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  • What Are The Consumer Benefits Under Consumer Protection Act?

    What Are The Consumer Benefits Under Consumer Protection Act?

    What Are The Consumer Benefits Under Consumer Protection Act?

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    Consumer Protection Act is welfare legislation enacted by the govt. of India to empower the consumers of assorted goods and services against arbitrary practices of vendors. It aims to supply rights and benefits to consumers of fine faith and provides them with appropriate machinery for the redressal of their grievances. the varied provisions of the buyer Protection Act that aims to attain the above objectives are analyzed in this article.

    Rights Of Consumers Under Consumer Protection Act:

    1. To be told of the standard, quantity, potency, purity, standard, and price of products and services.
    2. And be assured of access to a range of products or services at competitive prices.
    3. To seek restitution for commercial practices that are unfair or restrictive. 

    The Authorities Granted By The Act:

    The Act establishes a number of agencies whose main purpose is to defend consumer rights.

    The Act establishes Consumer Protection Councils under Section 3 at the Central, State, and District level which is solely founded to advise the Central Government, regime, and District Authority for the promotion and protection of consumer rights at different levels.

    A Central Consumer Protection Authority under Section 10 of the Act has been provided to be established under the Act to control matters referring to the violation of the rights of consumers, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of the general public and consumers and to market, protect and enforce the rights of consumers as a category.

    The Act also establishes a region Consumer Disputes Redressal Commission under Section 28 called District Commission. A dissatisfied customer may submit a complaint with it over any items sold, delivered, or agreed to be delivered, or any service supplied, or agreed to be provided.

    Persons who are entitled to file a complaint with the Commission under the Act include: 

    (a) those to whom such goods are sold, delivered, or agreed to be delivered, or those who allege unfair trade practices in relation to such goods or services; and 

    (b) those who allege unfair trade practices in relation to such goods or services.

    (c) any recognized consumer association, whether the patron could be a member of such association or not;

    (d) one or more consumers, where numerous consumers are having the identical interest, with the permission of the District Commission, on behalf of, or for the advantage of, all consumers so interested.

    Consumers’ rights are safeguarded when they seek these forums because of the Act’s effective consequences. as example if a consumer is prejudiced thanks to a false or misleading advertisement the manufacturer or the service provider is often punished with imprisonment for 2 years and fine of ten lakh rupees. Similarly, if a consumer has been subjected to grievous hurt thanks to adulteration the manufacturer of such a product will be punished with imprisonment of seven years and with a fine which can touch five lakh rupees. This is a good deterrent against producers or manufacturers adopting unfair practices for furthering their profit.

    Benefits for Consumers under the Act:

    1. Consumers are protected against the marketing of products and services which are hazardous to life and property.
    2. Consumer sovereignty within the choice of products is guaranteed.
    3. Consumers are entitled to speedy, simple, and cheap relief under the act.
    4. The redressal machinery is obtainable within easy reach to the consumers.
    5. The authorities under the act are made chargeable for the protection of certain rights. they’re the correct to safety, right to settle on, right to be heard, and right to consumer education. this can be statute law and is aimed to be progressive.
    6. The penalties under the Act help to test arbitrary trade practices in India. Also, it helps in mutual trust within the consumption of products and services in a very consumption-based economy like India.
    7. The Act has proposed provisions for product liability. If the merchandise is under defect, then the service provider has got to repay the patron. A manufacturer or a service provider should compensate a consumer if the goods/services cause injury or damage to the patron. This may well be because of a production defect or poor service. this enables compensation to an injured consumer.

    Conclusion:

    Under the Act, the government has included a slew of consumer-friendly provisions. Hence, the patron Protection Act could be a progressive, welfare legislation that ultimately benefits the consumers of India.

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  • What Is The Registration Process Under The Shops And Establishment Act?

    What Is The Registration Process Under The Shops And Establishment Act?

    Here Is How You Can Cancel GST Registration

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    Introduction

    The Shops and Establishment Act regulates conditions of labor, lists rights of employees within the unorganized sector, and provides a listing of obligations for each employer. However, this can be best fitted to shops all across India, every benefit-making foundations, lodgings, bistros, eating circles and joints, eateries, cinemas and for all public places of entertainment.

    What are the Shops and Establishments Act?

    Shops and establishments act accommodate several operations that follows the shops, restaurants, theatres or the commercial establishments within the country. However, the word ‘Establishment’ means a store or commercial foundation. Many entertainment resources also are covered under this Act. When registering for the shop and establishment act within the case of SSI or MSME businesses within the unorganized sector, it is an indication for the existence of the business.

    The shop and establishment act is employed for various reasons. And allow us to see some among them:

    • National holidays
    • Over-time work
    • Hours of labor
    • Interval for rest and meals
    • Prohibition of employment of kids
    • Terms & conditions
    • Employment of young person/women
    • Opening and shutting hours
    • Close days
    • Conditions on providing the wages
    • Weekly holidays
    • Wages for holidays
    • Time of payment
    • Deductions from wages
    • Leave policy
    • Dismissal
    • Lighting and ventilation
    • Precautions against fire
    • Accidents
    • Record keeping And so on.

