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Frequently Asked Questions

Corporate Entity Registration

Answer

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

Answer

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

Answer

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number

Answer

Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company.

One Person Company

Answer

To incorporate a One Person Company, a Director and a nominee is required. A nominee member is one, who shall, in the event of promoter member`s death or incapacitation become a member of the Company. Member may be the Director or can appoint another person as Director of OPC.

Answer

Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member. The Director or Nominee must also be over 18 years of age. A person can incorporate up to five One Person Companies.

Answer

One Person Company can be started with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.10 lakhs [Authorized Capital Fee] during the incorporation of the OPC. There is no requirement to show proof of capital invested during the incorporation process.

Answer

An address in India where the registered office of the One Person Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Answer

No, you will not have to be present at our office or appear at any office for the incorporation of a One Person Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

Answer

Identity proof and address proof is mandatory for all the proposed Director and Nominee of the One Person Company. PAN Card is mandatory. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit address proof of registered office premises such as copy of utility bills (not older than two months).

Answer

Incorporation of a One Person Company in 1-7 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.

Answer

To incorporate a One Person Company quickly, make sure the proposed name of the Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.

Private Limited Company

Answer

To incorporate a Private Limited Company, a minimum of two people are required. A Private Limited Company must have a minimum of two Directors and can have up to a maximum of 15 Directors. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a Private Limited Company.

Answer

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in an Indian Private Limited Company.

Answer

You can start a Private Limited Company with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.10 lakhs [Authorized Capital Fee] during the registration of the Company. There is no requirement to show proof of capital invested during the registration process.

Answer

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Answer

No, you will not have to be present at our office or appear at any office for the registration of a Private Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

Answer

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

Answer

Incorporate a Private Limited Company for in 1-7 working days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

Answer

To incorporate a Company quickly, make sure the proposed name of the Private Limited Company is very unique. Names that are similar to an existing private limited company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.

Answer

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

Answer

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

Answer

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Answer

Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.

Answer

Ans :A private limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Private Limited Company, at least once every year.

Answer

Ans :Yes, a NRI or Foreign National can be a Director in a Limited Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India.

Answer

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

Answer

100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

Public Limited Company

Answer

To incorporate a Limited Company, a minimum of seven people are required. A Limited Company must have a minimum of three Directors and seven shareholders.

Answer

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in an Indian Private Limited Company.

Answer

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

Answer

KFintech Corporate Advisory Services (http://kcas.KFintech.com) can incorporate a Limited Company for in 14-20 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.

Answer

To incorporate a Company quickly, make sure the proposed name of the Private Limited Company is very unique. Names that are similar to an existing private limited company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.

Answer

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

Answer

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

Answer

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Answer

Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.5 lakhs.

Foreign Company

Answer

Yes, a foreign company or foreign national can own or start a business in India by acquiring equity shares of the company. Investment in a Company can be under two routes, automatic route or Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and is allowed in most of the businesses.

Answer

Yes, foreign nationals can be Directors of an Indian company after obtaining a Director Identification Number. Director Identification Number for a foreign national can be obtained by applying for the same with the Ministry of Corporate Affairs.

Answer

Foreign investment in any form is prohibited in businesses engaged or proposes to engage in the following business: i) Business of chit fund; or, ii) Nidhi Company; or, iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, pisiculture, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to agro & allied sector and tea plantations); or, iv) Real Estate business, or construction of farm houses (Does not include development of townships, construction of residential / commercial premises, roads or bridges); or, v) Trading in Transferable Development Rights (TDRs).

Answer

For a foreign national or foreign company to start a Company in India, the foreign National must have an address for Registered Office in India and one Director on the board, who will be a Indian Citizen and Indian Resident.

Answer

If a foreign national is on the Board of Directors, then a copy passport along with copy of address proof that is apostilled by the Indian Embassy or a Notary will be required. In addition, the witness of the MOA and AOA documents would have to be a Notary or the Indian Embassy. If the shares of the Indian Company would be owned by a Foreign Company, then a Board of Resolution also needs to be passed by the foreign company for acquiring shares in the Indian company.

Answer

To incorporate a company in India, it takes foreign nationals or foreign company about 30 days to file prepare the necessary paperwork and file the same with the Government and obtain Certificate of Incorporation.

