How to Get Your Company Name Approved in India: A Practical Guideline for Entrepreneurs

Starting a business in India requires careful planning, and choosing the right name is one of the earliest and most important steps. Whether you are forming a private limited company, LLP, or OPC, you must comply with the official guideline for name approval in India. This process is regulated by the Ministry of Corporate Affairs (MCA) and is essential for moving forward with your company registration.

In this blog, we’ll break down the steps, requirements, and best practices to help you get your proposed name approved without unnecessary delays or rejections.

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Why Name Approval is Crucial for Your Business

Securing name approval isn’t just a bureaucratic formality. It’s the foundation of your brand and business identity. The guideline for name approval in India is designed to ensure that the name you choose is distinctive, legally valid, and does not infringe on existing company names or trademarks.

Following these guidelines protects you from potential legal disputes and branding conflicts later. It also builds credibility from day one.

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Official Rules for Name Approval in India

Before submitting your name for approval, it's essential to understand the criteria laid out by the MCA under Rule 8 of the Companies (Incorporation) Rules, 2014. The guideline for name approval in India includes several key restrictions:

• Your chosen name should not be identical to any existing company or LLP name.

• It must not violate trademarks registered under the Trademarks Act.

• Words like “Bank,” “Stock Exchange,” “Insurance,” etc., are restricted and require special permission.

• Names that suggest a connection to the government are generally not allowed unless properly substantiated.

• Vulgar, offensive, or misleading words are prohibited.

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Step-by-Step Guide to Apply for Name Approval

To avoid rejections and save time, it’s important to follow the correct application steps based on the guideline for name approval in India:

1. Conduct a Preliminary Name Check
   Use the MCA’s free online tool to check if your proposed name or a similar one is already registered.

2. Trademark Search
   Visit the Controller General of Patents, Designs & Trademarks website to ensure your name does not infringe on any trademark.

3. Choose Backup Options
   Prepare at least two or three alternatives in case your primary name gets rejected.

4. File Using SPICe+ or RUN Form
   For new companies, the SPICe+ Part A form is the standard method. LLPs may use the RUN (Reserve Unique Name) form.

5. Attach Necessary Documents
   If your name includes coined words or trademarks, include supporting documents such as NOCs or trademark registration certificates.

6. Pay the Government Fee
   The standard fee for name reservation is Rs. 1,000 per submission (subject to updates).

7. Wait for Approval
   Name approvals typically take 2-3 business days. If rejected, the reason will be mentioned, and you can reapply.

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Common Reasons for Rejection

Even if you follow the process, names may be rejected if they:

• Too closely resemble existing names.

• Contain restricted or sensitive terms.

• Use misleading phrases (e.g., suggesting government affiliation).

• Violate trademark laws.

• Include generic or vague words like “India,” “Solutions,” or “Technologies” without context.

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Best Practices for Quick Approval

Here are some best practices to keep in mind per the guideline for name approval in India:

• Choose unique and creative names.

• Avoid abbreviations unless widely recognized.

• Align the name with your company’s main activities.

• Don’t add unnecessary adjectives or promotional words.

• If possible, get a trademark to strengthen your brand's legal standing.

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FAQ: Name Approval in India

Q1. Is the name approval process mandatory for all companies?
Yes, whether it’s a Pvt. Ltd., LLP, or OPC, name approval is the first step in the registration process.

Q2. Can a reserved name expire?
Yes. Approved names are reserved for 20 days for companies and 60 days for LLPs. If not incorporated within this period, they expire.

Q3. How many names can I propose at once?
In the SPICe+ form, only one name can be submitted at a time, so accuracy is crucial.

Q4. Can I reuse a rejected name?
Yes, but only after modifying it to comply with MCA’s objections.

Q5. What documents are needed for name approval?
Typically, just the application form. However, if using trademarked words or sensitive terms, additional documents like NOC or authorizations are required.

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Conclusion

Understanding the guideline for name approval in India ensures that you start your entrepreneurial journey on the right foot. A compliant, unique business name not only meets regulatory standards but also sets the tone for a strong and trustworthy brand. For best results, consult a legal expert or company secretary to help you navigate the process smoothly and professionally.

Company Registration in India – A Step-by-Step Guide for New Businesses

Starting a business in a country like India, known for its entrepreneurial energy and growing economy, requires one essential legal process — Company Registration in India. This step not only gives your venture a legal identity but also offers the structure and credibility needed to grow in competitive markets. Whether you're a budding entrepreneur or an international investor, registering your company in India is the best way to get started.

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Why You Should Register Your Company in India

Registering your business comes with several long-term benefits. These include:

• Legal recognition and protection of personal assets

• Improved credibility with banks and investors

• Eligibility for government schemes and subsidies

• Ability to raise capital via equity or debt

• Easier global expansion and compliance management

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Main Business Structures for Registration

India offers multiple legal structures to choose from based on your goals:

• Private Limited Company: Ideal for startups; requires 2 or more directors.