    Registration process For Shops and Establishments Act :

    Each state has its own set of shop and establishment rules. The money, the method, the amount of time it takes to deliver the certificate, the inspector in charge, and so on will all differ depending on the state.

    • Almost 30 days after the start of any business, the shop/commercial establishment’s employer shall submit an application to the inspector in charge..
    • The application should be within the agreed form. Moreover, the employer should submit it together with the prescribed fees.

    The application form should contain the subsequent details:

    • Name of the employer
    • Name of the establishment
    • Address of the establishment
    • The category which it belongs to
    • Number of employees working
    • The date on which the establishment started work
    • The Labour Department of every State produces the shop and establishment act process and also registration takes place.
    • The local district labor officers normally lead because the inspector in-charge under this act. However, they’re those who will grant the shop and establishment registration certificate.
    • The fee for the full process varies on what percentage workers are on employment therein particular organization/business.
    • The inspector in-charge will review the appliance, once the occupier applies. If the applying has all the mandatory details and if the main points satisfy the inspector in-charge, then the registration of the shop and establishment are successful and therefore the occupier will get a registration certificate.
    • The registration certificate must be prominently displayed at the establishment, and the licence must be renewed on a regular basis.
    • However, the employer should notify the inspector in charge if there’s an idea to shut down the business.
    • In case if the employer is bound to shut, then the employer needs to submit writing within 15 days of closing. After that, the inspector will cancel the registration provided under the Shops and Establishments Act.Therefore, they’ll remove its name from the register.
    • However, confirm to intimate any changes of data to the inspector within 15 days from the date on which such changes occur if you have got missed telling at the time of registration. in any case verification, the inspector in-charge will make necessary changes and can issue a fresh registration certificate if required.

    Documents required For Shops and Establishments Act :

    • Here may be a list of common documents:
    • Identity Proof
    • Commercial Address Proof
    • Other licenses required to start out a business
    • PAN Card
    • Fee Payment Challan

    Indeed it depends on the kind of establishment/business and therefore the state where you’re applying for registration, it should be necessary for you to submit some additional documents to the inspector for getting the certificate.

    Under Shop & Establishment Registration, the following records must be kept:

    Under the Shop and Establishment Act, every business must seek approval from the Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary, and holidays. However, the necessities may vary from state to state. Files associated with annual holidays and therefore the number of employees must be submitted to the office of the Municipal Corporation annually further no Regular return must be filed under this Act.

    Conclusion

    In conclusion, the Shops & Establishments Act is enforced by the state legislature and therefore the registration is mandatory for each establishment. Finaxis provides you the entire details on the way to register for the Act and successfully get the certificate from the inspector.

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  • How To Register A Company In The USA from India?

    How To Register A Company In The USA from India?

    How To Register A Company In The USA from India?

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    Register A Company: Globalization is the key to business success. Many of the business worlds in the business world want to set up a company in the United States. Therefore, everyone knows that starting a business in the United States  is a good idea, as there are very few issues such as investment opportunities and business expansion. If you want to set up a US company in India, there are certain protocols that companies must follow. This requires a few things and preparation.

    Eligibility For Register A Company in the USA From India

    Business registration from India to the United States can only be done  if  the following requirements are met: 

    • Directors must be at least 18 years old.

    • All board members must have a valid passport and proof of address. 

    • To obtain registration for a US company, you need a registered US Citizen Agent. 

    • The registration agent may be an individual or company that has a registered address in the state of incorporation.  

    • It is operational during office hours and requires the collection and checking of company official legal and government documents. Therefore, the Registration Agent acts as a bridge between you and the US Government.

    You Can Also Click Here To Get Your Company Registration Today.

    Steps for the Formation of a USA Company

    Register A Company

    Before understanding the different steps to start a business in the United States, it is important to decide what type of business you want to start. The following steps will guide you through the process of setting up a company in the United States. 

    Firstly select a company name. It must be unique and available in the states you plan to incorporate your business into. 

    You need to provide a registered agent with an address in the state to be incorporated. If necessary, you need to be able to sign legal documents during business hours. 

    Federal Employer Identification Number-This is an optional procedure. You can also  apply for a federal employer identification number and certificate of authenticity there. If you  want to open an account with US Bank, you only need to have these things. Then you can apply. 

    Certificate of Authentication-This is also an optional step. If you need to open a bank account in India, or if you need to prove that you have a company in the United States (US company or LLC),  you will need to provide a certificate  or apostille.  

    These are easy steps to help you integrate your business in the United States. Be sure to perform each of these steps before applying to set up a business in the United States. Besides, you can also contact a professional company that can help you start a business in the United States.

    What do you have to do if your company is incorporated in the United States? 

    When you start a business, you need to adhere to the following checklist. 

    Requires a physical address 

    Open a bank account in India 

    Requires US phone number 

    Get website and logo 

    You need to open a merchant account

    Which form of entity should you make?

    The first thing to decide is what type of entity you will create for your business. You must choose the entity type that suits you best. popularly there are two kinds of entities that foreigners prefer to form in the U.S. namely,

    • Limited Liability Corporation- LLC

    • C-Corporation

    Limited Liability Corporation (LLC): An LLC is the most flexible business structure. It gives you tax benefits, limited liability, and legal protection for your personal assets. The liability of the members here is limited. But it is also one of the major reasons why venture capitalists do not prefer to invest in an LLC.

