Q1. What is eligibility criteria for becoming partner in LLP?
Ans. The Designated Partners needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency.
Q2. What’s to be done for quick start-up of LLP?
Ans. To incorporate a LLP quickly, make sure the proposed name of the Limited Liability Partnership 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.
Q3. Can a listed company be converted to LLP?
Ans. No, only private / unlisted public company can be converted into LLP.
Q4. Whether name of LLP can end with words like ‘Limited’ or ‘Pvt. Limited’?
Ans. No, name of the LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’.
Q5. Is FDI allowed in LLP?
Ans. Yes, Foreign Direct Investment (FDI) is allowed in LLP under the automatic route in sectors allowed by the Foreign Investments Promotion Board (FIPB). However, Foreign Institutional Investors (Flls) and Foreign Venture Capital Investors (FVCIs) will not be permitted to invest in LLPs. LLPs will also not be permitted to avail External Commercial Borrowings (ECBs.)
Q6. Whether provisions of Indian Partnership Act, 1932 would be applicable to LLPs?
Ans. No, these shall not be applicable to LLPs.
Q1. Why should an MSME get registered?
Ans. The MSME Ministry has several schemes that help in promoting the small industry, offering financial, tax, and other benefits to these units. Unregistered MSMEs can avail of financial help from banks and other institutions, but to obtain the benefit of the various benefits and schemes offered by the MSME Ministry, registration is essential.
Q2. What support is provided by the Ministry to improve quality of products produced in MSME sector?
The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness.
Q3. Has EM I/II been replace by UAM?
Ans. Yes, after the notification dated 18-09-2015, filing of EM-I/II by States/UTs should be discouraged and instead all efforts be made to popularize the filing of UAM on the portal created by Ministry of MSME.
Q4. Disclaimer should be added in UAN?
Ans. Notification clearly states that the UAM filed is on self declaration basis. Therefore, no separate disclaimer is required.
Q1.What are the requrirements to be a director or nominee in a OPC?
Ans. 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 not be a minor.
Q2.Is the person starting-up OPC required to be present at the time of incorporation?
Ans. 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 Company mantra’s email-id.
Q3.A person can be a member in how many OPCs?
Ans. A member can be member only in one OPC.
Q4.What is the procedure to be followed in case of withdrawal of consent by a nominee?
Ans. A nominee may withdraw his consent by giving a written notice to the OPC Member/Subscriber and to the OPC concerned at least 15 days before in proper form.
Q1. Difference between a PAN card and PAN number?
Ans. While PAN numbers are used for tax filing, the PAN card is not. The PAN card is just a physical representation of the PAN.
Q2.What are the Exceptions of not having a PAN?
Ans. If you don’t have the PAN, you may not conduct many financial transactions. However for some transactions, you can use Form 60 and Form 61 as an alternative. It is not mandatory for non-resident Indians and farmers to quote their PAN if the transaction is below Rs.50,000.
Q3.Can a NRI apply for Pan in India?
Ans. Yes, You need the following documents: 1. A Stamp Size photograph 2. Proof identity and address 3. Assessing Officer Details If you are living in another country, you may vest authority to a representative to represent you on your behalf in the form of 'power of attorney document'.
Q4.How will be the new PAN CARD issued to me?
Ans .Company Mantra will suggest you in applying for new PAN CARD. Q5.Can a person have two or more PAN?
Ans. No, It is illegal for a person to possess more than one PAN.
Q6. Is it compulsory to pay tax if I have PAN?
Ans. No, it is not mandatory to pay Income Tax if you have a PAN. Income Tax will have to be paid only if there is taxable income.
Q1. Is it compulsorily required to get the partnership registered?
Ans. No, it’s not mandatory to get the partnership registered but its considered good to get it registered under Indian Partnership Act, 1932, because only a registered firm is able to claim of any in court.
Q2. How to open a bank account for partnership?
Ans. 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 . Company Mantra will help and suggest at every stage of start-up.
Q3. How will company mantra helps you in start-up of partnership ?
Ans. A Company Mantra will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, Company Mantra can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm
Q4.How Can a non resident Indian be a partner in an Indian firm?
Ans. The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.
Q5. Can a minor be a partner in partnership firm?
