed.
Can File Suit Against Co-Partners : It is evident in the contemporary world that the Court of Law best resolves the resolution of any dispute as no one knows when the dispute between the Partners may arise in terms of the sharing of profits or any other case relating to the operations of the Partnership Firm. In continuation to the above said, the Partners of an unregistered Partnership Firm cannot enforce any clauses of registered Partnership Deed.
Ability To Claim Set-Off : After availing of the Firm Registration, the partners enjoy the right power to claim set-off. If there is any claim against a third Party, Partnership Firm can claim the set-off when any third party files a suit against the registered Partnership Firm. This particular power of claim set-off is not available when the Partnership Firm is unregistered under the Act, Indian Partnership Act, 1932.
Enjoys Higher Credibility : A Partnership Firm that has completed the procedure of Online Registration of Partnership Firm enjoys higher credibility in comparison to an unregistered Partnership Firm. Even though, both registered and unregistered Partnership Firms are legally valid under the given Act Indian Partnership Act, 1932, the Registered Firm is highly referred in continuation by authorities over unregistered ones.
Easy Conversion Of Entity : The conversion of the registered Partnership Firm into any other establishment such as a Private Company or Limited Liability Partnership, which are broadly known as the corporate structure, can be easily accomplished.
Documents Required for Partnership Firm Registration In Delhi
Partners need to submit the documents when they are registering the partnership firm, such as partnership deed, PAN Card of Firm, Address Proof of Partners, Office Address Proof, GST Registration, Current Bank Account along with an affidavit certifying all the details mentioned in documents and deed correctly.
Partnership Deed: A partnership deed is a kind of agreement formed within the partners which defines their rules, duties, methodology, functions, and shares. It helps to avoid future conflicts and disputes between the partners. It is created and signed by all the members on the Judicial Stamp Paper that costs around Rs. 2000/-
PAN Card Of Partners: All the designated partners of the firm are required to submit their PAN cards as proof of their identity.
PAN Card Of Firm: Designated Partners of the Firm need to apply for PAN card of the firm. They have to file Form 49A to apply for a PAN of the firm. They should visit – https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html In case of the authorized partner signs the application using a DSC, it can be filed in the online mode also. Besides, the application along with the requisite documents must be sent to the nearest PAN processing centers accessible across the country.
Address Proof Of Partners: All the partners have to submit a copy of their address proof which can either be their aadhar card, voter id, ration card, driving license, etc. The address and details given in the document should match PAN card details.
Office Address Proof: Address proof of the respective working place has to be submitted. In the case of rented property, an applicant has to submit a rent agreement along with a utility bill such as electricity, water, gas bill, property tax bill, etc. Apart from it he/she has to submit the No Objection Certificate (NOC) from the landlord. If the place is owned by any partner or partners then the applicant has to submit a utility bill along with a NOC.
GST Registration : firm needs to submit a PAN card number, address proof of the firm, and identity & address proofs of the partner to obtain GST registration. The authorized signatory will sign the application either using DSC or E-Aadhar verification.
Current Bank Account : The firm needs to submit the following documents for opening a current bank account, which is as follows:-
A partnership firm is a business structure in which two or more individuals manage and operate a business by the terms and objectives set out in a partnership deed that may or may not be registered.
Is a partnership firm a separate entity?
The partners in a partnership firm are the owners and thus are not separate entities from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
How many partners can there be?
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.
How much time does it take to register a partnership firm?
The registration of a partnership firm in India can take up to 10 to 12 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a partnership firm is subject to government processing time which varies for each state.
What are the minimum and the maximum number of partners required for the formation of partnership firms in India?
A minimum of 2 persons and a maximum of 20 is required for the formation of a partnership firm.
Who can be the partners in a partnership firm?
The individuals who are residing in India can only become partners or members of a partnership firm. Foreign individuals who want to form their business in India can choose private limited companies.
What is the capital amount needed for the partnership firm registration in India?
There is no minimum capital requirement for the registration of a partnership firm in India.
Are there any grounds on which my partnership can be invalid?
Often, if the partnership agreement is not registered, the court may deem a partnership invalid. If the object of the business is illegal, the court may consider the partnership invalid and dissolve the partnership.
What is the scope of liability when it comes to partnerships?
Every partner is jointly and severally accountable for any acts/activities of the firm committed throughout the course of business while he or she is a partner. This means that if a third party is injured or a penalty is imposed during the course of business, all partners will be held accountable, even if one of the partners caused the injury or loss.