• One Person Company (OPC): Designed for solo founders.

• Limited Liability Partnership (LLP): Offers limited liability with partnership flexibility.

• Public Limited Company: Suited for larger ventures intending to go public.

• Sole Proprietorship/Partnership: Basic structures with fewer compliance norms but limited benefits.

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Key Documents Required

To begin company registration in India, the following documents are needed:

• PAN card and Aadhaar of directors

• Proof of registered office (rental agreement or utility bill)

• Passport-size photos

• Digital Signature Certificate (DSC)

• Director Identification Number (DIN)

• NOC from property owner (if office is rented)

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Company Registration Process in India

Here's a simplified version of the registration journey:

1. Obtain DSC and DIN

2. Choose and reserve your company name using RUN or SPICe+

3. Submit incorporation documents through the MCA portal

4. Receive Certificate of Incorporation & CIN

5. Register for PAN, TAN, and GST

6. Open a business bank account

7. Maintain mandatory legal compliances

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Advantages of a Registered Company

• Access to government loans and subsidies

• Attract investors and venture capital

• Higher chances of business credibility

• Tax-saving opportunities for registered firms

• Smooth business succession and share transfer

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FAQs – Company Registration in India

Q1. How much time does it take to register a company?
A: Usually between 7–15 working days, depending on document accuracy and name approval.

Q2. Is foreign investment allowed?
A: Yes, FDI is allowed in many sectors without prior approval.

Q3. Can one person start a company?
A: Yes, through the One Person Company (OPC) structure.

Q4. Is it mandatory to have a business address?
A: Yes, a registered office address is required at the time of incorporation.

Q5. Do I need a CA or CS to register?
A: It’s recommended, though online platforms make the process easier.

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Conclusion

Getting your Company Registration in India is a key milestone for any business. It sets the stage for legal security, financial growth, and structured operations. Make sure you follow the proper steps, submit accurate documentation, and stay updated with government norms. Need assistance? Reach out to a professional and get your company incorporated today.

Previous Blog

1. Forming an Indian Subsidiary in Delhi: A Strategic Gateway to India's Business Ecosystem

2. Complete Guide: Procedure to Set Up a Pvt. Ltd Company in India

Company Registration in India: A Complete Guide for New Entrepreneurs

Starting a business in one of the world's fastest-growing economies begins with a vital step – Company Registration in India. Whether you are an aspiring entrepreneur or an established business planning to expand into the Indian market, registering your company not only legitimizes your operations but also offers a host of legal, financial, and competitive advantages.

Why Company Registration is Important in India

Registering your company in India provides legal recognition, enables access to business loans, and helps build trust among customers and investors. It also ensures compliance with various laws such as the Companies Act, Income Tax regulations, and the Goods and Services Tax (GST) regime. In a country with a thriving startup ecosystem and supportive government policies, getting your business officially registered is a strategic decision for long-term success.

Types of Companies You Can Register in India

There are several types of business structures available for registration in India, and choosing the right one depends on your business goals, the number of owners, and capital requirements:

1. Private Limited Company (PLC)

This is one of the most popular business structures in India. It allows for limited liability protection, easy transferability of shares, and the ability to attract investors.

2. Limited Liability Partnership (LLP)

LLPs are ideal for small and medium-sized enterprises. They combine the benefits of a partnership firm and a company, offering flexibility and limited liability.

3. One Person Company (OPC)

Introduced to encourage solo entrepreneurs, OPCs allow a single individual to run a business with corporate benefits.

4. Public Limited Company

Suitable for businesses looking to raise capital from the public through share offerings. It requires a minimum of seven shareholders and three directors.

5. Sole Proprietorship and Partnership Firms

These are easier to set up but offer fewer legal protections. They're more suitable for small-scale or family-run businesses.

Steps for Company Registration in India

Here is a step-by-step guide to completing your company registration process in India:

Step 1: Obtain Digital Signature Certificate (DSC)

All directors must obtain a DSC for signing online documents.

Step 2: Apply for Director Identification Number (DIN)

Every proposed director needs a DIN issued by the Ministry of Corporate Affairs (MCA).

Step 3: Name Reservation

Choose a unique name for your company and apply for name approval through the RUN (Reserve Unique Name) service on the MCA portal.

Step 4: Draft Incorporation Documents

Prepare essential documents like the Memorandum of Association (MOA) and Articles of Association (AOA).

Step 5: Filing the SPICe+ Form

Submit the incorporation form SPICe+ along with necessary documents and fees.

Step 6: PAN, TAN, and Bank Account

Once the company is registered, PAN and TAN are issued automatically. You can also open a company bank account.

