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  • What is the Memorandum of Association meaning?

    What is the Memorandum of Association meaning?

    What is the Memorandum of Association meaning?

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    A Memorandum of Association (MoA) represents the charter of an organization. it’s a legal instrument prepared during the formation and registration process of an organization to define its relationship with shareholders and it specifies the objectives that an organization has formed.

    an organization can undertake only those activities that are mentioned within the Memorandum of Association. As such, the MoA lays down the boundary beyond which the actions of an organization cannot go. A Memorandum of Association helps the shareholders, creditors, and therefore the other person handling an organization to know the essential rights and powers of an organization. Also, the contents of the MoA help the potential shareholders in taking the proper decision while thinking of investing within the company. MoA must be signed by a minimum of 2 subscribers just in case of a personal Ltd., and seven members just in case of a public Ltd.

    Format of Memorandum of Association

    The format of MoA is laid out in Table A to Table E depending upon the sort of company. a corporation can adopt the table applicable to it; as an example, Table A is for a corporation limited by shares, and Table B is for a corporation limited by guarantee and having a share capital, etc.

    Clauses in an MOA

    What-is-the- Memorandum-of- Association-meaning?

    The MOA comprises 6 clauses

    1. Name Clause – the corporate may be a legal entity that must have a long-time identity. the primary clause within the MOA is the Name clause which states the Registered name of an organization.

     2. Situation Clause – This clause gives the complete address of the registered office of an organization.

    3. Object Clause – The MOA has got to specify the objectives that the corporate has incorporated. It covers the most ancillary objectives of an organization.

    4. Capital Clause – It states the quantity of capital with which the corporate has been registered. This clause provides the shareholding pattern with details of the shareholders and therefore the number of shares held by them.

    5. Liability Clause – It mentions the limited or unlimited liability of each of its members. This clause will state the quantity each member will need to ante up within the event of liquidation of an organization.

    6. Association and Subscription Clause – The memorandum must be subscribed by a minimum of 7 members within the case of a Public Ltd. and a minimum of 2 within the case of a personal company

    Features of the Memorandum of Association

    The memorandum of association contains the objectives and areas of operation to be covered at the end of the day. It also works as a constitution and this is often why the memorandum of association has the subsequent features:

    1. The memorandum of association is the basic charter on which an organization is predicated and is mandatory for an organization.

    2. The memorandum of association is the constitution of the corporate because it defines its limitations and therefore the sphere of its activities.

    3. The memorandum can’t be altered by an organization, except by fulfilling the conditions laid down within the Companies Act for specific activities and situations.

    4. It defines the scope of the company’s activity, and everyone who acts beyond the scope is deemed to be ultra-vire (beyond powers).

    5. It’s a public document and is a hospitable inspection by those that affect the corporate.

    6. It Defines an organization’s relations with outside individuals and its activities about them.

    Purpose of Memorandum of Association

    The main purpose of the memorandum is to elucidate the scope of activities of an organization. the potential shareholders know the areas where the corporate will invest their money and therefore the risk, they’re taking in investing the cash.

    The outsiders will understand the bounds of the working of an organization, and their dealings with it should remain within the prescribed scope.

    Importance of Memorandum

    Memorandum is the fundamental document of an organization that contains conditions upon which an organization is incorporated.

    This document is vital for subsequent reasons.

    1. The memorandum defines the restrictions on the powers of an organization established under the Act.

    2. the entire structure of an organization is made upon a memorandum.

    3. It explains the scope of activities of an organization. The investment knows where their money is going to be spent, and outsiders also know the character of activities the corporate is permitted to require.

    4. it’s a basic document of the corporate about its constitution.

    5. it’s a charter of the corporate which sets out its written goals.

    Is the MoA and Articles of Association (AoA) of a company the same?

    No. The Articles of Association (AoA) and Memorandum of Association (MoA) are not

    the same. The MoA lays down the essential details about an organization, while the AoA includes the inner rules and regulations of an organization. The AoA is subordinate to the MoA

    What are the Articles of Association (AoA)?

    The Articles of Association (AoA) may be a document that defines the aim of an organization and specifies the regulations for its operation. The document outlines how tasks should be accomplished within a corporation, including the preparation and management of monetary records, and thus the method of director appointments.

    Summary

    •The articles of association (AoA) is considered the “constitution of an organization.” It outlines the principles and regulations that stipulate an organization’s internal affairs.

    • Regulations are also considered a manual for an organization that sets out the organization’s purpose and its strategies for achieving its short-term and long-term goals

    •Generally, the AoA includes an organization’s legal name, address, purpose, equity capital, financial provisions, and provisions regarding the shareholder meetings.

    Components of the Articles of Association

     The articles of association will usually specify the way of an organization issues stocks, distributes dividends, and performs financial records. The document is concentrated on giving the reader information about the methods an organization uses to attain its daily, monthly, and yearly goals.

    The articles of association are relatively similar in any part of the globe, although the precise terms and items vary across jurisdictions. In general, it includes the following:

    •      Provisions on an organization name

    •      Purpose of an organization

    •      Share capital

    •      Provisions on shareholder meetings

    Companies Required to File an Articles of Association

    The following entities must file their own articles of association:

     1. Unlimited companies

    The document must mention the number of employees and the amount of share capital if applicable.

     2. Companies limited by guarantee 

    The document must clearly state the number of members to which the company will register.

     3. Private companies limited by shares

    The document must include a provision restricting the transfer of shares, a limit of 50 members, and a prohibition on the purchase of shares by the public in the form of shares or debentures.

    Difference Between Memorandum of Association and Articles of Association

    The memorandum of association and articles of association are the 2 charter documents, for the fixing of an organization and its operations thereon. ‘Memorandum of Association ‘abbreviated as MOA, is the root document of an organization, which contains all the essential details about an organization. On the opposite hand, ‘Articles of Association ‘shortly referred to as AOA, may be a document containing all the principles and regulations designed by an organization.

    While the MOA sets out the company’s constitution, then it’s the cornerstone on which an organization is made. Conversely, AOA comprises bye-laws that govern the company’s internal affairs, management, and conduct. Both MOA and AOA, require registration, with the registrar of companies (ROC), when an organization goes for incorporation.

    Key Differences Between Memorandum of Association and Articles of Association

    The major differences between memorandum of association and articles of association are given as under:

    1. A Memorandum of Association may be a document that contains all the conditions      which are required for the registration of an organization. Articles of Association may be a document that contains the principles and regulations for the administration of an organization.

    2. Memorandum of Association is subsidiary to the businesses Act, whereas Articles of Association is subsidiary to both Memorandum of Association also because of the Act.

    3. In any contradiction between the Memorandum and Articles regarding any clause, the Memorandum of Association will prevail over the Articles of Association.

    4. Memorandum of Association contains information about the powers and objects of an organization. Conversely, Articles of Association contain information about the principles and regulations of an organization.

