Company Incorporation Zero Fees Update: Now Much Easier and Pocket Friendly
On the occasion of 69th Republic Day, the Ministry of Corporate Affair has made starting a business much easier for Private Limited Companies, and LLPs. MCA has announced company incorporation zero fees update, this post will guide you all.
Reserve Unique Name (RUN) Form (Revised Name Approval Process)
An application for reservation of a name shall be made through the web service available at www.mca.gov.in by using RUN (Reserve Unique Name) along with a fee of Rs 1,000 which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre”.
RUN a new platform for reservation of name of the Company. All you need to know about is:
A small Webform with 4 information – Entity Type – CIN, only in case of name change – Proposed name (Auto check facility available) – Comments (Proposed objects and any other comments)
An approved name is valid for a period of (i)20 days from the date of approval (new company) or (ii)60 days from the date of approval (existing company).
Director Identification Number (DIN) Application – Revised Rule
As per the revised amendment now if you want to apply for DIN then you can apply via the SPICE Incorporation Form, DIN will be an issue only at the time of Incorporation only.
As per the new rule DIN will be issued to the company to which the Director would be added and DIN Declaration to be mentioned the CIN Number.
In the short allotment of DIN by allotting it through combined SPICe Form only at the time of an individual’s appointment as Director(in case he/she doesn’t have a DIN).
Company incorporation zero fees:
Ministry of Corporate Affairs announced Zero Fee for incorporation of all companies with an authorized capital up to Rs.10 lakh.
Provided further that in case of companies incorporated, with effect from the 26th day of January 2018, with a nominal capital of less than or equal to rupees ten lacs or in respect of companies not having a share capital whose number of members as stated in the articles of association does not exceed twenty, fee on INC-32 (SPICe) shall not be applicable.
Form No.INC-7 shall be omitted;
Provided further that in case of incorporation of a company having more than seven subscribers or where any of the subscribers to the MOA/AOA is signing at a place outside India, MOA/AOA shall be filed with INC-32 (SPICe) in the respective formats as specified in Table A to J in Schedule I without filing form INC-33 and INC-34
How to link mobile number to Aadhar Card : [FULL GUIDE]
Aadhar has become an important document not only to establish your identity and avail social security schemes but also for financial matters such as filing income tax returns (ITR), keeping your bank account active, and investing in financial products like mutual funds. This article will guide you how to link mobile number to Aadhar card [AdSense-B]
Earlier on in the year, it was announced that customers had to link their mobile numbers with their Aadhar. There are many advantages of linking the two. For example, you can e-verify your ITR using Aadhar. In this process an OTP is sent to the mobile number linked to your Aadhar. You can even update personal details linked to your Aadhar online using an OTP sent to your registered mobile number. Downloading your e-Aadhar also requires verification via OTP sent to your mobile number.
If you want to link mobile number to Aadhar, there can be two scenarios:
1. You are linking it for the first time; 2. You have changed your phone number and want to update your Aadhar data by replacing the old number with the new one.
How To Link mobile number to Aadhar for the first time:
This needs to be done offline. Most online transactions are OTP (one-time-password) authenticated, i.e., the password is sent to the registered number. Since you are linking your number for the first time, online authentication is not possible. To do this offline you need to follow these steps:
• Visit your nearest Aadhar center (Click here to locate nearest aadhar center) to get the Aadhar Update/Correction Form or Click here to download form from the UIDAI website. [AdSense-B] • Fill out the form correctly; submit it to the concerned person at the center and mention on the form that only mobile number is to be updated. • While submitting the update form, along with photocopy of your Aadhar card you also need to provide photocopy of an Identity proof document such as PAN Card, Passport, Voter ID card (Click herefor the complete list of supporting documents). [AdSense-B] • Following the submission your biometrics will be verified at the enrolment center. Your thumb impression will be verified. While applying for Aadhar your biometrics were recorded and to authenticate the changes, they are verified. • After verifying the biometrics, you will be given an acknowledgement slip. Usually it takes 2-5 working days for the updation to happen but as per the UIDAI helpline the turnaround time for the updation is 10 days.
You can link mobile number to aadhar card online, but make sure that your existing number linked to your Aadhar, is functional and handy. This is because the OTP to authenticate the updation would be sent to your existing number. You will be able link your new mobile number with Aadha only after submitting the OTP sent on your old number.
• On the UIDAI website, there’s an option under the Aadhar Update tab that will redirect the user to the Aadhar Self-Service portal. (Click hereto go to the portal directly) [AdSense-B] • Enter your Aadhar number, and the Captcha text and request for OTP. • The OPT will be sent to your existing mobile number, and after submitting it you’ll be redirected to a new page, where you can update the desired details. • Under ‘Select field(s) to update’, select ‘Mobile Number’ • Now enter your new mobile number that you want to record in the database and submit.