Documents Required for Company Registration

• Identity and address proof of directors and shareholders

• Passport-size photographs

• Proof of registered office address

• Utility bills (not older than 2 months)

• MOA and AOA

• Digital Signature Certificate (DSC)

Benefits of Company Registration in India

• Legal recognition: Operate as a recognized legal entity

• Limited liability: Personal assets of shareholders are protected

• Business credibility: Gain trust among clients and investors

• Tax benefits: Access to deductions and rebates

• Brand building: Helps in creating a professional image

Conclusion

Company Registration in India is the first and most crucial step toward establishing a strong foundation for your business. With government initiatives like Startup India and ease of doing business reforms, the registration process has become more streamlined and entrepreneur-friendly. Consulting a professional service provider can simplify the process, ensuring compliance and timely approvals.

Take your first step today towards becoming a legally recognized business in India.

Company Registration in India: A Comprehensive Guide for New Entrepreneurs

Starting a business is an exciting journey, and one of the first steps in this process is company registration in India. Registering a company legally establishes your business, gives it credibility, and allows you to enjoy a host of benefits under Indian law. Whether you are an aspiring entrepreneur or an established professional looking to formalize your venture, understanding the process and advantages of company registration is essential.

Why Register a Company in India?

Company registration provides legal recognition to your business. It also helps in protecting the business name, ensuring limited liability for its owners, building customer trust, and making it easier to raise funds. A registered company can also open a business bank account, sign contracts, and hire employees, making it a vital step in growing your operations.

Types of Business Structures in India

Before proceeding with company registration in India, it is important to choose the right business structure. The most common types include:

• Private Limited Company: Ideal for startups and growing businesses, it offers limited liability and allows easy fundraising from investors.

• Limited Liability Partnership (LLP): Combines the benefits of a partnership and limited liability, making it suitable for small and medium-sized enterprises.

• One Person Company (OPC): A good choice for solo entrepreneurs who want full control with limited liability protection.

• Sole Proprietorship: Easiest to start but not considered a separate legal entity. It is more suitable for small businesses with low risk.

Steps for Company Registration in India

1. Obtain Digital Signature Certificate (DSC): Required for signing electronic documents during the registration process.

2. Apply for Director Identification Number (DIN): Mandatory for anyone who wants to become a director in a company.

3. Name Approval: You must submit your company name for approval through the Ministry of Corporate Affairs (MCA) portal.

4. File Incorporation Documents: Prepare and file documents such as the Memorandum of Association (MoA) and Articles of Association (AoA).

5. Get Certificate of Incorporation (COI): Once the application is approved, you will receive a COI, which confirms your company’s legal existence.

6. Apply for PAN and TAN: These are required for tax purposes and can be applied for during the registration process.

7. Open a Business Bank Account: Once registered, you can open a current account in the name of your company.

Benefits of Company Registration

• Legal Recognition: Registered companies enjoy the rights and obligations of a legal person.

• Limited Liability: Protects the personal assets of directors and shareholders.

• Brand Credibility: Enhances trust among customers, investors, and partners.

• Access to Funding: Easier to attract investors and secure loans from banks.

• Continuity: A registered company has perpetual succession, regardless of changes in ownership.

Final Thoughts

Completing company registration in India might seem complex, but it’s a crucial step in building a successful business. With proper guidance and support, the process becomes straightforward and manageable. As more entrepreneurs look to formalize their ventures, registering a company opens doors to growth, compliance, and long-term sustainability. Ensure you consult with professionals or use trusted online platforms to make the process seamless and error-free.

Learn all about DIR- 3 KYC

Starting your own business may be a long cherished dream and changing into a Director is that the most honourable position. As you all apprehend that to begin a corporation in Republic of India it's vital to urge the corporate registration through with the Registrar of firms and wish to follow the rules arranged down by the Ministry of company Affairs.

Suddenly there was a bout of confusion for all the administrators of the corporate by receiving messages from the Ministry of company Affairs to file the DIR- three KYC before the maturity date that was fifteenth Gregorian calendar month 2018 to hold on along with your prestigious position as a Director and keep the DIN standing Active.

So all the leased Accountants, Company Secretary companies were activated with this news and were needed to support their revered purchasers seeking for the main points and the way to travel concerning it.

As we tend to all square measure aware that the Ministry of company Affairs makes amendments and frames rules as per the businesses Act 2013, DIR- three KYC was conjointly introduced within the year 2018. In straightforward terms, i'd prefer to justify all concerning DIR- three KYC.