    5. Memorandum of Association must contain the six clauses. On the opposite hand, Articles of Association are framed as per the discretion of an organization.

    6. Memorandum of Association is obligatory to be registered with the ROC at the time of registration of an organization. As against Articles of Association, isn’t required to be filed with the registrar, although an organization may file it voluntarily.

     7. A Memorandum of association defines the connection between an organization and external parties. On the contrary, articles of association govern the connection between an organization and its members and also between the members themselves.

    8. When it involves scope, the acts performed beyond the scope of the memorandum are absolutely null and void. In contrast, acts done beyond the scope of articles are often ratified by unanimous voting of all shareholders

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  • Redeemable Preference Shares 

    Redeemable Preference Shares 

    Redeemable Preference Shares

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    Redeemable preference shares, as per the Companies Act 2013, are those that can be redeemed after a period of time (not exceeding twenty years). Redeemable preference shares are those shares where the issuer of the share has the right to redeem the shares within 20 years of the issuance at the pre-determined price mentioned within the prospectus at the time of issuance of preference shares and before redeeming such shares the issuer shall assure that redeemable preference shares are paid up fully and each condition specified at the time of issuance are fulfilled.

    What are Redeemable preference shares? 

    Preference shares are issued to a shareholder which has a callable option embedded, meaning they can be redeemed later by the company.

    • It is one of the methods that companies embrace in order to return cash to the existing shareholder of the company. It is a way of share repurchasing but is different from traditional share repurchasing in certain ways.
    • The price at which companies can repurchase these redeemable shares are already decided during the time of issuing those shares
    • Issuing callable preferential shares that can be redeemed in the future provides the company flexibility to choose whether to go for share repurchase or go for share redemption. 

    What are Preference Shares?

    • Preference shares will be allotted by companies to any investor, with the agreement that whenever a dividend is paid, the holders of the preference shares are the primary to be paid.
    •  Preference shares enjoy certain profits as against the other shares. 
    •  The dividend of a preference share is fixed at a decided rate (or a set amount) even before the dividend on equity shares. 
    • The preference shares must be repaid before all other investors and shareholders in the event of the winding-up of the company.
    •  The issue of preference share is complete as per the rules prescribed under Section 48 of the Companies Act, 2013.

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

    Types of Preference Shares

    Redeemable Preference Shares

    There are eight types of preference shares. just in case of dissolution of the company, any of the eight types would be paid out before other forms of equity. Let’s understand each of them: 

    • Cumulative: all dividends are carried forward until specified. And paid out only at the end of the definite period.

    • Non-cumulative: The contrary of cumulative. Dividends are paid out of profits each year. There aren’t arrears carried over a period of time to be paid at the end of the term. 

    • Redeemable: Such preference shares are often claimed after a set period or after giving due notice.

    •  Non-Redeemable: Non-redeemable preference shares cant be redeemed during the lifetime of the company. But it can only be obtained at the time of carrying out (liquidation) of assets.

    • Convertible: The shares are also converted into equity shares after a time period, or as per the conditions laid down within the terms.

    • Non-convertible: non-convertible preference shares can not be, at any time, converted into equity shares. 

    • Participating: Such shares have the right to take part in any other profits, afterward paying the equity shareholders. Furthermore, the accumulation of profit is apart from the fixed dividend paid up for preference shares. 

    • Non-Participating: Non-participating preference shares don’t have any right to participate in surplus profits or any surplus gained at the time of liquidation of the company 

    Process for Redemption of Preference Shares

    These three steps are essential to be followed to redeem the preference shares:

    1. A meeting of the general body needs to be termed. A notice has to be issued to the administrators and stakeholders regarding the meeting. This has to be done a minimum of seven days before the meeting.

    2. At the final body meeting, a resolution has to be passed regarding the preference shares, the rules specified upon, the type of preference shares to be issued, and also the number of shares. Also, the resolution for issuing preference shares and a letter for redemption must be passed during the meeting.

    3. Within 30 days of the resolution, SH- 7 must be filed with the Registrar. The SH-7 should contain the minutes of the meeting (the General Board meeting where the resolution was passed) and a real copy of the resolution signed by all the members of the board. 

    When can preference shares be redeemed? 

    Certain provisions must be fulfilled, under Section 48 of the Companies Act, 2013, for preference shares to be redeemed.

    1. The redeemable preference share must be wholly paid up.

    2. The redeemable preference share may be redeemed provided that the terms laid down at the time of issue are met.

    However, on approval of shareholders and under the conditions laid down in Section 48 of the Act, certain provisions may be altered/modified. These include redemption of shares at a fixed time or during a selected period or at the time the shareholders and/or the company have approved and ratified.

    The particular sum received after redemption of shares is often kept as Capital Reserve and may be utilized for any bonus on the issue of shares. This sum, within the Capital Redemption Reserve, is treated as Paid-up Capital by the company.

     Advantages of Redeemable Preference Shares

    • Issuing redeemable preferential shares provides the company with a choice to make a choice from whether to repurchase shares or redeem shares depending on the market condition.
    • The company redeems shares after it decides to pay back the shareholders. It’s some way of paying the shareholders like paying dividends. When shares are redeemed by the companies, the number of total shares outstanding reduces for the company, and also the earnings per share or the EPS of the company increases, which ends up in a rise within the share price.
    • By redeeming shares, the company, utmost of the time, get rid of shares that were paying coupon rates, which are much higher than the current dividend profit for the equity share—thus, increasing the price for the existing shareholders of the company.
    • Redeemable preferential shares often provide exit opportunities for venture capital funds, which are given with a predetermined exit option at a predetermined time and predetermined price point.

    Disadvantages of Redeemable Preference Shares

    • These types of shares are feasible for the companies to redeem only when the call price of the shares is not up to the present market price of the shares. Otherwise, it’s reasonable for the company to go for share repurchases in its place.
    • The company must wait for the time predetermined while issuing the shares before having to redeem the shares.

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  • What Is A Trademark? 

    What Is A Trademark? 

    What Is A Trademark? 

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    A trademark will be any word, phrase, symbol, design, or mixture of these things that identifies your goods or services. It’s how customers recognize you within the marketplace and distinguish you from your competitors.

    The word “trademark” can talk over with both trademarks and service marks. A trademark is meant for goods, while a service mark is used for services. Patent and Trademark Office so as to assert protection from copycats, however. The actual fact that we so easily associate symbols and words with companies and their brands are one of the largest advantages of their use. When a customer sees a familiar logo or phrase, they have instant recognition, which may drive preference and, ultimately, sales.

    A Trademark:

    • Identifies the source of your goods or services.
    • Provides legal protection for your brand.
    • Helps you guard against counterfeiting and fraud.

