Corporate Entity Registration
How long is the incorporation of the Company valid for?
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.
What is a Digital Signature Certificate?
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.
What is Director Identification Number (DIN)?
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
What is authorized capital fee?
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
How many people are required to incorporate a 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.
What are the requirements to be a Director or Nominee in a 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.
What is the capital required to start a One Person Company?
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.
Is an office required for starting a One Person Company?
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.
Do I have to be present in person to incorporate a One Person Company?
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.
What are the documents required for incorporation?
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).
How long will it take to incorporate a One Person Company?
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.
What do I need to quickly incorporate my One Person Company?
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
How many people are required to incorporate a 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.
What are the requirements to be a Director?
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.
What is the capital required to start a 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.
Is an office required for starting a Private Limited Company?
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.
Do I have to be present in person to incorporate a Private Limited Company?
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.
What are the documents required for registration?
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.
How long will it take to incorporate a Company?
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.
What do I need to quickly incorporate my Company?
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.
How long is the registration of the Company valid for?
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.
What is a Digital Signature Certificate?
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.
What is Director Identification Number (DIN)?
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.
What is authorized capital fee?
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.
What are the statutory compliances required for a Private Limited Company?
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.
Can NRIs / Foreign Nationals be a Director in a Limited Company?
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.
Can NRIs / Foreigners hold shares of a Private Limited Company?
Answer
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited
Company subject to Foreign Direct Investment (FDI) Guidelines.
What are FDI Guidelines for Foreigners in a Private Limited Company?
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
How many people are required to incorporate a 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.
What are the requirements to be a Director?
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.
What are the documents required for incorporation?
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.
How long will it take to incorporate a Company?
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.
What do I need to quickly incorporate my Company?
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.
How long is the incorporation of the Company valid for?
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.
What is a Digital Signature Certificate?
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.
What is Director Identification Number (DIN)?
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.
What is authorized capital fee?
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
Can a foreign company or foreign national own or start a business in India?
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.
Can a foreign national be Director of an Indian company?
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.
What are businesses in which foreign nationals or companies can`t invest?
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).
What are the requirements for starting a business in India?
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.
What are the documents required for Foreign National during incorporation?
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.
How long does it take to incorporate a Company in India?
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.
Are there any further regulatory requirements after incorporated Company?
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.
How many people are required to register a nidhi company?
Answer
A minimum of 3 directors and 7 shareholders are required to register a Nidhi company
in India.
Do I have to be present in person to incorporate a Nidhi Company?
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.
What is a Digital Signature Certificate?
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.
What are the documents required for registration?
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).
How long will it take to incorporate a Nidhi Company?
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.
How long is the registration of the Company valid for?
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
What is Director Identification Number (DIN)?
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
How many people are required to register a producer company?
Answer
A minimum of five people are required to register a producer company in India.
Is an office required for starting a Producer Company?
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.
Do I have to be present in person to incorporate a Producer Company?
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.
What is Registered Office of a Company?
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.
What records must be maintained at the Registered Office of the Company?
Answer
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.
Can I keep a Registered Office abroad?
Answer
No, the Registered Office of a Company or LLP must be in the State where the Company
in Incorporated in India.
Can the Registered Office be the residence of one of the Directors?
Answer
Yes, the Registered Office of a Company or LLP can be the residence of one of the
Director or Managing Partner.
Can the Registered Office be a Residence?
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.
Who must authorize the change of Registered Office?
Answer
The change of Registered Office of the Company must be authorized by the Board of
Directors at a Board Meeting.
What is the procedure for changing the Registered Office of a Company?
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.
When should the ROC be intimated about the change in Registered Office?
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.
What are the requirements for becoming a Director of a Company?
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.
What is the minimum number of Director required for a Company?
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.
What is the maximum number of Directors allowed in a Company?
Answer
A Company is allowed to have a maximum of 15 Directors.
What are the documents required for obtaining DIN?
Answer
A Digital Signature, Signed Affidavit from the proposed Director and information
about the identity and address of the Director is required.
What is the procedure for removing a Director from a Company?
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.
What is the procedure for adding 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.
Who are shareholders?
Answer
Shareholders are the legal owners of the shares of a company. Shareholders can be
natural persons or corporate entities.
Who are Directors?
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.
What is Articles of Association 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.
Are shares of a private limited company freely transferable?
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.
What is share transfer form?
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.
Is stamp duty applicable on share transfer?
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.
Who is transferor and transferee?
Answer
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.
At what price will the share transfer happen?
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.
Can shares be transferred to a NRI or Foreigner?
Answer
Yes, shares of an Indian Company can be transferred to a NRI or Foreigner, subject
to FEMA and FDI regulations.
How can KFintech Corporate Advisory Services help me transfer shares of a company?
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.
What is the meaning of separate legal entity?
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.
What is the meaning of perpetual existence?
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.
What is the meaning of limited liability?
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.
What is the meaning of transferability of ownership?
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
How many people are required to start a Proprietorship?
Answer
Only one person is required to start a Proprietorship and a Proprietorship can have
only one promoter.
What are the requirements to be a Proprietor?
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.
What are the documents required to start a Proprietorship?
Answer
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.
What is the capital required to start a Proprietorship?
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.
How will India KFintech Corporate Advisory Services help me start a Proprietorship?
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.
How to open a bank account for a Proprietorship?
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.
Will my Proprietorship firm have a separate legal identity?
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.
Will my Proprietorship firm have a Certificate or Incorporation or Registration?
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.
How to register the name of a Proprietorship?
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.
How can I transfer my Proprietorship?
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.
Can I have partners in a Proprietorship?
Answer
Proprietorship firms are business entity that are owned, managed and controlled
by one person. So Partners cannot be inducted into a Proprietorship firm.