Documents Required:
1. Name (as per PAN database)
2. Father’s Name (as per PAN database)
3. PAN of the Director (mandatory for voters of India)
4. Date of Birth (DoB)” (as per PAN database)
5. Personal Mobile variety and private Email Address
6. Proof of gift Address like financial statement or any Utility Bill within the name of the director with the right address, less than a pair of months previous.
7. Aadhaar is obligatory, if it's appointed. If not, then elector ID or Passport or license shall be connected.
8. Digital Signature of Director (Rs 800 are going to be requested if DSC isn't offered or DSC has expired)

Pre-requisites for filing the DIR- three KYC
1. The DIR- three KYC type must be punctually certified by a active leased businessperson/ Company Secretary/ Certified Management Accountant
2. The form ought to be uploaded beside the Director’s Digital Signature Certificate (DSC)
3. For Associate in Nursing Indian subject, the PAN mentioned in DSC are going to be verified with the PAN within the DIR- three KYC type
4. For Foreign nationals, the name within the DSC and therefore the name within the DIR – three KYC type ought to match
5. Non-Resident Indians (NRIs) should have a far off address and mobile variety
6. In case of multiple DIN numbers, the Director must retain the oldest DIN variety and submit all the most recent ones by filing DIR five type.

So, all this exercise is completed by the govt. of Republic of India to create the business clear and authentic, and anyone or everybody can't be a Director. To be a Director in Republic of India, it's obligatory to possess your documents done as per the Indian Government standards.

COMPANY FORMATION IN INDIA |  COMPANY REGISTRATION IN INDIA

Electric Vehicles Market In India

Electric Vehicles Market In India

The government of Bharat in its latest budget extended many new announcements to spice up the retardation automobile economy, as well as a bunch of reforms for remodeling the electronic vehicles market. during this post, we tend to highlight the nuances of the booming electrical vehicle trade and conjointly forecast prospects of investment during this forthcoming section.

Why is Bharat the correct marketplace for electrical Vehicle development?

Various freelance and government surveys have shown that besides a wonderful future for electrical vehicles, it’s the 2 and three-wheeler electrical vehicles that square measure slated to indicate the best growth. we tend to presently have one.5 million electrically high-powered three-wheelers on the road. Bharat is additionally the third-largest automobile market within the world, creating it the electrical Vehicles section a robust consumer-driven business. With the planet attention shifting to the adoption of cleaner technologies with smallest environmental impact, the longer term of the electrical vehicles trade looks bright, albeit with many challenges.

Government Schemes for electrical Vehicles

1.FAME — quicker Adoption and producing of Hybrid and electrical Vehicles

This theme, with associate degree outlay of ten,000 crores has primarily been created for investment in charging stations with participation from each non-public businesses and also the public sector. comes for rising infrastructure create mentally a faster-charging dock for little vehicles and bigger charging docks for buses and significant vehicles. Original instrumentation makers are given incentives like subsidies underneath the theme for innovation, fitting charging networks, simplifying the method of operation and installation electrical vehicles. Buses priced up to two crores, hybrid vehicles underneath Rs fifteen lacs, three-wheelers underneath Rs five lacs and two-wheelers underneath Rs one.5 lacs will avail incentives underneath the theme.

2. Tax rebates to consumers of electrical vehicles

Besides providing subsidies to makers, the budget free by minister Nirmala Sitaraman earlier this month created the government’s intention of promoting the buyer aspect of the electrical vehicles trade terribly clear. whereas automobile loans for ancient vehicles square measure simply accessible and provide lots of straightforward finance choices, the electrical vehicles are priced higher.

To ease the burden on the customer and facilitate finance, associate degree taxation rebate of up to one.5 lacs on the interest element of loans taken by customers to shop for electrical vehicles is offered, with a complete of two.5 lacs over the complete loan amount.

Moreover, impost exemption on lithium-ion cells has been declared to cut back the value of mercantilism this essential element of electrical vehicles, and several other new exemptions underneath direct and indirect taxes square measure two-wheelers for producing inputs for the electrical vehicles trade.

3. Training courses on electrical Vehicles

Ministry of talent Development and Entrepreneurship has conjointly declared new ITI courses on electrical Vehicles to take care of a gradual and trained men able to strive against the rise in demand.

Comparing the Indian industry with Developed Markets like China

The International Energy Association information reports that China is that the quickest growing trade once it involves electrical vehicles. China has obligatory strict restrictions on investments in new gas or diesel plants and plans to sell four.6 million electrical vehicles by 2030. Similarly, Japan has conjointly offered support to its domestic manufactures for export of electrical vehicles associate degreed has framed an formidable target of reducing emissions from conveyance sources by eightieth. Thus, if Bharat doesn’t capitalise on its expansive industry, upgrade its existing infrastructure and train shoppers and men to adopt this technology, many countries would stand to realize. The NITI Ayog is additionally considering a proposal to ban all ancient combustion engine vehicles by 2025.

Challenges

While a rise in gas and diesel excise duty, parking cess, congestion taxes etc square measure necessary for shifting demand towards the utilization of electrical vehicles, they’re at the tip of the day forced and artificial suggests that. A general drawback relating to the utilization of electrical vehicles is that the lack of infrastructure that Bharat must power its retardation industry, and a modification within the general perception relating to pollution, congestion and air quality impacts of vehicles that use ancient fuels.