Answer

Yes, after incorporation of the Company and flow of equity fund into the Company from foreign source, Reserve Bank of India must be notified about the foreign investment in the Company through proper filing. In case the activity performed by the business requires Government approval for Foreign Investment, approval must be obtained prior to the funds being invested in the company.

Answer

A minimum of 3 directors and 7 shareholders are required to register a Nidhi company in India.

Answer

No, you will not have to be present at our office or appear at any office for the registration of a Nidhi Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

Answer

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Nidhi Company.

Answer

Identity proof and address proof is mandatory for all the proposed Directors of the Nidhi Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and address proof of registered office (copy of utility bills not older than two months).

Answer

KFintech Corporate Advisory Services (http://kcas.KFintech.com) can incorporate a Nidhi Company for in 20-30 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

Answer

Once a Nidhi Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. A Nidhi Company must have a minimum of 200 shareholders and comply with other criteria�s within one year of incorporation. In case, annual compliances are not complied with, the Nidhi Company will be asked

Answer

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Producer Company

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A minimum of five people are required to register a producer company in India.

Answer

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / agricultural / residential where communication from the MCA will be received.

Answer

No, you will not have to be present at our office or appear at any office for the registration of a Producer Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

Answer

All Companies and LLPs in India are required to have a Registered Office in the State where the Company is registered in India. The Registered Office of the Company is where all official letters and reminders will be sent from Ministry of Corporate Affairs. The registered address must always be an effective address for delivering documents to the company, and to avoid delays it is important that all correspondence sent to this address is dealt with promptly.

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All books of accounts shall be kept at the registered office of the company. But if they are kept at any other place in India as decided by the Board of Directors, the company shall send a notice in writing to the Registrar of that place, mentioning the full address of the place.

Answer

No, the Registered Office of a Company or LLP must be in the State where the Company in Incorporated in India.

Answer

Yes, the Registered Office of a Company or LLP can be the residence of one of the Director or Managing Partner.

Answer

Yes, the Registered Office of a Company can be a residence. There is no requirement for the registered office to be a commercial or industrial property.

Answer

The change of Registered Office of the Company must be authorized by the Board of Directors at a Board Meeting.

Answer

The procedure for changing the Registered Office of a Company will depend on the nature of change of address. Change in Registered Office is classified mainly into three types: i) Change of Registered Office within the same village/town/city ii) Change of Registered Office within the same Registrar of Company (ROC) jurisdiction and iii) Change of Registered Office of the Company from one ROC to another ROC jurisdiction. The complexity of the procedure increases as the nature of Registered Office change becomes more pronounced.

Answer

ROC must be notified of the change in Registered Office by filing the appropriate documents within 30 days of change of Registered Office premises.

Answer

A Director of a Company must be above the age of 18 and must have a Director Identification Number. The person can be an Indian National or a Foreign National. The Director of a Company has to be a natural person.

Answer

A Private Limited Company must have a minimum of two Directors at all times. A Limited Company must have a minimum of three Directors at all times.

Answer

A Company is allowed to have a maximum of 15 Directors.

Answer

A Digital Signature, Signed Affidavit from the proposed Director and information about the identity and address of the Director is required.

Answer

A Company can remove a Director by passing an ordinary resolution in an Annual General Meeting or an Extraordinary General Meeting. Ordinary resolutions can be passed by a simple majority. Once a resolution is passed, the Company must file the Resolution along with the necessary forms to the Ministry of Corporate Affairs to remove a Director.

Answer

A new Director can be added to the Board of Director by passing an ordinary resolution in an Annual General Meeting or an Extraordinary General Meeting. Ordinary resolutions can be passed by a simple majority. Once a resolution is passed, the Company must file the Resolution along with the necessary forms and the Digital Signature of the Managing Director or Secretary of the Company, to the Ministry of Corporate Affairs to appoint a Director.

Answer

Shareholders are the legal owners of the shares of a company. Shareholders can be natural persons or corporate entities.

Answer

Directors of a company are appointed by the shareholders of a company to manage the affairs of a company. Directors are not owners of a company.