If you want to get started with Partnership Firm Registration in Delhi, reach out to Chartered Accountants from CA in Delhi‘s homepage
Registration of Section 8 Company In Delhi| Documents Required
What is Registration of Section 8 Company In Delhi
Section 8 Company In Delhi under the Companies Act, 2013 as a Non-profit organization. As we all know NPO can be registered as Trust by executing a Trust deed or, As a society under the Registrar of Societies, or, As a non-profit company under Section 8 Company of the Companies Act, 2013.
Registration of Section 8 Company is the most popular form of Non-profit organization that is established for the-
Promotion of commerce,
Art,
Science,
Sports,
Education,
Research,
Social welfare,
Religion,
Charity,
Protection of environment or any such other related object”.
In layman, a Section 8 company must promote public welfare and the income generated by the company can only be used to support the stated public cause(s) only.
What are the Consequences in case of Non-Compliance is done by Section 8 Companies?
Every Section 8 company needs to follow the compliance levied by Income tax authorities and Registrar of Companies. If the company fails to satisfy the requisite compliance, it can cause heavy penalties up to Rs 1 lakh in a year.
What if the Company gets Registered under Section 80G?
If a Registration of section 8 company under section 80G then the individual or entity donating to the Non-profit company will get a deduction of 50% from their taxable income.
As per the Finance, Act 2020, the amendment was made i.e. With effect from first June 2020, All the existing charitable and religious institutions (including NGOs) which are registered or approved under the following sections-
1. Section 12A
2. Section 12AA
3. Section 10(23C)
4. Section 80G
These are compulsorily required to switch to section 12AB for fresh registration to continue availing exemption under section 10 or 11.
What Annual Compliances are required to be made for Section 8 Companies as per the Companies Act 2013?
Section 8 companies are required to comply with the Annual Docility as per the Companies Act 2013-
Benefits of Registration of Section 8 Company In Delhi
Numerous benefits are provided to Section 8 Company. Few are mentioned below:-
No Minimum Capital : In the Registration of section 8 company , there are no minimum capital criteria.
Avail Tax Benefits : Various tax exemptions and compensations are provided to the company as well as to the donors who are contributing to Section 8 Company.
Exempted From Payment Of Stamp Duty : No stamp duty is required on the Section 8 Company registration as the company is exempted from the payment of stamp duty applicable for registration.
Separate Legal Identity : Section 8 Company has a separate legal entity as private/public company and has a distinct legal personality from its member.
Credibility : Section 8 Company has more credibility as compared to any other form of a charitable organization.
Transfer Of Ownership : Members of Section 8 Company members can easily transfer the ownership of the company.
What are the Checklists to be Considered while Registering a Section 8 Company ?
Following factors are to be considered while registering Section 8 Company :-
The Company may be registered as a company limited by shares or by Guarantee and not with unlimited liabilities.
It can be a holding company of another company and can promote another company.
The company cannot be amalgamated with a company that is not a Section 8 company.
There must be at least 1 meeting within every six-calendar month.
Non-applicability of Section 149(1), Section 178 of Companies Act, 2013
Secretarial Standards are not applicable.
No proxy by the members.
What are the Documents Required for Registration of Section 8 Companies?
Below-mentioned documents are required for Registration of Section 8 Company :-
The Articles of Association
Memorandum of Association
Declaration by the subscribers and by the directors
A confirmation for the address of the office
Two months utility bills copy
Certificate of incorporation of the Outer Country body corporate [If applicable]
A resolution passed by the global Company [If applicable]
A recommendation declared by the promotional Company [If applicable]
The interest of the directors from other entities [If applicable]
Nominee’s assent
Identity proof and residential address of the subscribers and the nominees
Identity proof and residential address of Applicants
The Declaration/Resolution of the unregistered companies
DSC (Digital Signature Certificate)
Any other document [If required]
Get started with Section 8 company by reaching out to Chartered Accountants on CA in Delhi‘s homepage
One-Person Company Registration In Delhi | Documents Required
A One-Person Company Registration In Delhi is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. It is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.
As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.
Benefits of One-Person Company Registration In Delhi
One Person Can Start The Business : Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
Complete Control By The Individual : The control remains in the hand of one person only.
Limited Liability : In case of One Person Company, the member of OPC has limited liability.
Separate Legal Entity From Its Member : Being a company, OPC has a separate legal existence from its member.
Easy Compliance And Tax Flexibility : An individual has to follow easy compliance and avails the benefit of tax availability too.
Benefits For Small Scale Industries : OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.