Since the celebrity theme, section two shifts its concentrate on charging — metal battery assumes bigger significance. one in all the main issues within the electrical Vehicles trade is that the lack of accessibility of metal and alternative parts that structure the composition of a chargeable battery.

Manufacturers UN agency invest in developing electrical vehicles and its parts just like the lithium-ion battery etc square measure secure incentives by the central government. it’s conjointly believed that a correct utilisation mechanism for electronic waste like previous computers, cellular telephone batteries etc may be wont to extract metal that may be utilized in the electrical vehicles’ battery creating method.

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COMPANY FORMATION | COMPANY INCORPORATION | FDI IN INDIA

START-UP IDEAS TO BUILD A NEW INDIA

India has been recognized as one of the top start-up hubs in the world. Especially under the leadership of Narendra Modi there are several initiatives taken from the year 2016 to revolutionize the start-up businesses.
Start-up India Initiative is one such program taken by Prime Minister Narendra Modi which has benefited entrepreneurs across the country. This initiative was mainly take to support the economic growth and create better and more number of employment opportunities.

Let us look into the Facts and Figures of the Start-up India Initiative from 2016 till date:
NUMBER OF NEW START UPS REVOLUTIONIZED
- 16, 578 new start-ups recognized through 499 districts
- 47% of start-ups started from Tier 2 and Tier 3 cities
- A total of 1,66,385 fresh jobs Created by recognized start-ups.

REGULATION INITIATIVES TAKEN FOR SMOOTH FUNCTIONIG OF BUSINESS
1. Exemption from Income Tax Act of Section 56 for investment raised by start-ups upto Rs.25 Cr
2. Exemption from income Tax Act for investments raised by specified companies with no limits
3. 22 regulatory reforms implemented for ease of conducting business
4. Self certification regime for 6 Labour Laws and 3 Environmental Laws.

FUNDING AID TO START-UPS
- 66,000 Cr funding for start-ups with a corpus of Rs.10,000 Cr to support 8,000 companies
- 2151 Cr committed to 39 Venture Capitalist funds who have raised Rs.10,440 Cr
- 1819 Cr invested by Venture Capitalist in 255 companies, creating 29,895 employment opportunities.

INTELLECTUAL PROPERTY ASSISTANCE
1. 1031 Patent and Trademark facilitators to provide free support to start-ups
2. Rebate of 80% granted to 1403 start-ups for Patent filing fees
3. 50% rebate granted to 2672 start-ups for Trademark filing fees

CONSTITUTING INNOVATIVE INFRASTRUCTURE
- 260 Cr spent in establishing 2171 Atal Tinkering Labs in schools across 623 districts
- 7 Research Labs established with an amount of Rs. 665 Cr
- 77 new and existing incubators supported.

EASE OF NORMS PAVING FOR NEW AVENUES TO START-UPS
- For Government tenders the criteria for prior experience, minimum turnover and submission of money deposit is waived off.

STATE START-UP REVOLUTION
1. State Start-up ranking launched to enhance a healthy competitive spirit
2. Participation of 30 States and Union Territories
3. Seed funding aid to 3213 start-ups
4. 21 States have launched start-up policies
5. Start-up India Yatra conducted in 21 States to promote entrepreneurship in rural and non metro areas
6. Mentorship support to 76,146 entrepreneurs across 195 districts
7. 1314 start-ups offered free incubation.

START-UP INDIA HUB-A TOTAL DESTINATION FOR START-UP CULTURE
- Having a community of 3 lakh users and 599 investors, incubators and mentors
- 2,37,902 users have availed free Start-up India Learning Program to build business plans
- 647 start-ups supported through dedicated facilitation services
- 1262 start-ups connected to mentors.

As we can see that there are more than 10,000 start-ups being registered every month in India either as Private Limited, Public Limited, Limited Liability Partnership, Partnership or One Person Company, the government has taken huge steps that have benefited the start-ups. The facts and figures itself mentioned above are the success generated by the Modi held government. In India, the dream of becoming a successful entrepreneur is made a reality.

Start up India initiative is one of the best and biggest revolutions introduced by our present Prime Minister Narendra Modi apart from Swachh Bharath Abhigyaan, Make in India and others.

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Company formation in India | Company registration in India

MCA eases process for incorporation of LLPs

Ministry of Corporate Affairs (MCA) has notified amendment to the Limited Liability Partnership Rules, 2009 wherein process of incorporation of LLPs and reservation of their name have been amended in order to ease of doing business. Under revised norms, a new web based form ‘RUN-LLP’ has been introduced through which names of a LLP can be reserved without digital signature and Designated Partner Identification Number (DPIN). This form is very much similar to RUN web service reservation of name in case of companies. In this form, only two name can be proposed at single point of time and one resubmission is also allowed for reservation of name. In total, 4 names can be proposed.