    A common misconception is that having a trademark means you legally own a selected word or phrase and might others from using it. However, you don’t have rights to the word or phrase in general, only to how that word or phrase is employed along with your specific goods or services.

    For example, as an instance, you use a logo as a trademark for your small wooden interior business to spot and distinguish your goods or services from others within the wooden interior field. This does not mean you’ll be able to stop others from using a similar logo for non-woodworking-related goods or services.

    Another common misunderstanding is trusting that picking a trademark that simply describes your goods or services is effective. Creative and unique trademarks are more effective and easier to safeguard. Read more about strong trademarks. 

    How Long Does a Trademark Last?

    Unlike patents, which are granted for a period of twenty years, trademarks never end. Companies do have to apply for them and acquire ownership validation with the U.S. A common law trademark may last for as long as you continue to use the mark, though you may lose your protection if you fail to enforce your rights.

    A federal trademark registration lasts for 10 years and is renewable for an additional 10-year period. State trademark registrations are governed by state law, and therefore the requirements vary from state to state. 

    What Can Be Trademarked?

    You can trademark many of the things that you use to differentiate your business from further businesses. You might have a trademark for:

    • Business names
    • A product names
    • Logo or label
    • A symbol or design
    • A sound 
    • A product packages

    Using the trademark symbols TM, SM, and ® 

    Every time you use your trademark, you’ll use a symbol with it. The symbol lets customers and competitors know you’re claiming the trademark as yours. You’ll use “TM” for goods or “SM” for services whether or not you haven’t filed an application to register your trademark.

    When you register your trademark with us, use an ® with the trademark. You can use the registration symbol anywhere around the trademark, although most trademark owners use the symbol in a very superscript or subscript manner to the right of the trademark. You can only use the registration symbol with the trademark for the goods or services listed within the federal trademark registration. 

    Owning a trademark vs. having a registered trademark

    You become a trademark owner as soon as you begin using your trademark together with your goods or services. You determine rights in your trademark by using it, but those rights are limited, and they only apply to the geographic area within which you’re providing your goods or services. If you wish for stronger, nationwide rights, you’ll have to apply to register your trademark with us.

    You’re not required to register your trademark. Though, a registered trademark offers wider rights and protections than an unregistered one.

    For example, you use a logo as a trademark for the handmade clothes you sell at a neighbourhood market. As your business grows and you expand online, you would possibly want more protection for your trademark and decide to apply for federal registration. Registering your trademark with us means you create nationwide rights in your trademark.

    Why register a trademark?

    Though it’s not mandatory to register a trademark so as to use it, trademark registration adds great value to a business. The goodwill and reputation of a business can be reduced or tarnished if others try and misrepresent their own goods and services as yours by adopting a brand that is similar or just like your business. a number of the key benefits of registering a trademark include:

    • The trademark owner has the right to prevent others from using a similar or identical mark without his approval as soon as the trademark is registered.
    •  Makes a rightful awareness among the public about the authentic ownership and quality of the product.
    • Prevents others to copy and use the trademark because the owner of a registered trademark can sue and collect damages from organizations that infringe upon the trademark.
    • A trademark registration reduces the possibility of another party claiming that your trademark infringes upon its trademark.
    • Grants the owner the right to use the ® symbol.

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  • What Is Succession Certificate?

    What Is Succession Certificate?

    What Is Succession Certificate?

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    Property owners, who expire without leaving a will, are said to own died intestate. In such cases, the family should get a succession certificate, which certifies the successor of the deceased. As per sections 380, 381, and 382 of the Indian Succession Act, 1925, a succession certificate holder can take responsibility for the deceased’s assets additionally to any debts he had. The person is then entitled to assert the assets, as per the succession laws. The succession certificate is mandatory, for claiming all types of immovable and movable assets, like bank balance, fixed deposits, investments, etc. 

    What is a succession certificate? 

    In family law, may well be a matter of which everyone who may inherit property within the absence of a will should have a transparent understanding of. The succession certificate can be a document given to the subsequent of kin or the successor of a deceased who has not prepared a will, to work out his successor. The succession certificate is giving authority to the successor over the  deceased person’s debts and securities and to transfer it under his own

    when a succession certificate is required:  

    If a distant citizen gets into a situation where a parent or close relative has died without passing on a will Where you recognize that a property belongs to you but you would like this document to prove its succession certificate meaning. While a legal heir of the dead soul can apply for a succession certificate for transferring electricity/telephone connections, bank accounts, etc., it’s not identical to a legal heir certificate, which is issued for the approval of family pensions or transfer of movable and immovable assets. we are going to cover more differences later within the blog. allow us to now understand what the succession certificate procedure is like. 

    Who issues the Succession Certificate?  

    A succession certificate is issued by the District Judge of the acceptable jurisdiction, where the person was living at the time of death. If the authority is unable to search out such an area, jurisdiction is transferred to where assets of the decedent might be found. 

    What is the Procedure to get a Succession Certificate?  

    If you’re wondering the way to get a succession certificate, the applicant simply must make a  legal petition in court.  

    Step 1 – Filing a Petition  

    Legal heirs desirous to claim ownership of the assets of someone should file a petition. this could be tired of the authorized format and submitted after verifying it within the civil court, under the relevant jurisdiction. a replica of the death certificate should even be attached together with the petition. 

    The petition should mention the main points written below clearly. 

    1. Time, date, and place of the death of the dead soul. 

    2. Details of other legal relatives or heirs.

    3. details of properties of the deceased at the time of death within which Judge the jurisdiction falls under. 

    4. Rights of petitioner 

    5. identification documents like Ration Cards or Passports. 

    List of the debts or securities that the certificate is applied for. 

    No objection certificates from other legal heirs 

    Step 2 – Submitting the Fees  

    According to The Court Fees Act, 1870, a particular percentage of the worth of the estate is imposed by the court. This value needs to be paid by the petitioner in Judicial stamps. 

    Step 3 – Publishing of Notice within the Newspaper  

    The court will now examine the petition then make it public through a national newspaper. along with that, the court also will notify all the alternative heirs and respondents. The notice gives a selected period of 45 days for anyone to spice up objections against the petition with required documents to support their claim. 

    Step 4 – Granting the Certificate  

    If nobody claims ownership of the assets of the soul or raises objections within 45  days, the court then grants the succession certificate to the petitioner providing the authenticity of the claim is established. A joint succession certificate may issue in the case of multiple petitioners .apart from one asset, just one certificate is visiting be granted. 

    Step 5 – Signing the Indemnity Bond  

    In some cases, the judge may ask the petitioner to sign an Indemnity bond, to make sure that no losses occur because of the misuse of the granted succession certificate.  Signing this bond might require the petitioner to present some quiet security to the court. 

