In India there are some definite rules that you need to follow in order to change the kind of company that you are looking for. There are forms need to be filed and documents that have to be provided. Then, there are authority bodies whose rules and regulations you need to follow and whose decisions you need to honor.
In this article, we cover only the conversion process of Pvt Ltd Company into Public, Limited Liability Partnership, One Person Company, Trust, Section 8 Company and NBFC.
Conversion of a Private Limited Company into a Public Company
1. Call a Board Meeting
2. Pass the Board Resolution Approval from Directors
3. Issue an Extraordinary General Meeting (EGM) Notice
4. Holding of Extraordinary General Meeting for the Purpose
5. Filing of Forms with ROC through
And you need to submit some important documents regarding to this conversion are -
Attachments of e-Form MGT-14
Attachments of e-Form INC-27
The first thing is that you need to do in order to change from a private company to a public one is to call a board meeting. The notice has to be issued just the way it has been stated in the Section 173 (3) of the Companies Act, 2013. The main agenda of the meeting would be to make sure that the directors approve, in principle, your conversion to a public company through alterations made to the Articles of Association (AOA) and Memorandum of Association (MOA).
The second step requires you to issue a notice for an EGM (extraordinary general meeting). The notice would have to be issued as per the way stated in the Section 101 of the Companies Act, 2013.
In the third step you would have to hold the EGM itself. The meeting has to be held on the date that has been specified in the notice issued for the purpose. Here you need to pass the special resolution whereby shareholders agree to the change.
In the fourth stage the ROC (Registrar of Companies) form would have to be filed. Here you would need to file two e-forms – e-form MGT 14 and e-form INC 27. There are also some important documents that need to be submitted in this regard. After this your documents and other submissions would be scrutinized by ROC. Before it issues the certificate, it should be satisfied that you have done all that you need to do.
Once you are able to convert to a public company there are some formalities that you would need to take care of.
Convert a Pvt. Ltd Company into an LLP (Limited Liability Partnership)
Process for conversion of private limited company into LLP
1. Call a Board Meeting and pass the Resolution for conversion of Pvt Ltd to LLP
2. Obtain DIN of all proposed Designated Partner for whom it don’t have already
3. Need to file LLP eform-1 to get approval of converting a private company into LLP
4. LLP Form-18 and Form-2 required to be filed for the conversion
5. File LLP Form-3 regarding to LLP Agreement
6. Intimate the conversion to Registrar in LLP Form-14
The process of changing a private company into an LLP is rather straightforward. First of all you have to call a board meeting where you decide to change the name of the company making sure that it ends with the word LLP. A resolution needs to be passed for that purpose. Before you do this however, you need to get the DIN (director identification number) for your designated partners who do not have it already.
In the second stage you have to file for approval for the new name of your company. For this you need to file the e-form LLP-1. Here you need to attach the special resolution passed by the board of directors regarding said conversion.
After this, ROC issues the name approval certificate. In the fourth stage you have to file the incorporation documents with ROC. Here you need to file the e-form LLP-2. Certain important documents such as proof of address need to be furnished at this stage.
In the fifth stage you need apply for conversion along with the e-form LLP-18. In the sixth stage you need to sign and submit the LLP agreement. This needs to be done within 30 days of having received approval for the forms already mentioned. Here you need to file the e-form LLP-3. After this, if everything is okay the respective department will issue the incorporation certificate.
Then you would have to intimate the conversion to the registrar along with the e-form LLP-14.
Conversion of a Private Limited Company into an OPC (One Person Company)
Just like other kinds of companies in India there is a definite procedure that needs to be followed when you are changing a private company into an OPC.
See the step-wise process for converting Pvt Ltd into OPC
1. Calling a Board Meeting
2. Issue an EGM Notice to all Members/ Shareholders
3. Calling and Holding a General Meeting
4. File Forms with ROC for Conversion (i.e. MGT-14)
5. File an Application in Form INC-6
6. Review is Conducted by ROC and Issue Certificate for OPC
The first thing that you need to do is call a board meeting. After that you have to issue the EGM notice to all the members, the auditors, and the directors of the company. This needs to be done as has been stated in the Section 101 of the Companies Act, 2013. After that you need to hold a general meeting.
The fourth step over here calls for you to file an ROC form. Here you would need to file the special resolution that has been passed by the shareholders for said conversion. This form – MGT 14 – has to be filed within 30 days of passing the special resolution. Here you also need to furnish the prescribed fees along with attachments such as a notice of EGM and a certified true copy of the special resolution.
In the fifth step you would have to file an application in form INC 6 along with fees as prescribed in the Companies (Registration Offices and Fees) Rules, 2014 and certain important documents. One of the documents is a declaration of the willingness to convert.
In the final stage ROC would review all the forms and documents submitted by you and issue to you the certificate that says that you are now an OPC.
Conversion of Pvt. Ltd Company into Trust
There are three simple steps that you need to follow in order to change your private company into a trust.
First of all, you need to apply for name change. You need to do this with the ROC in your state. Normally, in this case you would be using the e-form INC-1 to make the application. You would also have to submit INR 1000 along with the application. This can be done through your net banking or credit card.
In the second stage you have to apply with the form RD-1. In this case too, the application would have to be made to the concerned ROC and form INC-12 will have to be attached to form RD-1. Here you would need to submit a number of important documents such as the draft MOA (Memorandum of Association) of the new company. This needs to be done according to form INC-13. Along with it you have to submit the draft AOA as well. You also need to provide a declaration in Form INC-14 with statements from an advocate, a cost accountant, a chartered accountant, or your company secretary. You also need to furnish a statement showing your liabilities and assets on the date when you applied or at least 30 days before that.
In the final stage, once you are approved, you need to issue an advertisement in the newspaper where you intimate all regarding the change.
Conversion of a Private Company into a Section 8 Company
There are four major steps that you need to follow in order to change a private company to a Section 8 one.
In the first stage you would need to apply for the reservation of your new company’s name. This application needs to be made with the ROC in the state that you are looking to operating in.
In the second stage, you would have to apply for conversion through the e-form RD-1. You also need to submit some fees, as has been prescribed in these cases. You also have to submit certain important documents such as form INC-12 along with the application in these cases. Some other important documents in these cases are the draft MOA and AOA of the company that you are about to form.
In the third stage you would have to issue a notice in the newspaper whereby you inform people of the application made for the conversion. This notice would be issued in form INC-26 and has to be done within a week of having made the application. Do remember that you would need to pay for this from your own pocket.
In the final stage, ROC issues you the license in order to operate as a Section 8 company. The license would be granted under Section 8 of Companies Act. 2013. This is normally done following consultations with other authority and regulatory bodies in the state government and the central government.
Conversion of a Private Company into an NBFC (Non-Banking Financial Company)
There is no need to change a private company into an NBFC as such. At least, there are no elaborate procedures that need to be followed in this case as you would do with the other types of companies that we have dealt with over here.
The major reason for such an assertion is the fact that here you are not changing the type of your company. You are merely starting a type of business. At any rate, if you wish to work as an NBFC you need to apply with the apex banking body in the country – the Reserve Bank of India.
The first thing that you need to do in this regard is visit the regional or zonal office of RBI in your area. It is here that you would get all the information on the forms that you need to fill, and the annexure and disclosures that you need to furnish with your application.
As has been mentioned in the Companies Act, you would need to amend the main object clause of your organization so that you could include the provisions necessary for working as an NBFC.
