Registration Archives - Page 10 of 13 - Business , Financial & Legal Consultant In India

May 26, 2019May 26, 2019

A better Choice For Raising Funds for MSME

In the present scenario loans extended by the NBFCs to MSMEs grew rapidly and the experience of banks and NBFC in terms of quality asset explains the difference in the credit growth.

What is NBFC

NBFC is basically Non Banking financial institutions which is registered under the Companies Act, 2013 with principle objective of dealing in financial activities. Companies Financial asset shall constitute of more than 50% of the total asset and income, and Income for Financial statement constitutes more than 50% of gross income.

What is MSME

MSME stands for Micro and Small and Medium Enterprise. It has many benefits as it is given higher preference in terms of Government License and Certification. MSME also avails benefits in bank loans as compared to the interest paid on regular basis.

Role of NBFC P2P in India’s Economic Development

It helps in the supply of credit in the economic growth of economy, and it helps youth as it helps in achieving of cheaper and faster credit. The new entrants entrepreneur with the ability to repay the loan, are provided with the facility of dedicated loan products from various online platform.

In the current scenario as we can see that man and women are equal, therefore its purpose is to be to empower more and more women as it not only increases the economic development and prosperity but also a good indicator in the development of the entire household.

NBFC P2P helps in connecting and lenders with the borrowers by using the digital platform. For faster decision making and implementation, NBFC P2P has cut through end number of process which ensures interest of both lender and borrower. 24 hours banking facility is available for borrower.

Why NBFC P2P a better choice for raising funds for an MSME these days?

NBFC environment has now been changed as it provides larger opportunity for income seeking investor to diversify their portfolio which was earlier available to the Banks. Potential and e investor dealing in MSME sector are considering P2P platforms for various reasons-

Returns which are provided are highly competitive when considered against average returns delivered by other market linked investment like MFs and stock market.
In this process, both lender and borrower can choose their specified period of time between 6 to 36 months.
It provides diversification that can easily be attained by borrowers profile.
Availing more options for small business where in starting money is required for the temporary shortfall or to meet out the revenue expenses.
It bridges the gap of risk factor involved in funding the small business, as small business srae dependent of cash transactions.

Conclusion

NBFC P2P player has becoming more popular in MSME and in small business financing. It lends fund to the business of MSME by better choice to avail funds. NBFC manly focuses on young entrepreneur with potential and business ideas. It also empowers women entrepreneurs which also helps in increasing and improving economic growth of the country. Therefore, it can e said that P2P is the better choice for availing funds to meet out the revenue expenses and working capital requirement.

May 26, 2019

Categories of Alternative Investment Funds

alternative-investment-fund-registration

Categories of Alternative Investment Funds are registered and regulated as per the SEBI (Alternative Investment Funds), 2012. They are privately pooled investment vehicle who are in the business to collect funds from the sophisticated investors either Indian or otherwise and utilize them for the making the investment as per their policies.

Categories of AIF

As we know the gist of the fact that there are three categories of Alternative Investment Funds, in this blog we will discuss in detail the categories of AIF. AIF regulation have clearly specified as 3 different categories of AIF, then can be registered in Regulation 3 (4) of chapter 2.

As per Alternative Investment Fund regulation, registration can be done with SEBI under any 3 of the three below mentioned category:-

Category I

Under this category those funds are considered which can give good effect in the Indian economy. For example, if an investor is investing in startup, small and medium sized enterprise etc, then it is considered as good investment as these may give good effect in the economy of the country. These sectors are considered as socially or economically desirable and as result, government and sectors also gives discount, concession or incentive to them.

Category I AIFs includes-

Venture Capital Funds
SME Funds
Social Venture Funds
Infrastructure Funds etc.

Category II

Basically those which do not fall under category I and III fally under this category. They only take leverage and borrowings to meet operational requirements and such other activities permitted by the AIF regulations.

Category II includes-

Private Equity Funds
Debt Funds Etc.

Category III

Under this category diverse and complex trading strategies, unlike the other two categories. They can even make an investment in listed as well as unlisted derivatives.