How To Claim GST Input Credit : Conditions To Be Satisfied
First of all, let us know what is GST Input Credit. Well, GST Input credit is nothing but a balance of the amount of tax you paid at the time of purchasing goods that is kept safe until you pay your tax for your output. Now, when you pay your tax of output, automatically the previous balance amount kept safe for you will automatically be used and your total tax to be paid will get reduced. We will also discuss how to claim GST input credit but before that, let’s understand by an example how this thing actually works
Example: Suppose X bought goods for Rs 100 and paid Rs 18 additional as GST(Total: Rs 118). Now X sold goods to Y for Rs 200 and charged GST of Rs 36(Total : Rs 236). Now, X can claim GST input credit of Rs 18 that he paid at the time of purchases while paying tax to the government. (i.e net GST, X need to pay is only Rs 18).
How To Claim GST Input Credit [AdSense-B]
To claim GST input credit –
You must have a tax invoice(of purchase) or debit note issued by registered dealer Note: Where goods are received in lots/installments, credit will be available against the tax invoice upon receipt of last lot or installment.
You should have receivedthe goods/services Note: Where recipient does not pay the value of service or tax thereon within 3 months of issue of invoice and he has already availed input credit based on the invoice, the said credit will be added to his output tax liability along with interest.
The tax charged on your purchases has been deposited/paid to the government by the supplier in cash or via claiming input credit
Supplier has filed GST returns Possibly the most path breaking reform of GST is that input credit is ONLY allowed if your supplier has deposited the tax he collected from you. So every input credit you are claiming shall be matched and validated before you can claim it. Therefore, to allow you to claim input credit on purchases, all your suppliers must be GST compliant as well.
There’s more you should know about input credit –
It is possible to have unclaimed input credit. Due to tax on purchases being higher than tax on sale. In such a case, you are allowed to carry forward or claim a refund. If tax on inputs > tax on output –> carry forward input tax or claim refund If tax on output > tax on inputs –> pay balance No interest is paid on input tax balance by the government
Input tax credit cannot be taken on purchase invoices which are more than one year old. Period is calculated from the date of the tax invoice.
Since GST is charged on both goods and services, input credit can be availed on both goods and services (except those which are on the exempted/negative list).
Input tax credit is allowed on capital goods.
Input tax is not allowed for goods and services for personal use.
No input tax credit shall be allowed after GST return has been filed for September following the end of the financial year to which such invoice pertains or filing of relevant annual return, whichever is earlier.
Conditions for claiming Input Tax Credit [AdSense-B]
You must be registered under GST
Supplier of goods/service must be registered under GST
Supplier has issued ‘Tax Invoice’ to you
Supplier has actually deposited the tax to the government.
Supplier has furnished the GST return and has credited your GSTIN by amount of GST paid by you to him
If the inputs are received in installments, you will be able to get credit only when last installment is received.
Payment must be within 180 days of the date of issue of invoice. In case you have not made the payment within 180 days, credit availed by you will be reversed. However, you will be able to claim credit once you make the payment again.
In case of part payment, proportionate credit will be allowed. [AdSense-B]
Complete Guide : Will I Get The GST Input Credit Or Not? [AdSense-B]
GST has been welcomed with all the pomp and show, and deservingly so. It has inherent advantages. We all know that amount paid as GST on purchases or even expenses can be claimed as GST input credit. This was not possible in the earlier regime of VAT and Service Tax.
Example: If you were dealing in sale of goods where VAT was chargeable and had paid service tax for availing service of Chartered Accountant, you could not avail the credit of service tax paid to your CA against payment of VAT. This is now possible under GST since there is no difference in tax on goods or services. Now, if your VAT payable on goods sold is Rs 30,000, and if you availed services of a CA and paid GST of say, Rs 18,000, then you will get a GST input credit of Rs 18,000 against payment of Rs 30,000 GST payable. Hence, you net GST payable will be Rs 12,000 only.
Woaahh, what a relief to an entrepreneur. But, but, but, there is little sad news, just little.
There are certain expenses, on which credit will not be allowed.
This post will guide you on how to start a partnership firm but before that let us know what exactly is a partnership firm. A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the Partnership Deed. Partnership registration is relatively easy and is prevalent among small and medium-sized businesses in the unorganized sectors.
Why should I set up a partnership firm?
Relatively Cheaper than Company and LLP
Minimal Compliances
Easy to establish
Audit not required
Is a partnership firm a separate entity?
The partners in a partnership firm are the owners, and thus, are not a separate entity 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.
Is partnership firm registration necessary?