On the other hand, to make the incorporation process form LLPs easier, a new form named ‘Form for Incorporation of Limited Liability Partnership (FiLLiP)’ has been introduced through which LLPs can be incorporated with up to 2 individuals as designated partners who do not have DIN. This new improvised process for applying for DPIN is similar to spice form for Company Incorporation.

Sebi allows NRIs, resident Indians to take FPI route
The Securities and Exchange Board of India (Sebi) on Friday diluted its controversial circular issued on April 10, which laid down the know-your-client (KYC) and ownership norms for foreign portfolio investors (FPIs).

In a reversal of stance, the market regulator has allowed both resident and non-resident Indians (NRIs), along with overseas citizens of India (OCIs), to invest in Indian markets through the FPI route, subject to certain conditions. The earlier circular virtually barred individuals with India connection from investing or managing a foreign fund.
The regulator, however, reiterated that the KYC requirements for FPIs would have to be in line with the rules under the Prevention of Money Laundering Act (PMLA).

Revised KYC norms for Foreign Portfolio Investors: SEBI
The Securities and Exchange Board of India has issued the revised guidelines for know your client (KYC) requirement for foreign portfolio investors wherein provision related to KYC documentations, Exempted documents, data security, timelines for compliance have been discussed.

Govt. constitutes high level committee on Corporate Social Responsibility
A high level committee has been constituted under MCA to review the existing framework and guide and formulate the roadmap for a coherent policy on CSR. The Committee is expected to review the existing CSR framework as per Act, Rules and Circulars issued from time to time and recommend guidelines for better enforcement of CSR provisions. It will analyse outcomes of CSR activities/programmes/projects and suggest measures for effective monitoring and evaluation of CSR by companies.

Ordinance Likely to Fast-Track Dispute Resolution
The government is mulling an ordinance which provides for time-bound settlement of commercial disputes and make arbitrators accountable, a senior government functionary has said. The ordinance is based on a bill cleared by Lok Sabha during the monsoon session. The bill is pending in Rajya Sabha and may get cleared only in November or December. The government feels an early measure to settle commercial disputes at a faster pace will help improve India’s ranking on ease of doing business index, the functionary explained.The bill seeks to help India become a hub for domestic and global arbitration for settling commercial disputes. The draft law provides for a timebound settlement of disputes as well as accountability of the arbitrator. The government feels that there is a need for robust mechanism to deal with institutional disputes.

Ecommerce Cos may Not Need Office in Each State
Amazon, Flipkart and a host of other ecommerce service providers may not require offices in each state to comply with the withholding tax provision under the goods and services tax (GST). They are required to collect this tax when they make payments to suppliers from October 1.
Ecommerce platforms have represented to the government that the provision be deferred. They said it would create compliance issues for them because they would need presence in every state. The vendors will face working capital issues, they added.

State and central government officials, who met a day before the GST Council meeting, have backed implementation of the provision in wake of revenue concerns but agreed for relief on presence in every state

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Registering a wholly owned subsidiary company in India

MNC's who choose to operate in more than single country can operate its business through a wholly owned subsidiary. Wholly owned subsidiaries can be called as those companies in which Parent Company owns all the shares of the subsidiary which gives access to the parent company to select a board of directors of the subsidiary or control the subsidiary.Wholly owned subsidiaries can also be a part of a different industry.

The subsidiary company is a company which can be incorporated by accessing the most of shares of the company (more than half) or either by way of controlling the composition of a board of India.
These type of companies can be called as a private limited company in India. They are recognised as Indian companies under the Income Tax Act, and they are also eligible for the deduction and exemption benefits like other Indian companies.

Following requirements to set up Wholly Owned Indian Subsidiary registration:
1. There must be minimum 2 shareholders.
2. There must be 2 directors, one must be an Indian resident.
3. All the directors must have DIN (Director Identification Number).
4. All the directors must have DSC (Digital Signature Certificate).
5. Less than a month of the incorporation , it is necessary to introduce a minimum paid-up share capital of rupees one lakh.


Advantages of Incorporating Wholly Owned Subsidiary or Indian Subsidiary
Brand Name
It provides the benefits to both parent company and as well as to the subsidiary company.

Control
Benefit to a parent company who can execute strategic control over its subsidiary company.

Common financial system
It provides a benefit of cost synergies by using a common financial system, sharing the administrative cost and other expenses between parent & subsidiaries.

Limited Liability
There is a limited liability for both the companies.

Global Stratergy
It provides protection and security to the company’s trade secrets, expertise and technical knowledge along with the control over the operations.

A foreign company can incorporate a wholly owned subsidiary in India after considering all the benefits tied with it.