What are the Eligibility Criteria for One-Person Company Registration?
A natural person can form OPC who is a resident of India in the preceding calendar year.
Only 1 member can form an OPC.
The Name should be unique and should not be similar to any other existing company and trademark.
An individual cannot incorporate more than 1 OPC or
An individual cannot be the nominee of more than 1 OPC.
There must be a least 1 director.
In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
One Person Company must include in its name (OPC) Private Limited.
Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.
What Documents are Required for OPC Registration?
Below-mentioned documents are required for OPC Registration:-
For DSC Application
Passport size photo of the applicant.
Copy of Id and Address Proof.
Email Id and Phone number
Specimen Signature
Documents Required For SPICe+ Form
Identity proof
Address proof & Identity proof and of the nominee and the subscriber
Note-For Residential proof, the applicant can provide any of the following documents:-
Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
Copy of Rent agreement and No-objection Certificate from the property owner.
If the property is owned-Copy of the sale deed.
Memorandum of Association and Articles of Association
Declaration by the Subscribers and Directors
Proof of Office Address
Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
Nominee’s Consent in Form INC-3
Disclosure of Director’s Interest and any other document (if required).
FAQ- Frequently Asked Question
Who can register for an OPC?
OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.
What are the mandatory requirements of an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
How much capital is required to start an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh, to begin with, but none of this actually needs to be paid up. This means that you don’t really need to invest any money into the business.
What are the tax advantages available to an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.
How much does it cost to run an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.
How many directors can there be in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.
Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.
If you want to get started with OPC Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage
LLP Registration In Delhi is a type of partnership firm which is mostly preferred by the entrepreneur. It is the easiest form of business structure with the benefit of limited liability. LLP registration gives freedom to partners to form a partnership structure where the liability of each partner is limited to the amount they contribute to the business. Limited liability partnership firm registration means that if the partnership fails, creditors cannot ask for the partner’s personal property or income.
What is a Limited Liability Partnership Firm?
LLP Registration is a type of business structure that offers extra benefits in comparison to the partnership firm. It provides limited liability to its partners at very nominal compliance costs. Moreover, the Partners of the firm can organize their internal structure like a partnership firm.
In short, LLP is a separate legal entity from its member that has the power to extend all its assets keeping the liabilities of partners limited. Hence, an LLP Registration In Delhi is a hybrid of a company and a partnership firm.
Benefits of LLP Registration
Enjoys The Status Of Corporate Bodies : As per Section 3 of the Limited Liability Partnership Act, 2008, under LLP registration a firm is a corporate body that has come into force with effect from April 1, 2009. The Indian Partnership Act 1932 does not apply to LLP.
Perpetual Succession : A Limited Liability Partnership firm has the benefit of perpetual succession and can continue its existence even after the retirement, death, insanity of one or more respective partners in the firm.
Shares Limited Liability : The most important feature of LLP is limited liability that all its partners should entertain which means their assets are safe and won’t be used to pay the losses or debt of the firm. Apart from it, innocent partners of a Limited Liability Partnership firm are not liable to pay for the wrong deeds done by some other partner.
Fewer Credentials Are Required : A person can start an LLP firm with just two partners out of which one should be an Indian resident. The designated partners of a limited liability partnership firm can either be an individual or a corporate body. Moreover, there is no specific capital requirement to incorporate a limited liability partnership firm registration.
Quicker Decision Making Process : An agreement is printed on stamp paper and signed by all the partners that define their roles and duties in the firm. It helps them in the decision-making process.
Easy Online Registration And E-Filling
MCA has simplified LLP registration and made it an easy online procedure. The forms and the documents are filed electronically on the official MCA portal. A designated partner of a limited liability partnership firm has to obtain DSC to sign these documents and forms.
Easy Conversion : If a public or private company or a partnership firm decides to emerge as a limited liability partnership, they can easily convert as per the provisions of the applicable act.
Efficient Business Management : The business is managed by the respective partners as per their roles and duties. The designated partners of the firm are responsible for the legal compliances.
Profit-Sharing Business : Profit is equally shared amongst all the partners of a limited liability partnership firm. An LLP registration cannot be incorporated for a charitable purpose. Its purpose is to carry on business activities to earn profit.
Documents Required for LLP Registration In Delhi
Here is a list of documents required for registration :
ID Proof/PAN Card/ Of Partners : All the partners of the firm are needed to provide their PAN card at the time of registering Limited Liability Partnership.