This category includes

Hedge Funds
Funds which trade with an objective to make short term returns
Funds which are open ended etc.

Along with the application fees of Rs. 1,00,000/- is to be paid, where no fees for its registration is required to pay.

May 25, 2019

MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.

Contents of Companies (Incorporation) Fifth amendment rules, 2019

The following notifications were issued by Companies Incorporation are as follows-

The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.

The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-

Rule 8A
Rule 8B

What is Rule 8A?

These rule specifies the list of undesirable names, and

What is Rule 8B?

These rules are for the word or expression which can be used only after obtaining a previous approval of central government.

Key Highlights of Company incorporation Fifth amendment, 2019

The following matters are to be disregarded while comparing the names

The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
The plural or singular forms of words in one or both names.
Use of different tenses in one or both names.
The order of words in the names.
Addition of the name of the place to a current name which does contain name of any place.
addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.

Provison

Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.

May 14, 2019May 14, 2019

Procedure For Mutual Fund Registration in India

For Registration of Mutual Fund Registration in India Form-A is to be submitted.

A mutual Fund is established as a Trust which has sponsors, Trustees, Asset Management Company, and custodian. Sponsors and trustees are there to work as a promoter of a company. And also trustees hold its property for the benefits of the unit holder.

Types of Mutual Funds

Open Ended- It is a collective investment scheme that can issue or redeem shares at any time. An investor will generally purchase share in the Fund directly from the Fund itself, rather than from the existing shareholders.

Close Ended Mutual Funds- It is a collective scheme model based on issuing of fixed number of shares which are not redeemable from the funds. Unlike open ended funds, new shares in a close ended shares are not created by managers to meet demand from investors.

Interval Mutual Funds- It is a Non-Traditional type of closed end mutual funds that periodically offers to buy back a percentage of outstanding shares from the shareholders. Shareholders are not required to sell their shares back to the fund.

Key Points for Mutual Funds Registration

All Mutual Funds should be registered as Trust under Indian trust Act, 1882.
A separate AMC should be registered. The net worth of AMC must be INR 5 Crores.
Investors of Mutual Funds re called as Unit Holders.
Basket of Securities is called as Portfolio.
Managed by Fund Manager.
Value of each unit is called a Net Asset Value (NAV).
An organization that manages the investments is called as Asset Management company.
The sponsor should contribute at least 40% to the Net worth of AMC.
Appointment of custodian in order to secure the securities.
Should be carrying on business in financial services for a period of not less than 5 years and the net worth should be positive.
Applicant has to be fit and proper person with a soundtrack.
The main objects of the MOA of the sponsor company should permit the mutual funds activities.

Prerequisites for investing in Mutual Fund Plan-

Bank Account
Demat Account with Broker
Documents or KYC to be enclosed
Aadhar linkage of the accounts.

Documents required for Mutual Fund Registration

A complete list of all associate companies/ Group Companies/ subsidiaries registered with SEBI in any capacity along with their Registration Numbers.
List of instances of Violation/ non-adherence to any security related regulations enforced by any regulatory agency in India or abroad and whether any measure has been taken by you in this regard.
A Declaration that the sponsor company or the Directors have not been found guilty of fraud/ misconduct etc.
Details of registration of any of the companies with the RBI as NBFC or any other capacity.
Two sets of MOA and AOA of AMC and Trustee Company
A Detailed Business Plan
A detailed note on the infrastructure employed by AMC.
Auditor’s Certificate
RBI/ other Regulators approval for the purpose of sponsoring Mutual Funds
Executed copies of Trust Deed and Investment Management Agreement
Undertaking from sponsor to provide additional capital o AMC, till its operations breakeven in order to protect the interest of Unitholders.

Applicant ha sto provide all the required information within 30 days from a receipt of a communication from SEBI, failing which case may be considered as Closed.

May 3, 2019

Types of Trademark Application in India

Before the Advent of new TM rule, 2017, there were separate applications which had to be filled for each of the below mentioned Types of trademarks and there were separate forms for single class and multi-class applications, also depending upon whether priority was claimed or not. The type of the application would depend upon factors like the type of mark that is to be filled, single or multi class, priority or not, an application could be fro-

Normal Trademark- A normal Trademark Application to be filed for a word, Device or any other combination thereof.

