There are certain deductions available to the salaried individuals under the Income Tax Act, 1961. Since the tax paid by these individuals make up for the biggest share of the total tax paid by the taxpayers in the country, it is essential to provide this section of taxpayers sufficient tax-saving mechanisms to ensure the continuance of this practice among them. Tax Deductions differ significantly from Tax Exemptions which are those sources of income which are exempted from tax, while tax deductions relate to certain deductions that are made to the gross total income which is arrived at after the exempted income is deducted from the salary.
Key Tax Deductions Available To Salaried Individuals
The Income Tax Act, 1961 provides various tax-saving provisions for these individuals, most of which are mentioned in Section 80 of the Act. However, some of the major tax deductions are:
- Deduction for the loan for Higher Studies– Section 80E of the Income Tax Act, 1961 deals with this deduction. As per this section, the condition precedent to claiming this deduction is that the loan for the said purpose should have been taken from a bank or a financial institution in India or abroad by the individual himself or his spouse or children. His tax deduction can be claimed from the year from which the loan starts getting repaid up to the next 7 years or before the repayment of loan whichever is earlier.
- Interest on Home Loan– Section 80C deals with this deduction which provides that the homeowners, including the salaried individuals, have an option to claim deduction up to INR 2 Lakh for interest on Home Loan if taken for self-occupancy. In case the house property is let out, the individual can claim a deduction for the entire amount of the interest related to such home loan. This deduction has to be read with Section 24 of the Act for further clarification.
- Exemption from House Rent Allowance– This is subject to total or partial deduction under the Income Tax Act if the salaried individual is staying at a rented accommodation. There are different types of HRA, these include-
- Total HRA received from your employer;
- Rent paid less 10% of basic salary + DA;
- 40% of salary (basic +DA) in case of non-metro cities and 50% of salary (basic+ DA) in case of metro cities.
- Standard Deduction– These deductions vary from budget to budget. Generally, they range between INR 40,000- INR 50,000. This acts as a huge benefit for the salaried individuals who can claim this deduction from their gross total salary.
- Medical Insurance Deduction– Section 80D of the Income Tax Act, 1961 deals with this deduction which the salaried individual can claim on his medical expenses. As per this section, a deduction up to INR 25,000 can be claimed on medical insurance premiums paid for the health of the individual himself, family and dependent parents. In case the parents fall within the age bracket of senior citizens then the deduction can be claimed up to Rs. 50,000.
- Deductions on Savings Account Interest– Section 80TTA of the Income Tax Act, 1961 deals with these deductions, wherein it provides for deduction up to Rs. 10,000 on the income earned by an individual from savings account interest. In case the amount of income from bank interest exceeds the prescribed limit then the excess is subject to being taxed.
- Additional Deduction for interest on Home Loan- Section 80EE of the Income Tax Act, 1961 deals with these deductions, wherein it allows the homeowners to claim an additional deduction of INR 50,000 (Section 24) for the interest of the home loan EMI. This section, however, comes with a proviso that the amount of loan should not be more than INR 35,00,000 and the value of the property should not exceed INR 50,00,000. To claim this deduction, the individual should not have any other property registered under his name at the time when the loan is being sanctioned.
These are some major tax deductions available for a salaried individual under the Income Tax Act, 1961. However, the Act provides for certain other deductions too, like- Leave Travel Allowance, deductions under section 80C, 80CCC and 80CCD(1), the deduction for donations, etc.
To know more, call us at +91-9717070500 or send us an email at firstname.lastname@example.org.
Risk assessment can be defined as “the identification, evaluation, and estimation of the levels of risks involved in a situation, their comparison against benchmarks or standards, and determination of an acceptable level of risk.”
In other words, risk assessment imposes an obligation upon the employer to assess as to what risks are present to the employee at your workplace, so that you can work upon it and evaluate if enough precautions are taken against it or there is room for more. There are five steps involved in any risk assessment. These include-
- Identifying the hazards
- Deciding who might be harmed and how?
- Evaluating the risk and deciding the control measures
- Recording the findings
- Reviewing the risk assessment
Risk Assessment Checklist
Step 1- Identifying The Hazards
Every employer must identify the risks associated with his organisation so that a proper risk assessment procedure could be carried out. These hazards are not only physical like noise, dust, heavy machinery, etc.; but may also be mental like long working hours, excessive workload, bullying, etc.; biological like infectious diseases or communicable diseases which have a likelihood of affecting many workers.
A hazard, however, differs from risks as the former refers to “something with the potential to cause harm” whereas the latter refers to “the likelihood of that potential harm being realised”.
Step 2- Deciding Who Might Be Harmed And How
After identifying the hazards, the persons who are likely to get affected by it should also be individually analysed. This helps in not only generating a comprehensive analysis of the risks but also a proper evaluation of the outcomes of the hazards and the people affected by it.
Along with the employer, the employees also play a role in this step as they can help assess the risks at their level in a better way. Individual identification of people, however, should not mean listing everyone’s name in front of the supposed risk, it rather implies identifying people in groups and then assessing the risks they might be prone to and how.
Step 3- Evaluating The Risks And Deciding The Control Measures
Once the risks and the person likely to suffer have been identified, the next step involves the evaluation of these risks. During the assessment, the risks should be categorised into three categories- high, medium or low based on their effect.