    Moreover, venture capitalists prefer to take preferred stock (just like preference shares) which ensures steady income and ownership rights as well, which can be issued by a C-corporation only.

    C-Corporation: A C-Corporation or the closed corporation is the common business structure in the U.S. where the liability of the members is limited. It can issue stocks and thus has a very high potential for growth. In addition, there is no limit to the maximum number of shareholders. corporation’s compliance process is broader than LLC.  The company does not  limit  the maximum number of shareholders

    Benefits of  opening a company  from India to the United States

    The first advantage comes from the fact that the company’s rules and regulations are well-formed, the corporate tax rate is low and it is very attractive to international companies. 

    • Each state in the United States complies with its own laws and regulations that are fundamentally different from each other. states with the most complimentary business and tax laws, such as Wyoming, Delaware, and Nevada, make it easier to set up a business. 

    • Delaware, in particular, does not offer state sales and low franchise taxes to US SMEs. In addition, Delaware non-residents do not have to pay a separate business tax.

    Conclusion

    The United States has the largest economy in the world. US companies are more flexible than Western European companies in making decisions to increase capital investment, develop new products, and dismiss surplus. If a businessman wants to compete globally, he or she can set up a company in the United States. Whether you want to expand your business in the global market or offer products and services that appeal to the international market, registering a company from India to the United States has many advantages. Such opportunities can be very beneficial, but they are not without their own difficulties. A company is a legal entity with a unique identity, unlike the people who own or control it.

    By registering a company from India to the United States, business owners can expand their business in the United States, gain more profit with independence and freedom, and earn income from loyalty, capital gains, etc.

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  • Here Is How You Can Cancel GST Registration

    Here Is How You Can Cancel GST Registration

    Here Is How You Can Cancel GST Registration

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    The enlistment allowed under GST can be dropped for determining reasons. The undoing can either be started by the office on their own movement or the enlisted individual can apply for the undoing of their enlistment. In instances of the death of an enlisted individual, the lawful beneficiaries can apply for wiping out. On the off chance that the enlistment has been dropped by the office, there is an arrangement for denial of the undoing. On undoing the enlistment the individual needs to document a return which is known as the last return.

    Citizens who have previously enlisted under the GST Act can apply for the abrogation of GST enrollment any time on the off chance that they figure they should close their business or on the other hand if any situation arises.. When the enrollment is dropped it is not generally expected to make good on assessment or gather charge from common individuals.

    Forms Used To Cancel GST Registration

    GST REG 16: The structures are appropriate just when the citizen himself applies for the abrogation of enrollment and there is no thought for the application other than the citizens’ application which has passed at least one year after the GST enlistment.

    GST REG 17: An approved GST official can give the notification of show cause/undo to the enlisted citizen and its business substance by utilizing the Registration 17 structure. The retraction of enlistment by the approved official can be started in the wake of giving the GST REG 17 structure to the citizen and he can ask for show cause as though for what good reason the enrollment ought not to be dropped.

    GST REG 18: The show-cause notice can be answered by the method for outfitting GST REG 18 structure under the predefined time frame expressed in the sub-rule. The citizen or the concerned party should answer the notification in no less than 7 days of issuance of the notification giving the clarification of defending the retraction of enlistment.

    GST REG 19: The GST REG 19 structure is for the use of a GST official for giving a proper request for the retraction of GST enrollment. The request for sending the notification should be under 30 days from the date of utilization or the reaction date in the GST REG 18 structure.

    GST REG 20: The show-cause notice when fulfilled by the GST official can coordinate for the disavowing of any procedures towards the wiping out of the enlistment and he should pass the request in Form GST REG 20.

    Circumstances under which GST Cancellation Is Possible Are:

    1. Business Shuts down: When the business has been suspended or moved completely under any circumstance including the passing of the owner, mixture with other lawful substances, blended or arranged.
    2. Change in business structure: When there is any adjustment of the constitution of the business (for example Move from association to Pvt. Ltd.)
    3. Excluded from GST: When the available individual, is at this point not obligated to be enlisted under the GST Laws.
    4. Advised place: Does not direct any business from the proclaimed business environment.
    5. Infringement: Issues receipt or bill without supply of labor and products disregarding the arrangements of this Act.

    Procedure Of Cancellation Of GST Registration

    Step 1: Visit GST entrance www.gst.gov.in/

    Step 2: Click on ‘login’ to gain admittance to your username and secret key.

    Step 3: Enter your username and secret key to sign in

    Step 4: Under the Services tab in Registration, click on ‘Application for Cancellation of Registration

    Step 5: Three tabs are noticeable essential subtleties, scratch-off subtleties, and confirmation. Click every one of them and enter subtleties.

    Step 6: Check fundamental subtleties and addresses of the Principal Place of Business. They are pre-filled.

    Step 7: In ‘Address for Future Correspondence’, add subtleties, or you can actually take a look at the case assuming it is equivalent to ‘Address of Principal Place of Business.