Certification Mark- A certification mark is defined under Section 2(e) of the Act, “Certification Trademark” means a mark capable of distinguishing the goods or service in connection with which it is used in the course of trade which are certified by the proprietor of the mark in respect of origin, material, mode of manufacture of goods or performance of service not so certified and registrable as such under chapter IX in respect of those goods and services in the name, as proprietor of the certification trade mark, of that person. In short it is a mark certifies the characteristics like quality, origin etc of other goods or services. Example ISI mark.

Collective mark- As the name suggests, where a mark belongs to a collective group or association of persons it is called as collective mark. Example Confederation of Indian Industry (CII).

Series mark- Where the trademark applied applied for, is in the form of a series. In other words, the primary element of a mark might be used used/ intended to be used in several forms/ways by the proprietor and instead of filing separate applications for each, it is possible to file them as a series. For example, McDonalds has series mark incorporating the term “MC” +Like Mcchicken, Mc Cafe, MS Donuts etc.

Currently all the above applications could be filed under form TM -A.

Generally a Trademark application can be filed on the following basis-

Indian Application- this is the Application form directly filed in one of the IP offices in India and also Online Application can be filed.

International Applications- India Acceded to the Madrid Protocol and with effect from July 8, 2013 it is possible to designate India in an international application. Similarly it is also possible to file online an international application under the Madrid Protocol throgh the Indian Trademark Office.

April 6, 2019

How To Remove Disqualification Of Directors

Over last few years MCA or Ministry of Corporate Affairs has disqualified many of the Directors for not performing or meeting the compliance i.e. Rules or regulations mentioned under Companies Act, 2013. However, you can obtain you position back as the Director of the Company. MCA has also deactivated their Director Identification number, so to revive back their is one scheme which is introduced by the MCA i.e. “ Condonation of Delay Scheme”, that provides relief to the Directors by aiding them with the provisions to remove Director Disqualification.

Reasons for Director Disqualification

There are two reasons for Director Disqualification and they are as follows-

The Directors haven’t filed the annual return or Financial statements from last three consecutive years.
The Directors have not repaid the debts he has taken or has failed to do so from 1 year.

Once a Director is disqualified, then he won’t be able to become a Director of any company for at least 5 years, however, condonation of delay scheme can help.

What is Condonation of Delay Scheme

According to section 8 of the companies Act, Directors of the company must file annual returns or financial returns every year, and if they fail t do so from the last 3 continuous consecutive years, then they are declared as disqualified Directors. The condonation of delay scheme then became operational courtesy of the appeal of aggrieved Directors. Under this scheme the Directors are given Directors Identification Number (DIN) to file the deferred tax returns over the course of next few months, and after the scheme still they are not able to file the returns then they are declared as disqualified for the next 5 years.

How does scheme work?

When a Director is disqualified, they won’t be able to become Director of any company for the next 5 years. Therefore the company can appoint temporary Directors to execute the resolutions to file and submit the financial statements and annual returns. These Directions are given new DIN and DSC for the time being to file all the annual returns. Furthermore, thees new Directors who shall pass the resolution to pass the resolution to re-hire the disqualified ones and passing the request to the Registrar of companies.

Director disqualification removal process

Drafting a written application
Filing the Director disqualification matter with the High court.
The Advocates appear before the high court regarding Director disqualification.
Obtaining the final order from the High court.
Filing all the financial and annual compliances with the Registrar of companies.
Activation of DIN and removal of director disqualification.

What are the Documents required for Director disqualification?

There is one thing to remember that there is a way to remove Director disqualification

Without the condonation of delay scheme (CODS). However CODS to make the process quite streamlined.

With CODS, documents required are as follows-

Overdue Documents
E-Cods

Without CODS, documents required are as follows-

If company was active

An Application before the National Company Law Tribunal
The documents that are overdue
E-cods on MCA 21 portal.