Answer

Articles of Association contain all the information regarding who holds the power distribution among directors, officers, shareholders etc, who holds right of vote and veto, the nature and form in the structure for the internal corporate governance of the company, the means of internal review by which executive decisions are made, the bodies in whom authority to make such decisions in the last resort finally rest, the procedure and number or percentage of votes required to establish a majority and make some key decisions etc.

Answer

Most Articles of Association restrict transfer of shares of a Private Limited Company. Hence, it is important to review the Articles of Association prior to undertaking a share transfer.

Answer

An instrument of transfer of securities is a must to effect share transfer. Form SH.4 in physical form is thus used for share transfer and is called share transfer form.

Answer

Yes, stamp duty is applicable. Stamp duty for transfer of shares at the rate of 25 paise for every Rs. 100 of the value of shares transferred is applicable.

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Transferor is the person transferring the shares from his/her ownership (can also be a corporate entity). Transferee is the person or entity receiving the shares.

Answer

The price at which share transfer will happen is determined by the Directors or Auditor of the Company, as per the Articles of Association of the Company.

Answer

Yes, shares of an Indian Company can be transferred to a NRI or Foreigner, subject to FEMA and FDI regulations.

Answer

KFintech Corporate Advisory Services (http://kcas.KFintech.com)can help you transfer shares of a company by completing the necessary paperwork and procedure to effectively transfer the shares from one person or entity to another.

Answer

An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not a natural person or human being. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a Private Limited Company is a legal entity separate from that of its members.

Answer

A company has �perpetual succession�, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.

Answer

Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company�s debts is limited. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.

Answer

Shares of a company limited by shares are transferable by a shareholder to any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

Proprietorship Registration

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Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter.

Answer

The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.

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PAN Card for the Proprietor along with identity and address proof is sufficient to start a Proprietorship and obtain other registration, as applicable or required.

Answer

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

Answer

KFintech Corporate Advisory Services Associate will understand your business requirements and help you start a Proprietorship by obtaining the relevant registrations. KFintech Corporate Advisory Services (http://kcas.KFintech.com) will help obtain the necessary registrations to help the Proprietor open a bank account in the name of the business, thereby proving an identity for the business.

Answer

To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor provide two forms of registration for the Proprietorship along with the PAN Card, identity proof and address proof of the Proprietor. MSME registration, shops & establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.

Answer

No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business. Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.

Answer

Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.

Answer

There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there are no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.

Answer

A business operated by proprietorship firm cannot be transferred to another person, unlike a Limited Liability Partnership or a Private Limited Company. Only the assets in the Proprietorship can be transferred to another person through sale. Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person.

Answer

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Proprietorship firm.

Answer

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors.

Answer

Proprietorship will have to file their annual tax return with the Income Tax Department filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Answer

It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

Answer

Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.

Answer

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

Answer

The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.

Answer

PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.

Answer

There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.

Answer

KFintech Corporate Advisory Services Associate will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, KFintech Corporate Advisory Services can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm.

Answer

Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.

Answer

Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. Also, only a Registered Partnership firm can claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is advisable for Partnership firms to get itself registered sooner or later.

Answer

To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.

Answer

No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.

Answer

If the Partnership firm is registered, the Partnership deed will be registered and a Registration Certificate will be issued by the Registrar of Firms.

Answer

Partnership firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Partnership firm.

Answer

There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.

Answer

Indian Nationals and Indian Residents are allowed to invest in a Partnership firm without any approval. Usually those who invest in the Partnership firm become a Partner of the firm and in the absence of any agreement to the contrary, all partners will have a right to participate in the activities of the business.

Answer

Partnership firm will have to file their annual tax return with the Income Tax Department filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Answer

It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

Answer

Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.

Trademark Registration

Answer

Any word, name, device, label, numerals or a combination of colors that can be represented graphically (in a paper) can be registered as a trademark. The trademark to be registered must also be distinctive for the services or goods for which it is proposed to be registered.

Answer

Any trademark, which is identical or deceptively similar to an existing registered trademark or trademark for which application for registration has been made, cannot be registered. Also trademark that would likely cause deception or confusion or is offensive may not be registered. Geographical names, common names, common trade words and common abbreviation can also not be registered as a trademark.

