ComplianceShip

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Object Clause Change – Let’s do something NEW!!

June 10, 2018

Introduction Every company in this world is established with the objective to do some work and achieve success in that work. According to the Companies Act, 2013, a company can do its business activities within the ambit of its Object Clause. Object clause is the clause which is mentioned in the Memorandum of Association which determine the purpose and scope of work for which the Company operate. However, in this fast moving world, sometime it become essential for the Corporate to indulge in new business activities for its survival and getting profits and required to amend and alter its object clause. For this purpose corporate are required to follow the proper procedure as laid down under the Companies Act, 2013 and the rules and amendment made there under. However, it is pertinent to note down here is that the practical aspects for alternation in object clause is quite different from the theoretical knowledge. So it is essential to thrown light on practical aspec

FINANCIAL INTELLIGENCE UNIT REGISTRATION (FIU REGISTRATION)

June 04, 2018

REGISTRATION UNDER FINANCIAL INTELLIGENCE UNIT (FIU-IND) Every reporting entity under Prevention of Money Laundering Act, 2002 is required to furnish information to the Director, FIU-IND (Financial Intelligence Unit- India). FIU-IND is a central agency and not a regulatory authority whose object is to collect and share/ disseminate financial intelligence information regarding suspicious transaction with the enforcement agencies. All reporting entity needs / to furnish this information through secure online FINnet gateway. The reporting entity needs to register itself with the portal to furnish required information with FIU-IND. The need for registration is in pace just after the FIU-IND released a list of non compliant NBFC’s for not registering them and their designated principal officer under PML Act, 2002 and PML rules with the agency. Therefore, to remove this tag of non compliant, every non compliant NBFC’s is trying to register themselves and their designated pri

Forms of doing business in India – An Opportunity to achieve Dreams

June 01, 2018

Background In today’s world, where everyone is trying to become his own Boss by doing his business and achieving his dreams. Thanks to the Government and its “Make in India” campaign, which has relaxed the norms of doing business in India and provides numerous opportunities to the new entrepreneur to start his own business? Government has not only relaxed the laws but also has reduced the compliances/approvals and has eased the process to start one’s own business. In India, there are various form of business, which a person can opt according to his needs, requirements and financial capacity for achieving his dreams. Therefore, it is very important for a person to understand the form of business available to him. The various forms of business can be classified as follows: Sole Proprietorship; Partnership; Societies; Limited Liability Partnership {LLP} Company: One Person Company; Private Limited Company Public Limited Company All the above models of businesses has

Service Agreement Important Terms & Conditions

May 28, 2018

Introduction We normally take so many services on a daily basis whether as an Individual or as an Entity (Partnership, Company, LLP, Society etc.) services can be of any kind i.e. Legal, Financials, Accounting, IT, Electronic, Banking, and professional services etc. further most of the time while taking any service, oral commitment doesn’t prove very fruitful and give arise to a legal dispute and in such scenario, it is advisable to have the term and condition of availing the service in black and white. Here the document executed in such a scenario is called Service Agreement. Service Agreement is document between the service provider and the client. Under the Service Agreement, details of both the Parties i.e. Service Provider and Service Receiver, i.e. Nature of Service require, Scope of Service, professional Charges for availing Service, Duties of both the Parties, Confidentiality, indemnity, IPR Arbitration and Jurisdiction etc., are to be mentioned carefully to avoi

LIMITED LIABILITY PARTNERSHIP ANNUAL FILLING

May 25, 2018

LIMITED LIABILITY PARTNERSHIP ANNUAL FILLING INTRODUCTION Limited Liability Partnership (LLP) is a body corporate and a separate legal entity incorporated with the combined benefits of Company and partnership. Every LLP incorporated needs to file certain annual information in the form of Annual Return, Statement of Account and Insolvency, Income tax return etc. with the concern government departments for their records and to cross check the tax cascade. It is important to file the correct and concrete information, statements and documents with the government departments otherwise filing of incorrect or misleading information may attract penalty and fine not only on LLP but also on the Designated Partner of the LLP. Therefore, one should ensure to provide and file the return with correct details to the government. Before proceeding for annual filling of LLP, one need to know the exact Legal provision, documents to filled and the manner of filling of these annual document

BONUS ISSUE – An Opportunity to Earn More

May 21, 2018

INTRODUCTION The literal meaning of “Bonus ” is “anything given to any person in addition to the customary”. Therefore, the Bonus issue of Shares means issue of shares to the existing shareholders, in proportion to their shareholding, out of free reserves available with the Company as a reward to their investment in the Company. It’s a corporate action recommended by the Board of Directors via converting the surplus funds (accumulated undistributed funds) available with the Company into share capital by issuing additional shares to the existing shareholders in proportion to their holding. In accounting terminology, it is popularly known as capitalisation of profits wherein share capital is increased on one hand and the reserves and surplus account is reduced on the other, resulting increase in number of shares without changing the overall percentage holding of members. Hence, Bonus issue is a weapon in the hands of the Company used for self defence to raise its capital and

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