Centralised Registration Centre (CRC) for Company Incorporation w.e.f. 28 March 2016

By way of a Notification dated 22nd January 2016 and in order to encourage incorporation of companies, the MCA had established a Central Registration Centre (CRC) having territorial jurisdiction all over India for discharging or carrying out the function of processing and disposal of applications for reservation of names under the provisions of the Companies Act, … Continue reading Centralised Registration Centre (CRC) for Company Incorporation w.e.f. 28 March 2016

Startup India – Action Plan

On 16th January, one of it’s kind (probably in the world) Startup event was conducted by Government of India. Prime Minister himself graced the occasion and unveiled the Startup Action Plan 2016. The action plan contains several positive initiatives for Indian startups that look at easing up various regulatory, legal, financial and other challenges faced by them

Key Highlights of the Startup India Action Plan are as under:

  1. Self certification through startup mobile app in 6 labor and 3 environmental laws.
  2. No inspection for 3 years in case of labor laws and random checks in case environmental laws.
  3. A single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding will be created.
  4. Mobile Application and Website with similar features to provide on­ the ­go accessibility for Registration, Tracking Regn. Status, Clearances, Approvals, Collaborations with Start­up Ecosystem Partner from 1.04.2016.
  5. Fast ­tracking of Startup patent applications and Panel of facilitators to assist in filing of IP applications along with Govt. bearing the facilitation cost.
  6. Startups shall be provided an 80% rebate in filing of patents.
  7. Government shall exempt Startups (in the manufacturing sector) from the criteria of “prior experience/ turnover” without any relaxation in quality standards or technical parameters.
  8. Launch of The Insolvency and Bankruptcy Bill 2015 (“IBB”) for faster / voluntary closure of startups meeting specified criteria.
  9. Set up of Fund in the nature of Fund of Funds, of total corpus of INR 10,000 crore over a period 4 years (i.e. INR 2,500 crore per year).
  10. Capital gain exemption on investment in Govt. recognized funds.
  11. Business Income of Start­ ups exempted from income ­tax for a period of 3 years, subject to non distribution of dividend.
  12. Proposing exemption from provisions of Sec. 56(2)(viib) of Income Tax Act, 1961 to investment made by Incubators in Startup.
  13. As part of “Make in India” initiative, Government proposes to hold one Startup fest at the national level and one Startup fest at the international level annually.
  14. Setting up incubators in Public Private Partnership Model.
  15. Govt. proposes to set up 13 Startup centers and 18 Technology Business Incubators (TBIs) at NITs/IITs/IIMs etc.
  16. Setting up New Research Parks modeled on Research Park set up at IIT Madras with an initial investment of INR 100 crore each
  17. Launch of programs named Innovation Core, NIDHI , Uchhattar Avishkar Yojana for Students.

Continue reading “Startup India – Action Plan”

CBDT amended recent rules relating to information required to be furnished on payment made to non-residents

Rule 37BB of the Income-tax Rules, 1962 (the Rules) provides the information are required to be furnished by a person while making payment to a non-resident. This information is required to be furnished in Form No. 15CA and a certificate from a Chartered Accountant (CA) is required to be obtained in Form No. 15CB. Further, … Continue reading CBDT amended recent rules relating to information required to be furnished on payment made to non-residents

Procedure for Incorporation of Private Limited Company

Obtain Digital Signatures

Various documents prescribed under the Companies Act, 2013, are required to be filed with the digital signature of the Managing Director or Director or Manager or Secretary of the Company, therefore, it is compulsory to obtain Digital Signature Certificate from authorized DSC issuing authority.

Obtain Director Identification Number (DIN) [Section 153]

As per 153 of the Companies Act, 2013, every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number in form DIR.3 to the Central Government in such form and manner and along with such fees as may be prescribed. Therefore, before submission of e-Form INC.1 for availability of name, all the directors of the proposed company must ensure that they are having DIN and if they are not having DIN, it should be first obtained.

Name Availability for proposed company

As per Section 4(4) read with Rule – 9 of Companies (Incorporation) Rules, 2014, application for reservation/ availability of name shall be in Form no. INC – 1 along with prescribed fee. Company name should be in accordance with name guidelines given in Rule – 8 of Companies (Incorporation) Rules, 2014.

Note: MCA has prescribed certain rules for name availability, so it is advisable to check guidelines for the same before applying for name.

After approval of name ROC will issue a Name availability letter w.r.t. approval for availability of name for a proposed company. Continue reading “Procedure for Incorporation of Private Limited Company”