Answer

Trademark registrations are distinctive to the goods or services it is represents. Therefore, trademark registration are made under a "Class" of goods or service it represents. The trademark registration will therefore be valid for the entire class of goods or service it represents.

Answer

To standardize the goods or services, which the trademark will represent, the Trademark Registry has a list of 45 Classes under which all types of goods and services are represented. The trademark application must mention the type of goods or services the trademark will represent under one or more of the classes, and trademark registration is granted for that specific class of goods or service.

Answer

No, trademark registered in India will be valid only in India. However, some countries use the trademark registration in India as a basis for registering the trademark in their country.

Answer

Yes, a foreign person or a foreign entity can apply for trademark registration in India.

Answer

Any person claiming to be the owner of the trademark used or proposed to be used can apply for trademark registration. The person can be an individual, company, NGO, etc.,

Answer

A copy of the trademark to be registered along with the address and identity proof of the trademark owner is required. In case of Company, the name of the Company along with its Certificate of Incorporation and Address proof is required.

Answer

Trademark application can be filed with the trademark registry in a matter of days. However, it will typically take 8 to 24 months for the Trademark Registry to complete their formalities and provide registration for the trademark.

Answer

The TM mark can be used along with the trademark once the trademark application is filed with the Controller General of Patents Designs and Trademarks.

Answer

Registered trademarks are valid for 10 years from date of filing. Prior to the end of the validity, the trademark owner can file for renewal to keep the trademark registration current.

Answer

In case there is infringement on a registered trademark, there are several ways to stop it or sue for damages. A legal suit can be filed in a District Court where infringement has occurred or arbitration proceedings can be initiated or other legal measures can be initiated to stop the trademark infringement.

Answer

A registered trademark is an intellectual property, which can be sold, transferred, gifted, franchised, etc., Trademark registration gives the owner of the trademark ownership over the trademark and any person wishing to use the trademark must obtain the registered trademark owners consent.

Answer

Trademark is a type of intellectual property which grants its owner the exclusive right to use the trademark in relation to the goods in respect of which trademark is registered. Trademark must be a mark in the form of a device, brand, heading, label, ticket, name or an abbreviation of a name, signature, word, letter or numeral or any combination thereof. Trademarks are used to indicate to the purchasing public that they are goods manufactured or otherwise dealt in by a particular person as distinguished from similar goods manufactured or dealt in by other persons. In this article we look at the process for registering a trademark in India.

Answer

Invented words, non-descriptive and distinctive devices are the best types of trademark-able marks. To register the trademark the mark should be distinctive and should not be similar to any other trademark registered for the same type or goods or services or used by a competitor whether registered or not.

Answer

Application for trademarks which are identical with or deceptively similar to an existing trademark are not allowed to be registered. Also, application for trademarks which would likely deceive or cause confusion to the public, hurts sentimental/religious values, consists exclusively of marks which have become customary in the current language or take unfair advantage of an earlier mark are not allowed to be registered. For more information about grounds of refusal of registration of a trademark, check the guidelines for Trademark Registration.

Answer

Prior to applying for a trademark, it is advisable for the applicant to search the trademark records registry and know whether any trademark resembles the mark to be registered. This search of the trademark registry can be conducted online. Once the search is completed and there are no conflicts, application for registration in the trademark registry can be made in the prescribed form. The application for registration of trademark must contain the mark to be registered, trademark owner information, list of goods or services for which the trademark registration is sought and the date since when the trademark is used.

Answer

Once the application for the trademark registration is made, the Registrar will search amongst the registered marks and pending applications to ascertain whether any such marks exists in the registry and if the mark is register-able as per the law. If the Registrar has any objection to the acceptance of the application or proposes to accept the application with conditions, amendments, limitations, etc., the same is communicated to the applicant in writing and the applicant has a period of three months to rectify his/her application and communicate their stand. If the application for registration of a trademark has been accepted, the Registrar will cause the trademark to be advertised in the prescribed manner in the Trademark Journal to give to third parties an opportunity for opposition. The entry of a trademark will specify the date of registration, goods or services for which it is registered and other particulars. The registration of a trademark is valid for 10 years and is further renewable.

