legal consultant in india Archives - Business , Financial & Legal Consultant In India

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 .

March 18, 2019

What are the main contents of an Employee Contract

An Employee Contract is provided by an employer to its employees which specifies terms and conditions under which an employer hires employees. The little co-signed paper also represents the integrity of the Employer Company and also the passion of the employees towards the company and their work. Through this blog we will understand and discuss the components of the employees.

5 main components of the Employee Contract:-

Terms and conditions of the employment- It specifies the terms and conditions of the employment contract which specifies the circumstances under which the contract of employment can be considered as valid. It should be noted that the term and conditions of the contract must be within the country and human laws and it neither the employer or employee should go beyond that otherwise the same can be considered as null and void contract.

Duties of the employees:- It is the duties of the Employee to adhere the terms and conditions of the Company to remain in the employment of the company. Work of an employee can be decided depending upon the work and designation of the employee, t5his can be flexible but not to the extent of exploitation.

Number of hours that an employee should work per day- The Employee contract must contain clause regarding the working hours of an employee which can vary according to the designation of the employee. There is some flexibility which is granted and that can be decided by an employer. While fixing the number of hours to work of an employee that State laws should be kept in mind and also while fixing working hours one should take care that the minimum working hours are within the restrictions set by the Government.

The Statutory Entitlement of an employee- what are the things to which employees are entitled to and what is he entitled for- these are the elements of this part of the contract. And while deciding this one should keep State laws in the mind and also employer should make sure that these entitlements are not detrimental to the health of the company.

The Employee benefit- The employer must mention the benefits of the employee in the company which increases the interest of the Employee to be part of that company as along. And the benefits should specify the Plans, schemes, that the employee can enjoy i addition to the CTC and Salary to which you are paying to your employee.

By signing or providing this Employee contract to their employees it ensures the healthy relationship between their employees, or you can also retain your employees in the way that is desirable for both the parties.

In case you want to hire some legal consultant in India for drafting employee employer contract , feel free to contact BIATConsultant .

August 4, 2018

Legal Advice For Startup Company In India

With the ease in company Registration process more and more aspiring entrepreneurs are motivated to bring their dream of forming a startup into reality. When a startup is being incorporated, it goes through various phases. There are separate legal requirement for every phase like at an initial stage every startup is required to procure the business license, obtain registration, maintain books of accounts, taking care of taxation, drafting vendor contracts etc. the various legal advice that every startup must take include the following:-

Choosing the best legal structure: This is one of the most crucial decisions that must be taken by every startup. While taking this decision multiple factors must be considered such as nature/sector of business operation, business trajectory, regulatory and tax considerations, cost of formation, ongoing administration and many more. However the most preferred entity structures for startups in India are Limited liability partnership and Private Limited Company.
Obtaining Registrations and licenses: Any business entity is mandatorily required to obtain certain registrations as per the applicable law. Some examples are Permanent account Number (PAN), Tax Deduction and Collection account Number (TAN), Goods and service tax (GST)number. Further according to the nature of business entities they are required to obtain he business licenses issued by a Government authorities that allow startup to start/conduct/continue to operate a particular business within its territorial jurisdictions lawfully.
Protecting Intellectual Property rights: In the era of Modernization, one of the most crucial assets for any business entity is its Intellectual Property rights. These assets help the startups to establish a distinct brand image and gain the competitive advantage over others. One significant thing to be noted here is that registration of a company or a business in India does not by itself gives protection against others who might commence using identical or similar marks. A Trademark search should be conducted before deciding on these business names, trade names to prevent any issues in future including potential infringement.
Agreements: In case there is more than one founder of the startup then there is a need to formulate the agreement between them in order to establish the relationship between the founders of a startup. In an agreement the role, responsibilities and rights of each partners shall be specified.
Compliance Management: Just incorporating a startup is not enough. The company once registered are required to fulfill certain annual compliance requirements and other requirements to avoid Government interference and hefty penalties. To manage the compliances of the company it may take some professional guidance.
Third party agreement: Utmost care must be taken by the company while entering into any third party agreements and setting out its terms and conditions. The clauses related to breach, termination and dispute resolution should be well negotiated and captured in all third party agreements.
Contacts with employees: Before employing any person the startup must ensure to enter into clear employment contracts detailing terms and conditions of employment. The contract must specify the details regarding the job profile, compensation, and other associated benefits, a number of clauses must be inserted to safeguard and protect the interest of the startup- such as stopping employees from setting up competing entities, prohibiting employees from exercising any legal right on Intellectual Property Rights on the work done/developed during the course of employment.

This is how Company in India, a Company should get started and in case of any legal or professional advice regarding company registration or related to Intellectual Property rights you can contact us at BIATCONSULTANT.