FAQ’S

Need more information about Company Registration

FAQ #1

1.What is Pvt Ltd company?

A private limited company is a business entity that is registered under the Company Act, 2013 with a minimum of two directors. All processes of the registration are thoroughly monitored and assessed by the Ministry of Corporate Affairs (MCA).

2.What is OPC company?

According to Section 2(62) of the Company Act, 2013, a company registered with a sole director and a single nominee is termed as a one person company. This helps an entrepreneur operate a business entity with the protection of limited liability and ease of operation of a proprietorship.

3.What is LLP ?

Any simple type of business registration with a minimum of two persons as stipulated by the Limited Liability Partnership Act, 2008 to the Ministry of Corporate Affairs (MCA), India is termed as Limited Liability Partnership or LLP.

4.What is Trademark Registration?

Trademark can be registered for logo, design, image, shape, tagline, name, etc. Trademark is considered as an intellectual property and thus it needs to be registered under the Trademark Act, 1999.

5.What is Copyright Registration?

Copyright registration in India is done under the Copyright Act 1957. Copyright Act offers bundles of rights like communication to the public, the rights of reproduction, adaptation, and translation of the work etc. Copyright is also considered as part of intellectual property as like Trademark and Patents. Only owner of the registered work is permitted to use, reproduce or grant permission to use his/her creative work. Creative work done in the category of Literature (like books, scripts or even software) and audio-visuals (like music, photographs or movies) is liable to register under copyright act too.  

6.What is GST filing?

GST returns are the tax return forms that are required to be filed by these entities with the Income Tax authorities of India. All individuals registered under the GST Act has to furnish the details of the sales and purchases of goods and services along with the tax collected and paid.

7.What is MSME?

MSME stands for Micro, Small and Medium Enterprises.To avail benefits from Central or State Government, Banking and NBFC sector MSME Registration is must as per MSMED Act. Small and Medium enterprises faced many hassles in past to register their businesses and thus MSME registration is now replaced by very simple process named as Udyog Aadhar Registration.

Ministry of Micro, Small and Medium Enterprises introduced Small Scale Industry (SSI) Registration which is similar to MSME registration in India.

8.What is IEC code?

Issued by the Director General of Foreign Trade, IEC or Import Export Code is a 10-digit unique code with life time validity. Since this is a mandatory requirement for businesses wishing to do overseas business, no business can enter into import-export business without this code. Without having a valid IEC, a merchant cannot import or export goods and enjoy the benefits offered for import and export by the DGFT, Customs and the Export Promotion Council. There are a variety of schemes such as SEIS or MEIS introduced by the government to promote import and export businesses. If you need to avail them, IEC is mandatory.

9.What is Partnership Firm?

A partnership is a written formal arrangement between two or more persons termed as partners to incept, manage and operate a business and share its profits as per their investment and/or agreed percentages. It is one of the most effective and easiest forms of business registration for people looking for extensive flexibility of operations for their business functions.

FAQ #2

1.Is it mandatory for me to conduct annual audit for my LLP?

It is not. However, if the starting investment exceeds Rs. 25 lakhs or if your company generates an annual turnover more than Rs. 40 lakhs, as per the MCA, you need to conduct the annual audit.

2.What is a One Person Company?

A company registered with one director and one nominee under the Company’s Act, 2013 is a one person company.

3.Can I convert my One Person Company to a Private Limited Company?

Of course you can. It is also mandatory if the paid-up capital of the OPC exceeds Rs. 50 lakhs.

4.What are the legal requirements to start a sole proprietorship?

In order to register a sole proprietorship, GSTIN registration, MSME and current account under the name of the proprietorship are required.

5.Do I need to conduct annual audit for my sole proprietorship?

No. You don’t have to. Annual audits are required for only those business entities that are legally required to do so as per the laws of the MCA and ROC under the Companies Act.

6.What is ROC?

The Registrar of Companies is a legal office established under the purview of Companies Act, 2013 to help register different types of companies and ensure the fulfillment of diverse statutory requirements as per the Companies Act.

7.What are the event-based compliances for an LLP?

Company seal, company stationery and company bank account are the three event-based compliances for an LLP.

8.What are the registers that must be maintained at the registered office of an LLP?

An LLP must keep such registers as the Register of Member, the Register of Directors, the Register of Contracts, and the Register of Charges at the registered office of the LLP.

9.Should I file an annual financial report for my One Person Company?

Yes, you should. All One Person Companies are required to file an annual financial report containing details on Balance Sheet, Profit and Loss Account, and Auditor’s Report every year using Form AOC-4 on/before October 30.

10.Can the director of a company resign from the post?

Of course she/he can. If a director wishes to resign, she/he must intimate the company via a notice in writing about the same, and the Board needs to file required forms with the MCA about the same within 30 days of directors’ resignation.

11.What are events when a person stops being a partner in an LLP?

A person stops to become a partner of an LLP at the event of the partner’s death, the dissolution of the LLP, the partner being declared of unsound mind, or the partner is declared insolvent or adjusted as insolvent.

12.Can I change the name of my LLP’s name?

Of course you can. You need to follow the established norms and procedures to change the name hassle-free. Envizi has a dedicated team to help you with the same.

13.Is it possible to change the authorized capital of a company?

Yes, it is possible. However, if you would like to do so, you must the procedures established by the MCA and ROC for the same.