Nowadays registering a company in India is easy and simple through MCA (Ministry of Corporate Affairs), it is making simplified procedure for entrepreneurs to register their business in a quick process of short time.
But before we are moving to the topic, I want to share a little information about India’s business environment ambiance.
According to the survey of World Bank’s Doing Business Report 2018; India ranked 100th place out of the 190 countries and one of the top five reformers on holding conducive business environment as stated by the report.
You will find another scenario of India about easy of doing business. India advanced 23 points up to 77th place rank in World Bank's Doing Business index for 2019, from 100th in 2018 and 130th in 2017. India is becoming the top ranked country in South Asia for first time and 3rd among the BRICS.
India is creating better investment climate for budding off creative and innovation business ideas.
Innovation and creative enterprises are the foundation of making India a developing nation.
Government is already planned to wheel a new industrial policy which would lead the India to make the business more competitive and create more jobs, according to the Department of Industrial Policy and Promotion (DIPP). And it is already presented in Cabinet for approval.
The proposed policy will be focused on three pillars such as Competitiveness, Sustainability and Inclusion.
Government wants to make India as the world’s next manufacturing hub and aimed to creating millions of jobs and boost growth.
On this part, the government has also launched various enabled programs such as Startup India, Make In India, Digital India, and Skill India over years for fostering the growth and development of the entrepreneurial spirit in the country. Startup India scheme is one of such flagship for nurturing the innovation and startups in the country. Apart from Startup India, the recent Union Budget has also announced a slew of measures to strengthen the entrepreneurship climate for startups in India.
This is the nice time to start your business and devote your time to build it and create a good customer relationship.
Before jumping towards to register a Pvt Ltd or OPC or LLP or Partnership or Proprietorship or Public company or etc; an entrepreneur might be clear about the things such as companies requirements, why a company needs to be registered, details particulars required from promoter/ director or subscriber, at where you want to start your business, documents required for company registration, company incorporation process, minimum requirements to form a company and points to remember while forming a company.
In this article, you will know how to form a company and its procedure:
Let’s move to the point by starting from a company.
By Definition: A Company is a registered organizational institution or corporation which can be established by one person or group of persons to perform their business for profit or not-for-profit under the Companies Act, 2013. It constitutes the aim of common goal called business by its unique name, members/shareholders and directors. After company incorporation/ registration under the Company Act, 2013; company becomes a legal entity and it gets its rights and responsibilities defined by the law.
Simply put, a Company is a corporate body and legal entity engages in business by made up of on association of both natural and legal persons for carrying on commercial or industrial enterprises and is incorporated under the existing Company Law as stated by the Companies Act, 2013 of the country.
Company registration the words its sounds good and also its features are good; it is the legal process where a company or an organization can register/incorporate its business structure in MCA (Ministry of Corporate Affairs). After getting registration, the entity would get the certain benefits which must be needed for it and through this it can acquire a huge trust from customers and build a good relationship.
Before registering a company you must check your desirable company name online in MCA portal; and see is it available to you or not!
It means a company or a business register its name, office address, directors name and subscribers in MCA through the regional Registrar of Companies (ROC) offices to get certain legal protections and facilities to start, run, manage and grow the business.
Because we are in a system and this system creates opportunities to enter into a big corporate world. So we need to take the advantages and move ahead of the curve.
There are various types of companies you can find here to register in India. Here you can take a look at the following types of business entities are available to form.
As per Indian Companies Act, 2013 Law, a company can be formed under Section 3(1) may either be limited by shares or limited by guarantee or it may be unlimited company. So types of companies are classified into 3 categories as in follows:
Creating business for people is not about to bothering but helping to them. Aspiring entrepreneurs always desire to make it big and do the valuable things to achieve the goals in their business life.
To succeed in business life, it does not require any management degree, it requires how valued your products or services as per price and how you are dealing with customers. Giving first priority to customer is the main funda of business.
There you can find many stirring real life stories of successful people who have succeeded as entrepreneurs but they did not possess any management degree. Also you can find various businessmen’s proof that a business doesn’t necessarily required any management school certificate but an idea, innovation, thought, an ability to dream and a lot of conviction to make a mark.
So an entrepreneur (you) should have to be creative, imaginative, skilled, dedicated and responsible. Being an entrepreneur means you always have to wear multiple hats and roles for your business.
You are thinking to enter into entrepreneurship career to reach in your goals. As you are going to setup a new company or running an established business, then you ought to have a registration to place your company on top rank among the corporation field. It is very important that you can get your proper return of each and every pound of money that you are going to invest or invested in your business.
People register their business by validating their business ideas. And registering a business is important to get the advantages of corporation name and when you register it, it is even more important. So go ahead and register your business even before you find your first customer and make your first money for company.
But how can you achieve it and reach in your goals. There are some reasons, so you should have to register your business to get the benefits. Here are some points below to remember:
For this reasons, it is necessary to incorporate your company or existing business to avoid some legal actions of corporate affairs. Absolutely out of many expenses you have to spend some thousands of money for your company registration during the starting of company or business. To get benefits and protection from this we can’t avoid it, we can say there are several reasons for company security like protection of assets, securing your products, satisfying monetary requirement, big name business, etc.
That’s why India has put his head to business power, now it is going to be a hub of business sector by creating development in innovative thoughts to stand by the worldwide. India is a land of opportunity where you can spread the seeds of business thoughts and implement it perfectly to get the successful results.
So because of this, American and foreign renowned business magnates are talking about the invest hub of India.
When you are going to form a company in Bangalore, Karnataka or any other cities in India; you should have to think it globally but act as local and for this, certain factors need to be considered for preparing a business plan to setup your company smoothly.
So these are the six factors where you can get the clues to invent your business journey. Here you can look over the different phases of the business creation process during formation of a company.
According to the Section 3(1) of the Companies Act 2013, that a company may be formed by you and your partners for any lawful purpose act. Here you can look over the minimum number of persons or members required to form a various types company.
Proof of Identity for Indian Nationals:
For Foreign Nationals and Non Resident Indians:
Proof of Residential Address:
As per the Rule 16 of Companies (Incorporation) Rules 2014, these particulars of every director/ subscriber need to be filed with the Registrar at the time of incorporation such as name including surname or family name, recent photograph, father’s/mother’s name, nationality, date of birth, place of birth, educational qualification, occupation, income tax permanent account number, permanent address, present residential address, present office/business address, Email ID, Phone number.
Office/ Business Address Proof is Required to File with the Registrar at the Time of Incorporation
Registering a startup company or a new business has become pretty easy now in Bangalore, India. This formation of company is a process which results in incorporation of a company into the corporate world. And this is the way where you can acquire the registration certificate for your company.
Before registering your company you should understand and appreciate the benefits of getting your business registered. All company incorporation can takes place online through the Ministry of Corporate Affairs (MCA) with the help of your Regional ROC under the administration of Companies Act 1956, 2013 and 2014 with their rules and regulations of Government of India.
This registration process can be done only in government department portal i.e. www.mca.gov.in and nowadays everything regarding to company registration you can do through online. You can go through the official procedures to register a company or startup just in 1 day with MCA now.
The best part of all is that you (one) don’t have to visit to corporate office; you can apply for company registration just sitting in front of a computer at your home with a good internet connection and some necessary equipment accessories. And you should also have some essential soft copies of legal documents at the time of application process.
But you must need a CS (Company Secretary)/ CA (Chartered Accountant) / CWA (Cost and Works Accountant) or CMA (Cost and Management Accountant) membership number, seal and signature for your company application process, if you can do it, that would be better or you can hire a company registration agency they can assist you to complete your all company work.