Ans. No, a minor cannot become a partner. However ,a minor son can be admitted to the benefits of the partnership firm
Q6. Do partnership agreements need to be in writing?
Ans. Partnership is a unique business relationships that don't require a written agreement. However, it's always a good idea to have such a document.
Q1.What is minimum capital requirement for starting –up a private limited company?
Ans. You can start a Private Limited Company with any amount of capital. There is no minimal capital adequacy requirement.
Q2.Is there any Special privileges which only available to private limited company ?
Ans. Yes, A Private Company enjoys some special privileges, which are not available to a Public Company.
Q3.How long the registration remains valid?
Ans .There is not any expiry date of registration certificate. 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. Q4. How Is shares of private limited company are easily transferable?
Ans. There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association
Q4.How company mantra will help you in start-up of private limited company?
Ans. A Company Mantra will understand your business requirements and help you start a Private limited company. Based on the requirements, Company Mantra will help till registration of company.
Q1. How will company mantra help in starting up a proprietorship?
Ans. A company mantra will understand your business requirements and help to start a Proprietorship by obtaining the relevant registrations. Company mantra 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.
Q2. Do I have to register my business name?
Ans. Yes, unless you are using your personal name as the name of a sole proprietorship
Q3. How are sole proprietorships treated for tax purposes?
Ans. This means that any profit derived from your sole proprietorship is treated as your personal income and is accounted for on your individual tax return.
Q4. Do I need a lawyer to start a sole proprietorship?
Ans. There are no legal requirements for establishing a sole proprietorship. Company Mantra will recommended and ensure that you are structuring your business appropriately for your current and future business needs and that you are aware of all your legal obligations.
Q5. Is Audit of proprietorship is compulsory?
Ans. Audit is not necessary for Proprietorship to prepare audited financial statements every year. However, a tax audit may be necessary based on turnover and other criterion.
Q1. What is digital signature certificate?
Ans. It’s a mandatory requirement for director .A Digital Signature establishes the identity of 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. Company Mantra helps you in getting your DSC.
Q2. What are the documents required for the incorporation of company?
Ans. Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals.NOC of the land on which registered office is to be situated.
Q3. Can a non resident India be a director in public limited company?
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.
Q4. Do your personal present is required for incorporation of company?
Ans. No, you will not have to be present at our office. All the documents can be scanned and sent through email at our website email-id.
Q1. Who is to be covered by VAT?
Ans. All business transactions carried on within a State by individuals, partnerships, Companies, etc. will be covered by VAT.
Q2. Who will not be covered by VAT?
Ans. VAT will not cover small business with a turnover below a certain limit.
Q3. What are the tax rates under VAT?
Ans. There are just four rates under VAT- the zero rate (exempted goods), 1%, 4% and a general rate of 12.5%. These rates will be uniform in all States across the country. The same set of goods will be charged at the same rates in all the States. Most essential commodities are exempt from VAT or fall in the category of 4%.
Q3. What is output Tax?
Ans. This is the VAT you charge from your customer when you are a taxable person making taxable sales. A taxable person is an individual, Partnership, Corporation, etc. who is registered under VAT. Persons who make taxable sales above the prescribed limit are required to register. When you are registered, VAT is chargeable on all the taxable sales you make.
Q4. What is Input Tax?
Ans. The tax you pay on your purchases is input tax. Many of the things you buy will carry VAT charge, but if you are registered under VAT you can normally claim a credit for the VAT charges on most business purchases.
Q1.How can the defaulting status be removed of company?
Ans. The company will have to file all the due annual returns and balance sheets for the financial years for which it has been marked as defaulting. Once the same are filed, the defaulting status of the company will be removed and the company will be able to file normally.
Q1. What types of works are protected by copyright?
Ans. Literary work ,Music and lyrics, Dramatic works and music, Pantomimes and choreographic works, Photographs, graphics, paintings and sculptural works, Motion pictures and other audiovisual works, Video games and computer software, Audio recordings, Architectural works.
Q2. How long does copyright last?
Ans .For original works created after 1977, copyright lasts for the life of author/creator + 70 years from the author’s death for his/her heirs. Q3. Who can hold copyright?
Ans. Copyright ownership may be held by any person or institution. Typically, the author of a work owns the copyright in the work.