    Step 8: Select the ‘Save and Continue’ button, following which a blue tick will seem to affirm the fulfillment of Basic subtleties.

    Step 9: The tab of ‘Wiping out subtleties’ will get initiated.

    Step 10: Select the ‘justification for Cancellation’ starting from the drop list given.

    Cancellation of GST Registration by the tax officer

    The assessment official can drop the GST enlistment on the off chance that if the enrolled available individual (a) When no business is done by the citizen from the enrolled business environment; or (b) The citizen disregards any GST arrangements such issue of receipt or bill with practically no genuine stock of products or/and administrations; or (c) The citizen doesn’t submit to the arrangement of against exploitative like not passing the advantage of Input Tax Credits to the clients.

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  • What Is Gross Salary? How To Calculate Gross Salary?

    What Is Gross Salary? How To Calculate Gross Salary?

    What Is Gross Salary? How To Calculate Gross Salary?

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    There are two important terminologies that are necessary to get a basic idea of what is a Gross Salary is, they are Cost to the Company and Employee’s Provident Fund. Cost to Company,  as it is often called is the cost incurred by the company while hiring an employee.

    It constitutes a no. of elements e.g.  Provident Fund, Dearness Allowance, House Rent  Allowances, Medical Insurance, etc. These are generally the allowances that are incurred by the company and added to the salary of an employee. 

    Employee Provident Fund account as it is called in common parlance is a social security strategy for the benefit or sake of employees. These facilities range from medical assistance, education for children, insurance support, retirement, housing, conveyance reimbursement, etc.  As per the directions of the [EPFO] Employee Provident Fund Organisation, every employee is required to contribute or give at least 12% of the employee’s salary towards their [EPF] Employee Provident Fund account.

    The EPF scheme is prescribed by the Labour Ministry. Therefore, with the concepts of EPFand CTC, Gross salary is come out when the [EPF] Employee Provident Fund account and gratuity are subtracted from the CTC. In easy terms, Gross Salary is the amount which is given to the employee, including annual and bonus festive, leave encashments, etc.,  before the deduction tax, whatsoever. 

    Note: Gratuity is a token amount that is paid to the employer. offered during the employment tenure. It is also a benefits scheme that matures and is handed over to the employer at the time of his or her retirement. 

    What constitutes Gross Salary? 

    The components of gross salary are as follows: 

    Direct Benefits: 

    Direct Benefits include house rent allowance, leave travel allowance, basic salary, telephone and conveyance allowance, mobile phone bill allowance, and all other special allowances if any. 

    Indirect Benefits:

    Indirect Benefits are those which occur outside routine, i.e., incentives or bonuses, overtime payment, housing provisions by the employer, the bearing of utility bills by the employer, arrears of salary, etc. 

    Both direct, and indirect benefits, constitute the gross salary of an employee. Apart from the above two components, there are also other benefits or profits provided by an employer, usually made towards the welfare or sake of the employees of any given organization. These expenses or costs are such in nature that they are not included in the CTC of an employee. For e.g; 

    1. Drinks refreshments and food is provided to the employees during office hours. This covers, snacks, and beverages like tea and coffee, etc.
    2. Reimbursement of expenses incurred by the employee on traveling due to an official tour or visit expenses or cost incurred against lunch and dinner, etc.

    How to calculate net salary and gross salary? What is the difference? 

    The difference between net salary and gross salary and their calculation, follow the calculation given below. 

    e.g. Therefore, let us suppose that any person works at a Human Rights organization in New Delhi. Her gross salary per annum is Rs 8,50,000 while his net take-home is just Rs 8,11,000. 

    Basic salary Rs 4,50,000

    House rent allowance Rs 1,70,000

    Leave and travel allowance Rs 50,000

    Special allowance Rs 1,80,000

    Total Rs 8,50,000

    Before making any deductions the amounts arrived are known as the Net Salary. From the total amount, find is the Net Salary, the following deductions or reductions are to be made:

    Provident fund Rs 2,600

    Profession tax Rs 2,400

    Insurance premium Rs 10,600

    Total Deductions Rs 15,600

    the formulas are simple in order to calculate the gross salary. The calculation to be followed is the net salary-less reduction or deductions. Therefore, here the net salary is Rs. 8,50,000/- from which Rs. 39,000/- is to be deducted. The amount find by this formula  (i.e., 8,11,000/- ) is the gross salary 

    Net salary per annum Gross salary – deductions 

    Rs 8,50,000 Rs 8,50,000 – Rs 39,000 = 8,34,400/-

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  • What Is The Procedure To Cancel Udyog Adhar Registration?

    What Is The Procedure To Cancel Udyog Adhar Registration?

    What Is The Procedure To Cancel Udyog Adhar Registration?

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    Registering Udyog Aadhaar is mandatory or necessary for all types of business which is running as MSMEs, without Udyog Aadhaar registration no business shall be qualified for availing the benefits or profits allocated for MSMEs by the government of India. The main goal or objective of Udyog Aadhaar is to simplify the regulatory procedures of MSMEs like filling copyright or trademark or patent applications, Applying for new GST registration, availing of collateral-free loans and offers or schemes that are introduced by the government. UDYOG Aadhaar Registration is a completely online process. 