    Documents Needed to Obtain a Succession Certificate are  

    1. The time of the death of the person 

    2. Address of the person at the time of death. 

    3. Details of properties of the dead person. 

    4. Complete details of the family of the dead person. 

    5. Complete details of all the legal heirs of the dead person.

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  • Trademark Registration Status

    Trademark Registration Status

    Trademark Registration Status

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    The trademarks registry in India was established in 1940 and presently it regulates the prevailing law trademarks act 1999 and their rules to protect the misuse of trademarks. Trademarks registry provides resources, facilitates information centres, and regulates all matters relating to trademarks in PAN India. the purpose of the trademark act 1999 is trademark registration in the country and ensuring protection to the registered trademark or goods and services .this also helps original trademark owners to prevent fraudulent use of their trademark. The main purpose of the trademark registry is to register trademarks that qualify for registration under the prevailing trademark and their amendment act and rules.

    What is a Trademark?

    In simple terms, trademarks are special unique signs that are used to identify goods or services from a certain company. They can be designs, pictures, signs or even expressions .it is important because it differentiates your products from the competition. It can be associated with your brand.

    The arrival of online trademark registration in India has enhanced the efficiency and transparency of trademark filing. A trademark is additionally declared incontestable after 5 years of consecutive use from the date of federal registration. An application for registration of a trademark goes through numerous stages of scrutiny before it gets registered. These stages or statuses are briefly explained below. In this article, we are also visiting to decipher the implications of the assorted trademark statuses and so the corresponding action they require for smooth trademarking.

    Trademark registration status

    Status: New Application 

    The trademark application has been recently entered into the trademark application database.

    Status: Send to Vienna 

    Codification This step is applicable for a non-text trademark application that contains a logo the moment a trademark application is filed, a Vienna code is assigned thereto if the trademark encompasses logo or figurative elements. The Vienna codification process is finished by the registry, enabling trademark searches to be conducted for logos/artwork. Once this process is completed, there’s still a protracted process to get into the registration process followed by an examination, formalities check, public caution, and finally the registration. 

    Status: Formalities Chk Pass

    When all the essential filing requirements for trademark registration are passed, then the status within the Indian trademark registry website shows as ‘Formalities chk pass’. The trademark registry during this step checks the elemental formality requirements such as:

    • Whether appropriate transliteration (if applicable) has been filed

    • Whether the POA has been uploaded. In case these basic requirements don’t seem to be fulfilled, the status information is reflected as ‘Formalities chk fail’. After the completion of this procedure, the trademark application goes through a substantive examination. During this phase, objections are also raised under Sections 9 and 11 of the Trademarks Act of 1999.

    Status: Marked for Exam

    When a trademark application is allocated to an examiner for issuance of the examination report, the Indian trademark registry website shows the status ‘Marked for exam’. The trademark application is scrutinized by the examiner to check whether the trademark is often published within the trademark’s journal, preceding the registration. the next checks are done to see: • Whether the prescribed manner has been adhered to while filling the appliance • Whether any similar trademark in respect of similar service/goods is there on record • If the trademark that has been applied for are often accepted for registration under the Trademarks Act of 1999 • Whether any condition, the restriction is required to be imposed. The examiner will then issue a consolidated ‘Examination report’, which either mentions objections against the application, if any or accepts the application.

    Status: Objected

    If the examiner/registrar raises objections within the examination report, the status of your trademark application will read as ‘Objected’. After the application is scrutinized, objections are additionally raised by the examiner/registrar under Sections 9 and 11 of the Trademarks Act.  for example, objections are likely to be made under Section 9, when the examiner/registrar considers the trademark to be descriptive, laudatory, or indicating the

    character or quality of the goods/services. To overcome this objection, it’s essential to denote that the trademark is characteristically distinctive and doesn’t comprise any of the above-mentioned categories. This objection can even be avoided if the trademark has developed a unique character due to its extensive use. For this purpose, it’s required to submit a user affidavit with cogent pieces of evidence that show that the trademark has acquired uniqueness over continued usage. Section 11 objections are also made by the examiner/registrar when there is a similar/identical trademark in similar/identical classes of services/goods already on record within the trademark registry. In such a case, the registrar issues a computer-generated search report which comprises the list of conflicting marks.

    Status: Exam report issued

    The trademark status will show as ‘Exam report issued’ when the trademark application is approved for publication and when it’s due for publication within the trademarks journal. This status information is employed to point out that the trademark has been accepted within the initial examination report, or after the objections are overcome by the applicant by way of a written submission or a hearing.

    Status: Refused 

    If the examiner/registrar refuses a trademark application after hearing or considering the applicant’s response to an examination report, then the trademark status within the Indian trademark registry website shows as ‘Refused’. The trademark status may also be read as ‘Refused’ in those cases where a 3rd party is successful in opposing the registration of the trademark. This status will be appealed by filing a petition under Section 91 of the Trademarks Act with the holding appellate board (IPAB) within 3 months.

    Status: Adv Before Accepted

    If a trademark application is being advertised before its acceptance within the trademark journal by the registrar, then the trademark status within the Indian trademark registry website will show as ‘Adv before accepted’. This status allows any third party to oppose the trademark application within 4 months from the date of the advertisement within the journal. In a scenario where an application is advertised before acceptance and no opposition is lodged during the opposition period, the appliance must be accepted by an Accepting Officer just before the registration certificate is issued. Once this is often done, the trademark status changes to ‘Advertised and accepted’, so subsequently to ‘Registered’. The registration certificate is mostly issued within 3 months of expiry of the opposition period.

    Status: Opposed

    In case after the advertisement of the trademark, a 3rd party files an opposition to the registration of the trademark within the 4 months from the date of advertisement then the trademark status within the Indian trademark registry website will show as ‘Opposed’. A third party usually files an opposition when there’s an analogous trademark published within the journal or if the trademark is purported to be non-distinctive. The trademark status changes from ‘Advertised’ to ‘Opposed’ after a notice of opposition is filed by a 3rd party. This notice is served on the applicant which states the grounds on which the opposition is predicated. it’s necessary to file a counter statement by the applicant within 2 months from the date of receipt of the notice of opposition. The trademark application status is modified to ‘Abandoned’ if no counter statement is received by the registry within the given period.

    Status: Withdrawn 

    The trademark within the Indian trademark registry website will show as ‘Withdrawn’ if the applicant files an invitation to withdraw the appliance voluntarily.

    Status: Removed 

    The trademark status within the Indian trademark registry website will show as ‘Removed’ if the trademark has been far from the trademark registry. The mark isn’t any longer trademarked within the eyes of the law. 

    Status: Registered

    When the trademark status within the Indian trademark registry website shows as ‘Registered’ it means the trademark registration certificate has been issued by the Registrar. After this, the applicant/candidate becomes the registered owner of the trademark. The applicant afterward was entitled to use the ® symbol next to the trademark. Under this Act, trademark registration is valid for 10 years from the date of application.