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Online Taxation & VAT registration

 After having registered their business to sell their products online or offline the next big step is how to register for VAT so you can then charge your customers.

VAT registration is required when you are in business of any goods or products that can be felt or touched and exceeds specified amount of annual turnover By rules of The Department of Customs and Excise the turnover from a business after which you must register is currently Rs 10 00 000 per annum. Under this and it's optional for registration. Specified amount of turnover depends on the state regulations which are INR 5 to 10 lakhs.

There are several reasons in favour of registering for VAT regardless of what your turnover may be:
1. When purchasing goods for your business lots of companies will only deal with you when you have registered for VAT and can provide with your VAT number.
2. Being VAT registered also emits an impression that your company is of some extent and may help to bring in business.
3. Being VAT registered allows you to offset the amount of VAT you paid on any purchases you may make for the business and therefore lower the amount of tax you pay.

The procedure of VAT registration is simple. First you need to need to fill VAT registration form online/offline, after submission the place of business is inspected by authorities, the forms are processed after payment of VAT deposit and then VAT Certificate is generated.

The documents required for VAT registration

1. Company Incorporation certificate.
2. MoA, AoA
3. PAN card of directors
4. Address proof of directors
5. Address proof of place of business
6. 4 photographs of proprietor/ partners/ directors



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Why your Startup should be an LLP (Limited Liability Partnership) - Incorporation of company in India

A Limited Liability Partnership (LLP) is a Partnership in which some or all partners have limited liability. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of an unlimited partnership. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have at least one "General Partner" with unlimited liability. 

Salient features of an LLP 

An LLP is a body corporate and legal entity separate from its partners. It has perpetual succession. 

Being the separate legislation (i.e. LLP Act, 2008), the provisions of Indian Partnership Act, 1932 are not applicable to an LLP and it is regulated by the contractual agreement between the partners. 

Every Limited Liability Partnership shall use the words "Limited Liability Partnership" or its acronym "LLP" as the last words of its name. 

Every LLP shall have at least two designated partners being individuals, at least one of them being resident in India and all the partners shall be the agent of the Limited Liability Partnership but not of other partners. 

Need for LLP 

For a long time, a need has been felt to provide for a business format that would combine the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. The Limited Liability Partnership format is an alternative corporate business vehicle that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm. 

This format would be quite useful for small and medium enterprises in general and for the enterprises in services sector in particular. Internationally, LLPs are the preferred vehicle of business particularly for service industry or for activities involving professionals. An LLP is similar in some ways to a standard Partnership, except that the individual members have lower liabilities to any debts which may arise from running the business. There are more administrative duties involved compared to the Partnership business structure. 

In fact, an LLP is more similar to operating a Limited Company. In terms of liability, the Limited Liability Partnership is itself liable for debts run up in running the business, rather that the individual members of the LLP. As a result, LLP's are only recommended for profit running businesses. The rights and responsibilities of all members would usually be laid out in a "Deed of Partnership". The LLP would typically select a "Designated Member" who would be responsible for maintaining communications with Companies House, preparing accounts and acting for the LLP if for some reason it is dissolved further down the line. 

For company Laws and company incorporation visit link  Company Incorporation in India

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Procedure for Limited Company Name Change

The name of a private limited company may have to be changed for a number of reasons including change of objective of the business, change of management, rebranding, etc., The name of a private limited company can be changed at anytime with the approval of the shareholders and Ministry of Corporate Affairs (MCA). In this article, we look at the procedure for private limited company name change.

Private Limited Company Name Change

The name adopted by a private limited company during incorporation can be changed later. To change the name of a private limited company, the consent of the shareholders through a special resolution and MCA approval are required. The change of name of a private limited company has no impact on its legal entity or its existence as a corporate entity. The change of name of a company will not create a new company or new entity. Therefore, the change of company name shall NOT:

1.  Affect any rights or obligations of the company

 2.. Render defective any legal proceedings by or against the company

3. Not affect any legal proceedings by or against the company and pending in the old name; they may continue in the old name.

Step 1: Board Resolution

A Board meeting must be convened to pass a resolution for change of name of the company and to authorize a Director or Company Secretary to make an application to the MCA for ascertaining availability of proposed name. At the same Board meeting, a resolution to convene an extraordinary general meeting for changing the name of the company, and altering the Memorandum of Association and Articles of Association can also be passed.

 

Step 2: Check Company Name Availability

Once a resolution is passed ascertaining availability of proposed company name, the authorized person can make a name application to the MCA. The procedure for name application is similar to that of the name application procedure followed during Company Incorporation in India. Therefore, the name must be as per the Companies Act 2013 Naming Guidelines.

 

Step 3: Pass Special Resolution for Company Name Change

Once a name is approved by the MCA, the Company must conduct an extraordinary general meeting and pass a special resolution for change of company name, and consequential changes to the Memorandum of Association and Articles of Association.