MSME Registration

Answer

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits such as interest rate concessions, tax benefits and access to a range of subsidies and schemes, aimed at developing MSMEs.

Answer

MSME Registration can be obtained by business in the manufacturing or service sector. To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.

Answer

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

Answer

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

Answer

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

Answer

MSME Registration has a range of benefits implemented as subsidies, schemes and incentives. Enterprises registered with the MSMED Act enjoy interest rate concession and their borrowing is classified under Priority Sector Lending. Enterprises registered with the MSME act are also allowed to avail a number of subsidies and schemes floated by the State and Central Government. Some of them include, subsidy for ISO registration, subsidy for obtaining International patents, subsidy for participating in tradeshow, subsidy for implementing barcode on Products, etc.,

Answer

To obtain MSME registration, proof of address of business, proof of identity of the promoters and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required. Additional documents may be required based on the State in which the MSME Registration is sought.

Answer

MSME Registration process is State specific. Therefore based on the State, the MSME Registration processing time differs. MSME Registration can typically be obtained in 10 - 15 working days.

Answer

MSME Registration is first provided as a Provisional Registration Certificate with a validity of 5 years. Once, the unit has commenced production, a Permanent Registration Certificate is issued which is valid for lifetime of the entity.

Answer

If the business grows and investments more than Rs.10 crores in plant and machinery in case of manufacturing entity and more than Rs.5 crores in plant and machinery in case of service entity, the enterprise should apply for de-registration.

Import Export Registration

Answer

IE Code stands for Import Export Code. It is required for any person importing or exporting goods and services to or from India.

Answer

All importers must mention their IE Code while clearing customs when their goods arrive in India. All exporters must mention their IE Code while exporting their goods from India. Additionally, now RBI requests person importing or exporting services to also mention IE Code in foreign remittances in bank account. Therefore, IE Code is required for anyone involved in import or export in India.

Answer

No. IE Code is not a tax registration. So no tax is levied based on IE Code during import or export of goods or services. However, customs duty maybe levied.

Answer

Any person who proposes to import or export goods and services from or to India must obtain IE Code.

Answer

Yes, individuals acting as Proprietors of a business can obtain IE Code Registration.

Answer

To obtain IE Code registration, a copy of PAN Card, proof of address of business and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] and a letter from the banker is required

Answer

IE Code Registration can be obtained from the DGFT in 10-15 working days after submission of all required documents and application.

Answer

IE Code is not a mandatory registration, only importers and exporters of goods or services must have IE Code. Therefore, there is no penalty for not having IE Code; however, import / export will not be possible without an IE Code.

Answer

No. Returns need NOT be filed for IE Code.

Answer

IE Code is valid for life-time of the entity and renewal is also not necessary.

Bank Loan and Funding

Answer

Bank Loan Syndication is the process of formulating a credit request, preparing a detailed project report along with the necessary documents, submitting the requests to banks or financial institutions and obtaining sanction & disbursement of credit facilities.

Answer

There are many types of credit facilities and it is important for the Entrepreneur to choose the right one for his/her business, in consultation with a Financial Expert. Some of the types of Bank Loans available are Term Loans, Cash Credit Facility, Letter of Credit Facility, Corporate Loan, Loan against Property, Loan against Shares, Bank Guarantee, etc.,

Answer

Yes, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme provides a way for Entrepreneurs to obtain a bank loan of up to Rs.1 Crore without any collateral security. However, to obtain sanction under the CGTMSE Scheme, the Entrepreneur must have excellent track record and very good credit worthiness.

Answer

Obtaining sanction of bank loan depends on many factors like the promoters profile, business model, past and projected financial performance, collateral security provided, etc., Banks do not lend only based on the business idea; the decision to sanction a loan is based on the factors listed above. Therefore, each case is unique and only a Financial Expert with experience in bank loan syndication can predict the outcome of a request for credit facility based on the information about your business. Talk to us today to see if you would be eligible for bank credit facilities.

Answer

Some of the main factors that determine the credit eligibility of a business are Promoters background, business model, operational performance, infrastructure, location, collateral security offered, present financial performance, future financial performance, credit repayment track record, external credit rating, etc., The credit decision is based on a composite of the above factors.