    How to  Register a Trademark With finaxis

    The process of trademark registration online is more complex than it appears. It involves a number of processes followed by the government. Finaxis has made it easier for you by breaking it down into two parts and doing the majority of the work. Register your trademark today to protect your company’s logo, and brand.

    Step 1: Class Selection and Document Collection

    Our experts will guide you in selecting the right classes for your business.  Then we are collecting the required document given below.

    Step 2: Filing Trademark Application

    Once we get all the documents, then we will proceed to verify them. Then the trademark application form will be filled out on your behalf and submitted together with the documents.

    Congratulations! You can now begin using the symbol ™ as the application has been submitted!

    Individuals & Sole Proprietorship

    Any person – Indian National or Foreign National can simply register a trademark in India. There is no requirement for forming a legal entity or business entity to register a trademark.

    • Copy of the logo, preferably in black & white. In case the logo is not provided, the trademark application can be filed for the word.
    • Signed Form-48.form 48 is permission from the applicant to a Trademark Attorney for filing the trademark application on his/her behalf.
    • Identity Proof of the individual or Proprietor.
    • Address Proof of the individual or Proprietor.

    Partnership / LLP / Cmpany – Small Enterprise Or Startup

    The trademark registration fee differs from Rs.4500 to Rs.9500. For other entities, the trademark government fee applicable is Rs.9500. To be classified as a small enterprise, the applicant would have to provide a Udyog Adhar registration certificate.

    Partnership / LLP / Company

    In the case of a partnership firm or LLP, the entrepreneur would have to submit the following:

    • Copy of Logo (Optional)
    • Signed Form-48.
    • Udyog Aadhar Registration Certificate.
    • Incorporation Certificate or Partnership Deed.
    • Identity Proof of Signatory.
    • Address Proof of Signatory.

    Why us?

    A registered trademark carries a legal presumption that you have a right to use your mark nationally and prevent offers from using it.

    Register your trademark within budget and still get the best service. 100% online process. use the symbol right away. get your trademark registered by professionals today. To register your trademark visit https://www.finaxis.in/ 

     

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  • Authorized Capital and Paid-up Capital

    Authorized Capital and Paid-up Capital

    Authorized Capital and Paid-up Capital

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    Companies issue their shares of stock or equity to boost capital for various purposes like to fund their expansion, paying off debts, etc. no matter the scale of a corporation or the sort of business, every company has to classify its share capital under various categories within the financial plan. 

    The capital structure of a corporation is broadly classified into two categories – authorized share capital and paid-up share capital.

    What is Authorized Capital?

    Authorized capital is the maximum amount of capital a corporation is allowed to lift from its shareholders by issuing shares to them. a corporation doesn’t need to issue its entire authorized capital within the public subscription. it’s going to opt to issue capital at different stages as per the wants and demand.

    A company has to mention the number of authorized capital in its Memorandum of Association (MOA) under the Capital Clause. 

    Why should authorized share capital be increased?

    Authorized Share Capital is the maximum amount of share capital that a corporation is allowed to raise. This limit is made public in its constitutional documents and might only be modified with the approval of the shareholders. Before a publicly-traded company can sell the stock, it must specify a particular limit to the quantity of share capital that it’s authorized to raise. A company doesn’t usually issue the complete amount of its authorized share capital. Instead, some are going to be held in reserve by the corporation for possible future use. the number of share capital or equity financing an organization has can change over time. an organization that wishes to lift more equity can obtain authorization to issue and sell additional shares, thereby increasing its share capital.

    What is Paid-up Capital?

    Paid-up capital is the amount paid by the shareholders for the shares held by them within the company. It’s the particular fund that the corporation receives from the difficulty of shares. Typically, an organization raises finance by way of issuing fresh share capital which becomes a part of its paid-up capital. 

    Why is authorized capital the upper limit on feasible paid-up capital?

    Paid-up capital is the amount of cash a corporation has been paid from shareholders in exchange for shares of its stock. Paid-up capital is formed when a corporation sells its shares on the first market, to investors. Paid-up capital is very important because it’s capital that’s not borrowed. an organization that’s fully paid up has sold all available shares and thus cannot increase its capital unless it borrows money by taking up debt. Paid-up capital can never exceed authorized share capital. In other words, the authorized share capital indicates the maximum amount of paid-up capital that can be raised.

    As per the amendment within the Companies Act, 2013, there’s no requirement for a personal and public company to carry a minimum paid-up capital which was earlier 1 lac and 5 lac respectively. they’re liberated to choose their paid-up capital which might be as low as ₹20.

    Example to know Authorized Capital and Paid-up Capital 

    Let’s say XYZ Ltd. has an Authorized Capital of ₹60,00,000 that- it issues 2,00,000 shares @ ₹10 each which makes its paid-up capital as ₹20,00,000. Though, it still has the space of ₹40,00,000 paid-up capital by issuing 4,00,000 shares @ ₹10 each. 

    So during this case,

    – the authorized capital is ₹60,00,000, and

    – paid-up capital is going to be ₹20,00,000

    Difference Between Authorized and Paid-up Capital

     

      • Authorized capital is the utmost value of the shares that a corporation is legally authorized to issue to the shareholders. Whereas, paid-up capital is the number that’s paid by the shareholders to the company.

     

      • At any point, the paid-up capital of an organization can never be quite its authorized capital but it’ll be capable of the authorized capital. On the alternative hand, a company isn’t authorized to issue shares beyond the authorized share capital.

     

      • A corporation can increase its authorized share capital within the long run by following the procedure mentioned within the businesses Act, 2013. Whereas, a company can increase its paid-up capital by way of issue of shares to existing shareholders or by private placement to 3rd parties.

     

      • Authorized capital cannot be utilized within the calculation of the net worth of a company, while paid-up capital is taken into consideration for net worth calculation.

    What is the process for increasing authorized capital?

     

      • To increase the authorized capital, the company needs to obtain approval first from its Board of Directors and eventually from its shareholders.

      • Furthermore, the company must call a general meeting during which the amount to be increased is about bypassing a typical resolution by shareholders.

      • It is also required that the company file Form SH-7 on the MCA’s online portal. This has to be done within 30 days of passing the resolution. 

    Benefits of rising the Authorized Capital 

    Business Growth

    With the additional funds received by way of stock sales, the company can target its business growth without borrowing loans or obtaining funds from other traditional sources.

    Additional funds for Shareholders and Others

    With extra cash inflow, the company can give additional compensation to its investors, shareholders, partners, and senior management, employees enrolled in available ownership plans, founders, and owners.

    Enhances Borrowing Capacity

    The company’s overall net worth improves when more share capital is added. As a result, the company’s borrowing capacity increases.

    Increases Share Capital

    It is only via authorized capital that a corporation can raise its share capital beyond what it’s prescribed in its MOA. Thus, increasing authorized capital boosts the share capital of the company. 