Can other people invest in a Proprietorship?
Answer
Proprietorship firms are business entity that are owned, managed and controlled
by one person. So Proprietorship firms cannot issue shares or have investors.
What are the annual compliance requirements for a Proprietorship?
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.
Is audit required for a Proprietorship?
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.
Can I later convert my Proprietorship into a Company or LLP?
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.
How many people are required to start a Partnership firm?
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.
What are the requirements to be a Partner 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.
What are the documents required to start a Partnership firm?
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.
What is the capital required to start a Partnership 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.
How will India KFintech Corporate Advisory Services help me start a Partnership firm?
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.
Who will register a Partnership firm?
Answer
Partnership firms are registered by the Registrar of Firms, under the Indian Partnership
Act, 1932.
What are the advantages of a Registered Partnership firm?
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.
How to open a bank account for a Partnership firm?
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.
Will my Partnership firm have a separate legal identity?
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.
Will my Partnership firm have a Certificate or Incorporation or Registration?
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.
How to register the name of a Partnership firm?
Answer
Partnership firms are business entity that are owned, managed and controlled by
one person. So Partners cannot be inducted into a Partnership firm.
How can I transfer my 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.
Can other people invest in a Partnership firm?
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.
What are the annual compliance requirements for a Partnership?
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.
Is audit required for a Partnership firm?
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.
Can I later convert my Partnership firm into a Company or LLP?
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
What can be registered as a trademark?
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.
What trademarks are NOT registerable?
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.
Will my trademark registration be valid for all types of services and goods?
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.
What is a trademark class?
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.
Will my trademark registration be valid across the world?
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.
Can a foreigner or a foreign entity apply for trademark registration in India?
Answer
Yes, a foreign person or a foreign entity can apply for trademark registration in
India.
Who can apply for trademark registration?
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.,
What are the documents required for trademark registration?
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.
How long will it take to obtain trademark registration?
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.
When can I use the TM mark?
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.
How long is the trademark registration valid for?
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.
How can a registered trademark be protected?
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.
Can I sell or transfer a registered trademark?
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.
What is a trademark?
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.
What are the main criterias for trademark registration?
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.
What are some of the reasons for trademark application rejection?
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.
What is the process for trademark application filing?
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.
What is the process for trademark registration?
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
What is 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.
Who can obtain MSME Registration?
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.
What is a Micro Enterprise under the MSMED Act?
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.
What is a Small Enterprise under the MSMED Act?
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.
What is a Medium Enterprise under the MSMED Act?
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.
What are some of the benefits of MSME Registration?
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.,
What are the documents required for MSME registration?
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.
How long does it take to obtain MSME registration?
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.
What is the validity of a MSME Registration?
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.
What if my Enterprises crosses the investment threshold of the MSME Act,?
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
What is IE Code?
Answer
IE Code stands for Import Export Code. It is required for any person importing or
exporting goods and services to or from India.
Why is IE Code required?
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.
Is there a tax levied based on IE Code?
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.
Who must obtain IE Code registration?
Answer
Any person who proposes to import or export goods and services from or to India
must obtain IE Code.
Can individuals obtain IE Code?
Answer
Yes, individuals acting as Proprietors of a business can obtain IE Code Registration.
What are the documents required for 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
How long does it take to obtain IE Code registration?
Answer
IE Code Registration can be obtained from the DGFT in 10-15 working days after submission
of all required documents and application.
What is the penalty for not having IE Code?
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.
Do I have to file any returns for IE Code?
Answer
No. Returns need NOT be filed for IE Code.
How long is the IE Code valid for?
Answer
IE Code is valid for life-time of the entity and renewal is also not necessary.
Bank Loan and Funding
What is Bank Loan Syndication?
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.
What are the types of Bank Loan available?
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.,
Can I get a bank loan without any Collateral?
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.
I have a very good idea for a business; can I get a bank loan?
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.
What are some of the main factors that determine loan eligibility?
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.
How long will it take to obtain sanction of bank loan?
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.
How will India KFintech Corporate Advisory Services help me obtain 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.
What documents or information should I provide to start the 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.
What documents will be submitted to the Banks?
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.
What will be the fee charged for Bank Loan Syndication?
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.
What is Working Capital?
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.
What is Working Capital Loan Syndication?
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.
What is tenure of a working capital loan?
Answer
Working capital loans do not have tenure. Working capital loans can be renewed each
year based on the performance of the entity.
What is the rate of interest for term loan?
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.
Can I get a working capital loan for buying building or land or machinery?
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.
What is a cash credit limit?
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.
What is Letter of Credit Limit?
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.
Can I get a bank loan without any Collateral?
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.
What are some of the main factors that determine loan eligibility?
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.
How long will it take to obtain sanction of bank loan?
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.
What documents or information should I provide to start the 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.
What documents will be submitted to the Banks?
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.
What will be the fee charged for Bank Loan Syndication?
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.
What is Working Capital?
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.
What is Working Capital Loan Syndication?
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.
What is tenure of a working capital loan?
Answer
Working capital loans do not have tenure. Working capital loans can be renewed each
year based on the performance of the entity.
What is the rate of interest for term loan?
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.
Can I get a working capital loan for buying building or land or machinery?
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.
What is a cash credit limit?
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.
What is Letter of Credit Limit?
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.
Can I get a bank loan without any Collateral?
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.
What are some of the main factors that determine loan eligibility?
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.
How long will it take to obtain sanction of bank loan?
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.
How will KFintech Corporate Advisory Services help me obtain 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.
What documents or information should I provide to start the 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.
What documents will be submitted to the Banks?
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.
What will be the fee charged for Bank Loan Syndication?
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.