14.Can we change the LLP Agreement?

Yes, you can. As per the procedures and guidelines established by the ROC, using the Form-03, you can change the charter of LLP.

15.Is it legally possible to transform a Private Limited Company to OPC?

Yes, it is possible. It can be done in diverse situations as required. The MCA and ROC have laid out the procedure that must be followed to ensure smooth conversion of Private Limited Company to a One Person Company.

FAQ #3

1.What does the letter ‘R’ mean above company and products’ name?

When a business has received trademark registration from the concerned government body, it can use the letter to state that the particular word is registered under trademarks.

2.What is the meaning of ‘TM’ on company and products’ name?

When a business has filed for trademark registration with the government body and the request is being processed, it would be given an acknowledgment letter. The letters TM denotes just that.

3.What do I need to do to get Copyright Registration?

The application must be accompanied with the details of the applicant; softcopies and CDs/DVDs of the work; clear copyright search certificate for artistry work; and the power of attorney if a third-party like Envizi is getting the registration done.

4.My copyright has expired. Can I renew the same?

Of course you can. Since a trademark registration is only valid for ten years, it is mandatory that one must renew it. If you have forgotten to renew it, paying a prescribed fine you can renew your registration as per section 25(4) of the Trademark Act, 1999.

5.I am running a business that has operations in two different states. Do I need to register for GST?

Yes, you must. Since you are conducting business more than in one state, you must register for GST to avoid legal complications and penalizations.

6.Is GSTIN mandatory for my business?

If your business has the revenue of more than 40 lakhs (10 in, J&K, Himachal Pradesh and Uttarakhand and North Eastern States); operates in more than one state; is selling products and services online; is providing services and products outside India; and is registered previously under VAT, Excise or Service Tax Law, you must get BSTIN.

7.What is meant by ISO?

ISO is the abbreviated form of International Organization for Standardization, which assures quality management system through established processes and procedure for an organization.

8.What are major types of ISO certifications?

There are such certifications as ISO 9001, ISO OHSAS 18001, ISO 20000, ISO 22000, ISO 27001, and ISO 50001. Each of these is given for adhering to different standards as established by ISO.

9.Is it possible for me to I close my Private Limited Company?

Yes, you can. By following the most suitable closing-down procedure as per the reason behind the same, you can close your private limited company as you wish.

10.Can we add a new director to our Private Limited Company?

The Section 161 of the Companies Act, 2013 has made it clear that the Board of Directors can add new director to a company as they wish under the purview of the Companies Act, 2013.

FAQ #4

1.Is it mandatory for me to conduct annual audit for my LLP?

It is not. However, if the starting investment exceeds Rs. 25 lakhs or if your company generates an annual turnover more than Rs. 40 lakhs, as per the MCA, you need to conduct the annual audit.

2.What is a One Person Company?

A company registered with one director and one nominee under the Company’s Act, 2013 is a one person company.

3.Can I convert my One Person Company to a Private Limited Company?

Of course you can. It is also mandatory if the paid-up capital of the OPC exceeds Rs. 50 lakhs.

4.What are the legal requirements to start a sole proprietorship?

In order to register a sole proprietorship, GSTIN registration, MSME and current account under the name of the proprietorship are required.

5.Do I need to conduct annual audit for my sole proprietorship?

No. You don’t have to. Annual audits are required for only those business entities that are legally required to do so as per the laws of the MCA and ROC under the Companies Act.

6.What is ROC?

The Registrar of Companies is a legal office established under the purview of Companies Act, 2013 to help register different types of companies and ensure the fulfillment of diverse statutory requirements as per the Companies Act.

7.What are the event-based compliances for an LLP?

Company seal, company stationery and company bank account are the three event-based compliances for an LLP.

8.What are the registers that must be maintained at the registered office of an LLP?

An LLP must keep such registers as the Register of Member, the Register of Directors, the Register of Contracts, and the Register of Charges at the registered office of the LLP.

9.Should I file annual financial report for my One Person Company?

Yes, you should. All One Person Companies are required to file an annual financial report containing details on Balance Sheet, Profit and Loss Account, and Auditor’s Report every year using Form AOC-4 on/before October 30.

10.Can the director of a company resign from the post?

Of course she/he can. If a director wishes to resign, she/he must intimate the company via a notice in writing about the same, and the Board needs to file required forms with the MCA about the same within 30 days of directors’ resignation.

11.What are events when a person stops being a partner in an LLP?

A person stops to become a partner of an LLP at the event of the partner’s death, the dissolution of the LLP, the partner being declared of unsound mind, or the partner is declared insolvent or adjusted as insolvent.

12.Can I change the name of my LLP’s name?

Of course you can. You need to follow the established norms and procedures to change the name hassle-free. Envizi has a dedicated team to help you with the same.

13.Is it possible to change the authorized capital of a company?

Yes, it is possible. However, if you would like to do so, you must the procedures established by the MCA and ROC for the same.

14.Can we change the LLP Agreement?

Yes, you can. As per the procedures and guidelines established by the ROC, using the Form-03, you can change the charter of LLP.

15.Is it legally possible to transform a Private Limited Company to OPC?

Yes, it is possible. It can be done in diverse situations as required. The MCA and ROC have laid out the procedure that must be followed to ensure smooth conversion of Private Limited Company to a One Person Company.

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