If company was inactive

Petition to the High court

Overdue documents
E-cods on MCA 21 portal

BIATConsultant.com is #1 business , financial and legal consultant in India who can aids in in company formation in India as well as providing legal consultancy service for removal of disqualification if directors .

April 6, 2019

Importance of Design registration in India

The term Industrial designs, is known as the Design, the surface pattern, or the shape or pattern associated with the product or an article which is unique in nature. The main motive of the Design registration is to give protection to the product which are creatively designed and is also governed by the design Registration Act, 2000.

The Designs Acts 2000, has defined the term design under section 2(d), as only the features of shape, configuration, pattern, ornament or component of lines or colours applied to any articles whether in two dimensional or three dimensional or in both forms, by any Industrial process or means, whether manual mechanical or chemical. Separate or combined in the finished article for which can be judged by an eye, but does not include any mode of principal or construction or anything which is in substance ain a mere mechanical device.

Section 4 of the designs Act, 2000 provides that the Design of any article or product should be appealing to eye and should not be in public domain prior to its registration, otherwise it cannot be subject to registration. The Design of a any article or product should be new and should not b in prior use as it would destroy the design’s novelty. And Design should be in a tangible form.

The registration Designs in india confers on the Applicant the exclusive right against the unauthorized copying or limitation of his Designs by third parties. Registration of a Design provides for a distinctive identification among the consumers and helps the applicant in boosting their sales and and goodwill in the market. A Design Registration f=gives the applicant an exclusive right to take action among the infringer, and stop piracy of the design. Corree houses are increasingly becoming aware of the hidden value of Intellectual property. They have realized that registration of their product design will not only give them an edge over their competitors but that registration of a Design is relatively inexpensive and easy procedure.

Registration of a design offers to secure a filing date as the priority date, for any corresponding design applications, one may have in other countries within the following six months. This helps in establishing the Design Overseas. A Design registration increases the market awareness of a product and in turn enhances the reputation of the company in the market. This helps in improving in the competitiveness of the product as it dries third parties from imitating or copying a registered design.

Registration of design is becoming increasingly popular, as the indian courts are adjudicating in relation to Design protection and registration efficiently and in a time bound manner. It has been realized that clever application of design rights can extend a product’s value considerably in the market. With Design registration new avenues have opened up in a commercial market and investors are ready to invest in new innovation and technologies. The Design Act, 2000 have played a pivotal role in promoting technological innovation and Design registration has made the consumer aware of the various innovations in the market.

March 25, 2019

How To Register For Trademark in USA From India

Overview

A Trademark, which gives protection to the Brand name, logo, word, symbol or any combination thereof used with respect of business or in respect of certain products or services.

Trademark is given in the country in which it is filed, and to file in another country we have to comply with laws of the other countries.

Where United States of America is one of the economically leading country, and to apply trademark over there from India, or from their native countries, it has to be complied with the centralized governing authority called as the United States Patent and Trademark Office (USPTO)

Benefits of filing US Trademark Application

Registering Trademark in US has following benefits and they are as follows:-

Legal ownership throughout all States i the US.
A USPTO Trademark registration confers the highest degree of protection for a Brand name.
Exclusive usage right.
Right to refrain others from using your Trademark.
The trademark gets listed on the USPTO Trademark database ( Trademark electronic search system)
Right to use R symbol.
A USPTO trademark registration increases valuation of the Brand name as well as the business.
Rights o take legal action against infringers and counterfeits.

How to register Trademark in US

In order to take or Register Trademark in US, following steps are neede to be taken, and they are as follows-

US Trademark search

A thorough search of the similar trademark from the database is required to be done before filing of the4 Trademark Application in USPTO. This gives preliminary assurance that your Trademark is not confusing or similar to the already existing mark. And it also reduces the chances of objection or third party opposition.

Identification of Class

Based on the description or service of the product, accordingly class of that product is decided i.e. based on the description of the goods or services, exact class or classes from among 45 classes is being decided.

Comprehensive specification Drafting

The Trademark specification or description should be provided carefully, and the same should be the acceptable entries of the ID manual provided by the USPTO.