    Features of an authorized Capital

     

      • Authorized capital is about the Formation and incorporation of the company. 

      • because the number of authorized capital increases, ROC fees will increase.  Authorized Capital is mentioned within the Memorandum of Association and Articles of Association of the company.

      • The authorized share capital denotes the number of share capital that the company can have and set because of the face value of each share. 

      • it’ll be changed at any point in time after the incorporation of the company. 

      • Authorized capital cannot be used within the calculation of the net worth of the company.

      • it is not required for a corporation to issue shares up to authorized capital, the company can issue shares of less value than authorized capital.

    Features of Paid-Up Capital 

     

      1. It falls within the category of Called-up capital which has been paid by the shareholders and received by the company. 

      1. The company must issue shares within 60 days of incorporation of the company, the amount decided as paid-up capital during incorporation.

      1. Paid-up capital can’t be over authorized capital. 

      1. The quantity received as a paid-up capital is employed for meeting the business expenses of the company.

      1. Paid-up capital is included within the calculation of the net worth of the company.

    Characteristics of Paid-Up Capital 

     

      • Paid-up capital mustn’t be repaid, which can be a significant advantage of funding business operations during this fashion. Also called paid-in capital, equity capital, or contributed capital, paid-up capital is solely the general amount of money shareholders have acquired shares at the initial issuance. It doesn’t include any amount that investors later pay to shop for shares on the open market. 

      • Paid-up capital may have costs associated with it. In capital budgeting, paid-up capital is most often stated as equity capital. Within the nice debate on the relative benefits of debt versus equity, the absence of required repayment is among equity’s main advantages.

      • However, shareholders expect a selected amount of return on their investments within the sort of capital gains and dividends. While the business isn’t required to return shareholder investment, the value of equity capital can still be quite high. 

      • Paid-up capital is listed under the stockholder’s equity on the record. 

      • This category is further subdivided into the standard shares:- additional paid-up capital & sub-accounts

     

      • The price of a share of stock consists of two parts:- the face value and so the extra premium paid that’s above the face value. 

     

      • The complete face value of all shares sold is entered under stock, while the remainder is assigned to the additional paid-up capital account. 

      • Paid-up capital is used in fundamental analysis. Companies that rely heavily on equity capital may have less debt than those that do not. A company with a debt to equity ratio that’s common for its industry is additionally an honest candidate for investing because it indicates prudent financial practices and a decreased debt burden relative to its peers.

    Comparison Between Authorized and Paid-up Capital

    Basis Authorized Capital Paid-up Capital
    Scope of capital  It could be a wider term if compared to the paid-up capital of the corporation. Paid-up Capital is within the range of or appreciates the Company’s authorized capital.
    Nature of capital The maximum amount of cash that a corporation can raise through the issuance of shares. the complete amount of cash raised by a company through the issuing of stock to shareholders.
    Increase in Capital The company can increase the authorized share capital. However, this is often possible on the condition that the articles permit it. In addition, for a rise in Authorized Share Capital, the firm must adopt a normal resolution in an exceedingly general meeting. The company can increase the paid-up capital. However, the paid-up capital cannot exceed the authorized capital.
    Alteration of Capital Any alteration during this amount also requires an amendment within the Memorandum of Association and spending of the resolution within the general meeting of the members of the corporate. No such alterations are needed.
    Which forms to file? The form that must be filed in the event of a rise in ASC is SH-7. PAS 3 is the form to be filed in the event of a rise in Paid-up Capital.

    Conclusion

    In a nutshell, Authorized Share Capital denotes the utmost amount of capital that a corporation can raise from its shareholders by issuing shares to them reciprocally. Paid-up Capital, on the other hand, refers to the amount of share price paid by shareholders for the shares owned by them. 

    Further, the members must decide the quantity of Authorized Share Capital and Paid-up Capital at the time of registration itself, as they need to induce identical records within the MOA of the company.

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  • GST State Code List

    GST State Code List

    GST State Code List

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    As you all know, GST (Goods and Services Tax) was introduced in 2017, and also the classified category of business is required to urge a singular GST positive identification. The GST number could be a combination of several numbers, and also the first two numbers are fabricated from state code. rather like any registered dealer, states even have a documented state code for GST. During this article, we shall study the GST state code list.

    An overview of GST

    GST may be a tax that’s paid by customers once they purchase goods or services. The payers don’t pay these taxes directly, but they pay together with the value they spend during their purchase. Usually, the government charges the manufacturers with GST. The manufacturers thereafter add GST to their products at the time of selling the products.

    What is the GST State Code?

    Each state in India is given a state code. This helps in understanding where a business entity or taxpayer is from. it’s a two-digit number, and therefore the list of those numbers for all states in India constitutes the GST State Code list.

    The code is fixed and tiny, which makes less the likelihood of mistakes within the filing of GST Returns and in processing GST invoices. The primary two digits of GSTIN (Goods and Services Tax Identification Number) reflect the state code of GST. For instance- just in the case of GSTIN 08AAEPM0122C1Z8- the primary two digits show us that the business is found in Rajasthan. All in all, GSTIN may be a 15 digit alphanumeric unique number given to a taxpayer who is registered under GST.

    What is the use of the GST State Code?

    This GST Code helps the govt. to check whether to charge IGST, SGST, or CGST on a taxpayer or a business entity. From the products and Services Tax number of a buyer, displayed within the “Place of Supply” Section of GST invoice, the state code of GST of the client will be obtained. just in case where the state code of both buyer and supplier is different, then IGST is going to be charged. If the 2 state codes are similar, then SGST and CGST shall be charged.

    The code lists are often employed by a taxpayer while registering for GST and entering invoice details in GST Returns.

    Where can we need State Code in GST?

    GST state code is required for:

    GST license number (GSTIN) &

    At the Delivery Zone or in recognizing “Place of Supply.”

    Goods and repair Tax number (GSTIN) starts with state code. the primary two digits are the country code, as an example, in GSTIN 08AAEPM0111C1Z8, which begins with 2 “08” digits of the Rajasthan country code.

    “Delivery zone” or “place of supply” is required to work out whether IGST is going to be imposed or CGST & SGST are charged. If the Supplier State Code and “Place of Supply” country code are different, IGST is going to be charged, and if the supplier state code and state of supply code are identical, CGST and SGST are charged.

