New business setup in India

Director Identification Number
The first step is printing the DIN kind from the Ministry of company Affairs web site. Fill the shape and viably submit it for obtaining your director number. This number provides you a symptom of identity and residence proof likewise. you’ll need to pay the appliance fee and may check the process standing of your application on-line.

Registering the Name of your Company
The next step to registering the name of your company/organization with the registrar of corporations here, the business created consultants can punctually guide you in submitting the documents for company registration in conjunction with the registration fees. Once the method is complete you will receive the certificate of approving the name of your new company.

Navigating through Government Procedures
Your employed consultants can currently assist you sale through succeeding step for business setup in Asian Nation. With their nice power, They are going to swimmingly navigate through the procedures of the government and may even work as among a matter of few days or weeks. You will be prepared to start out your new business.

Permanent Account Number
If you are doing not presently own a permanent account range, tumble licensed from a franchise approved by the United Trust of Asian nation Investors services or National Securities repository. it’s crucial after you apply for a loan, open a business account or for tax functions.

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The Insolvency and Bankruptcy Code (Amendment Bill), 2017

Insolvency is a situation where a company is unable to repay its outstanding debt.  The Insolvency and Bankruptcy Code (Amendment Bill) (“Bill”), 2017 was introduced on December 28, 2017 amending the Insolvency and Bankruptcy Code, 2016 (“Code”) which replaces an ordinance promulgated in November 2017.

Resolution Applicant
A resolution plan explains the details that how the debt of a defaulting debtor can be restructured. This code defines a resolution in which applicant as a person submitting a resolution plan to insolvency professional. The bill amends to define a resolution applicant as a person submitting a resolution plan after receiving an invite by the insolvency professional to do so.

Eligibility for resolution applicants
The Code specifically defines that an insolvency professional will take control of the defaulting company inviting applicants to submit resolution plans. The Bill states that insolvency professional will only invite those resolution applicants to submit a plan, who fulfill certain criteria laid down by him (with the approval of the committee of creditors), and other conditions which may be specified by the Insolvency and Bankruptcy Board.

Ineligibility to be a resolution applicant
The Bill includes a provision prohibiting certain persons from submitting a resolution plan.  A person will be ineligible to submit a plan if:

• he is a not discharged insolvent;
• he is a willful defaulter;
• his account has been identified as a non-performing asset for more than a year and he has not repaid the amount before submitting a plan;
• he has been convicted of an offence punishable with two or more years of imprisonment;
• he has been disqualified as a director under the Companies Act, 2013;
• he has been prohibited from trading in securities by SEBI;
• he is the promoter or in the management of a company which has indulged in undervalued, preferential, or fraudulent transactions;
• he has given guarantee on a liability of the defaulting company undergoing resolution or liquidation and has not honored the guarantee;
• he has indulged in these specified activities abroad ; or
• he is connected to any person mentioned above.

Approving the resolution plan
This Code specifies that the committee of creditors shall approve a resolution plan with 75% majority.  The Bill amends this provision to state that the committee will approve this plan by a 75% majority subject to any conditions specified by the Insolvency and Bankruptcy Board. The Bill prohibits the committee of creditors from approving a resolution plan submitted before the promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017, where the plan has been submitted by a person ineligible to be a resolution applicant.

Liquidation
The Code allows the insolvency professional to sell the movable or immovable property of the debtor in case of liquidation.  The Bill prohibits the insolvency professional to sell this property to any person who is ineligible to be a resolution applicant.

Penalties
The Bill includes a provision to specify that a person contravening any provisions of the Code, for which no penalty has been specified, will be punishable with a fine ranging between one lakh rupees to two crore rupees.

Code provides a time-bound process to resolve insolvency of companies and individuals. In conclusion, the Insolvency and Bankruptcy Code, 2016, is a progressive legislation that is intended to improve the efficiency of insolvency and bankruptcy proceedings in India. The new legislation provides for the early detection of financial distress and a time bound process for resolution. However, many details on the IBC’s implementation need to be worked out in the regulations, and its success will depend to a large extent on how quickly a high quality cadre of insolvency resolution professionals will emerge and on whether the time bound process for insolvency resolution will be adhered to in practice.

If you have any questions or would like to discuss more about the Code, our experts can ensure right business insights and best practices for you.

We can also assist you in setting up your business in India, accounting, bookkeeping, payroll, auditing, taxation, secretarial compliances, and trademark registration, business structuring and advisory services. If you require any assistance in this regard, kindly click her

COMPANY FORMATION IN INDIA

A guide for company name approval – RUN

In order to simplify the Company name approval process and changing the name of an existing company, the Ministry of Corporate Affairs introduced a new simple web-based application called RUN (Reserve Unique Name) for registering any organization. Before RUN, all applications were to be made in the Form INC-1 accompanying with a minimum of 2 Director Identification Number and 1 Digital Signature. Any applicant seeking to reserve a proposed company or a change in an existing company should apply for reservation through the RUN service. The application will then be processed by the Central Registration Centre (CRC) and the proposed name applied should not be undesirable as per the relevant provisions of the Act and the rules mentioned in it.

Names which can be reserved under RUN
Below table gives a brief description regarding the type of companies names that can be reserved along with their respective suffixes:

Company Type
Suffix Required
1.

• Private Limited Company
• Limited / Company

2.

• Section 8 company
• Private Limited

3.

• IFSC Company
• IFSC Limited / IFSC Private Limited

4.