    The registration process completes with a unique or idiosyncratic 12 digit identification number which is issued to the owner or holder and represents the legal identity proof of her/his business by the government. In spite of easy Udyog Aadhaar registration, a lot of companies wanted to know how to permanently cancel  Udyog Aadhaar registration. This article clears up how to cancel or delete the Udyog Aadhaar registration.

    For cancellation, write an application to the Center of Udyog Aadhaar Registration, specifying all the details of the business. whose registration you want to terminate. Also, specify the reason for termination briefly in the application. Nowadays Udyog Aadhaar Registration has gained huge importance for business. Whether it is a mid-scale or small-scale business, after having subbed the Micro Small registration process, Udyog Aadhaar Registration has become necessary or mandatory. 

    Latest Update

    Enterprise Registration Simplified for MSMEs from 1st July

    Starting from 1st July, as per the new notification by the Government on 26th June 2020. enterprises can register themselves based on Aadhaar number.  The enterprises are no longer required or needed to upload documents for online registration. enterprises can provide these details with a self-declaration. This new process is known as “Udyam Registration” and is made possible after the successful integration of the registration process with those of GST and Income Tax. The details or documents provided in the self-declaration will be duly verified by the authorities based on PAN. and GSTIN. 

    Procedures on how to cancel Udyog Aadhaar registration?

    The Udyog Aadhaar has started the process of registration of MSME. A lot of companies wanted to know if the Udyog Aadhar registration could be permanent. cancelled or deleted This article illuminates how to cancel the Udyog Aadhar registration.

    Step 1: Finding a Udyog Aadhaar Registration Center-

    For cancellation of Udyog Aadhaar Registration, find Udyog Aadhaar Center. Generally, every state has a Udyog Aadhaar Registration center. you can get the form for permanently cancelling your Udyog Aadhaar Registration. If you are unable to find the correct address of the center, on the bottom of the certificate, the address of the District Industrial Center is specified.

    Step 2: Application for Cancellation-

    Write an application to the Udyog Aadhaar Registration Center for cancellation. specifying all the details of the business.  whose registration you need to permanently terminate. specify the reason for such termination in the application.

    Step 3: Documents Required

    There is no specific list of the documents that might be required for cancellation. but carry all necessary documents of the enterprise or company, your original Udyog Aadhaar Card, bank accounts, etc.

    Step 4: Acknowledgement

    If your application and other documents meet all the requirements, request an acknowledgement by the officer-in-charge. This acknowledgement is necessary or mandatory as it may be required sometime in the future.

                                                                                                               Things to Remember:

    1. Before applying for a permanent cancellation of the Udyog Aadhaar Card, you need to close all business activities related to that enterprise. you need to deactivate all bank accounts linked to that enterprise.
    2. Some places will also require you to have a declaratory letter where you state to not avail any of the benefits of government schemes related to Udyog Adhaar, 
    3. In the initial application for cancellation of the registration, mention the reason for the cancellation clearly and briefly. If the reason or other details is not correctly mentioned, there are chances of the application being rejected.
    4. There are no costs or expenses involved at the time of registration, update, or cancellation of the Udyog Aadhaar Card.

    In simple words, the myth that Udyog Aadhar registration cannot be permanently cancelled is untrue. It can be done, but it requires a person to visit one of the Udyog Aadhaar Registration centres.

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  • What Are The Three Types Patents?

    What Are The Three Types Patents?

    What Are The Three Types Patents?

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    A patent is a type of intellectual property that gives its owner the legal right to prohibit others from creating selling or using,  an invention for a limited period of time in exchange for publishing an enabling disclosure of the creation or innovation. In most countries, patent rights fall under private law and the patent holder must sue someone infringing the patent in order to execute their rights. In some industries patents are an important form of competitive advantage; in others they are irrelevant

    Philips has filed a patent infringement lawsuit against Xiaomi. It has approached the Delhi High Court to restrain Xiaomi from assembling &  selling phones through any online e-commerce platforms and retail chains in India. After hearing the appeal from Philips, the High Court asked Xiaomi’s Indian subsidiary to maintain a ₹ 1,000 crore bank balance on or before December 2, 20

    Not all inventions or creations are patentable under the Indian Patents Act 1970. The Act establishes the guidelines for what can be considered a unique or different, effective, simple, or obvious invention. To the invention. The commercial use of the invention or creation cannot violate public order or morality or cause serious damage to humans or other animals. Patents can adversely affect plants, health, or environmental protection or be mere disclosure of scientific suggestions or abstract theory formulation, or discovery of living or non-living or non-living natural substances, etc. 