Q4. What is public domain?
Ans. Public domain refers to works that are not protected by copyright and are publicly available. They may be used by anyone, anywhere, anytime without permission, license or royalty payment.
Q5. Can a registered copyright be sold?
Ans. A copyright registration is an intellectual property, which can be sold, transferred, gifted, franchised, etc., Copyright registration gives the owner of the work ownership over the work and any person wishing to use the work must obtain the registered copyright owners consent.
Q1. Is a digital signature legally valid?
Ans. Yes, the Information Technology Act, 2000 in India has given legal validity to digital signatures.
Q2. Why has the usage of digital signatures in India increased dramatically in recent years?
Ans. The Ministry of Company Affairs (MCA), Government of India (GOI) has initiated this. Besides, use of digital signature has also been made mandatory for certain transactions. In certain cases, though usage of digital signature is not mandatory, it offers a lot of convenience over the traditional methods.
Q3. What is the validity period of a Digital Signature Certificate?
Ans. The Certifying Authorities are authorized to issue a Digital Signature Certificate with a validity of one or two years.
Q4. How much time Company Mantra take to issue a DSC?
Ans. Company Mantra issues DSC within three days after providing of all documents.
Q1. How is LLP taxed?
Ans. LLP taxation policy is similar to that of a Partnership firm. From assessment year 1993-94, a partnership firm is treated as a separate taxable entity and has to pay tax on its income. Income of a partnership firm is taxed at 30% plus 2% education cess plus 1% secondary and higher education cess – similar to a private limited company.
Q2. Is Foreign Direct Investment in LLPs allowed?
Ans. Foreign Direct Investment in Limited Liability Partnership is allowed, with the specific approval of the government, in those sectors/activities where 100% FDI is otherwise allowed under the automatic route.
Q3. Is annual filling is compulsory even LLP has not done any transaction during year?
Ans. Yes, Annual Filling is a mandatory requirement for LLP. It has to be filled annually whether transaction have taken place or not during the year ended.
Q1. Who must authorize the change of Registered Office?
Ans. The change of Registered Office of the Company must be authorized by the Board of Directors at a General Meeting.
Q2. What is the time period to get the ROC intimated of change in registered office?
Ans. ROC must be initimated of the change in Registered Office by filing the appropriate documents within 30 days of change of Registered Office premises.
Q3.Can a registered office be settled outside India?
Ans. No, the Registered Office of a Company or LLP must be in the State where the Company in Incorporated in India.
Q1. Who is required to file e-TDS/TCS return?
Ans. As per Income Tax Act, 1961, all corporate and government deductors/ collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors /collectors other than corporate/government can file either in physical or in electronic form.
Q2. Is it mandatory to mention Tax Deduction Account Number (TAN) in e-TDS/TCS return?
Ans. Yes, it is mandatory to mention the 10 digit reformatted (new) TAN in your e-TDS/TCS return.
Q3. Can more than one TDS/TCS return be filled in a single floppy/ CD?
Ans. NO, each TDS/TCS should be filled in a separate floppy /CD.
Q4. Can a single e-TDS/TCS return be filed in two or more CD / Pen Drive?
Ans. No, one return cannot be furnished in two computer media.
Q1. Why register a trademark?
Ans. Registration is direct (prima facie) evidence of exclusive ownership and helps ward off potential infringers. It enables your client to more easily protect his rights should someone challenge them .
Q2. What is the difference between a registered and an unregistered trademark?
Ans. Registration is proof of ownership. An unregistered trademark may also be recognized through Common Law as the property of the owner, depending on the circumstances.
Q3. How long is registration effective?
Ans. Depending on the country registration is valid for 10 to 17 years and is renewable, upon payment of a fee, into perpetuity.
Q4. What does the Register of trademark contain?
Ans. The register of trademark currently maintained in electronic form contains inter alia the trademark the class and goods/ services in respect of which it is registered; the address of the proprietors; particulars of trade or other description of the proprietor.
Q5. Can any correction be made in the application or register?
Ans. Yes. But the basic principle is that the trademark applied for should not be substantially altered affecting its identity. Subject to this changes are permissible according to rules detailed in the subordinate legislation.