To begin is to succeed. Starting a business in India is not a fairy tale story, but the Nation has made tremendous progress in the recent days and made starting a business, very easy for Entrepreneurs. Today, we will look at the most commonly referred to licenses and registrations required for a business in India. The process of obtaining license for a business is based on the various determining factors like the number of employees, sector, the type of business, the place of business etc.
INCORPORATION/REGISTRATION OF LLP
With its unique features and key attributes; LLP i.e Limited Liability Partnership has turned as one of the highly reputed and universal accepted form of corporate. Every country has its own distinct rules and regulation while controlling and managing the LLP transactions. Here, in India all the LLP applications are maintained and processed under the LLP Act, 2008.
Partnership and Proprietorship are the two most popular forms of business organisations in India. The reason why these two form of organisations are so popular is because they are relatively easy to set up and the number of statutory compliance required to be done by these forms of organization is relatively less than the statutory compliance applicable to LLP’s and the Companies.
Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The partners may or may not register their Partnership Agreement. However, in case the partnership deed is not registered, they may not be able to enjoy the benefits which is registered partnership firm enjoys.
A Sole Proprietorship Registration is an unincorporated business owned by one person. It is not a separate legal entity, like a partnership or a Company. No legal formalities are necessary to create a sole proprietorship. It can be registered under the Shops & Commercial Establishments Act, 1958.
In sole proprietorship the owner is in direct control of all elements and is legally accountable for the finances of business and this may include debts, loans, loss etc. The owner receives all profits and has unlimited responsibility for all losses and debts.
We as a firm provides the services related to how to form a trust in India, Statutory Compliances and gives advisory to our clients on regular basis. In India, registration of trust (whether it is a public or private trust) done under the Indian Trust Act, 1882.
Further, the Income Tax Act, 1961, also defines a Trust as “An arrangement by which property is handed over to or vested in a person, to use and dispose off for the benefit of another person”.
In India, majority of the Trusts are registered as public charitable trust a form of not-for-profit entity.
It is the one which is created mainly for the benefit of the general public at large. The objects could be for public benefit / charitable purposes such as:
For setting up a school/educational institute for providing, education to children, hospital/nursing home, medical services and facilities for poor, taking care of old aged / senior citizens, orphans, handicapped, widows, etc.
For promotion of child health & girl / women empowerment, Spiritual / Yoga / Art, Craft and Cultural activities Social welfare of weaker sections of society, training to the Backward and poor classes to make them employable, religious activities such as setting up a temple, protection of environment, planting trees, reducing pollution, drinking water, food, shelter, clothing to the socially backward and poor.
For fulfillment of Corporate Social Responsibility (CSR) by companies under Section 135 of the Indian Companies Act, 2013.
It is the one which is formed mainly for the benefit and welfare of particular persons/members of a family or for the management & preservation of a property.
A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose. The Societies Registration Act, 1860 was introduced with the aim of improving the legal conditions of society registration for promotion of literature, science or fine arts or for diffusion of useful knowledge for charitable purposes. The Societies Registration Act, 1860 has been adopted by most of the State Governments with/without further amendments.
As per Section 20 of the Societies Act, 1860, a Society can be registered for the following purposes:
Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Joint-stock Companies form themselves into a society under this Act.
Society can be broadly classified into two types: -Importer Exporter Code (IEC) is the unique 10 digit code that is mandatory for every firm, organization, persons, entity and for all those who need to import or export in India for commerce and trade. No one can exercise any import or export in India without importer exporter code number. This process of granting IEC code is maintained and controlled by DGFT – Director General of Foreign Trade and administered by Ministry of Commerce in India.
To obtain Import Export Code, it is mandatory for the business to have a PAN and a Current Account in a bank.
Any enterprise/industry which has invested less than INR 10 Crore in plant and machinery for doing business in the manufacturing sector of India, comes under the gamut of MSMEs.
SSIs in the service sector, any such enterprise should invest less than INR 5 Crore in plant and machinery, to fall under this broad category of industries.
These MSMEs are regarded as being the backbone of any growing economy, and these collectively contribute substantially to the national outputs in the manufacturing and service sectors, employments, and earnings from exports.
“Food safety and standard authority of India” (FSSAI), is responsible to verify the safety and standardization of food products nationwide. Retail stores, restaurants, modern trade outlets, kiosks and consumers alike look for this five letter word in their food packets or containers.
Under FSSAI, the license or registration is divided into three categories namely:
Purpose for obtaining the registration under FCRA is to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto; The flow of foreign contribution to India is regulated under Foreign Contribution (Regulation) Act, 2010, Foreign Contribution (Regulation) Rules, 2011 and other notification / orders etc., issued thereunder from time to time.
Any Individual, HUF, Association or a Company registered under Section 25 of Companies Act 1956 (Now Section 8 of Companies Act, 2013) can receive foreign contribution subject to following conditions:-
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+91 8930138515, 9991452565
harsh@oberoiassociates.com, oberoi.pcs@gmail.com