There are certain risks which cannot be prevented even if all the necessary steps are undertaken; hence what is required is that the employer should undertake a reasonable and practical approach while evaluating the risks and decide the control measures accordingly.
Step 4- Recording The Findings
To avoid any legal issue, it is essential to record all the findings in written and maintain proper records. These records should be updated from time to time and should include all the details as to the prevalent risks, people likely to get affected and how, evaluating the risks and deciding the control measures.
Complete and updated records also serve as valid proof of risk assessment being carried out at an organisation and in the long run helps get a bigger picture of how the organisation has been functioning.
Step 5- Reviewing The Risk Assessment
It is very important to review the entire risk assessment after completing the mentioned steps as circumstances are likely to evolve after the first time you conducted the risk assessment and when you finally decide the measures to control them. The reviewing step is also essential for twofold reasons-
- It helps keep in check the existing risk management steps undertaken and how they are being implemented; and
- It also ensures that according to the changes made in the workplace, the risk assessment policies and measures should also be modified.
Thus reviewing the risk assessment and updating the necessary changes is imperative for every organisation. LetsComply acts as a Virtual CFO and helps business with their risk management and analysing where the weak points of business are. To know more, call us at +91-9717070500 or send us an email at email@example.com.
Time has always been considered as one of the most valuable assets of any organisation. Moreover, in BIFR cases, creditors could not take any action against any of their defaulters until the restructuring plan of their sick company was put forward. To deal with these issues and many more, the Insolvency and Bankruptcy Code, 2016 provides for a fast track corporate insolvency resolution process CIRP.
What Is Meant By Fast Track CIRP Process?
The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 lays down the definition of “fast track process period” in Regulation 2(1)(j), as per which it means that the process of fast track CIRP is a form of fast track resolution under IBC, which must be completed within 90 days from the date on which the process commences.
Applicability Of Fast Track CIRP Process?
The Code provides for a fast track insolvency process CIRP which applies to small corporate and can be initiated by a creditor or corporate debtor. The primary idea behind this process is to reduce the time taken for an insolvency resolution process. As per the Code, there are three categories of people who could initiate this process. These include-
- Corporate Debtor
- Financial and Operational Creditors of the debtor.
- Any other person specified by the Central Government.
As per Section 57 of the IBC Code, the application for fast track CIRP process can be filed by a corporate debtor or creditors along with the following-
- The evidence that shows that the default on the part of the corporate debtor exists.
- Information required by the NCLT to prove the eligibility of corporate debtor for fast track CIRP.
Further, the Ministry of Corporate Affairs via its notification dated 14th June 2017 notified that Section 55-58 of the Code are to be read with the notification whereby the fast track CIRP process can only apply to the following corporate debtors-
- A small companyUNDER section 2 of the Companies Act, 2013; or
- A Startup (other than the partnership firm)
- An unlisted company with total assets, in the immediately preceding financial year, not exceeding INR 1 crore.
Time Frame For Fast Track Resolution
According to Section 56 of the Code, a fast track CIRP process must be completed within 90 days from the date on which the insolvency commenced. An application may be filed to the Adjudicating Authority for extending the period of this fast track process beyond 90 days, however, for this to be done a resolution needs to be passed by 75% of the voting share in a meeting of the creditors.
Upon receiving the application, if the Adjudicating officer is satisfied that the fast track insolvency process could not be completed within 90 days, they may grant an extension for such further period, as they may think fit, but not exceeding 45 days. This extension of time can be taken only once by the resolution professional.
As per Section 58 of the Code, the process of conducting Corporate Insolvency Resolution Process given under chapter II and the penalties provided under chapter VII of the Code shall also apply to the Fast Track Insolvency Process as required.
To apply fast track CIRP resolution under IBC, it is essential that the applicant consults an expert corporate lawyer, who holds experience in corporate litigation. LetsComply’s corporate attorneys in India can help you with the fast track resolution with a CIRP application. To know more, call us at +91-9717070500 or send us an email at firstname.lastname@example.org.
A successful startup is one that is carried by an entrepreneur who is focussed on building a unique solution that in return, would deliver customer satisfaction. Hence it is important to have a clear focus over customers and the company defined market but on the other hand, it is equally a must to have a good understanding about the basic country laws meaning regarding the rules and regulations that is particularly needful for the smooth running of any business. From formalizing the founders’ agreement to safeguarding the intellectual property to enforcing any business contracts, entrepreneurs must be aware of the laws governing startup registration in India. Thus, knowledge regarding the legal basis is a must for a startup in India before embarking on any business venture in the country.
What is a Startup?
A startup can be defined as a newly established business that is generally considered as a small setup, which can even be started off by any one person or maybe a group of individuals.
One can differ it on the basis that a startup offers a totally new product or service that is completely different, from all sorts/kinds of service provided to date in the market. The main motto of any startup is “innovation,” i.e. it will either develop a new product/service or will recreate any previous or current product/service into a completely new and in a market familiar manner that would directly help its consumers.