Otherwise we will help you to get registered your company and provide the certificate/ license to your incorporated company as well as your new business easily.
These are the 7 major steps to incorporate a company in India. So we have taken this accordingly.
Let’s start the company registration process by following steps:
Here, we discuss the 7 steps below which is must required to register a company. Please have a look over this and get the proper idea and understanding the process about company registration journey.
What is a company name: Company name is a typical name of a business or organization that reflects the overview of the company. Choosing a unique company name is a major factor for your business because it depends on you which type of products and services you are developing and selling in market. Name should be informative and mind catching when a costumer heard or saw can know immediately by the name that what your business is based on.
Company name serves as trade name of a company or business. This is a legal and business identity of a company. A name of company reflects its brand image through this a company can promote their brand by creating good customer relationship throughout the products/services.
Apart from this, the selection of company name has constituted in three parts i.e. First Name, Middle Name and Last Name. Here you can follow the company name selection procedure
For selecting the very first name of company like Private Limited Company, One Person Company, Limited Company and LLP Company is one of the most regulated and complex exercise. It should clearly state the nature of the business of the entity.
The First name describes or indentifies the main activity of the business or company. The company name shouldn’t be identical to the name of an existing company which has already registered under Companies Act, 2013 or any previous company law.
According to proviso the Rule 8(2)(b)(ii) of the Companies Incorporation Rules, 2014, every company's middle name need not to be necessarily suggestive for the objects of the company; but in case, if there is some indication points out about the objects in the same name, then it shall be kept in conformity with that objects as mentioned in the memorandum.
The Name shall not be allowed if, it is not in congruence with the primary/main objects of the company as it is mentioned in the memorandum of association (MOA) at the time of their business journey.
Last name means last words of company name like surname. According to Section 4(1)(a), the memorandum of company shall state the name of the company with the last word as “Limited” or “Ltd” in the case of a Public Limited Company
In the case of a Private Limited Company the last words used as “Private Limited” or Pvt. Ltd.
In the case of One Person Company the last word used as “OPC Company”
In the case of Limited Liability Partnership Company the last word used as “LLP” or LLP Company
A Not for Profit or Non-Profit company incorporated as per Section 8, but they can’t use “Limited” or “Private Limited” as last word.
The Central Government amended the Companies (Incorporation) Amendment Rules, 2018 which came into force from 26th day of January, 2018 to make simple, faster and easy process for company.
Before you are applying for name reservation, first you/ applicant have to create a user account in MCA portal by generating through your suitable credentials and that User Login ID, which will help you further for submitting and uploading the SPICe, INC-12 and INC-24 Forms at the time of incorporation.
For reserving the name of a company, the applicant has to apply to MCA through RUN service, but previously it was applying through INC-1 e-Form. But, now RUN service replaced the INC-1 eForm to reserve a name without requiring DSC and DIN of proposed directors which leads a faster and simplified procedure to get approval quickly.
As per Section 4(4) of the Companies Act, 2013; a person may make an application of the proposed company or existing company proposes to change its name in such a form and manner accompanied by such fees as it may be prescribed to the Registrar for reservation of name.
For Company Name Search, you may check the availability of name here:
Check the Trademark Search to ensure that the proposed company name should not be violating the provisions according to the Section 4(2) of Companies Act, 2013. If it falls means there is a possibility of rejection.
For Trademark Search availability check here:
As per Rule 9 of Companies (incorporation) Rules 2014, an application for the reservation of a name shall be made through the web service which available at MCA portal by using the RUN (Reserve Unique Name) along with the fee as provided in Companies Rule, 2014 with regarded to Registration Offices and their Fees.
In RUN service, an applicant can apply for two proposed name by choosing its entity type and entering the objectives and any other relevant information in Comments section in support of the purposed name.
The requested name for approval may either be approved or rejected; it depends upon the rules and regulations of company law. It should follow the Section 4(2), 4(3) to avoid the rejection.
The applied name will be checked and processed by Central Registration Center (CRC) and the approval or rejection shall be informed you by e-mail subsequently.
Note to User: As we mentioned above, the name applied for reservation will either be approved or rejected and there is no free resubmission is allowed. For every resubmission of application, the applicant has to pay a fresh payment of Rs. 1000 using the RUN service.
This is the second step to incorporate a company is to getting the Digital Signature Certificate (DSC). DSC is an electronic document is required to sign digitally on all documents which are submitted online. And it ensures the authenticity of Information Technology Act, 2000 for the submitted documents. It is a legal support to the documents same like as presence of physical signature.
Every individual who proposed to be appointed as a director of the company shall have to obtain a DSC.
DSC binds together a public key with an identity and it can be use to verify a public key belongs to a particular person or entity. This certificate serves as proof of identity of an individual person for a certain purpose.
We can take an example like a driver’s license (DL) which identifies someone who can legally authorized to drive a specific form of vehicles in a particular country or state. In case of physical document we sign it manually similarly digital signature is used to sign on documents electronically.
You can obtain your Digital Signature Certificate by approaching any one of the Certifying Authorities (CAs), registered with Controller of Certifying Authorities (CCA) from the Government department. And the listed agencies are such as: NIC, IDRBT, SAFECRYPT, (n)Code Solutions, eMudhra etc., which are solely available in MCA portal, granted to issue a DSC under section 24 of Indian IT Act, 2000. One can get his/her Class 2 or Class 3 certificates from any of the certifying authorities.
Here you take a look at some website addresses of registered CA agencies:
If you are unable to get your Digital Signature Certificate or need any assistance, then contact us we will help you to obtain your Class 2 or Class 3 DSC in Bangalore within limited time frame.
DIN (Director Identification Number) is a unique and legal identification number given to an existing individual or a future proposed director of any incorporating company.
DIN was introduced in India as binding the Section 266A to 266G of Companies (Amendment) Act, 2006.
As per the Amendment Act 2006, acquiring a DIN is mandatory for every director/ designated partner to incorporate their new company. This is the most pre-requisite identification of directors. So every directors of the proposed company shall have to obtain DIN from MCA by attaching the required documents.
Any person intend to obtain DIN shall apply e-Form DIR-3 on Ministry of Corporate Affairs website. There is 1 to 7 steps procedure to apply DIN, you can follow through that or if you have any query relating to DIN can ask freely.
If you are incorporating the company through SPICe (SIMPLIFIED PROFORMA FOR INCORPORATING COMPANY ELECTRONICALLY) e-Form, no need to apply DIN in DIR-3 Form. DIN for directors on new companies can apply through SPICe only.
MCA made easy, simplified procedure and faster process to register your company across SPICe e-Form where you can reserve company name with the help of RUN (RESERVE UNIQUE NAME) Web service, apply DIN, incorporate the company and apply PAN & TAN of company only in a single Form.
This is the best way to complete the major attributes of company registration process within a minimal time.
Memorandum and Articles of Association: The two documents i.e. MOA and AOA are formed the integral part for the formation of a limited liability company.
The MOA and AOA are the constitution of company. Both are special document which defines the nature of business, objectives, power, work area, rules & regulations within which the company can operate.
As per Section 4(1), the memorandum of a company states that –
As per Section 5(1), the articles of a company state that it should contain the regulations for management of the company.
After receiving the name approval letter from MCA, the MOA and AOA are required to be drafted. It is the most needed components of a company as similar to constitution and rules & regulation. The MOA states the main and other objects of proposed company. It limits the scope of the activities and power of the company. The AOA contains the rules and procedures for the proposed company as well as duties and responsibilities of its members are defined and recorded clearly.