Trademark filing basis (Sec 1A, 1B, 44D, 44E)

This is the crucial step of Trademark filing process as the Applicant is required to select the filing basis for the Trademark application, from among intent to use, use in commerce, foreign application/claiming priority ( within 6 months from the date of filing date of the foreign trademark Application) and foreign registration.

Specimen of use

If the Trademark is being filed in which usage of the mark is being claimed, corroborating and acceptable specimen of use (documents establishing the use) must be provided.

Final Application

Once the Application is applied, then a serial number will be provided by the USPTO.

March 23, 2019

What Is BIS Registration ? What Is Procedure Of BIS Registration In India

Documents Required

Firstly you need to provide the details of the technical products for the Lab test. And it is basically about giving information regarding construction details of the business and they are as follows-

PCB layout
Schematic Diagram
User manual
Critical Component list ( CCL)

Secondly you need to provide information about the Factory documentation and information to complete the BIS Application form and Process. It is basically providing the basic information about the manufacturing unit, and for that following documents are required-

Legal address Proof of factory ( manufacturing license Copy)
Trademark registration Copy ( Brand Name or Logo registration)
Organizational Chart of Factory (Top Management + QA Team)
List of Machinery
List of Equipment (QA)
Documents of Authorized Indian Representative ( AIR), in case of Foreign Manufacturer.

Guideline for multiple model and series of product for BIS Registration

In single BIS registration Application, 10 similar models (Series Models) of one brand can be processed together provided they all fall in the series guideline. Only one set top box can have multiple brands of 10 series models in single BIS registration Application. For cell and battery, it can be upto 20 series models (1+19).

Process for BIS registration In India

Firstly the sample of the product is given to the BIS approves Indian laboratories which are recognised for testing under defined IS standard.
Secondly after getting the test report, apply to BIS office with prescribed format i.e. by filling form VI which is attached with lab test report, factory documents, information and undertaking. And after scrutiny of all submitted documents and information, BIS registration certificate will be issued.

What are the guidelines for BIS Registration

BIS registration certificate is granted to Manufacturing units and not to any individual. All importers and traders need to get BIS Registration for their respective manufacturing units before placing their order for scheduled electronic items.

Importer or Trader can become the Indian Representative for manufacturing unit as it is mandatory to have an Indian representative to get BIS registration.

Validity of BIS registration certificate

BIS registration certificate is valid for 2 years and after that it gets renewed. Few documents and fees is required to be submitted in order to get the renewal of BIS Registration certificate, testing of sample is not required in case of its renewal.

March 3, 2019

SME ( Small and Medium Enterprises) listing for start up

Fundraising is a very crucial task which is required to be done by the Directors of the company, and when it comes to a start-up it is very important to see the best efficient investment to be done in the idea which can give good effect to their business. Or it may search for a investor who is ready to invest in the best efficient way in the ideas of the startup to raise the efficiency of the start up.

Since only Public Limited Company can list its securities, therefore SME listing is a unique stage for start up incorporated as public company.

For further development of securities market, especially for Indian small and medium enterprises. Securities and Exchange Board of india (SEBI) recently permitted listing of SMEs without following any cumbersome procedures of an Initial Public Offering (IPO). therefore SEBI introduces new chapter to SEBI ( Issue of Capital and Disclosure Requirement) Regulation, 2009 Act, which is SEBI ( Listing of Specified securities on Institutional Trading Platform) Regulations, 2013. (ITP regulation).

Some of the key faces of ITP Regulations-

The paid up capital of the company has not exceeded 25 crores rupees in any of the previous financial year.
The company must have at least one full year audited financial statement, for immediately preceding financial year at the time of making listing application.
At Least 25% of post listing capital shall be held by the promoters which shall have lock in period of 3 years from the date of listing.
All specified securities of the SME shall be in dematerialised form.

Start ups comes with very innovative ideas to foster the development of startup SMEs listing platform is very important. This will not only increase the access to funds but also increases the visibility of startup.

ITP regulation provides incredible and efficient market place which narrows down the gap between investors and emerging corporate in India.

Therefore to make start up a good platform or efficient, it is very important for startup to involve good investors, venture capitalist etc. in their business for the listing of SMEs.