• Unlimited Company
• Unlimited Company

5.

• Nidhi Company
• Nidhi Limited

6.

• Producer Company
• Producer Company Limited

7.

• One Person Company
• (OPC) Private Limited

Validity for reserved company names
The CRC on the basis of information and documents provided, reserve the name for a period of 20 days from the date of approving in case of new company name registration. Similarly, it is 60 days from the date of approval in case of change in the name of an existing company.

Rules regarding the proposed names
Certain regulations pertaining to the reservation of the names are to be followed according to the laws governing the RUN form which are as below:

1. Name stated should be different from the name of an existing company registered.
2. The name should not constitute any offence under any law and also should not be undesirable in the opinion of the Central Government.
3. The company name should not have any word or expression which likely gives the impression that the company is connected to the central or state government or any other local authority unless the approval from the respective government authority has been attained.

Requirements to reserve a unique name via RUN
Below is the list of things required for RUN:

1. An MCA (Ministry of Corporate affairs) account
2. Corporate Identification Number (CIN)
3. The proposed name
4. Documents required with the proposed name

Process for using RUN
Below is the process for using RUN with an MCA account:

1. Firstly, creating an MCA account is important before you access this service. Login the account and enter the name you wish to use and check against the MCA database of the company and LLP names for its availability.
2. For an existing company who wishes to change its name, a CIN will be required for the RUN e-form
3. The applicant is required to enter the name in the form, he wants to reserve for the incorporation of a new company or change the name of the existing company.
4. The user is then supposed to enter the objects of the proposed company and other relevant comments or documents supporting the proposed name.

Upon successful submission of the proposed name in the RUN form, a SRN (Service request number) is generated. Also, a challan serving the proof of the payment, email conveying the proposed name acceptance or rejection status, an approval / rejection letter, and finally a resubmission of the e-form is generated.

Concluding this document, the RUN is an easy web form to fill in with no complications. There is no need to provide other details about incorporation like proposed capital, shareholding or promoter details etc. This as a result waived off inherent limitation of e-form filing which included uploading errors or DSC (Digital Signature Certificate) registration.

If you are looking forward to establish your business in India, we can offer a comprehensive range of professional services including approval for company name, DIN application, incorporation certificate, Digital signature certificate, business structuring, advisory services, tax planning and statutory compliances along with other post-incorporation services as per your business requirements.
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Company formation in India

Annual corporate filings

According to the requirements of the Companies Act 2013 and other applicable laws, every company including subsidiaries of foreign companies, joint venture companies while incorporating business in India has to file certain documents with the government authorities. Following are the required documents along with the e-forms with the Registrar of Companies (RoC) with proper jurisdiction over the company:

• Balance Sheet: All companies have to file Form 23AC
• Profit and Loss account: All companies have to file Form 23ACA
• Annual Return: Companies with share capital have to file Form 20B
• Annual Return: Companies without share capital have to file Form 21A
• Compliance certificate: Companies with paid up capital between Rs. 10 lakh to Rs. 2 crore have to file Form 66.

How to do corporate filings?
There are 3 ways for annual corporate filing which a company can follow:

• The most convenient way is that a company can upload the above listed e-forms from the MCA21 portal through the annual filing process link at his convenience from his office/ home.
• Prepare an e-form following the guidelines, copying them in a compact disk (“CD”) and visit nearest temporary facilitation offices. For normal days, staff will help to upload the form and generate a challan but during last 10 days, CDs will be collected and only acknowledgment will be provided. After all the files are being uploaded into the system, the company can download the challan from the link provided at the annual filing corner after 2 working days of the submission.
• Connecting with any certified filing centers by paying the service charges is also a method that a company representative can follow for filing an annual return.

What to remember while doing an annual filing?

• Balance Sheet and the Profit & Loss Accounts are to be filed as two separate documents with different e-forms.
• e-Form along with the relevant attachment should be less than 2.5 MB.
• The Annual Return, the balance sheet and the profit & loss account are filed as attachments to the respective e-Forms
• The MCA21 database in respect of authorized capital and paid-up capital may not be correct. The companies have been requested to apply for correction of master data in this respect. Since this is a time taking process, the ministry will be accepting the authorized capital and paid-up capital figures as declared by the companies in the respective forms pertaining to annual filings.

What are the mandates while annual filing?
As a part of annual filing in India, the below forms are mandatory to be filed with the RoC:

• Form AOC-4 (Financial Statements): Every private limited company is required to file its balance sheet along with profit and loss account statement and director report within 30 days of holding of annual general meeting.
• Form MGT-7 (Annual Return): Every private limited organization is required to file its annual return within 60 days of holding of annual general meeting.

If an organization results in failure to comply with the rules and regulations of the Companies Act, then the company and every officer who is in default shall be punishable with fine for the period which default continues. However, if there is any delay in filing, an additional fee is charged, which keeps increasing as per the time period of non-compliance. Moreover, some of the annual filing forms can also be revised but the fees for subsequently revised filing shall be charged, assuming it as a new filing.

If you are looking up for incorporating any business in India, you need to comply with the annual filing requirement to be filed also with the Roc irrespective of your turnover. Our experts can also provide you assistance for filing your personal income tax returns, corporate tax returns, income tax assessments and a quick response to income tax notices.
Further, we can assist you in setting up your business in India, accounting, bookkeeping, payroll, auditing, taxation, secretarial compliances, and trademark registration, business structuring and advisory services. If you require any assistance in this regard, kindly click here