Legal Requirements For Startup Registration
- Formalizing a business structure, its registration, and founders agreement: Before beginning the startup registration process, one thing must be made clear in mind regarding the nature and type of the business. Founders have to incorporate the company as a specific business type such as sole proprietorship, private limited, public limited, partnership, and limited liability partnership, etc. It is essential to have this clarity in mind from the start as it will be an integral part of the business from a future perspective. One then needs to follow all the standard procedures for startup registration under the Companies Act, 2013 regarding any business like obtaining the certificate of incorporation/partnership registration, PAN, and other required compliances.
Documents Required For Startup Registration
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Name reservation
- Certificate of Incorporation (CIN)
- Memorandum of Association (MOA)
- Article of Association (AOA)
- Permanent Account Number (PAN)
- Tax Deduction and Collection Account Number (TAN)
- Applying for business licenses: A Business license is a legal document that must allow any business (legal) to operate in India, while startup registration is stated as the official process of listing a business with the ROC. Business Licenses are an integral part of starting a new business in India, depending on the nature/size of the company, numerous licenses are applicable. To keep a check and knowledge regarding the appropriate licenses for one’s own startup and thereby obtaining them must first on the checklist before starting any business. The lack of these relevant licenses may lead to costly lawsuits and unwanted legal battles, if not obtained on time.
The standard license that applies to all businesses in the Shop and Establishment Act, which applies to all premises where trade, business or profession is carried out. Other business licenses vary from industry to industry.
- Documentation required by a Startup
Once the startup registration process is over, and the business incorporation is done, a startup needs the following internal and external documentation done. Proper drafting and legal vetting is required for corporate commercial contracts and seeking guidance from a documentation expert become necessary rather than choosing the online agreement templates.
- Employee Contracts and Offer Letters
- Intellectual Property Agreement: An IP agreement must be the key legal document that determines whether one’s startup may attract the investments it needs in order to grow rapidly.
- Bylaws: It establishes the internal rules of the company like how to settle disputes, select leadership and determine the rights and powers of shareholders.
- Non-Disclosure Agreement (NDA): Having NDA readily available is imperative before any business conversations take place between a startup and an outside party. These NDAs protect one’s startup by safeguarding its founder and employees ideas and most importantly, the intellectual property.
- Shareholder Agreements: When a startup is ready to take on private investments, respective CEOs must create a shareholder agreement that determines the rights of shareholders and defines when they can exercise those rights.
- Ensuring protection of intellectual property: Intellectual property is a must for any business, especially for the tech-centric business model. Impulsive Codes, different algorithms, and several research findings and many more are said to be the most common intellectual property owned by these organizations as of now. Startups can also use the Scheme for Startups Intellectual Property Protection (SIPP) under the Startup India initiative by the Government of India. This particular scheme was set-up to nurture and mentor innovative and emerging technologies among startups and help in the protection and commercialization of intellectual property.
Adhering to every legal requirement and knowledge of compliance with applicable laws can be stated as the first step to ensure the smooth business operation once the startup registration formalities are taken care of.
Hiring an expert legal counsel for providing advice, oversee, and maintain all sorts of legal records is the best solution ensure that one’s company is always safe and will not face any legal complications or consequences. LetsComply is the one-stop solution for all sorts of facilities one requires for startup registration in India. To know more, call us at +91-9717070500 or send an email at email@example.com.
The Food Standards and Safety Authority of India (FSSAI) is one of the most prominent specialists which is also an in-charge of controlling and managing the nourishment security pan India. It is a compulsory task for all the Food Business Operators (FBOs) to acquire an FSSAI License. A typical perplexity that is among the FBOs are the Licenses that an E-commerce or Online food operator is required to get. FSSAI regarding it wrote down science-based norms for particular articles of food and it will likewise manage their fabrication, stockpiling, dissemination, dealing, and the most important importation to guarantee the accessibility of safe and furthermore healthy nourishment to 130 crore people of India.
What Can Online Food Operators do?
FSSAI has recently extended its scope to include the applications of e-commerce food services, and this category also provides delivery services. Of late, in India, the food e-commerce sector has grown tremendously well. As these platforms operate widely, it is essential for these services to ensure compliance with FSSAI, which could be severe.
Lately, e-commerce food enterprises such as online food delivery apps like Zomato, Swiggy, UberEats, etc. or online grocery stores like Big Basket, Grofers, etc. has grown tremendously. There are a variety of guidelines, about a different aspect of an e-commerce food enterprise they mainly relate to registration, licensing, and listing information. Below is a brief list of all the guidelines issued by FSSAI relating to the FSSAI License for e-commerce and online food operators:
- Display the display panel clearly which must include the batch number or lot number, best before, expiry date and the Maximum Retail Price (MRP) of the goods;
- Provide an image of the goods sold via online FBO platform;
- State the FSSAI License or the registration number.
- Give other information relating to the product or services that shall be made available;
- To maintain a basic level of quality and hygiene of the food products and services, every e-commerce FBO shall comply with the Food Safety and Standards (Licensing and Registration of Food Businesses], Regulations 2011.
FSSAI License and Registration
The regulation of FSSAI on Licensing and Registration of Food Business makes it mandatory for all e-commerce food businesses are covered within the First Schedule of the regulation to obtain a FSSAI license for its operations. The Central Licensing Authority of India issues such permits.
Recently due to certain delivery related miss-happenings were doing round on all over the internet, FSSAI issued new guidelines directing all e-commerce FBOs to engage only trained delivery personnel for last-mile delivery to the customer’s place, which was done to maintain food quality and food safety.