Answer

The processing time for obtaining a bank loan is anywhere between 1 and 3 months. However, the processing time will depend on the information submitted by the promoter, information requested by the bankers and a host of other factors. Therefore, the 1 to 3 months is a very good estimate of the time required to obtain a bank loan.

Answer

KFintech Corporate Advisory Services has experience financial professionals who syndicated bank loans for hundreds of business. Our Financial Professionals will first understand you business, know your requirements, prepare a custom Detailed Project Report for your business, advice you on the Capital Syndication options, submit the request to bankers or financial institutions and follow-up until sanction and disbursement of the credit facility. Our Financial Professionals will provide end-to-end support on the loan syndication process.

Answer

Bank loan syndication process starts with our Financial Professionals understanding your business. So we would require information like your present or proposed business plan, business location, business infrastructure, promoters profile, past and/or projected financial performance, present relationship with banks or financial institutions, collateral security offered and other pertinent information. The information can be provided through email or phone. Once, our Financial Professionals understand your business, they can advice you on the Capital Syndication efforts and the roadmap to achieving financial closure.

Answer

The submission to the banks will include a Detailed Project Report, Request Letter, Financial Statements, Business Constitution documents and other information pertaining to the credit request. In case, the bank requests for further documents or have a query, we will address the same in association with the client.

Answer

KFintech Corporate Advisory Services will initially charge a consulting fee for evaluating the client with respect to the bank loan syndication process. Once our Financial Professionals are satisfied with respect to the credit worthiness of the client, further fee and process will be discussed to start the Bank Loan Syndication process.

Answer

Working Capital of a business is the total current assets of the business minus the total current liabilities of the business. A good amount of working capital ensures the business functions smoothly and meets its current liabilities on time.

Answer

Working Capital Loan Syndication is the process of formulating a credit request, preparing a detailed project report along with the necessary documents, submitting the requests to banks or financial institutions and obtaining sanction & disbursement of working capital facilities like cash credit, letter of credit (LC) or bank guarantee.

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Working capital loans do not have tenure. Working capital loans can be renewed each year based on the performance of the entity.

Answer

The rate of interest for a working capital loan will be based on the borrowers profile and credit worthiness. Usually, working capital loan interest rates are fixed as a set percentage over the banks base lending rate.

Answer

No, working capital loans are sanctioned only for utilization towards the operation of the business and can be used only for acquiring short-term assets like inventory.

Answer

Cash credit limit allows a business to utilize bank funds for acquiring stock or other assets required for running a business and/or for liquidating current liabilities of a business as it becomes due. Cash credit limit is similar to a credit card for individuals, wherein the bank allows the business to use a certain amount of funds in credit for working capital purposes. The amount of cash credit limit sanctioned is based on the business profile and credit worthiness of the borrower.

Answer

A Letter of Credit facility allows the borrower to obtain current assets on credit from a supplier. The letter of credit gives the supplier assurance that the payment for the goods provided on credit will be repaid either by the customer or the bank.

Answer

Yes, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme provides a way for Entrepreneurs to obtain a bank loan of upto Rs.1 Crore without any collateral security. However, to obtain sanction under the CGTMSE Scheme, the Entrepreneur must have excellent track record and very good credit worthiness.

Answer

Some of the main factors that determine the credit eligibility of a business are Promoters background, business model, operational performance, infrastructure, location, collateral security offered, present financial performance, future financial performance, credit repayment track record, external credit rating, etc., The credit decision is based on a composite of the above factors.

Answer

The processing time for obtaining a bank loan is anywhere between 1 and 3 months. However, the processing time will depend on the information submitted by the promoter, information requested by the bankers and a host of other factors. Therefore, the 1 to 3 months is a very good estimate of the time required to obtain a bank loan.

Answer

Bank loan syndication process starts with our Financial Professionals understanding your business. So we would require information like your present or proposed business plan, business location, business infrastructure, promoters profile, past and/or projected financial performance, present relationship with banks or financial institutions, collateral security offered and other pertinent information. The information can be provided through email or phone. Once, our Financial Professionals understand your business, they can advice you on the Capital Syndication efforts and the roadmap to achieving financial closure.