A stamp duty is need to be paid during the application of MOA and AOA and this stamp duty determines the authorized share capital of the company.
The Memorandum of Association (MOA) is a legal document prepared for setting up the company and its operations. MOA is the charter of the company it defines the scope of the company’s activities and its relations with the outside world. It is a document which carries all things where the company can operate itself.
In simple word we can say, Memorandum of Association is a document that contains the entire fundamental information for company incorporation or formation.
The memorandum of association gives the name of company, name of its members and shareholders as well as where the company is situated with the registered office. It also states the objective of company
Articles of Association (AOA) are a document that specifies the rules and regulations designed for company operation, management and internal affairs.
Usually Articles of Association is a document contains all the rules and regulations that govern the company. The articles of a company play a very important role in the affairs of a company and conduct its business as well as relations between the members and the company.
Besides this, it is important that, AOA (Articles of Association) is the legal record which holds all the duties, responsibilities, rights of the company and distributes their powers to the members, shareholders and directors/partners of the company. AOA also incorporate the details facts of the company about their accounts and audit.
Filing of Forms towards Registrar of Companies (ROC) is a process to incorporate a company; it plays the vital role for company incorporation where all the essential documents you acquired for company are to be uploaded and submitted in this section.
And here the application for registration of a company shall be filed with the Regional Registrar jurisdiction office in Form No. INC-32 (SPICe) along with the prescribed fee where the registered office of the company is wished to be situated.
Section 7(1) states that the proposed company should be filed with the specific Regional Registrar where the company’s registered office address is going to be situated; for this, the following documents and information is required for registration, namely:
Rule 12 of Companies (Incorporation) Rules 2014 states that an application for incorporation of a company shall be filed with ROC in Form INC-7 (INC-2 in case of one person company)
As per Section 7(1)(a), the filing of the memorandum and articles of the company duly filled by all the subscribers to the memorandum in such a manner that which is based on the Rule 13 of Companies (Incorporation) Rules 2014
According to Section 7(1)(b), an Advocate, a Chartered Accountant (CA), a Cost Accountant (CMA) or a Company Secretary (CS) in practice has to file a declaration statements in the prescribed Form for engaged in the formation of the company.
Rule 14 of Companies (Incorporation) Rules 2014 states that for the purpose of clause (b) of Sub-section (1) of Section 7, the declaration by an Advocate or a Chartered Accountant or a Cost Accountant or a Company Secretary in practice shall have to file in Form INC-8.
As per the Section 7 (1)(c), each and every subscribers has required to file the affidavit to the memorandum and also from the first directors in the certain prescribed From
Rule 15 of Companies (Incorporation) Rules states that for the purpose of clause (c) of Sub-section (1) of Section 7, the affidavit shall have to submit by each of the subscribers to the memorandum and each of first directors named in the articles in Form INC-9.
Under Section 12, the company shall be capable of receiving and acknowledge all the communications through registered office address from the 15th day of its incorporation and all times thereafter. The company can furnish (produce) to the registrar verification of registered office within 30 days of incorporation.
As per Rule 25(1) of Companies (Incorporation) Rules 2014, the verification of registered office shall be filed in Form INC- 22.
As per Section 7(1)(e), it requires the filing of details of the subscriber’s name, together with the surname or name related to family, present residential address, nationality and such other particulars of every subscriber to the memorandum along with the identity and address proof and etc. you can follow this which we have mentioned above in “Document required from Subscriber” para.
In Rule 16 of Companies (Incorporation) Rules 2014, it is stated that the particulars of every subscriber need to be filed in Form INC-7 with the Registrar at the time of company incorporation.
Section 7(1)(f) requires the filing of the particulars of the first directors of the company, their names, including surnames or family names, the Director Identification Number (DIN), residential address, nationality and such other particulars including identity proof as may be prescribed in the form.
Section 7(1)(g) states that the particulars of the interest of the persons mentioned in the articles as first director of the company is linked with other firms or body corporate along with their consent.
In Rule 17 of Companies (Incorporation) Rules 2014, it is cited that the details of the first director and his/ her interest should have to be filed with the Form-12 along with his/her consent to act as the director of the company.
After filing of e-forms, if all the documents are looks fine and ok, then the registrar is being satisfied with your submitted documents under the Section-7(2) and then ROC will issue your company Certificate of Incorporation in e-form INC-11. Now your company is incorporated under the Companies Act, 2013.
This Certificate of Incorporation (COI) is given by the Registrar will be the strong conclusive evidence to your company and that all the compliance requirements of the Act have been complied through this.
During the incorporation of company with the concerned regional ROC, under the Section 7(3) of Sub-Section (2), the Registrar would allocate a distinct alphanumeric Corporate Identification Number (CIN) to the registered company which shall be mentioned on the Certificate of Incorporation (COI) along with its approved name, date, categories of company and company PAN number.
As per the Section 7(4), the company has to preserve all its original registered office copies of documents and information till its dissolution.
This is the way to understand and learn the key points about company incorporation. And we believe that you know the process and it is not a small thing; it requires proper documentations and application. But here, we made a brief clarification of that process which contains the summarized facts which help you to understand and deploy it to register a company.
To register a company in India; some specified fees is there for definitive business structure under the Govt. of India system and you’ve to pay for that. Apart from the government fees, the consultants charge their professional fees to get done this work and it differs from one consultancy to other. And this action is performed by the CAs, CSs, CMAs, Lawyers, Attorneys, Legal Advisors, Consultancies, and Agencies.
But I can say the standard registration fee to setup a company in India starts form Rs. 8,000/- and it varies from agency to agency in different cities as per the requirements.
As said by MCA department, you can register your company in 1 day through help of simple procedure of SPICe Form. But thing is that before registering the company, all the requirements details need to be gathered first then apply for company registration so that one can finish it in a minimal time. It also depends on the professional’s experience, skill and manpower, otherwise it will take more time to complete the work.
We can say it is not easy to register on same day; because you know about name approval, business nature & objectives, preparing MOA & AOA, preparation of particulars into exact format, stamp duty, filing certain Forms and uploading documents are there. However, it can be possible to finish in 1 day? So we take minimum 7 days of working time to get registered a company in Bangalore India properly.
A question may arises to anyone’s mind! Yes I registered the company and got certificate; but the company is genuine or not. So how you will know the company is real/ true? If it is registered in MCA by Government of India law make sure that it’s a real company.
To verify whether the company is registered with MCA (Ministry of Corporate Affairs) in India, you need to visit the MCA website and validate your company without paying any charges.
Here are the simple steps to check the existence of company:
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The process of trademark opposition in India can be defined as a legal challenge where the litigant offers a high level of objection to a filed trademark that has already been registered. In these cases, the grounds of objection are normally solid and justified. There is no necessity that this would have to be filed by entity that happens to be the mark’s registered proprietor. These objections can also be filed by a customer or a buyer. In fact, anyone in the public who is likely to use the goods can file such a complaint as well. In these cases, the litigant does not really represent himself but the common public at large.
Who can oppose the trademark application?
The Section 21 of the Trade Marks Act, 1999 says that anyone can file the trademark opposition. As has been said already the term any person can include entities such as individuals, businesses, partnership organizations, companies, and trusts. In most cases the oppositions are filed by entities that own the trademark that is similar to the one being objected to. Normally, in these cases it is seen that the litigant has either registered the trademark or filed an application for it to be registered.