Note: The mandatory licensing and registration requirement does not hold for those e-commerce FBOs which are involved in extending directory services or listing of products and services. However, they must provide a disclaimer that any violation of FSS and obligation arising therein rests with the sellers, brand owners, vendors, importers, or manufacturers of the food products.
Moreover, these FBOs require to show compliance with the following guidelines:
- Must not provide any false claims or misleading information of the sellers, brand owners, manufacturers, distributors, retailers, vendors, or other importers.
- Must not to display any misleading images of food products or food-related services.
Who all are E-Commerce Food Business Operators?
As per the guidelines laid down by the FSSAI for e-commerce business operators, there to be two types of business models.
- Market-Based Model of E-Commerce: It refers to an e-commerce activity that acts as a link between the buyer and seller by providing a digital platform for networking. It connects the brand owner and the consumer via electronic means.
- Inventory-Based Model of E-Commerce: An e-commerce activity where the inventory of food products and food services is owned by e-commerce FBO and is sold to the customers directly online.
It can then be further divided into sub-three forms as:
- Digital Platforms or entities that are involved in listing services to all the sellers, manufacturers, restaurants, etc. on their electronic/online platform. This platform is used to facilitate like-structured commerce operations.
- When brand owners, manufacturers, producers or sellers themselves involved in the display of their products or services (catering, processing or packaging) for direct sale to customers via either a market-based or an inventory-based e-commerce platform.
- Delivery Organizations also come under the definition of an e-commerce FBO because it extends the facility of storage and or distribution services to the sellers thus listed on their online portal. It covers transportation from the seller or manufacturer to the consumer directly.
FSSAI License Requirement
For all FBOs apart from small-scale businesses, FSSAI license must be obtained. FSSAI License is classified into two categories, i.e., State FSSAI License and Central FSSAI License based on the size of their particular business and also upon whether it is a medium scale or large scale business.
Mostly, E-commerce FBOs are those with large manufacturers, importers, exporters dealing in large-scale food business thus need to obtain an FSSAI license from Central Government, on the other hand, FBOs with small to medium-sized manufacturing units, transporters, marketers, traders, etc., need to take FSSAI registration from their respective State Government.
Documents required for obtaining the Central license:
- Form B and Form IX completed and signed,
- A proper plan of the processing unit showing the place dimensions and operation-wise area allocation,
- Complete list of Directors/ Partners/ Proprietor with their Address, Contact Details, and a Photo ID,
- Complete list of every equipment and machinery to be used with their number and installed capacity,
- Full list of every food category to be manufactured,
- An authority letter from the manufacturer nominated for doing the job,
- Detailed analysis report on the water to be used in the whole process,
- Particular sources of raw material for milk, meat, etc.,
- A recall plan wherever applicable,
- The Ministry of Commerce (MOC) Certificate for 100% EOU,
- A NOC/PA document which must be issued by the FSSAI itself,
- An IE code document issued by the DGFT,
- A Certificate from the Ministry of Tourism,
- Any proof of possession of the premises,
- A partnership affidavit of particular proprietorship,
- A complete NOC and a copy of License from the manufacturer,
- The food safety management system plan or any certificate,
- Particular NOC from the municipality or any local body,
- Document for the proof of turnover and transportation to be provided,
- A complete Declaration form.
The above list of documents is mandatory to get a Central license or else it might result in the cancellation of the application.
FSSAI has also given directions to all the e-commerce FBOs to put in place a complaint redressal mechanism. It has mentioned that the redressal of particular complaints launched by the consumers must be resolved within a given timeline, prescribed by the Ministry of Consumer Affairs (MCA). FSSAI also issued directions to the e-commerce food businesses to be strictly compliant with all the regulations mentioned hereby if they are willing to do business in India.
Getting a license should be one’s top priority when opening an online food business. LetsComply is the one-stop solution for all kinds of documentation and obtaining an online FSSAI License. To know more, call us at +91-9717070500 or send an email at firstname.lastname@example.org.
A Limited Liability Partnership is governed by the 2008 LLP Act in India. This form of business organization is considered to be a hybrid of partnership and private company and as the name suggests it provides for limited liability of its partners, in other words, the personal assets of the partners of LLP are not used for paying off the debts of the LLP which has a separate legal entity than that of its partners.
Number Of Partners In LLP
Unlike partnership which has a minimum and a maximum limit on the number of partners, LLP only requires a minimum of 2 partners for its functioning, as there is no upper limit provided in the act. As per section 6 of the LLP Act, it is mandatory to have at least 2 designated partners in a Limited Liability Partnership all the time, with at least one of them being resident of India and in case the number goes below 2 due to any reason, the same is to be restored within a period of six months, in case of default, the remaining partner would be held personally liable for all the acts of the Limited Liability Partnership.
Section 7-10 of the act deals with Designated Partners and provides the roles, liability, changes, and punishment in case of default on carrying out the same. In simple words, the role of a partner is to invest capital in an LLP, whereas the role of a Designated Partner is to ensure legal compliances for the effective administration of LLP.
Who Can Become A Partner In LLP
As per section 5 of the Limited Liability Partnership Act 2008, any individual or body corporate may become a partner in an LLP. However one cannot become a partner in an LLP if –
- He is of unsound mind by a Court of competent jurisdiction, and the finding is in force;
- he is an undischarged insolvent; or
- he has applied to be adjudicated as an insolvent, and his application is pending.