    1. India Patent Types 
    2. Indian Patent Offices 
    3. Standard application in India 
    4. Some Ordinary Patents India filing requisites: 
    5. Indian Patent Solicitor   
    6. Patent and Renovation Period 
    7. Official Fee Discount 

    India Patent Types

     patents can, depending on their priority argument, be categorized into 3 groups, 

    • Ordinary patent application
    • Conventional patent application
    • PCT national phase patent application

    Ordinary Patent Application

    Ordinary patent requests with provisional or temporary or full specifications can be filed in India. The fact that it doesn’t claim a preference from any other application is distinctive from other patents. The specification is a declaration of technical disclosure enabling the normal qualification to carry out an invention. Moreover, it begins with the name of the invention and includes the invention area, state of the art, invention purpose, overview, comprehensive invention description, sketchers, and statements, along with a summary of the innovation. The abstract contains a brief description. Further, the full specification must be preceded within twelve months by a provisional submission. 

    Convention Patent Application

    In India, the priority of a convention application shall be asserted and shall be filed with complete specification within twelve months from the priority date.

    PCT National Phase Patent Application

    PCT’s National Step Patent Request must lodge with India in the complete  English requirements after a PCT application that files at WIPO and within 31 months of the priority date. In the month of fastest priority, or within 3 months after a request made by the controller, the English interpretation of the priority documents should be filed. Further, if WIPO doesn’t issue PCT/IB/304, the certified copy must be filed with priorities within 31 months of the priority date. 

    Indian Patent Offices

    4 patent offices in India, in Mumbai, New Delhi Kolkata, and Chennai, and the application must be submitted depending on territorial jurisdiction and where the applicant is located. Additionally, the application shall be submitted before a patent office in which the agent/attorney for the applicant lives in the territorial jurisdiction of the international applicant is present.

    Standard patent application in India

    For filing  patent applications in India, the necessary requirements are as follows: 

    • Patent applicant’s name, address, specification, and nationality 
    • Additionally, patent inventors’ name, address, and nationality 
    • Provisional description, statements, abstract, sketches, or complete specifications.

    Some Ordinary patent filling Requisites

    • Statement of inventory, or complete requirements, within one month of application filing.  
    • Proof of right of inventor in written (assignment deed, work contract) or otherwise within six months of the application filing, 
    • Information of all the relevant international applications in any country outside India within six months following the application being filed.

    Notarisation is not necessary. It should file as soon as possible to ensure that the request can release as early as possible and must receive by the patent office within three months of the request.

    Indian Patent Solicitor

    The following steps are included in the proceedings in our country: 

    • Patent request filing 
    • Publication after 18 months from the filing date, of a patent application 
    • An evaluation request within 48 months of the date of request.
    • Issuance as first review report with all the opposition to the granting of a patent for enforcement within twelve months of issuance.
    •  In response to the review report and enforcement 
    • Release of  exam reports and all objections that compiles with to the examiner’s satisfaction 
    • Responding to reports on examinations before all complaints have been met. 
    • Examiner interview 
    • Patent office award of letters patent document within 7 days of application receipt 
    • Patent and Renovation Period

    The patent term in India shall be 20 years after the date on which ordinary and traditional patent; and national PCT patent applications shall fill in India or twenty years from the period on which the international PCT application has ended. Further, the patent renewal fee shall be for the third year after the grant until the end of the 20th year, and payable before the expiry of the respective years. 

    Additionally, the patent shall revoke if a renewal fee has not been charged up in a limited time, and the patent holder cannot take any action against an infringement by anyone during the period between the revocation of a patent and it is restored. 

    Official Fee Discount

    India shall allow a discount on the official fee for both natural and small bodies. The whole discount tax shall have a charge at the time of registration of the assent. This can be when the patent application will allocate to the not-natural person (a small body or other than a little body).

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  • One Person Company

    One Person Company

    One Person Company

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    The Companies Act, 2013 introduced a revolutionary concept, and since then, the thought has changed the way several companies do business. The concept is that of 1 Person Company (OPC), and it had been recommended in 2005, by a committee headed by Dr JJ Irani. the concept of OPCs was genuinely groundbreaking because it helped provide investors with a superb opportunity to require power into their own hands and gave them several benefits. It gave young entrepreneurs benefits that a standard Private company could avail, while, at the identical time, providing them with added tax and HR benefits.

    Here’s a glance at everything you would like to understand about Person Companies and why they’re so useful.

    Concept of One Person Company

    As per Section 2(62) of the businesses Act, 2013, a 1 Person Company is defined as any company with only one member. Section 3 of the Act, also clarifies that an OPC are considered a non-public Company when it involves legal matters. Hence, all rules which must be held in situ for a personal company is additionally valid for an OPC. The lone exception to the existing law is that an OPC can only be formed by a “Natural Indian” living in India.. Also, another law states that one particular individual cannot create quite 5 OPCs in his or her name.

    Formation and Features of the corporate

    An OPC is made the identical way as a non-public company, with the sole difference being that it’s just one member and is prohibited from inviting members from the general public to be an element of it.

    Features of an OPC are as follows:

    An OPC is also formed as either of the two:

    1. Limited by Guarantee
    2. Limited by Shares

    • If shares limit the OPC, then it should have an inside capital of a minimum of Rs 1 lakh and will have the ability to limit share transfers. it’ll also not be allowed to ask people to buy it.
    • An OPC must have a legally registered name, under which it operates and therefore the term; One Person Company must be mentioned wherever the name of the corporate is employed.
    • An OPC member must consent to the nomination of another and file the nominee’s name with the Registrar of Companies.
    • If the founding member dies or is forced to resign due to unforeseen circumstances, this nominee will lead the OPC. By contacting the Registrar of Companies, the member can change the name of the nominee whenever he or she wants. If a member dies while in office, all of the OPC’s assets and liabilities are automatically transferred to the nominee.