Grounds of opposition
The grounds on which a trademark can be opposed can be divided into a number of sections. Section 9 deals with the absolute grounds of refusal and Section 11 deals with the relative grounds. Apart from these two sections 13, 18 (1), and 14 also deal with such grounds. It must be said in this context that these grounds belong to the Trade Marks Act, 1999. The opposition could be filed on any ground. In most cases it happens because the trademark in question is similar, or even identical, to a trademark that has already been registered.
Opposition can also be made if the trademark in question lacks any unique character as such. If the offending trademark is just descriptive or generic an opposition could be registered as well. Similarly, if it is capable of making the trademark of the complainant weak an opposition could be filed as well. In these cases, however the plaintiff’s trademark needs to be a well-recognized one. If the offensive trademark is capable of deceiving the paying public then an opposition can be lodged as well. The same is also applicable if the trademark is infringing the laws or happens to be prohibited by the same.
An opposition can also be filed to a trademark if it has been named after an international nonproprietary name or a chemical element as such. In these cases, the opposition would be registered in accordance with Section 13.
Limitation period for filing notice of opposition
One needs to file the opposition with the Registrar within 4 months of the publication of the offending trademark in the Trade Marks Journal. The applicant needs to take care that the application for opposition is not sent straightaway to the IPAB (Intellectual Property Appellate Board).
In which form does the opposition need to be filed?
There is a prescribed format named TM-O in which this needs to be filed.
Mode of evidence presentation in support of opposition
Normally, when the applicant of the offensive trademark files a counter statement the opponent has to file the evidence within a period of 2 months of having received the same. The period in question can be extended by a month. This has to be done by way of affidavit. The complainant can also write straightaway to the Registrar that instead of filing evidence he would like to rely on the facts that he has already stated in the notice of opposition. If the applicant files any evidence in support of his own application the opponent would be given a period of 1 month, which can be extended by another month, to file evidence as a response to the evidence filed by the applicant.
Procedure for filing a notice of trademark opposition
In order to file a trademark opposition a litigant needs to fill up form TM-O and also pay a fee in the region of INR 2500. It has to be filed at the office where the trademark to be opposed has been filed for registration.
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Normally, most of the people out there feel that once they have filed the trademark objection reply the process of obtaining a trademark is but a mere formality. However, it is not necessarily like that. If the trademark examiner is not satisfied with your reply to the trademark objection report he may ask you for a formal visit where you can clarify your reply. This process is also referred to as trademark hearing.
The trademark hearing is an important one. It is normally supposed to be the final step that you take in order to get your trademark registered and this is the reason why it is advisable that you do not miss it.
If you wish to know the status of your trademark application there are always websites you can visit to this http://www.ipindia.nic.in/. Over there you can check the current status of your trademark registration application. From these websites you would also come to know if a hearing notice has been issued in your name or not. In case one has been issued indeed you can always download it and use a mark so that you are able to remember the date.
Show cause hearing
The term show cause hearing is basically the notice of the trademark hearing that is sent to you when the examiner is not happy with the arguments that you have put forward in support of using a mark in reply to his trademark objection letter.
How are trademark hearings fixed?
Normally, it is the examiner who would issue a hearing notice to you. The notice would be sent to you on the service address that you have mentioned in your trademark application. However, if the service address is that of your attorney on record it would be better to follow up with him once you know that such a notice has been issued to you.
Adjournment of trademark hearing
The hearing can be adjourned when you are unable to attend it for some reason or the other. In these cases, you could apply for the hearing to be adjourned and also ask for the next hearing date if you are not able to attend the hearing on the date that it has been scheduled for.
How to get ready for such a hearing?
It is very important that once you come to know of the hearing date you get ready for the same. These hearings normally happen regarding the objections that have been stated in the trademark examination report sent to you. The reply that you had sent immediately afterwards in response to your trademark examination report also happens to be important in this particular context.
The first thing that you need in this case is a letter of authorization. This is however only applicable when you are not attending the hearing yourself. Through this letter of authorization, you can enable your attorney or any other individual to appear at the hearing on your behalf.
You also need an affidavit of usage. It should be prepared properly and list the various details about the brand name that you are using.
You also need your TM-16 documents in this case. If your trademark objection report contains any objection that is related to your TM-16 then you would have to carry those papers with you at the time of your hearing as well.
Your submissions are also important in this particular regard. You do not necessarily need to carry all your submissions with you but it would be beneficial if you have a record of all your important notes.
This should include all your examples and case laws. You can be sure that they would come in handy in case you needed a quick reference of sorts.
Trademark objection means once the application for registration of trademark is filed, it would be went to trademark registry department for the examination of application to verify the uniqueness and distinctiveness of your own creation. And they scrutinize it in order to determine the accuracy, quality or condition under the provisions of Trademarks Act & Rules. The examiner will examine the application thoroughly by going through each and every Section of Trademarks Act 1999 and Trade Mark Rules, 2002. After verifying the application, if the examiner is not satisfied, he will be object your application for one or more issues.
And for that, you should have to file the legal reply to trademark objection which mentioned in raised examination report, on this ground the applicant or attorney has to submit the proper and supportive evidence to the Trade Mark office within the prescribed time (one month). If the reply is not filed in time, your rights to use trademark shall be revoked.
To help on trademark objection, we've explained it briefly in this article.
At the time when your trademark registration process is being examined by an Examiner there is always a chance that it could be objected to by the official in question. Having an objected status means there could be one or more areas with which the Examiner or Registrar has an issue within the trademark application in question. Normally, the objections are raised under Section 11 and Section of the Trade Marks Act, 1999. Objections in Section 9 are made if the Examiner or Registrar feels that the trademark describes the goods or the genre or if it is lauds the goods or indicates their quality.
The objections under Section 11 are made in case the Registrar or Examiner feels the trademark is similar or identical to another trademark in the Trade Mark Registry. These trademarks are normally ones that belong to other similar goods and services. In these cases, normally a Search List is generated by the Examiner or Registrar through a computer. This list contains all the marks that conflict with the trademark in question.
What is trademark examination report?
A trademark examination report is a sign of the fact that the trademark office has objected to an applicant’s trademark on certain grounds. In most cases it happens because the trademark is similar or in conflict with marks already held by others. Along with this the Examiner also checks if the application has been filed in the correct form or not. In the report the Examiner or Registrar also decides if any condition or restriction is to be applied on the trademark. This is why it is in the interest of the applicant to make sure that the application meets all the requirements that are necessary with respect to registration.
Obviously, when the applicant has received a trademark examination report it means that there are some mistakes in the same. In such cases, apart from compiling the objections in the examination report the Examiner or Registrar also uploads them on the Trademark Registry.
How to file a response to an objected trademark?
Normally when a trademark application is objected to the law, states that a response should be filed within a month from when the applicant receives the Examination Report. When a trademark is objected, it is very important that the applicant puts forth proper arguments in a response that is really suitable. This needs to be done so that the objections can be overcome. After the applicant makes a written submission the Examiner or Registrar the trademark can either be accepted straightaway. Else, a hearing may be announced so that the applicant can in person put forward the necessary and relevant arguments in this regard.
In most cases, it has been seen that if proper arguments are put forth such objections can be overcome. It is very important that you know how to file trademark objection response in Bangalore. The applicant can file it itself or get an attorney to do the work on its behalf as well.
How to overcome the trademark objections?
There are some tips that can help people who are facing issues with such objections and wish to overcome them. In case an applicant wishes to overcome objections under Section 9 it is important that the trademark is proved to be distinctive in an inherent way. One can also overcome objections in this regard by proving the trademark has been able to acquire a unique character because of its usage in an extensive manner. It is for this reason that the applicant has to submit a user affidavit with proper proof. This submitted material should show that the trademark has now become distinctive.
In these cases, the applicant should also ask the owner of the conflicting or similar trademark to provide a letter of consent. In fact, it would be well within its right to make such a demand. The term similarity does not only indicate that the marks are similar. It could also indicate that there is a clash in the list of goods and services as far as the marks in question are concerned. So the most convenient way in which one can avoid being refused for registration is to do away with the conflicting services and goods from one’s application.
In case the trademark has been rejected for wrong classification of trademark class the applicant would need to file a request in order to make sure that relevant corrections are made. If the applicant feels that the report is a wrong one then objections to the position taken by the examiner can be made as well.
If the applicant does not know or does not have experience in this particular regard it is always better to look for help from professionals in this regard. Thankfully, these days there are plenty of companies in Bangalore that are providing such services at really reasonable costs and thus making it really worth the while for them.
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The term trademark can be viewed as a form of legal protection that is provided in case of certain names, devices, symbols, or words that would be used in relation to a certain product or service. Normally, if a mark happens to be associated with a certain service it is referred to as a service mark. However, the word trademark is used in order to signify marks that could be associated with a product or a service. The main reason why trademarks are used is in order to make sure companies and individuals are able to reveal what the source of their goods is. It also helps them create a separate identity for their products and services in the industry.
With a trademark you basically have the exclusive right to use a mark. At the same time, you also have the legal right to stop others from using it. In fact, with a trademark in your name you can stop any other entity from even using a mark that could be similar to your own and thus confuse the general public.
However, just because you have a trademark you would not have the right to stop another entity from selling the exactly same product or service under a mark that is absolutely and pretty clearly different. You can establish your right to own such a mark by using it in a legal way in a business or commercial setting. There are certain legalities that need to be followed in these cases and you need to keep them in mind as well.
As a business owner it is absolutely important for you to be aware of the importance of trademark registration.
What can be Trademarked in India?
As per the Trademark Law 2002 there are 45 classes of trademarks in India. They cover virtually each and every product and service sold in India. An example may be given below:
Who can Trademark their Brand or Logo in India?
A person and two or more person, who can apply for the registration of a trade mark, are needed to be the proprietor or owner of the proposed trade name in relation to the business. For the purpose of making an application of Trademarks, the person could be:
Since trademarks are normally used in order to save brands, catchphrases, and slogans, which are unique to businesses and individuals, from being misappropriated by others they can be used by any individual or business. In fact, not for profit entities can get trademarks in India as well. However, you need to keep in mind that the requirements in this case would depend on the class of trademark that you are filing for the purpose of registration. The type of ownership of your company would also be important in such processes.
Even if you are an individual who is not doing any business as such you have the right to file for a trademark and obtain the same as per laws in India. You could do it for a word, phrase, or symbol that you would like to use in the future. When you are filing for trademark in such a capacity you would have to provide your full name. In case your company happens to be a joint ownership then you need to mention both your names on the application for the trademark. Thus, as can be seen from the examples above, you have to provide your full name in the application in your role as the proprietor.
What is Trademark Registration?
The process of trademark registration can be described as one whereby you register your unique business name, taglines, catchphrases, and captions with the relevant authorities. This means that they cannot be used by any other entity. With the help of trademark consultant from Bangalore you can get such work done rather easily.
What are the Advantages of Trademark Registration?
Firstly, as has already been said, when you have trademark you have exclusive rights to your mark. These days, it has become easier to avail top class logo registration services in Bangalore. The mark basically becomes hypothecated to you and thus you enjoy all the security that you want to in this regard. You get intangible property rights with a trademark as well. By getting a trademark the mark gets licensed in your name and you can transfer it later on as well.
As has been said already, holding the trademark acts as a credible deterrent to entities that may have devious designs of using the same mark or something that is fairly similar. You can use this trademark in legal proceedings as well. With such a registration it is only you who can place the R word against the mark. You can use it outside India for purposes of business as well. In fact, if you already have a trademark and you want to do business in another country you can get it registered as well. This same trademark also allows you to take legal action against those who sell counterfeits of your trademarked products and services.
Documents Required for Filing a Trademark Application
Both Indian companies and foreign based commercial enterprises file for trademark registration in India. If you are an individual or sole proprietorship you would have to provide your word, phrase, or logo. In case you are providing a logo it is best to provide a black and white copy of the same. You also need to sign and submit Form 48. This form acts as a form of authorization from you to the trademark attorney. This allows her or him to file the application on your behalf. You also need to provide your identity proof and address proof.
If you are a partnership, company, or LLP (limited liability partnership) you may or may not have to provide a copy of your logo, a signed version of Form 48, your partnership deed or incorporation certificate, your identity proof or your address proof. If you wish to be slotted as a small enterprise you would have to furnish your Udyog Aadhar Registration Certificate. So, you need to keep these requirements in mind when you go to file your trademark. You should know and understand the process to register your trademark online in Bangalore.
Here’s know the registration process for filing a trademark:
1. Make a Public Search for Your Trade Name
2. File Application for Your Trademark (if objection is raised for application, you need to reply to exam report; if not, the application goes for journal publication for 120 days)
3. Reply to Official Examination Report (for further queries the Registrar of trademarks may call for a hearing)
4. Respond to Trademark Hearing
5. Published in Trade Mark Journal for 120 days
6. Awaiting for Trademark Opposition (if the trademark is not opposed by any other third party, you will get the registration for it)
7. Trade Mark Registry will be Issuing a Registration Certificate towards the trade name
8. Renewal Once in Every 10 Years
Procedure of Trademark Application for Brand Name or Logo
In this context you need to keep in mind that you have to file your trademark with Trade Marks Registry in India. This process normally starts with either you or your trademark attorney looking for a trademark that may be available in the database for such marks. When you perform such a search you would come to know if the trademark registry already has an identical or even a similar trademark or not. For this purpose you would have to visit the Trademark Registrar Website.
The next step in this regard is to file for the trademark. This will begin once you have chosen an available trademark. There are certain rules and regulations that you have to adhere to in this case. There is also a fee structure to be kept in mind. There are five trademark offices in India and you can file with the one that has the jurisdiction over your state or online domain. You can also hire professional lawyers and agents to act on your behalf for such purposes.
Your trademark application should contain information such as your trademark or logo, your name and address, the trademark class that you are filing under, information on any trademark that you have used so far, and description of services or goods that you wish to trademark. Once you do this you would be provided a trademark application number within a couple of working days. After this you can track the progress of your application through the online trademark search facility. Normally, if you have obtained such a number you can use TM next to your service or product.
After receiving your application the Trademark Registrar would verify it with the Vienna Codification established under the aegis of Vienna Agreement (1973). Once this process is out of the way the Trademark Officer in the concerned Trademark Registrar Office would receive the application. At that stage it would be reviewed for correctness and an examination report would be issued.
Once the application is accepted the trademark would be brought out in the Trademark Journal. After this, if there are no objections to your trademark, the office would prepare a trademark registration certificate and a manuscript, and sent to the relevant authority. Once the certificate is issued in your name the trademark will be considered to have been registered in your name.
A Trademark is usually symbols, logos, words and phrases that are used by a service provider or a product developer for identify their services or goods. Trademark registration is a lengthy process and it also includes an advertisement of mark used in a Trademark Journal. Under Trademark Act of India, during a trademark advertisement proceeding or during the re-advertisement of application for registration, a person can initiate a trademark opposition. In case a person raises a trademark opposition, the opposing party is going to have the legal option to be heard. The trademark application is also going to have the option for being heard and accordingly respond to opposition.
There are a number of reasons as to why a person may want to raise a trademark opposition. Here are some of the key grounds associated with trademark opposition.
Procedure for Initiating the Trademark Opposition
In order to initiate the trademark opposition proceedings, a person needs to file a trademark opposition notice within 4 months of the date of advertisement or the re-advertisement of application as it appears in Trademark Journal. Trademark opposition needs to be on the Trademark Form 5 according to the prescribed manner. It should be filed along with the applicable fees. The notice for trademark opposition should also contain the information listed below:
Trademark Opposition Procedure
Once trademark opposition notice has been filed with Registrar, the Registrar is going to give a copy of trademark opposition notice to trademark applicant. The trademark applicant needs to file counter statement within 2 months from receiving the notice for trademark opposition. If in case the trademark applicant is unable to file counter statement within prescribed period, the authorities will declare the trademark application as one that has been “abandoned”.
The Registrar may choose to call a hearing of the both parties based on trademark opposition and the counter statement that have been filed. The Registrar can then choose to rule on trademark registration application as well as the trademark opposition filing according to the evidences that have been presented.
The term income tax return can be described as a form or a group of forms that you file online with income tax authority of your country. In case of India it is the Income Tax Department. This includes necessary details such as how much you are earning and how much you are spending.
With the help of income tax returns you are able to calculate the amount of tax that you have to pay, request refunds in case you have paid more taxes than what you should have, and schedule tax payments if needed.
In India the income tax has to be filed once a year. This is applicable if you are an individual or a business that has income that is worthy of being reported.
This includes categories such as the following:
What is e-filing?
The term e-filing can also be expressed as electronic filing. This is the process where you submit your income tax returns online. There are two ways in which this can be done.
In the last few years e-filing has become a lot more popular simply because of the fact that it is a lot more convenient. You can do it for free and you also do not require to print a lot of documents as well.
Who needs to file income tax returns?
The individual person who is earning money and falls under the income tax slabs has liable to pay income tax return in India annually.
So who has to file ITR?
See these persons are required to file income tax return:
As far as the rule of Income Tax Act of India it is concerned that there are several criteria that come into play.
In case you are younger than 60 years and your gross income is more than a minimum level in a year, you would have to pay income tax. As of now, the minimum level for people in this age group in India is INR 2.5 lakh a year. For people between 60 and 80 years, this figure is INR 3 lakh. In case of people older than 80 years, the minimum level is INR 5 lakh a year.
As far as the businesses are concerned they have to file their income tax return for a financial year. It does not matter if they have incurred losses or earned profits in the period under consideration.
How much tax should have to pay by an individual taxable resident?
As far as people under 60 are concerned, there is a definite income tax rate in India for direct taxation that comes to play a great factor. For example, people earning less than INR 2.5 lakh a year do not need to pay any income tax.
The individual resident who earns between INR 2.5 lakh and INR 5 lakh a year need to pay an income tax of 5 per cent, plus 4% education cess and a rebate of Rs 12,500 will be available under Section 87A of Income Tax Act.
People who earn between INR 5 lakh and INR 10 lakh a year need to pay an income tax of 20 per cent, plus 4% education cess. People who earn more than INR 10 lakh a year need to pay a tax of 30 per cent of income with 4% education cess.
As per the Income Tax Act; the taxable individual persons are categorized into 3 age groups and they will be taxed on as per slab and age.
Here you can take a look at the below income tax (I-T) slabs for different taxpayers would applicable for Financial Year 2019-20 (Assessment Year 2020-21):
Income tax slab rate for individual tax payer and HUF [below 60 years of age]
Income Tax Slabs
Tax Rates and Cess
Up to Rs 2,50,000
Rs 2,50,001 – Rs 5,00,000
5% of (Total Income - Rs 2,50,000) + 4% cess
Rs 5,00,001 – Rs 10,00,000
Rs 12,500 + 20% of (Total Income - Rs 5,00,000) + 4% cess
More than Rs 10,00,000
Rs 1,12,500 + 30% of (Total Income - Rs 10,00,000) + 4% cess
Income Tax Slabs & Rates for Senior Citizen [between 60 to 80 years of age]
Income Tax Slabs
Tax Rate and Cess
Up to Rs 3,00,000
Rs 3,00,001 – Rs 5,00,000
5% of (Total Income - Rs 3,00,000) + 4% cess
Rs 5,00,000 – Rs 10,00,000
Rs 10,000 + 20% of (Total Income - Rs 5,00,000) + 4% cess
More than Rs 10,00,000
Rs 1,10,000 + 30% of (Total Income - Rs 10,00,000) + 4% cess
Income Tax Slabs & Rates for Super Senior Citizen [80 years and above]
Income Tax Slabs
Tax Rate and Cess
Up to Rs 5,00,000
Rs 5,00,001 – Rs 10,00,000
20% of (Total Income - Rs 5,00,000) + 4% cess
More than Rs 10,00,000
Rs 1,00,000 + 30% of (Total Income - Rs 10,00,000) + 4% cess
Benefits of filing income tax returns (ITRs)
An ITR receipt is an important document for a responsible taxpayer as it tells more than the Form 16. While Form 16 only shows the salary and tax deductions from an employer, ITR shows the income from other sources also.
Here you can take a look at the 8 advantages of filing ITR:
If you want to know more benefits of ITR filing, learn from ClearTax's benefits of filing income tax return on time.
Documents required for filing income tax return (ITR)
Documents required from Individual (salaried) person
Documents required from proprietor or business
How to file your income tax return in Bangalore?
There are two ways to file your income tax return – you can upload your income tax return, or you can prepare and submit it online.
1. Prepare the income tax return by using the downloaded software (through Excel or JAVA utility form), save it and upload the same with e-filing website.
2. Prepare and submit income tax return (ITR) online
Procedure for filing income tax return by uploading ITR method
Follow the below steps:
Before going to filing the income tax return, you need to keep all the key documents handy with you which will make easy and take less time to complete that including the Form 16 which is given by your employers, Form 26AS (tax credit statement), bank statements, copy of returns filed last year.
Step 1: To e-file your income tax return, you will have to register yourself on the Income Tax Department, Government of India official e-Filing website (https://www.incometaxindiaefiling.gov.in). Your permanent account number (PAN) will act as your User ID.
You can start the process by downloading the income tax return preparation software from the official website of the Income Tax Department of India. You can get this from the “downloads” page of said website.
Step 2: In the second step you have to prepare the return by using the software that you have downloaded. For this, first you need to gather all your personal financial data such as income, deductions, and tax payments to name a few. You can then go on and fill up your tax payments and other personal details by using the pre-fill button. Make sure to compare once so that you are not missing out on any important detail.
Step 3: Then enter all this data and hit the calculate button. This will help you find out the interest and tax liability. You will also get to know how much tax you would have to pay or how much refund would accrue to you. If you have to pay tax then do pay the tax as soon as you can. Also enter the details in the correct schedule. Repeat this step as that would make sure that your tax payable comes to 0.
Step 4: Then you should create the income tax return data and save it in XML format at a location where you want to in your laptop or desktop. After this you need to log in on the website by using details such as user ID, date of incorporation or date of birth, and password. You would have to enter the Captcha code. Once you are done go the section named e-File and click on the button that says upload return. In this case you need to choose the correct income tax return assessment file that you have already created and saved.
Step 5: If you have to use a digital signature certificate (DSC) please use it. Also make sure that it is registered with the concerned authorities. Once you are done with all this submit it. If you have not used a DSC the ITR-V would be shown on successful completion of the process. If you click on that link and download the ITR-V, it would be sent to your registered e-mail. If ITR is successfully uploaded with the DSC it would mean that process of filing returns is complete.
DSC verification is not compulsory for individual, but you can verify by using e-verification process through 5 ways i.e. (a) AADHAAR OTP (b) NET BANKING (c) EVC GENERATED AT BANK ATMs (d) PRE-VALIDATED BANK ACCOUNT (e) PRE-VALIDATED DEMAT ACCOUNT.
Step 6: In case you have not uploaded the income tax return with DSC or AADHAAR OTP or NET BANKING or EVC GENERATED AT BANK then you should print, sign, and submit the physical documents to the I-T Department of CPC (Central Processing Centre) in Bangalore.
This needs to be done within 120 days of having filed the income tax return. The return would only be processed when ITR-V is received and signed. It is important to keep checking your SMS (short message service) and e-mails for reminders in case the Income Tax Department has not received the ITR-V.
Go Green! It is better to avoid sending ITR-5, e-verify your return.
Step 7: After completion of e-filing of ITR, you can go to My Account menu and click on View e-Filed Returns/Forms to check the status of Refund amount credited to your account or not. To get the refund from the filing of return, it will normally take minimum one month of time.
Procedures for filing income tax return by prepare and submit ITR via online method
The process of preparing and submitting ITR (income tax return) online is also fairly similar with upload ITR method but a few differences. Only ITR-4 and ITR-1 returns can be prepared and submitted through online.
Note: A director of the company cannot file ITR-4 and ITR-1. He/she has to file it in ITR-2 or ITR-3.
What is the deadline for income tax filing?
Usually, the last date or due date for filing of income tax return (ITR) for financial year (FY) 2018-19 was 31st July 2019, but Central Board of Direct Tax department has extented the deadline to 31st August, 2019 from 31st July, 2019 for the Financial Year 2018-19 without penalty.
For example, if you're filing your return for FY 2018-19, you need to file ITR on or before 31st August of 2019.
If you're filing the return after deadline, you would have to pay a late fee up to Rs 10,000 based on the delayed timing.
Penalty for not filing on time
The penalty for late filing fees are:
So, we always advised the taxpayers to file ITR before the due date to avoid penalty.
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The Ministry of Corporate Affairs (MCA) has recently notified to conduct the KYC (Know Your Customer) for all directors of all companies through a new e-Form via DIR-3 KYC by August 31.
According to MCA, it would be mandatory for every director who has been allotted DIN on or before 31st March, 2018 and who’s DIN is in ‘approved’ status required to file the form DIR-3 KYC on or before 31st August, 2018. And it is compulsory for Disqualified Directors whom they need to file in DIR-3 KYC form also.
However, MCA has made a favour for directors and extended the deadline of filing the e-Form DIR-3 KYC for Directors from 31st August 2018 to 15th September 2018 and it is informed that all directors should file their KYC with the concerned form before the due date.
MCA Notification on Directors KYC Updation
As stated by the MCA, the Directors KYC notification with respect to updating registry is as follows:
As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC to be notified and deployed shortly.
Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August,2018.
While filing the form, the Unique Personal Mobile Number and Personal Email ID would have to be mandatorily indicated and would be duly verified by One Time Password (OTP).
The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA). Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
After expiry of the due date by which the KYC form is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.
After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
DIR-3 KYC notified in Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018. These rules are called the Appointment and Qualification of Directors which need to be submitted through e-form DIR-3 KYC to the Central Government.
While filing DIR-3 KYC form, all stakeholders are requested to use PAN based DSC in case of Indian Nationals i.e. DSC should contain the PAN as specified in the form.
In respect of foreign nationals, applicant’s name in DSC would be matched with his/ her name entered while filing the e-Form DIR-3 KYC.
Incase the PAN/ Name doesn’t match with PAN/ Name entered in the form, they would be required to get a DSC with PAN/ Name as specified in the form.
From this notification it is clear that:
Who has to File DIR-3 KYC?
Directors of all companies who have got DIN on or before 31st March, 2018 and whose DIN status is approved are required to file e-Form DIR-3 KYC.
When is the Due Date of DIR-3 KYC?
Due date for filing of e-form DIR-3 KYC is 31st August, 2018
Mandatory Information Required for DIR-3 KYC
Certification Required to File DIR-3 KYC
Is Disqualified Directors Needed to File in DIR-3 KYC Form?
Yes, it is mandatory to file DIR-3 KYC by Disqualified Directors.
Result of Directors Who Fails to File DIR-3 KYC Form
The MCA system will mark the approved DINs as Deactivated due to ‘Non-filing of DIR-3 KYC’.
Consequences of Filing DIR-3 KYC After Due Date
The deactivated DINs shall be allowed upon a payment of specified fee only.
Some Frequenlty Asked Questions (FAQs) on DIR-3 KYC
1. Who is required to file DIR-3 KYC form?
Every Director who has been allotted Director Identification Number or Designated Partner Identification Number (DIN/ DPIN) on or before 31st March, 2018 and the status of such DIN is ‘approved’; they need to file e-form DIR-3 KYC to update KYC details in the system as a Director on or before 31st August 2018.
For Financial Year (FY) 2019-20 onwards – Every Director who has been allotted DIN/ DPIN on or before the end of the financial year, mandatory to file e-form DIR-3 KYC before 30th April of the immediate next financial year.
After deadline of respective due date, the system will mark all non-complaint DINs as ‘Deactivated’ due to missing the filing of DIR-3 KYC form on time.
2. Which details are required to be filed in the form?
Name, Father’s Name, Date of Birth (DOB) [all are as per the PAN information], PAN Number (mandatory for citizen of India), Personal Mobile number, Email ID and Permanent/ Present Address.
In addition to this, the Directors are required to provide their AADHAAR, if not then Voter ID or Passport or Driving License.
3. Is it mandatory to enter personal mobile number and email ID in DIR-3 KYC form?
Yes, it is mandatory to enter your personal unique mobile number and personal unique email ID in the form DIR-3 KYC and it has to be verified by OTP and email process. This mobile number and email ID must not be linked to other person’s DIN holder.
4. How does the OTP works in DIR-3 KYC Form?
Send OTP button will be enabled only after the successful pre-scrutiny of the form. After the successful of pre-scrutiny, the applicant/ user has to click on ‘Send OTP’ button.
Please note that, once OTP is successfully sent to the valid and active mobile number and email ID, the ‘Send OTP’ button gets disabled automatically and the OTP is valid for 15 minutes.
5. Who are the signatories in DIR-3 KYC form?
The DIN holder and the certifying professional (CA/ CS/ CMA) are the two signatories in the form DIR-3 KYC.
6. If I am a disqualified director, am I required to file the form DIR-3 KYC?
Yes, disqualified directors are required to file the form DIR-3 KYC.
7. What is the late fee for filing of form DIR-3 KYC?
There is no fee for filing of DIR-3 KYC Form within the due date with respective to financial year. However, if you filed after the due date for DIN status ‘Deactivate’; a fee of Rs. 5000 shall be payable.
8. Can a non-resident director is allowed to provide Indian mobile number?
No, a non-resident foreign director is not allowed to provide Indian mobile number, but he shall be allowed only to enter his/her foreign address and foreign mobile number.
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