In other words till the time an individual or a body corporate does not fall in one of the above three categories and has subscribed to the ‘Incorporation Document’ at the time of forming the LLP, he would be a partner in an LLP. Thus an individual residing in India, body corporate or company and foreign nationals or NRIs can become a partner in an LLP.
As per section 24 of the act, a partner ceases to be so in four situations-
- by agreement with other partners
- on the death of the partner
- by giving notice to other partners with reasons for the same
- in case a body corporate is a member then by dissolution
Remuneration To Partners In Limited Liability Partnership
The remuneration to partners in a Limited Liability Partnership LLP is governed by the clause in the Limited Liability Partnership Agreement; even if a partner is a sleeping partner, he might be eligible for remuneration if it is provided in the agreement. The term remuneration includes not only the salary but also the bonuses and commission paid to the partner.
There is no restriction on as to who and what the amount of remuneration will be, however, a maximum limit is provided under the Income Tax Act, which states that certain amounts are subject to deduction and this includes remuneration is paid to the working partners who is an individual in an LLP. This remuneration should, however, be specified and authorised by the LLP Agreement and should in no case exceed the limits given below-
REMUNERATION TO PARTNERS
On first 3 Lakh of Book profit or loss
|Rs. 1,50,000 or 90% whichever is more|
|On remaining balance amount||
In cases where the LLP has paid cumulative remuneration in excess to the prescribed limits under the two above mentioned conditions, then the amount more than the permissible limit would not be subject to deduction.
The given conditions can be better understood with the following situations-
- Case 1- No Profit
Where the LLP has incurred zero profit in a year, then remuneration can be paid according to condition one, i.e. up to Rs. 1,50,000 cumulatively to the partners
- Case 2- Profit Within 3 Lakh (1,50,000 > 90% Of Profit)
Where the book profit of an LLP is Rs. 1,00,000, then the total remuneration paid to the partners cumulatively is calculated in the following manner-
Here 90% of the book profit, which in the given case is Rs. 1,00,000, would be 90,000, but according to the first condition, payment can be made up to Rs. 1,50,000 as cumulative remuneration to all the partners. Hence, in this case, the cumulative remunerative would be Rs. 1,50,000 as it is more than 90% of Rs. 1,00,000 which is 90,000.
- Case 3- Profit Within 3 Lakh (1,50,000 < 90% Of Profit)
Where the book profit of an LLP is Rs. 2,50,000, then the total remuneration that can be paid to the partners cumulatively can be calculated as under-
Here 90% of the book profit would amount to Rs. 2,25,000. According to condition 1, in this case, 90% of profit is more than Rs. 1,50,000, hence the cumulative remuneration, in this case, would be Rs. 2,25,000.
- Case 4- Profit More Than 3 Lakh
Where the book profit of an LLP is Rs. 15,00,000, then the total remuneration that can be paid to the partners cumulatively will be calculated in 2 steps as under-
Firstly, for the first Rs. 3,00,000 the total remuneration would be as per condition 1, i.e. 90% of the profit which amounts to Rs. 2,70,000 and the balance amount of profit would be subject to the following condition, balance amount= Rs. 12,00,000 and as per 2nd condition total remuneration is 60% of the balance amount, i.e. Rs. 7,20,000.
Hence, in this case, the maximum amount of remuneration that can be paid to the partners is Rs. (2,70,000+ 7,20,000) 9,90,000.
This remuneration received by the partners of the LLP is taxable as business income in the hands of the partners as per section 28 of the Income Tax Act and is considered as an expense for the LLP.
To know more, call us at +91-9717070500 or send us an email at email@example.com.
It is of utmost importance for those who are planning to enter the business world to understand the Shop and Establishment Registration in UP. Registration under this act is mandatory for almost all types of businesses and since registration under this act is the first and foremost step towards the promising business world, thus one needs to understand the basics of the act before starting any of the new business.
This act is covered under state legislation, and each state can/may frame its own defined rules and regulations for the act. Because rules are framed by the state government, rules will differ from every state to state and hence the rules of the state in which registration is needed to be obtained the respective rules of that particular state is to be followed.
Applicability of Shops and Establishment Act
All the shops, the hotel, any eating house, locality restaurants, city theatres, any place for public amusement and other any other commercial establishment, etc., are covered under this act and thus requires to obtain a Shop and Establishment registration under the law.
The main objective of the act is mainly to protect the given rights of both employer and employee. This act regulates payment of pre-decided wages, proper hours of work, the terms of any service, specified wages for holidays, and leave policy, neat and tidy working conditions, payment for overtime work, lunch interval for meals and rest during working hour, proper prohibition on employment of children, Preconditions defined over employment of young persons or women, must have maternity leaves and extra provided benefits thereof, proper and specific opening/closing hours, government-issued closed days, consistent weekly holiday, notice over dismissal, proper cleanliness, well lighting and ventilation, top-notch fire safety and precautions, established first-aid in case of accidents, proper record keeping, etc.
Shop and Establishment Registration In UP
The specific regulations under this act apply to a shop or a commercial establishment situated inside the limits of the municipal area in the state of Uttar Pradesh. This act has been enacted to entirely consolidate and amend the laws regulating the conditions of service employees working under shops and commercial establishments.