    List of GST State Code

    Here is the list of State Code:

    Serial No. State Name State Code
    1   Jammu and Kashmir   1  
    2 Himachal Pradesh 2
    3   Punjab   3  
    4   Chandigarh   4  
    5 Uttarakhand 5
    6 Haryana 6
    7 Delhi 7
    8   Rajasthan   8  
    9 Uttar Pradesh 9
    10   Bihar   10  
    11   Sikkim   11  
    12   Arunachal Pradesh   12  
    13   Nagaland   13  
    14   Manipur   14  
    15   Mizoram   15  
    16   Tripura   16  
    17   Meghalaya   17  
    18   Assam   18  
    19   West Bengal   19  
    20   Jharkhand   20  
    21   Orissa   21  
    22   Chhattisgarh   22  
    23   Madhya Pradesh   23  
    24 Gujarat 24
    25     Dadra and Nagar Haveli & Daman & Diu   26    
    26   Maharashtra   27  
    27     Andhra Pradesh (Before division)   28    
    28   Karnataka   29  
    29   Goa   30  
    30   Lakshadweep   31  
    31   Kerala   32  
    32   Tamil Nadu   33  
    33 Pondicherry 34
    34   Andaman & Nicobar Islands   35  
    35   Telangana   36  
    36     Andhra Pradesh (Added Newly)   37    
    37 Ladakh (Added newly) 38

    Note that prior to January 26, 2020, Daman and Diu’s GST state code was 25.

    Conclusion

    GST has various positive impacts for little and medium enterprises with numerous benefits, simple use, digital and simplified processes. Many prospective entrepreneurs can easily give their ideas wings and start their firms. Small business owners can specialize in expansion and growth plans with easier accessibility to the nationwide market without concentrating more on state-wise tax minimization strategies.

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  • Copyright and Trademark

    Copyright and Trademark

    Copyright and Trademark

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    Copyright and trademark are both sorts of property rights that help provide their creator rights over the employment of her/his creation for a limited period of your time.

    Businesspersons who are looking to register a material possession must know the differences between the 2 and then obtain the proper registrations to guard it. during this article, we shall have a look at the differences between copyright and trademark in India.

    What is a Copyright?

    Copyright could be a right given to the creators of literary, musical, dramatic, and artistic works and therefore the producers of cinematograph films and therefore sound recordings. Names or brands, slogans, brief word combinations, short phrases, plots, methodologies, or factual information are not protected by copyright.

    Copyright also doesn’t protect ideas or concepts. Hence, copyright is generally accustomed to protect the creativity of individuals like writers, artists, dramatists, designers, musicians, architects, and therefore the producers of sound recordings, cinematograph films, and also computer software.

    What is a Trademark?

    A trademark could be a word or a visible symbol being employed by any business to assist people to distinguish its goods or services from that of the opposite similar goods or services which can be originating from a special business gets protected. A trademark application must be filed to register a trademark by the applicant with the relevant Trademark Registrar within the format that has been prescribed. Trademarks are generally wont to protect the brand names, business names, slogans, and far more.

    Copyright and Trademark

    Difference between Copyright and Trademark

    Both Copyright and Trademark have different and distinct uses. Their validity and therefore the requirement for registration also vary as follows:

    Copyright:

     Copyright is mostly wont to secure literary, musical, dramatic, and also artistic works including cinematograph films and therefore sound recordings. Software or a program or tables and databases can all be registered as a ‘literary work’ under Copyright Act. A copyright may be a right within the eyes of the law which supplies a privilege to a private who originally creates the work. a person with a copyright must use it in a judicious way as per the provisions of the copyright law. The folks that are creative or who write an inventive piece of labor receive copyright. Writers, poets, and painters protect their original pieces of labor with copyright. Nevertheless, to get the copyright for software, the ASCII text file for the software must be submitted to the Copyright Office together with the appliance.

     Trademark:

     Trademarks are generally employed by individuals, and commercial and non-commercial bodies to guard brand names, business names, slogans, and more. an idea or a plan or software can’t be trademarked. But, a singular name is given to an idea or software or is often trademarked. lots of companies use their trademark on the packaging of their products or on the merchandise itself. This provides them with protection against their goods, brand, or mark from people using them. The one who owns the trademark can pursue a legal proceeding against any individual for using his trademark.

    Registrar

    Copyright:

     The review and acceptance of a Copyright application are controlled by the Copyright Office, Department of upper Education, and Ministry of Human Resource Development.

    Trademark: The review and also acceptance of a trademark application is controlled by the Controller General of Patents, Designs, and Trademarks, Ministry of Commerce and Industry.

    Validity

    Copyright:

     Copyright is often granted for 60 years. The 60-year period begins the year following the author’s death in the case of clever literary, theatrical, artistic, and musical works. The 60-year period begins on the date of publication for cinematograph films, pictures, sound recordings, posthumous publications, anonymous and pseudonymous publications, works of state, and thus works of international organizations. 

    Trademark registrations are valid for ten years from the date of filing. This validity may be extended at the top of 10 years by filing a trademark renewal application.

    Frequently Asked Questions

    1. Do I copyright or trademark a logo?

    A trademark is supposed to safeguard a word, phrase, symbol, or design (or could also be a mixture of all these), that classifies and distinguishes the products or services of 1 individual or company from those of others. Few things, like a fancy logo, could also be eligible for both trademark and copyright protection.

    2. What’s the difference between a logo and a trademark?

    Trademarks include company names, slogans, logos, and styles that are accustomed to identifying and distinguishing a company’s goods within the business trade. The physical mark is also a word, a sign, a symbol, or a design that helps to spot the trademark owner.

    3. What’s the difference between copyright and trademark under the legislation?

    The Indian Copyright Act, 1957 protects copyright, whereas the Trademarks Act, 1999 protects trademarks.

    4. What’s the importance of copyright and trademark?

    Copyright is employed to stop others from using your creation without consent. A trademark is issued to assist distinguish and differentiating your brand, mark, or logo from others.

    5. What are the realm where copyright and trademark are applicable?

    Copyright is applicable everywhere on the planet. it’s applied to artistic and literary creations. A trademark is proscribed to only a particular area in its application. Typically, it’s applied to goods and services. the realm of limitation is also increased or decreased on the idea of the international or national usage.

    6. Are copyrights and trademarks generally availed by identical reasonably professions?

    For the protection of their original and unique work, singers, painters, writers, graphic designers, and others file copyright applications. Trademark registration is used to protect a person’s or company’s logos or emblems for a variety of goods and services.

    7. What sorts of protection do copyright and trademark offer?

    A copyright protects against copying and is automatic. A trademark protects against confusion and dilution. The protection is automatic for distinct marks.

    8. Can a website be copyrighted?

    The original composition that appears on a website is also protected by copyright. This includes the writings, photos, artwork, and other types of content protected by copyright. The procedures for registering contents of an internet site are often found in Circular 66, Copyright Registration for Online Works.

    9. Can one copyright a website name?

    Copyright laws don’t touch domain names. the web Corporation for Assigned Names and Numbers (ICANN) could be a non-profit organization that has the responsibility for the name system management, administers assigning of domain names through the accredited registers.

    10. How am I able to protect my recipe?

    An ordinary listing of the ingredients might not be protected under copyright law. Nonetheless, a recipe or formula is often amid a major literary expression within the style of proof or direction. a set of recipes during a cookbook could also be a substance for copyright protection. In case, there are some secret ingredients to a recipe that one doesn’t wish to reveal, then, the recipe shouldn’t be submitted for registration because the applications and therefore the deposit copies are public records.