    Exemptions Available for One Person Company

    An OPC enjoys several privileges and immunities that

    Private companies aren’t eligible to receive. Here’s a glance at the exemptions an OPC receives.

    1. As per Section 92 of the businesses Act, 2013, states that annual returns of an OPC, must be signed by either the corporate secretary or the director.
    2. According to Section 122(1) of the businesses Act, 2013, it’s stated that laws mentioned in S.98, S.100 to S.111 won’t be applicable to OPCs and hence, the laws that govern General Body Meetings and Executive Meetings needn’t be followed by them.
    3. Any resolution made after a gathering needs just to be recorded by the OPC’s member in an exceedingly record or logbook and this book must be maintained and duly signed by the member as per Section U/s 118.
    4. An OPC requires only one Director to function and might have a maximum of 15. this will be increased further by filing a resolution.
    5. Compliance regulations for Board Meetings are met if decisions moved are registered in an exceedingly written record which is acknowledged and recorded by the member.
    6. An OPC should send the Registrar copies of their financial statements with the specified documents a minimum of before 180 days have passed after the closing of a year.These statements have to be attested by the Director or Company Secretary.
    7. Failure to befits the principles listed above will lead to the One Person Company getting penalized by the Registrar of Companies. it’ll be penalized for an amount between Rs 20,000 and Rs 1 Lakh and a six-month term, betting on the severity of the error.

    Benefits of an OPC

    • Limited Liability – Liability is treated differently in an OPC because it may be a separate entity, then shareholder liability is proscribed to the payment of subscription money. Hence, the member’s personal assets aren’t in danger.
    • Smooth Succession- because the name of the nominee is created during the creation of the OPC, succession laws are simple. within the event of the death of a member, all the shares and investments of the OPC are handed right down to the nominee. there’s no need for any lengthy procedure or submission of will as is that the case with sole proprietorships.
    • Easier Compliances – a 1 Person Company has more relaxed and fewer binding compliance regulations. This dramatically reduces paperwork related to running the corporate and hence, reduces the load on the HR department.
    • Helps in organising the unorganised proprietorship by giving it the identical position of a non-public company. This provides better banking facilities to such companies. It also helps such companies have better status and recognition with relevance other companies.

    Many successful stories and examples may be found in One Person Company.Let your company be one in every of them. Get expert advice from finaxis professionals in registering your One Person Company.

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  • Remuneration To LLP Partners 

    Remuneration To LLP Partners 

    Remuneration To LLP Partners 

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    An LLP is a business entity that gives the combined benefits of partnerships and private limited companies. It includes partners who share limited liability for the enterprise.  

    What are the returns? 

    Since it is such an essential element of running any business, rules regarding how the remuneration is paid are mentioned in the LLP agreement itself. Each partner will, therefore, want maximum investment return for their efforts, and so, partners must know about the kinds of returns available so that they can establish the agreement in the right way. Here are the three most well-known forms of returns when dealing with an LLP. 

    1. Remuneration 

    2. Interest on capital  

    3. Profit share 

    Types of Returns Explained 

    Remuneration 

    This phrase contains everything from bonuses and commissions to the base income that a partner or employee receives. Generally, it is paid to partners who take an active effort in supporting the LLP  grow and expand. It is a form of payment that is proportional to the work being done and does not have much connection to the capital built by them at the onset of the partnership.  

    Interest 

    This is a form of income that has direct connections to the capital introduced by them at the start of building the business. It doesn’t have anything to do with their recent work. Every partner must have contributed a share of the total capital needed at the time of beginning the partnership, and their interest return is a fixed share or percentage of this amount. Hence, the interest they receive will be some proportion of this amount they have invested themselves. 

    Profit Share 

    This return is available when the LLP begins making a profit or turns cash positive. This form of return takes into consideration both the amount of work they have put in and the capital they have before investing. As soon as the LLP starts to make money, the profit is analyzed and split into chunks according to work done, and capital introduced and then divide amongst the partners accordingly.  

    Eligibility To Receive Returns

    Which partners get returns and which do not is purely decided on by the clauses registered in the  LLP agreement. Even if a partner is working, inactive, sleeping, active or non-working, if it is particularly mentioned in the LLP agreement that they are to earn a percentage of the profit or interest, then they must be given that amount irrespective of whether they deserve it or have performed any work. But, this being said, there is a max limit on remunerations given by the LLP as per the Income Tax Act. Also, the LLP agreement can not provide any remuneration retrospectively to duration before the agreement was enforced.  