Every employer must make an application for registration for his/her shop or any commercial establishment within the 30 days of the commencement of their new business. This act is one of the mandatory requirements of all the businesses out there which operate from any establishment or the shop. If any due changes are made in the closure of the establishment, then it must need to be informed authorities within the first 15 days only.
Shop and Establishment Act is governed by the labor department of the defined state, and mostly the registration applications are submitted to “local district labor officer”. If the defined officer stands satisfied with the given application, he will duly issue a Shop and Establishment Act Registration Certificate. One needs approach the “Uttar Pradesh’s Labour Department” registration website for any registration of their shop in the state of Uttar Pradesh.
Documents Required For Shop and Establishment Registration In UP
The following information or documents/records are furnished at the time of submitting the application form for obtaining Uttar Pradesh trade license.
- Address Proof and Identity Proof – Individual,
- Certificate of the Incorporation, MOA, and AOA of the company;
- Canceled Cheque and Bank Statement;
- Certificate of Incorporation, MOA, and AOA of the company;
- IT returns and Property Tax Receipt;
- Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency;
- Documentary proof of establishment of trade,
- Lease Deed of the constitution,
- Documentary proof regarding the non-existence of unauthorized construction,
- NOC (No Objection Certificate) from the land-owning agency.
ALSO READ: Procedure to Obtain A Trade License In Delhi
Process for Shop Establishment License In Uttar Pradesh
Steps for Shop and Establishment Registration In UP are as follows:
- Firstly, one needs to submit an application in the prescribed manner and a form to the inspector of the area (where the shop is established) within the first 30 days of starting any new shop/establishment. Also, one must submit the prescribed application along with the due fees mentioned, the use requires the following information:
- One’s name as the employer and the name of a manager, if any;
- The postal address of their shop/establishment,
- The name of their shop/establishment,
- Telephone No,
- Email Address,
- Nature of Business,
- Date of Commencement of Business
After receiving the application for registration and the fees, the inspector will verify the reliability and correctness of the facts provided under the form. Once he/she stands satisfied, he/she will enter the due details in the specified Register of Establishments and also will issue a Registration Certificate for one’s establishment to them. This certificate is valid for five years, and one needs to renew it after that. After getting the license, one must duly display it at their Shop/Establishment. Delhi shops and establishment act
The Shop Establishment enrolment is a state-based selection, required while starting-up a motel, shop, or any business place. It is very much essential and a must for each new shop/establishment to get themselves enlisted under the mentioned act.
One can get a Shop and Establishment Registration In UP within 30 days from the inception of the work.
LetsComply is the one-stop solution for all kinds of documentation and online Shop/Establishment registration in Uttar Pradesh. To know more, call us at +91-9717070500 or send an email at firstname.lastname@example.org.
When a company thoughts regarding the expansion, at the back of mind somewhere there is also a definite desire to grow capital too. Likewise, investors also see the business as a good foundation for growth and capital appreciation. Clearly, in such type of scenario, one party will want to sell the shares, while the other will want to buy that same shares. This is the time when parties use the Share Subscription Agreement (SSA). In such an agreement, the price is fixed and so does the number of shares.
What Is a Share Subscription Agreement?
Share Subscription Agreement is between a company and any private investor for selling a pre-defined number of shares at a decided price. This investor fills out a form documenting his/her suitability for investing in the partnership. This type of agreement may also be utilized to sell any stock in a privately-owned business.
The share subscription agreement is used to keep track of how many shares have been sold and at what price the shares sold at for a privately held company. These agreement details all the information about the transaction, such as the number of shares and price, and confidentiality provisions. Such agreements are most common with start-ups and smaller companies, they’re used when business owners don’t have the resources to work with venture capitalists or to take the company public.
Why Are Share Subscription Agreements Important?
For companies that need more funding, it’s a way to do it without taking a company public or finding venture capitalists to invest. Investors enter into a limited partnership, these investors are only obligated or expected to make a one-time investment. It limits the risk significantly, but it also limits the say investors have in company decisions.
Share Subscription agreements rely on SEC Rule 506(b) and 506(c) of Regulation D. The stipulations within those rules include:
- How companies can or cannot solicit investors;
- What information is shared with investors;
- Who is allowed to invest?
When to Use a Share Subscription Agreement
Basically, private companies try to use such agreements as they want to raise their capital from the investors that are particularly private. This can be achieved by selling either shares or the company’s own without needing to even register with the SEC. Companies that have a particular private placement memorandum may/might also want to include such an agreement to attract any possible investor.
Generally, investors try to protect themselves against companies by amending the terms of the deal numerously. As a company selling stocks or shares, these agreements prevent an investor from changing his/her mind right before the investor gets into the deal. Keeping a share subscription agreement will always help in solidifying any promise into a sure shot fixed transaction.