Answer

The submission to the banks will include a Detailed Project Report, Request Letter, Financial Statements, Business Constitution documents and other information pertaining to the credit request. In case, the bank requests for further documents or have a query, we will address the same in association with the client.

Answer

KFintech Corporate Advisory Services will initially charge a consulting fee for evaluating the client with respect to the bank loan syndication process. Once our Financial Professionals are satisfied with respect to the credit worthiness of the client, further fee and process will be discussed to start the Bank Loan Syndication process.

Answer

Working Capital of a business is the total current assets of the business minus the total current liabilities of the business. A good amount of working capital ensures the business functions smoothly and meets its current liabilities on time.

Answer

Working Capital Loan Syndication is the process of formulating a credit request, preparing a detailed project report along with the necessary documents, submitting the requests to banks or financial institutions and obtaining sanction & disbursement of working capital facilities like cash credit, letter of credit (LC) or bank guarantee.

Answer

Working capital loans do not have tenure. Working capital loans can be renewed each year based on the performance of the entity.

Answer

The rate of interest for a working capital loan will be based on the borrowers profile and credit worthiness. Usually, working capital loan interest rates are fixed as a set percentage over the banks base lending rate.

Answer

No, working capital loans are sanctioned only for utilization towards the operation of the business and can be used only for acquiring short-term assets like inventory.

Answer

Cash credit limit allows a business to utilize bank funds for acquiring stock or other assets required for running a business and/or for liquidating current liabilities of a business as it becomes due. Cash credit limit is similar to a credit card for individuals, wherein the bank allows the business to use a certain amount of funds in credit for working capital purposes. The amount of cash credit limit sanctioned is based on the business profile and credit worthiness of the borrower.

Answer

A Letter of Credit facility allows the borrower to obtain current assets on credit from a supplier. The letter of credit gives the supplier assurance that the payment for the goods provided on credit will be repaid either by the customer or the bank.

Answer

Yes, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme provides a way for Entrepreneurs to obtain a bank loan of upto Rs.1 Crore without any collateral security. However, to obtain sanction under the CGTMSE Scheme, the Entrepreneur must have excellent track record and very good credit worthiness.

Answer

Some of the main factors that determine the credit eligibility of a business are Promoters background, business model, operational performance, infrastructure, location, collateral security offered, present financial Performance, future financial performance, credit repayment track record, external credit rating, etc., The credit decision is based on a composite of the above factors.

Answer

The processing time for obtaining a bank loan is anywhere between 1 and 3 months. However, the processing time will depend on the information submitted by the promoter, information requested by the bankers and a host of other factors. Therefore, the 1 to 3 months is a very good estimate of the time required to obtain a bank loan.

Answer

KFintech Corporate Advisory Services has experience financial professionals who syndicated bank loans for hundreds of business. Our Financial Professionals will first understand you business, know your requirements, prepare a custom Detailed Project Report for your business, advice you on the Capital Syndication options, submit the request to bankers or financial institutions and follow-up until sanction and disbursement of the credit facility. Our Financial Professionals will provide end-to-end support on the loan syndication process.

Answer

Bank loan syndication process starts with our Financial Professionals understanding your business. So we would require information like your present or proposed business plan, business location, business infrastructure, promoters profile, past and/or projected financial performance, present relationship with banks or financial institutions, collateral security offered and other pertinent information. The information can be provided through email or phone. Once, our Financial Professionals understand your business, they can advice you on the Capital Syndication efforts and the roadmap to achieving financial closure.

Answer

The submission to the banks will include a Detailed Project Report, Request Letter, Financial Statements, Business Constitution documents and other information pertaining to the credit request. In case, the bank requests for further documents or have a query, we will address the same in association with the client.

Answer

KFintech Corporate Advisory Services will initially charge a consulting fee for evaluating the client with respect to the bank loan syndication process. Once our Financial Professionals are satisfied with respect to the credit worthiness of the client, further fee and process will be discussed to start the Bank Loan Syndication process.

kcas@kfintech.com

1-800-4195-111(Monday to Saturday from 9 AM to 6 PM.)

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