    Amount Deducted Table Under The Income Tax Act: 

    1. The deduction is possible only if the remuneration is obtained by a working partner 

    2. The expenditure of remuneration must be duly authorized and registered within the agreement or LLP. 

    3. The payment due must not exceed the proportions stated below 

    4. If a partner has received additional remuneration than what is detailed below, that excess  amount is not valid or legal for any deduction and tax must be paid on it 

    5. The remuneration received by the members or partners is taxed as Business Income. Share or percentage of profit is not included in the similar section as remuneration 6. For both the members working and non-working members, the share or percentage of profit  returns is exempted as per Section 10(2A) of the Income Tax Act 

    7. Interest received on the money invested by them is also taxed as Business Income 8. Also, for the first 3 lakhs earned, remuneration cannot exceed ₹1,50,000 or 90% of book  profit, whichever adds up to be more 

    9. When in balance with profit, the remuneration cannot exceed 60% of the book profits earned by the LLP 

    10. The interest achieved by the LLP on drawings from partners is charged as profits and gains of  business as far as taxation is concerned 

    11. An LLP will be taxed the exact way a partnership is. This indicates their income is liable to be taxed at 30%. However, LLPs are not eligible for the advantages of section 44AD, which  authorizes firms not to keep books if their income falls below 8% of the total gross 

    12. As the LLP doesn’t distribute dividends like a company, it is not eligible for any laws under the dividend distribution tax. 

    Interest 

    The 12% maximum interest rate is permissible under the Income Tax Act. 

    Above this share, anything obtained by the partners is taxable.  

    The LLP Agreement must completely specify what the exact interest rate is and how it will be paid. What incomes are not allowed any deductions? 

    Not all types of income earned from an LLP are allowed tax deductions. 

    Here’s a look at the types of income that do not earn any reduction. 

    1. Salary and remuneration received by non-working partners 

    2. Remuneration received by partners or members in cases where it goes against what is  mentioned and authorized in the LLP agreement

    3. If remuneration aligns with what is mentioned in the agreement, but relates to a much older  article of the deed, and doesn’t comply with the modified deed 

    4. If returns from interest surpass 12% per annum 

    5. Remuneration paid exceeds the limits set by the income TAX Act.

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  • How To Name Your Section 8 Companies

    How To Name Your Section 8 Companies

    How To Name Your Section 8 Companies

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    Introduction

    The name of a corporation is the very first thing that an individual immediately connects with at the primary instance. The importance of an appropriate name increases just in case of a non-profitable organization (NGO) or a charitable organization formed under Section 8 of the corporate Act, 2013.

    These Section 8 companies function solely for the aim of promoting commerce, art, science, sports, education, research, financial aid, religion, charity, protection of the environment, or any such other object meant to uplift either a fraction or the whole society as an entire. So these institutions or companies have to specialize in bringing the corporate into the spotlight and making a mark within the minds of the people so as to induce more volunteers who would work for the organizations and achieve the goals at a very faster Pace.

    A Section 8 company will be named and registered as an Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organization, etc. which will be registered under the Ministry of Corporate Affairs, Government of India. Since these companies are legally registered and recognized under the corporate Act 2013, the procedure for registration and therefore the naming criteria are defined under the procedure to register an organization as per the sections of the Act. 

    Registration of Section 8 Company A Section 8 

    company is different from a trust or a society only in terms of registration as a piece 8 company is registered under the Ministry of Corporate Affairs, Government of India whereas the latter is registered under the authority’s regulations. a piece 8 company has better legal standing, recognition among stakeholders and donors, and high credibility as against a trust or a society. However, the procedure somehow remains identical. For registering a bit 8 company, the specified documents like PAN (Permanent Account Number), address proofs, passport size photographs, etc. of all the administrators and promoters, are to be collected and arranged within the necessary order. Next, it’s necessary to get the DSC (Digital Signature Certificate) and DIN (Directors Identification Number) of all promoters and directors of the corporate.

    Now the foremost important step is naming the corporate appropriately in a way that the name denotes the explanation for the corporate. Since the name of an organization is what makes it stand out from the group, it must be unique so as to avoid copyright issues and even be easily associable with the company’s objective.

    Approval Of Name 

    Legally registering and approving the name of the corporate is mandatory. This helps in avoiding any quiet copyrights issues and also ensures that no previous section 8 company has been registered under the identical name. For getting approval, a form INC-1 should be filed with the Registrar of the company(Central Registration Centre – CRC of Ministry of Corporate Affairs). To avoid chances of repetition of names, the applicant will provide six different names for name approval. The name’s validity might last up to 60 days after it has been granted. As per the corporate (Incorporation) Rules, 2014, the suggested names must contain the words like foundation, association, forum, council, chambers, etc. to be considered a legitimate section 8 name.

    Licensing The Corporate 

    It is mandatory for an organization to be licensed once the name of the corporate gets approved. For applying for a license, a form INC 12 together with the prescribed fees must be filed together with the required documents. As for the revocation of the license, it’s going to be revoked by the Central Government anytime as per the provisions of Rule 8(6) of the businesses (Incorporation) Act, 2014, just in case of any breach of requirements of the section or violations of any conditions against the general public interest, etc.

    Conclusion 

    A section 8 company works for society and its upliftment, which supplies it immunity with regard to varied compliances and tax remittances. this provides these companies a new advantage as critical to other general companies. So it’s necessary that these companies make a mark legally and confirm to follow the principles and let the advantages reach society.

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