Common clauses in Share Subscription Agreements
These type of agreements may vary that too greatly, depending on the prime needs of the investing parties and the said types of shares that are being subscribed for, the common clauses include:
- Conditions Precedent: The acts which are required to be committed before the agreement came into force;
- Confidentiality: Both the parties are usually obliged to keep all confidential information confidential;
- No-Shop: Obliging the company to limit its search for further capital in any particular fashion;
- Restraint against Competition: The subscriber must be restrained from engaging in a business or activity that would be in competition with the business of the defined company;
- Tranches: Amount of money to be paid to the company by the subscriber in exchange for an agreed amount of shares at a prescribed time; and
- Warranty and Indemnity: The said subscriber may also warrant that they are able and also willing to meet their obligations under the given agreement, and may also indemnify the company against stated claims and losses.
Advantages and Disadvantages of SSA
If we talk about investing, there will definitely be some good and bad in choosing to do so using the share subscription agreements, which are as follows:
Advantages of the Share Subscription Agreement
- Subscription agreements provide a way to sell stock without registering securities with the Securities and Exchange Commission (SEC). Creating the prospectus needed for registering with the SEC is time-consuming and expensive.
- It’s a one-time investment, unlike venture capitalist investing, which requires much more time and typically multiple investments.
- It’s not such a huge time commitment because you’re a silent partner in the investment.
- It’s a limited partnership, so there’s no worry about being liable.
Disadvantages of SSA
- There are no voting rights and no way to help the business be successful. You have to trust that the leaders of the business know what they’re doing.
- Once you’ve invested your money, there’s no way to get the money back if you change your mind.
These type agreements are not as complex as they are made to sound like. Ultimately it’s about two parties committing to buying and selling, it secures a hopefully good price for the investor. Similarly, the said business also gets an investor to commit to buying their company shares.
Need legal services in Delhi for raising capital or drafting and vetting of documents? LetsComply’s legal experts can help you in drafting an SSA for your business. To know more, call us at +91-9717070500 or send an email at email@example.com
The Real Estate industry is the backbone of the country and masses of investors always get gravitated towards the real estate to get the best return on their money. The recession in the real estate sector in the past decade has led to a series of problems for the home buyers who have booked a flat/unit/apartment in a real estate project, and delivery of property possession is delayed by the builder. Earlier, home-buyers used to approach only the National Consumer Dispute Redressal Commission (NCDRC) to file a complaint against the builder, but since the Real Estate (Regulation and Development) Act, 2016 (RERA) is enacted, a complaint under RERA is a preferred way to file a complaint against the builder. This article sheds some light on RERA vs NCDRC and draws the comparison between the NCDRC and RERA Authority in India.
RERA vs NCDRC: Which Court To Approach?
Any of the aggrieved customers may seek relief by filing a case in consumer court in India. On the other side, RERA is a new authority and recently launched. With both RERA and NCDRC available at the disposal of any homebuyer, one can choose a court which suits their case the best.
Under RERA laws and rules in India, a separate RERA authority is created to deal with matters relating to deficiency of services by the builder. The most common reason for filing a complaint under RERA is a delay in property possession by the builder. The homebuyer can also file a complaint under RERA if the builder violates any other provisions of the RERA Act, 2016 or any State RERA Rules. The RERA Authority and RERA adjudicating officer must hear complaints concerning the registered real estate projects, irrespective of their claim amount (which may vary). The RERA Act also allows homebuyers to file a complaint against real estate agents for their role in the sale of real estate projects.
On the other hand, NCDRC now entertains homebuyer complaints only if the claim is more than INR 1 Crore. NCDRC can accept any individual homebuyer complaints, class-action suits by multiple homebuyers against the same builder, and complaint by an association of buyers.
RERA vs NCDRC: The Main Difference Between Consumer Court And RERA
(Where to file the case)
|To file a complaint in NCDRC, the home buyer must determine the value of the property, and this must be above one crore for the jurisdiction to file the case under NCDRC.||Any home buyer can file the complaint with the RERA Authority of the state where their property is situated irrespective of the value of the property.|
|Appeal (After the verdict, where the appeal must be filed)||After the verdict from the National Consumer Commission, the only court of appeal for the aggrieved party is the Supreme Court.||After the adjudication of dispute by the Authority under RERA, an appeal will first lie under the Appellate Authority, after this, it will one can approach the High Court of the state where the property is situated and then finally one may approach the Supreme Court.|
|Projects (Ongoing and Completed)||One can approach the National Consumer Commission for the apartment or flat which has been delivered by the builder but has any defect or problem in them, the aggrieved home buyers can completely go to the NCDRC or other subordinate consumer courts regarding any complaints with ongoing projects that are still not completed.||All the projects where the occupation and completion certificates are granted before the RERA, 2016 are outside the scope of RERA. The rest all can file a complaint under RERA.|
|Legal Remedy (during pendency)||Under NCDRC there is no bar while approaching any appropriate authority for initiating any sought of proceedings against the builder to claim aggrieved person relief. One can file multiple complaints under various authorities for faster relief gain.||As per the rules for states, it takes explicitly an undertaking from the complainant at the time of making a complaint to the Authority under RERA, that the homebuyer has not made any other complaint regarding the same matter. It limits the right of any homebuyer to claim its respective relief and reduces workload and chaos inside authority.|
RERA Or Consumer Forum- Which To Choose?
|Applicability||Any matter of consumer interest (goods/ services).||Only to real estate projects.||
|Taking cognisance of infractions by any party||
|Ease of filing a case||
Ease of filing cases, with similar expected results as that under the Consumer Protection Act, 1986.
|Success of litigation||
||Consumer Protection Act, 1986 has a better track record.|
||Although RERA, under section 79, bars civil courts from hearing any matter that can be determined by the Authority or Tribunal, this may be legally questionable, as a number of orders issued at the level of a tribunal have been both, entertained and overturned by civil courts.|
RERA, 2016 envisages significant changes to the way in which the real estate sector operates in India. The Act aims at greater accountability, disclosure norms, investor protection, and e-governance. It also facilitated transparent and efficient working in the real estate sector by enforcing fair practices and accountability norms and fast-tracking dispute resolution.