No, partnership registration is not necessary. However, it is advisable for you to have a partnership firm registration online. Also, remember that for a partner to sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For this reason, it is recommended that larger businesses register the partnership deed.
What are the main aspects of a partnership deed?
The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operation of the firm, any capital invested by each partner, the type of partnership and profit-sharing matrix, rules and regulations to be followed for intake of partners or removal.
Documents Required for Partnership Registration
Form No. 1 (Application for registration under Partnership Act)
Original copy of Partnership Deed, signed by all partners
Affidavit declaring intention to become partner
Rental or lease agreement of the property/campus on which the business is set
Start A Private Limited Company In Delhi / Bangalore / Mumbai – Anywhere in India
If you want to Start A Private Limited Company in Delhi, Pune, Bangalore, or anywhere in India, then this article will guide everything you need to know to kick off. A Private Limited Company can be incorporated by following the provisions and regulations stated under the Company’s Act 2013. It enjoys greater stability, legal identity, it is flexible and a greater combination of capital. This is supported by the diversified and different abilities of capital accumulation. The private company can be easily identified by just looking at the name, the number of members it incorporates the management, directors, etc. The number of directors who are to incorporate must be mentioned in the Articles of Association. However, the private companies who enjoy its distinguished legal entity and the private companies which are the subsidiary of the other public companies are differentiated in Company’s Act.
Minimum Directors Required to Start Private Limited Company:
The minimum number of persons required for the incorporation is 2. Whereas the maximum limit of the number of persons is 50.
How Much Time Does It Take To Start Pvt. Ltd. Company:
It usually takes 15-20 days to register a Private Limited Company through INC 29 (A single application for Reservation of Name, Incorporation of Company, and Allotment of DIN), subject to ROC processing time. Venture-Care makes Private Limited Company Registration easy for you.
The minimum capital required to start the private limited is Rs. 100,000
DIN of two members.
Digital Signature for all directors
Consent either from the subscriber or director
Address proof of the registered address
NOC which will be provided by the owner of the property or premises
Minimum of Director must be resident of India
Procedure toStart a Private Limited Company:
Documents Required to Start a Pvt. Ltd. Company:
Two colored photographs of all the members
PAN card of all the associates
Address proof of all
If the premises is on rent or lease, the respective documents need to be provided
Signature on DSC form
Signature on Affidavit for the DIN
Signature on the consent form
Signature on subscriber sheet
Advantages of Pvt. Ltd. Company
Separate Legal Entity
A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
Uninterrupted Existence
A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
Borrowing Capacity
A company enjoys better avenues for borrowing funds. It can issue debentures, secured as well as unsecured, and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns
Easy Transferability
Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with a share certificate can easily transfer shares.
Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorship and partnerships, in a limited liability company, the liability of the members in respect of the company’s debts is limited.
FAQ- Frequently Asked Question
What are the rules for picking a name for a private limited company?
The registrar of companies (RoC) across India expects applicants to follow a few naming guidelines. Some of them are subjective, which means that approval can depend on the opinion of the officer handling your application. However, the more closely you follow the rules listed below, the better your chances of approval. First, however, do ensure that your name is available.
How much time is needed for setting up a private limited company in India?
If you have all the documents in order, it will take no longer than 15 days. However, this is dependent on the workload of the registrar.
Do I need to be physically present during this process?
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
What documents are required to complete the process?
All directors must provide identity and address proof, as well as a copy of the PAN card (for Indian nationals) and passport (for foreign nationals). No-objection certificate must be submitted by the owner of the registered office premises.
Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
What is the minimum capital needed to form a private limited company?
There is no minimum capital required for starting a private limited company.
Can the limited liability partnership (LLP) be converted to a private limited company?
No, one cannot convert an LLP into a private limited company as it is not an MCA. The LLP Act, 2008, and the Companies Act, 2013, both don’t have any provisions on the conversion of the LLP is a private limited company. However, if one wants to expand their business they can register a new private limited company with the same name. The LLP company needs to just issue a no-objection certificate.
Can one register a private limited company on their home address?
Yes, the company can be registered at the owner’s home address. A copy of the utility bill is required to be submitted.
Does one have to be present in person for the incorporation of a private limited company?
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
Can NRIs/foreign nationals become directors in a private limited company?
Yes, an NRI or a foreign national can become a director of a private limited company. He or she must obtain a DIN from the Indian RoC. They can also hold a controlling stake in the company. As long as at least one director on the board of directors is an Indian resident.
Who can help me to Start Pvt. Ltd. Company
You can choose from a list of CA in Delhi from our homepage. They can help you start a Pvt. Ltd. company in Delhi, Pune, Bangalore, or anywhere in India without any hassle. All you need to do is make a phone call, sit back and relax.