Residential Proof Of Partners : Partner must submit anyone out of Passport, Driver’s license, Voter’s ID, or Aadhar Card. Moreover, the name & other details as per address proof & PAN card must be the same.
Photograph : Partners should also provide their passport size photograph, preferably on white background.
Passport (In Case Of NRIs/Foreign Nationals) : Foreign nationals & NRIs have to submit their passport mandatorily for becoming a partner in Indian Limited Liability Partnership. Passport has to be duly notarized by the concerned authorities in the country of such foreign nationals & NRI, in addition, the Indian Embassy placed in that country can also authorize the documents. They have to submit proof of address also which will be a bank statement, driving license, residence card/any government-issued identity proof including the address.
Documents of LLP Registration
Proof Of Registered Office Address : Proof of registered office must be submitted during the LLP registration within 30 days of its incorporation. If the designated registered office is taken on rent, in that case, the rent agreement and a NOC- no objection certificate from the landlord must be submitted.
No objection certificate will act as the consent of the landlord to give permit the LLP to use the place as a ‘registered office’ and operate its business.
In addition, anyone document out of utility bills like electricity, gas, or telephone bill must be submitted along with the application. Those bills must contain the complete address of the located premise and owner’s name & the document shouldn’t be older than the past 2 months.
Digital Signature Certificate : One of the designated partners of the LLP needs to opt for a DSC (digital signature certificate) as all documents & applications will be digitally signed by the concerned signatory.
FAQ- Frequently Asked Question
What is the eligibility of designated partners/partners in an LLP?
Any individual, or even a company or an LLP, can become a partner. However, only an individual can become a ‘designated partner’ in an LLP.
I am an NRI. Can I start an LLP business in India?
Yes, non-resident Indians and foreign nationals who are willing to enter into an LLP partnership can do so, provided they submit the necessary documents after getting them notarized by the concerned authorities. Although, at least one of the designated partners in an LLP should be an Indian national.
What is an LLP agreement?
An LLP agreement is made between the partners and the LLP regarding the relationship between the individual partners in the LLP. An LLP agreement usually consists of management policies, the inclusion of new partners, policy-making strategies, and so on.
What is the minimum number of partners required to start LLP?
According to the LLP Act, a minimum of two designated partners are required to start an LLP. The designated partners are responsible for fulfilling all the essential requirements involved in starting and running an LLP.
What kind of start-ups commonly register LLPs?
Typically, only start-ups that will not be looking for venture capital funding register LLPs. This is because venture capitalists only invest in private and public limited companies.
Is it cheaper to run an LLP than a private limited company?
Yes, it is much cheaper to run an LLP than a private limited company, particularly in your early startup days. This is because many compliances, such as an audit, apply to LLPs only after their turnover is sizable. Most LLPs spend about half as much as a private limited company in their first year on registrations and compliance work.
If you want to get started with LLP Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage
Documents Required for Private Limited Company in Delhi | Registration
Before heading to Documents Required for Private Limited Company in Delhi Registration, we need to understand the basic requirements to be known before initiating a Pvt. Ltd Company in India;
What are the basic Documents Required for Private Limited Company in Delhi?
The company must have a unique name that should not be the same as any other registered company and trademark.
It is mandatory for a company to have a minimum of two directors.
As well as it is necessary to keep in mind that the company should have a minimum of two shareholders.
All directors & members of a company should have a digital signature certificate which will be used to register a Pvt. Ltd. company.
There is no minimum capital required for initiating a Pvt. Ltd. company.
The process of online company registration is quite simple; make sure that you have a unique name for your company which will surely help you with quick company registration.
You must avoid any offensive name for your Pvt. Ltd. company registration
Documents Required for Pvt. Ltd. company Registration
Declaration by the subscribers and by the directors
A confirmation for the address of the office
Two months utility bills copy
Certificate of incorporation of the Outer Country body corporate [If applicable]
A resolution passed by the global Company [If applicable
A recommendation declared by the promotional Company [If applicable]
The interest of the directors from other entities [If applicable]
Nominee’s assent
Identity proof and residential address of the subscribers and the nominees
Identity proof and residential address of Applicants
The Declaration/Resolution of the unregistered companies
DSC(Digital Signature Certificate)
Any other document [If required]
Documents Required for Pvt. Ltd. company Registration few requirements known like Acceptable documents for ID Proof, Address Proof, etc.
Note: Acceptable documents for ID Proof listed bellow :
Voter ID
Aadhaar Card
Passport
Electricity Bill
Ration Card
Telephone Bill
Driving License
Acceptable documents for Address Proof listed bellow:
