Frequently asked questions

Private Limited Company

1. Is there any qualification to become a director or shareholder in a Private Limited Company?


No professional or educational qualification is required for becoming a director or shareholder in a company.




2. Is it allowed to change registered office of the company after registration?


Yes, a company can change its registered office any time after following specified procedure prescribed in the Companies Act, 2013.




3. Is it necessary to have minimum 2 directors and shareholders for Private Limited Company Registration?


Yes, you need a minimum of two directors and shareholders for a private limited company registration.




4. I am carrying business as a sole proprietor/partnership; can I register a private limited company?


Yes, you can register a new private limited company or your existing sole proprietorship/ partnership firm can also be converted in form of private limited company by following provisions of Companies Act, 2013.




5. Can an NRI/Foreign National be a director or shareholder in Private Company? If Yes, then what are the conditions for the same?


Yes, an NRI or Foreign National can also be a shareholder or director in a private company. For becoming a director or shareholder, such person must have business visa/ Overseas Citizen of India (OCI) or Person of Indian Origin (PIO) certificate should be attached with stamps of arrival in India.





Public Limited Company

1. What are the Primary requirements for setting up a Public Limited Company in India?


For setting up a public limited company anywhere in India, there is requirement of a minimum of 7 subscribers and 3 Directors




2. For setting up a public limited company anywhere in India, there is requirement of a minimum of 7 subscribers and 3 Directors


Yes, NRI or Foreign Nationals can also be a shareholder or director in a public company. For becoming a director or shareholder, such person must have business visa/ Overseas Citizen of India (OCI) or Person of Indian Origin (PIO) certificate should also be required with stamps of arrival in India.




3. What are the Advantages of registering a company as Public Limited Company instead of Private Limited Company?


The following are the main and most significant exclusive advantages of registration of a public limited company- • Only public limited company is entitled to raise funds through public issues. • Public limited company can accept public deposits. • It is legally authorized to trade on stock exchanges. • There is no limit to the maximum number of shareholders in a public limited company. • Shareholders of a public limited company are entitled to transfer their shares freely without needing consent of someone.




4. Do I have to be present in person to incorporate a Company?


No, you will not have to be present at our office or appear at any office for the incorporation of a Company. All the documents can be scanned and sent through email to our office.





One Person Company

1. Which three conditions must be fulfilled to become member or nominee of sole member of OPC?


Member or nominee of member of the OPC must be: 1. A natural person; 2. Citizen of India, 3. Resident of India.




2. Can OPC have 2 Director and 1 Shareholders?


Yes, OPC can have 2 Directors but it must have only one shareholder/member.




3. Is it necessary to appoint Nominee in case of OPC?


Yes, an Individual shall be appointed as nominee in OPC. In the event of death of sole member of OPC, nominee shall be sole member of the OPC.




4. Can nominee appointed at the time of incorporation be changed?


Yes, nominee appointed at the time of incorporation can be changed and an intimation to this effect is required to be given to ROC.




5. Can two or more individuals be member of OPC?


It is clear from its name itself viz. One Person Company (OPC) therefore there shall always be only one member in OPC.





Nidhi Company

1. Who all can become a member of a Nidhi company?


An Individual of 18 or above years of age can become a member of a Nidhi company. No, any Corporate body or trust can become a member.




2. Can a Nidhi Company issue unsecured loans?


No, Nidhi Company can issue only secured loans to its members.




3. What are the securities against which a Nidhi company can issue a loan to its members?


Following are the securities against which a Nidhi Company can issue secured loans: • Precious metals like Diamond, Gold, and Silver; • Immovable Property; • Government Securities, FD Receipts, insurance policies etc.




4. What are the types of loans which Nidhi Company cannot issue?


Nidhi company cannot issue Personal Loan, Micro Finance loan and Hire-purchase Loan.




5. What are the key advantages offered by Nidhi Company?


The exclusive advantage which is offered by Nidhi Companies are: • It is a single office institution governed exclusively by its members with no involvement of the third party. • Provide loans at minimal interest rates and minimum documentation. • Secured investments are guaranteed by such companies.




6. Are the deposits with Nidhi Company safe and secured?


Yes, the Deposits with such companies are safe and secure because the Ministry of Corporate Affairs has framed rules and regulations to ensure the safety and security of Deposits and the Nidhi Company compulsorily abide by the Nidhi rules.




7. What are the basic requirements for registration of Nidhi Company in India?


Nidhi Company is registered as a Public Limited Company. So, to incorporate a Nidhi Company it is necessary to fulfil following criteria: • It must have at least 3 Directors. • It must have at least 7 Members. • The main objective to be written in the MOA should be to cultivate the habit of thrift and savings among its members and it shall accept deposits and lend money only to its members and shall work for the mutual benefit of its members.





LLP

1. Is it necessary to have 2 Partners for LLP Registration?


Yes, you need a minimum of two designated Partners to incorporate LLP in India. the Maximum number of partners can be unlimited.




2. Who can be Partner in LLP in India?


Any individual/Company/LLP can become partner of the LLP including foreigners/NRI. However, the individual must not be minor.




3. Who can be a “Designated Partner”?


Every LLP shall be required to have at least two Designated Partners who shall be individuals and at least one of the Designated Partner shall be a resident of India.




4. Whether audit of all LLPs would be mandatory?


No, audit of LLP is not always mandatory but if annual turnover of LLP exceeds of Rs 40 Lakhs or the total contribution of its partners gets above the limit of Rs. 25 Lakhs, it mandatorily needs to get its accounts audited every financial year.




5. Whether any Annual Return would be required to be filed by an LLP?


Every LLP would be required to file Annual Return with ROC. A duly authenticated Annual Return in e- Form-11, is to be filed with the Registrar, within a period of 60 days from the closure of every financial year.




6. Can an existing partnership firm be converted in to LLP?


Yes, an existing partnership firm can be converted into LLP by complying with the provisions of clause 58 and Schedule II of the LLP Act




7. Can a listed company be converted in to LLP?


No, only private / unlisted public company can be converted into LLP.




8. I want to convert my private company ‘ABC Infotech Private Limited’ into LLP but with name ‘DEF Infotech LLP’. Can I get my LLP registered with new name?


Any private company or unlisted public company can be converted into LLP. However, in this case LLP shall take same name as that of the company at the time of conversion.




9. What are the documents required to be filed by a LLP annually?


LLP is required to file LLP form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates.





Partnership Firm

1. I am not a citizen of India. Can I be a partner in an Indian firm?


The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.




2. What is the capital of Partnership?


Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties.




3. Is a deed of partnership necessary?


It is not compulsory for a partnership deed to be in writing. Partnerships can also be oral but partnership deed should be in writing to avoid disputes.




4. Who can be partners?


Partners must be major (above the age of 18), should not be unsound mind and disqualified by law from entering into a contract.




5. I have a minor son. Can he be a partner in my partnership firm?


No, a minor cannot become a partner. However, your minor son can be admitted to the benefits of the partnership firm. He can share the profits of the partnership business with the consent of the other partners. He can also access, inspect and copy the accounts of the firm. Though the minor is not personally liable for the losses of the firm, his share in the partnership business is liable for the losses incurred.




6. Can a minor admitted to the benefits of partnership, become a partner on attaining majority?


A minor admitted to the benefits of partnership, has the option to become a partner within six months of attaining majority. He has to give a public notice stating his acceptance or rejection of partnership. In the absence of a notice, it is considered that he has become a partner of the firm.





Proprietorship Firm

1. What is Sole Proprietorship Firm?


It’s a simple single person firm. It’s a best way to start a business in India with the less costing and less compliance. It needs only just one person for the legal registration.




2. Is it difficult to open a Bank Account for proprietorship firm?


If proprietorship firms is registered and have a valid registration certificate then it is very easy to open current bank account in the name of firm.




3. Do I need a separate bank account for the registration of proprietorship firm?


No, you can register for a proprietorship firm from your personal bank account.




4. Is it necessary to have the ownership of the office I am working from?


No, a rented office can also be used for the registration. You need to have the rent agreement.




5. Is GST registration mandatory for proprietorship firm registration?


GST registration is only mandatory, if your annual turnover is more than Rs 40 lakh otherwise is an add-on for your registration application. However, if office/shop is situated in a north-eastern state of India and have a minimum turnover of 20 lakh then only GST registration is mandatory.




6. What bank account can I use to start a proprietorship firm?


You may need to open a current account in the name of your firm.





NGO - Section 8 Company

1. Can a single Individual form a Section 8 company?


No, at least two subscribers and directors are required to incorporate a Section 8 company.




2. Can body corporate or company become members in a Section 8 company?


Yes, body corporate or company can become a member in a Section 8 company




3. What words shall be part of section 8 company name?


The name of section 8 company shall include the words such as “Federation, Chambers, Foundation, Forum, Association, Confederation, Council” etc




4. Is it necessary to have a charitable object to register a Section 8 Company?


Yes, it is necessary to have a non-profit motive to incorporate a Section 8 company




5. Can section 8 company pay dividend to any of the members?


No, Dividend shall not be given by the Section 8 Company to any of its members.





NGO - Trust Registration

1. What is Private Trust?


A private Trust is the one whose beneficiaries include families or individuals or persons of specific group, in nutshell it can be said that in private trust beneficiaries are identified person.




2. What is a public trust and what is the purpose of setting up the same?


The purpose for which a public trust can be created is the benefit of general public. Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfilment of Corporate Social Responsibilities (CSR)




3. Do I need a consultant for drafting of trust deed?


Client must take professional assistance for proper drafting of the trust deed.




4. Can a Trustee also be a Beneficiary of a Trust?


Yes, a trustee can also be beneficiary of a trust.




5. Can person under 18 years of age be a beneficiary?


Yes, person below 18 years of age can be beneficiary.





NGO - Society Registration

1. Can societies be formed for profits?


No, societies are formed to serve society and not to earn profits.




2. Who are eligible for society registration?


Following are eligible for registration of society: • Individuals; • Foreigners; • Company; • Partnership Firm; • Registered Society.




3. What are the main components of a memorandum of association of a society?


Here are the following main components of a memorandum of association of a society: • Name of the Society; • The object of the Society; • Details of the seven or more members of the Society such as name, address etc; • Details of the registered office of the society.




4. What will be the rights of the members of the society?


Following will be the rights of a member: • Right to vote; • Right to receive notices & copies of the bye-laws; • Right to receive a statement of accounts; • Right to attend the general meeting of the society





Trademark Registration

1. How does Ignis Legal Care help in filing of Trademark application?


Ignis Legal Care assists you in drafting and filing of your Trademark application.




2. Can I register a Trademark in more than one Trademark Class?


Yes, you can apply in multiple Trademark classes for the different kinds of products or services you currently deal with or will deal with in future.




3. Is a Trademark registered in India valid in other countries as well?


No, a Trademark registered in India is only valid in India. However, Trademark registration done in India can be used to register a Trademark in other countries.




4. What is the validity of a Trademark in India?


A Trademark registration is valid for a period of 10 years. However, a Trademark renewal application can be filed to renew the term.




5. Which trademarks cannot be registered?


A Trademark that is identical or deceptively similar to an existing registered Trademark or a Trademark for which an application has already been filed cannot be registered.





Trademark Objection

1. What is must be included in a Trademark objection reply?


The Trademark objection reply must contain the reasons, facts and evidences as to why the mark should be registered. It states the evidence and facts as to why a Trademark must be granted to the owner.




2. Is there any time limit to file a reply of Trademark Objection?


Yes, a Trademark objection reply must be filed within 30 days from the date of issuance of Trademark examination report.




3. What happens after filing the reply to Trademark Objection?


The Trademark objection reply is filed online with the Trademark Registrar. The Registrar examines the reply and either grants or fixes a hearing date for producing evidence.




4. Is it mandatory to file a reply?


It is highly important to file a Trademark objection reply if you want to keep using your Trademark. In case, you do not file a reply to objection, the Trademark Registry can cancel your application and consider your Trademark as abandoned.




5. Do I need to stop using ™ mark after Trademark objection?


No, you do not need to stop using the ™ sign. By way of issuing the Examination Report, the Registry cannot ask you to stop using the ™ sign.




6. What happens after the Trademark application is published?


When the application is accepted, it is published in journal for a period of 3 months and is open for the opposition by any third party. After completion of 3 months, where no opposition by third party is received, the Registration Certificate of the trademark is issued by the Registry





Trademark Renewal

1. What is Trademark Renewal?


The certificate of Registration of Trademark is granted for a period of 10 years only. To extend this period, the owner must file an application for renewal of Trademark Registration.




2. Can the renewal of trademark be filed after the expiration of trademark registration?


Yes, it is possible to do the trademark renewal anytime within 6 months of expiration of previous Trademark Registration by filing TM-R with the prescribed late fee.




3. What will happen if I do not renew my Registered Trademark?


If the owner does not renew the Trademark registration, the IPRs under that Trademark shall lapse. If the owner does not claim the ownership by renewal, the Registry may grant the Trademark to any other person or entity on an application made for said trademark.




4. For how long can I protect my IPR if I apply for renewal?


The owner of a Trademark can claim the ownership and rights for next 10 years after online renewal of Trademark




5. For what period is a Trademark renewed?


A Trademark is renewed for an additional period of 10 years.




6. What is the benefit of Trademark renewal?


The renewal of Trademark registration renews the rights given to the Trademark owners against any unauthorised use, sale, copy or distribution or the Trademark. If it is not renewed, anyone can use the Trademark of a business without needing any permission or license.





Trademark Application Rectification

1. Which trademarks can be opposed?


A Trademark that is identical or deceptively similar to an existing registered Trademark or a Trademark for which an application has already been filed can be opposed.




2. What happens after filing the Trademark Opposition?


The Trademark Registrar examines the notice of opposition and sends to the applicant. The applicant then gets 2 months time to send a counter-statement.





Copyright

1. What is copyright?


Copyright is a legal term used to describe the rights that creators have over their literary and artistic works. Works covered by copyright range from books, music, paintings, sculpture, and films, to computer programs, databases, advertisements, maps, and technical drawings.




2. When can I start using the © sign?


It is advised to use the © sign once the Copyright application is filed and you receive acknowledgement receipt.




3. What if someone uses my Copyright without permission?


If a person uses your copyrighted work without your permission, you can send a legal notice to the person asking them to stop doing the same. However, if a person continues to violate your rights, you can file a suit for copyright infringement.




4. Is a Copyright registered in India valid in other countries?


A copyright is only valid in India.




5. Can I transfer my rights under Copyright?


A Copyright is the type of IPR that can be sold, transferred, gifted or franchised through a license or agreement.




6. What cannot be copyrighted?


Any ideas, procedures, methods of operation or mathematical concepts cannot be copyrighted.





Patent

1. Is physical presence necessary for Patent registration?


No, a Patent can be easily registered online.




2. What is the validity of a Patent?


The patent registration in India is valid for 20 years.




3. What is the procedure to apply for a patent?


Patent begins with application while submitting application you need to submit provisional or complete specification about the invention. If you submitted provisional specification you will be given a time about 12 months to submit the complete specification, once you done after the examination, the report will be given and need to do requirement if it specified in the report once done and it will be published in patent journal for objection. If no objection made within 6 months, then the patent will be granted.




4. What Will be next step after the examination?


Once the examination done, the patent officer will issue a report, based upon the report if any requirement need to made, it should be done within the 12 months. Once done and there is no petition for objection the paten will be granted.




5. When can we object a patent?


A patent can be objected in two ways one is pre grant and another post grant. Pre grant can be done within 6 months from the date of publication in the patent journal. Post grant objection can be done within 12 months from grant of patent.




6. Who can apply for patent?


Generally, the true and first inventor or his assignee can file for a patent and certain situation his legal representatives also can file for patent.




Is that the examination/inspection begins automatically?


No, the examination will begin once it was requested by the patentee. It should be requested within 48 months from the prior date or filing.





GST

1. What is advantage of taking registration in GST?


Registration under Goods and Service Tax (GST) regime will confer following advantages to the business: • Legally recognized as supplier of goods or services. • Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business. • Legally authorized to collect tax from his purchasers.




2. Can a person without GST registration claim ITC and collect tax?


No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.




3. What is the time limit for taking a Registration under GST?


A person should take a Registration, within 30 days from the date on which he becomes liable to registration. However a Casual Taxable person and a non-resident taxable person shall apply for registration at least 5 days prior to commencement of business




4. If a person is operating in different states, with the same PAN card number, whether he can operate with a single Registration?


No, Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.




5. Whether a person having multiple business verticals in a state can obtain for different registrations?


Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.




6. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?


Yes, a person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.




7. Who cannot opt for Composition Scheme?


The following people cannot opt for the scheme- • Manufacturer of ice cream, pan masala, or tobacco. • A person making inter-state supplies. • A casual taxable person or a non-resident taxable person. • Businesses which supply goods through an e-commerce operator. • A taxable person whose aggregate turnover exceeds the threshold limit.




8. How Should a Composition Dealer raise bill?


A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer has to issue a Bill of Supply. The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply.




9. What are the advantages of Composition Scheme?


The following are the advantages of registering under composition scheme:  Lesser compliance (returns, maintaining books of record, issuance of invoices).  Limited tax liability.  High liquidity as taxes are at a lower rate.





Income Tax return

1. If I have paid excess tax, how will it be refunded to me?


The excess tax can be claimed as refund by filing your income tax return (ITR).




2. How will I get my excess paid tax refunded back?


Once you file an income tax return, the excess fund will be transferred to your bank account or by cheque once the refund gets processed.




3. What is the toll-free CPC help line number?


It is 1800-425-2229




4. Do I have to file Original return once again, if the Original e-return declared to be invalid due to non-receipt of ITR-V?


If the ITR-V has not been received by the CPC and you have the 120 day period remains, then you will have to sign a new ITR-V form and send it to CPC within the time frame. But if the time frame has expired, then you have to file a revised return which will be ultimately treated as original return.




5. How many times can I file the revised return?


You can do it multiple times till the expiry of one year time limit.




6. Does taxability change as per residential status?


Yes, it does depends on the residential status of the taxpayer.




7. Where to Invest in Order to Save Tax?


• For saving Income Tax, assessee Can Invest up to 1,50,000 under Section 80C, 80CCC and 80CCD(1), • A deduction upto Rs. 10000/- is allowed u/s 80TTA on interest from savings bank account. (Upto Rs. 50000/- is allowed in case of senior citizens u/s 80TTB from AY 2019-20), • Medical Insurance paid can be exempt U/s 80D Upto Rs. 25000 on insurance of self not being senior citizen. Upto Rs. 50000/- on insurance of parents being senior citizens. • Donation U/s 80G (Limit of the deduction depends on donee as specified by Income Tax Rules) • Deduction u/s 80DD of Rs. 75000/125000 based on disability. • Deduction u/s 80U of Rs. 75000/125000 based on disability.