It directionally sets the groundwork for the next round of transformation in the Indian real estate sector. Ultimately, if the real estate authority (and subsequently, the tribunal, in cases where there is an appeal against an order issued by the authority) can show to the stakeholders that this particular law has every capability, to penalize fraud/error committing promoters or realtors, or say even allottees, this all will boost the faith of common people towards the Authority under RERA and the real estate sector, as a whole.
LetsComply’s legal experts can help homebuyers in filing a complaint under RERA against the builders. To know more about RERA vs NCDRC, call us at +91-9717070500 or send us an email at firstname.lastname@example.org.
In a population-driven and developing country like India, an idea of running/starting a business is considered to be forever exciting and opportunistic. India has made rapid progress, both socially and economically in the last decade or so. Being the world’s largest democracy brings/adds leverage in attracting different kinds of business opportunities (both domestic & international). A few types of entities at the heart of running the show can be named as Sole Proprietorship, Private Limited Companies, LLPs, Joint Hindu Family, and Partnership Firm. Partnership Firm in India is governed under the Indian Partnership Act, 1932 which duly defines any partnership as “the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all”. Partnership firm registration requires a Partnership Deed Or Agreement well placed before any other step of business registration is taken.
What is a Partnership Deed Or Agreement?
Partnership Deed or Agreement is a contract between two parties (partners), which sets out the terms and conditions of the relationship between the partners and acts as the foundation for every partnership. A partnership can only arise from a due contract and not the status. A Partnership Deed or partnership agreement can be both either oral or written. However, it is sensible to get the Partnership Deed in writing as its enforceability will be more prudent thereby.
Essential Clauses in Partnership Deed
The following vital contents must be there in every partnership agreement in India:
- The name and address of the defined firm and all its partners,
- Nature of business to be carried on,
- Date of Commencement of business,
- Duration of Partnership (whether for a fixed period/project),
- Capital contribution by each partner,
- The profit-sharing ratio among the partners,
- The business objective of the partnership,
- Partnership property,
- Loans to the partnership,
- Banking arrangements,
- Records and accounts,
- Meetings and voting,
- Holidays & Absence,
- Good faith & Partnership policies,
- Restrictions on Partners,
- Intellectual property,
- No competition & Expulsion,
- Termination of the partnership. Comprehensive termination provisions to protect ongoing partners,
- Indemnity for the Partnership,
- Publicity / Announcements.
In India, one must draft the partnership deed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more. The partnership agreements are signed in the presence of all the partners along with witnesses.
How to Register the Partnership Agreement in India?
As per the Partnership Act, 1932, partnership firm registration is optional and is at the sole discretion of the partners only. However, if the partnership deed is not duly registered, they will not be able to enjoy the kind of benefits which a duly registered partnership firm enjoys.
The partnership firm registration can be completed before starting the business or at any time during the continuance of the partnership. But when any firm wishes to file any case in the court to enforce their due rights, Partnership registration must have been done before filing the lawsuit.
Procedure for Partnership Firm Registration
- An application with the prescribed fees is submitted with the Registrar of Firms (ROF) of the state in which the firm is situated.
- The following documents are required to be submitted along with the application:-
- Application for Registration of Partnership,
- Duly filled specimen of Affidavit,
- Certified True Copy of the Partnership Deed,
- The due ownership proof of the given principal place of business (to be used).
This application must be duly signed by all the partners. When the ROF is completely satisfied with points stated in the described partnership deed/agreement, he/she may embark an entry of the application in its register and will duly issue a Certificate of Registration.
Advantages of Partnership Agreement
- The partnership agreement is relatively easy to establish,
- It is completely ideal for any partnerships with between 2 and ten partners. Also, one can use the agreement for larger partnerships as well;
- One can attract prospective employee to the business if given the incentive to become a future partner,
- It helps as the ownership of the partnership assets and the share of income and expenses doesn’t have to be in any equal proportions,
- A partnership agreement benefits from the combination of complementary skills of two or more people. There is a wider pool of knowledge, skills, and contacts to your organisation;
- One may use a partnership agreement if one or more of the partners is sleeping or silent partner, which means that they duly contribute in the finances, experience, and assets of the firm but may not take part in every day to day running of their firms business;
- One’s business as partners could be a single specific project, such as a technology development project, and does not necessarily have to be commercial.
Partnership deed or partnership agreement is an important legal document in India. The document serves the purposes of avoiding unnecessary misunderstanding, harassment, and unpleasant incidents among the partners of a business entity in case of any dispute.
Thus Partnerships Deed/Agreements are a must, the first thing to be done in a partnership firm. LetsComply’s legal experts can help you in drafting a Partnership Deed/Agreement for your business. To know more, call us at +91-9717070500 or send an email at email@example.com.