Step 4: Application for approval of Company Name Change

Once the special resolution for change of company name is passed, the special resolution and application for approval of company name change must be filed with the Registrar of Companies. An application for company name change must be made in Form 1B along with the requisite fee.

Step 5: Issuance of New Certificate of Incorporation

If the Registrar of Companies is satisfied with the company name change application, the Registrar would issue a new certificate of incorporation. It is important to note that the company name change is said to be complete and effective on issuance of new incorporation certificate by the Registrar of Companies.

Step 6: Make Changes to MOA and AOA

Subsequent to the issuance of the new incorporation certificate, steps must be taken to incorporate the new company name in all the copies of Memorandum of Association, Articles of Association and Certificate of Incorporation issued by the Registrar.

New Simplified Process of Incorporation of Company in India

Applicable Sections governing INC-29 : 4, 7, 12, 152 and 153 of the Companies Act, 2013 along with relevant rules

The Government of India has notified on 1^st May 2015, a new system of incorporation of Private or Public limited company. It has introduced easy method of incorporating a company without waiting for making name application for reservation of name by the Registrar of Companies (RoC). It is possible now by filing e-form INC-29 (single form) with the Registrar of Companies, within whose jurisdiction the registered office of the company is proposed to be situated.

In this article, i would like to mention only the Key Points and the attachments to forms for this new system and not the complete procedure.  Reader comments are most welcome as always!!

Main points of new form INC-29

1.       No need to apply for DIN of 2’nd director

2.      Particulars of maximum three directors can be filed

3.      No need to apply for name application (filing of INC-1) separately

4.      The promoter or applicant can propose only one name hence name search of proposed name shall be taken very carefully on MCA site and trade mark site, to avoid rejection or re-submission of e-form. Only one chance will be given for re- submission of form.

5.       No need to file forms 7 (incorporation), DIR-12 (appointment of first directors of proposed company) and INC-22 situation of registered office of company.

6.      In case Directors/Shareholders have DIN(Director IdentificationNumber), then no need to attach separate address proof/ID proof.

7.       Registration fees Rupees 2000 with additional fees depending upon the capital of the company.

8.      The Promoter or applicant may prepare Memorandum of Association (MoA) as per template in Form 30 and Articles of Association (AoA) as per template in form 31.

8.      All attachments/declaration/proof will be required for Form No.29.

8.      Two re-submissions will be permitted. The Registrar of Companies shall give intimation to the applicant to remove the defects and resubmit the form within 15 days from the date of intimation by Registrar of Companies.

8.      Re-submission requires changes in affidavit or declaration including MoA/AoA, hence applicant or promoter should take utmost care.

8.      The form shall be scrutinized by the Registrar of Companies and will not be approved through Straight Through Process (i.e. STP).

8.      The facility to file INC-29 is optional. One can follow the procedure of application for DIN, DSC, name application (INC-1) and INC-7, DIR-12 and INC-22.

8.      The Certificate of incorporation shall be issued in INC-11.

8.      Facility for using ‘integrated form’ is not available for incorporating Section 8 companies.

Attachments or documents to e-form INC-29

1.       Memorandum of Association

2.      Articles of Association

3.      Affidavit and declaration by first subscriber(s) and director(s)

4.      Proof of office address

5.       Copies of utility bills that are not older than two months.

6.      Approval of the owner of the trademark or the applicant of such trademark for registration of Trademark (If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act)

7.       Proof of relation of the relative with promoter (If the name of the proposed company includes the name of relative(s) of the promoter)

8.      NOC from the sole proprietor/ partners/other associates/ existing company (If the promoters are carrying on any Partnership firm, sole proprietary or unregistered entity in the name as applied for)

9.      NOC from any other person (In case the proposed name contains name of any person other than the promoter(s) or their close blood relative(s)

10.   Copy of certificate of incorporation of the foreign body corporate and resolution passed (If any subscriber to the proposed company is Foreign company and/or subsidiarycompany in India) Note: It is optional to attach Copy of certificate of incorporation, in case the subscriber to the proposed company is a Body Corporate.

11.    Resolution passed by promoter of company if any subscriber to the proposed company is a Company itself.

12.   A certified true copy of No objection certificate by way of board resolution (In case the name is similar to any existing company, then it is mandatory to attach)

13.   Interest of first director(s) in entities (In case any of the director has any interest in the proposed company)

In case of an OPC, it is mandatory to attach following:

15.                Consent of nominee

16.   Proof of identity and residential address of the nominee

16.   Proof of identity and residential address of the subscribers if any one of the subscriber does not have a DIN

Proof of identity and residential address of such director if any one of the director (including subscriber cum director) does not have DIN, then it is mandatory to attach proof of ID and address proof of such director.