    11. Is it possible to copyright a band’s name?

    No, the names don’t seem to be protected by copyright law. Some names may be protected under trademark law.

    12. How am I able to protect my idea?

    A copyright doesn’t protect concepts, ideas, systems, or the methods of doing something. One may express his/her idea in writing or a drawing so claim copyright for description, but one should remember that the copyright won’t protect the concept itself as revealed within the written or artistic work.

    13. Does a piece should be published to be protected?

    The publication isn’t essential for copyright protection.

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  • All Types of Company Registration

    All Types of Company Registration

    All Type of Company Registration

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    Company registration is a primary process by which business owners establish or incorporate their company. Since there are several kinds of companies in India, entrepreneurs must ensure they choose a business type that suits their operations. In India, the Companies Act, 2013 lays down guidelines for various types of company registration.

    Company registration

    Types of Company Registration in India are: 

    An individual can be founded as a sole trader, as a Partnership, Private Limited or indebtedness  Partnership, etc. Each format has its advantages and drawbacks. There are multiple styles of company registration mentioned below:- 

    • Private Ltd. (Most Common) 
    • Limited Liability Partnership 
    • Partnership 
    • One person Company
    • Public Ld. 
    • Nidhi Company 
    • NBFC Company 
    • Finance Company 

    All these above-mentioned companies are different from one another. they need different kinds of formations, rules, and regulations. So, it’s very crucial to know every detail like their documents,  forms, etc. specializing in the procedure of Online Company Registration, other companies’ processes may also be understood as all of them have an identical process. 

    But the foremost widely use and in common is Private Ltd. Registration Online. Whenever the new company registration process proceeds, it’s highly recommended to the applicant to settle on  “Private Limited Company”. the explanation being, it’s more tax benefits than others. 

    Steps of Company Registration process in India 

    Private Ld. Private Limited Companies are suitable for tiny businesses that need registration as non-public entities. during this sort of company, a bunch of shareholders distributes the liability amongst themselves to assist protect their personal assets. the whole capital of such business types is the total of all the shares held by each member of the corporate. Also, the private and business assets of the members are considered separate, with better protection and security. The shares of such an organization can’t be publicly traded or transferred. As per the businesses Act, 2013 to be eligible for this kind of business registration, the private Ld. must meet the subsequent criteria;

    1. Minimum of two and maximum of fifteen directors 

    2. At least one among the administrators must be an Indian resident 

    3. Minimum of two and maximum of 200 members 

    4. Additionally, an authorized capital fee amounting to a minimum of INR 1 Lakh

    5. Must have a registered office address within India 

    Types of Private Companies 

    1. Limited By Shares: In such private limited companies, the liability of the members is set by the memorandum to amount unpaid on shares allotted to them.

    2. Limited By Guarantee: during this case, the liability of members is proscribed by the memorandum of the number of members who will contribute or guarantees to pay if the corporate goes bankrupt.

    3. Unlimited: Moreover, such varieties of business entities don’t have any limit on the liability of their members. As a result, if the corporate assets fail to pay off creditors, members will need to use their private assets to clear debts, increasing the chance factor involved.

    Public Ltd. 

    A Public Ld. is one whose shares could also be purchased by members of the overall public. In such business entities, there’s no limit on the number of shares that may be sold or traded. Since the shares of the corporate are listed on the stock market, they will be traded freely, making the shareholders part-owners of the corporate. Such companies must obtain a Certificate of Registration from the RoC before commencing business operations. Further, as per the businesses Act, 2013 to be eligible for this kind of business registration, the general public Ltd. must meet the subsequent criteria;

     1. Minimum of three directors

    2. At least one of each of the administrators must be an Indian resident

    3. Minimum of seven shareholders with no cap on the most limit

    4. Moreover, an authorized capital fee amounting to a minimum of INR 5 Lakhs

    Partnerships

    Hence, the functions, duties, powers, and number of shares held are all clearly defined in an exceedingly verbal contract referred to as the Partnership Deed. Additionally, these businesses make up the purview of the Indian Partnership Act, of 1932. Partnership firms can function with or without a license as long as they need a legitimate and registered Partnership Deed. However, most partnerships do register themselves as that offers them additional rights. Moreover, to be eligible for this kind of firm registration, the partnership must meet the subsequent criteria;

    1. must have a signed registered Partnership Deed by all partners

    Limited Liability Partnership 

    Popularly called an LLP, indebtedness Partnerships also are a brand new kind of company in India. Moreover, it enjoys a separate position, helping distinguish between personal and business assets, and granting the entrepreneur’s liability protection. In such firm types, the liability of every partner depends on the amount of share capital, helping provide more protection than a Sole Proprietorship. Moreover, to be eligible for this kind of business registration, the LLP must meet the subsequent criteria; 

    1. Minimum authorized capital amounting to INR 1 Lakh

    2. At least one amongst the Designated Partners must be an Indian resident

    3. Minimum of two partners and no cap on the utmost number 

    4. At least one individual partner, if the remainder is corporate bodies

    One person company

    The newest entry into the various varieties of company registration allowed in India, OPCs are great for little businesses. Additionally, it became an element of the businesses Act 2013, to assist entrepreneurs who wish to run a business single-handedly. Since such a firm type has separate status, entrepreneurs get the good thing about liability protection without having to partner with anyone else. Furthermore, since they involve just one individual, this sort of firm registration is straightforward to include and regulate. Moreover, this essentially is a mixture of the Sole-Proprietorship and Company model of business entities. Additionally, to be eligible for this sort of firm registration, the One Person Company must meet the subsequent criteria;

    1. Minimum authorized capital amounting to a minimum of INR 1 Lakh.

    2. Further, a private must be a natural Indian Citizen and resident

    3. Additionally, Financial businesses cannot incorporate as an OPC.

    4. Further, should convert to a personal company if paid-up capital exceeds INR 50 lakhs or turnover exceeds INR 2 crores.

    Sole Proprietorship 

    This is another kind of business entity wherein one individual handles the running of the business. However, during this firm type, the corporate and also the owner is considered as one entity, making them solely chargeable for profits and losses. Moreover, since the registration bears the name of the owners, tax filings and accounting reports also will bear the name of the owner, resulting in unlimited business liability. As a result, this sort of company doesn’t have a separate business registration process. 

    Section 8 Company

    Commonly called a Non-Profit Organisation, they are mainly working for charitable purposes. Moreover, it involves promoting arts, science, literature, education, and protecting the environment. Also, all the profits generated by such forms of companies are accustomed achieve these objectives, and therefore the members don’t take dividends for themselves. To be eligible for this kind of firm registration, the Section-8 Company must meet the subsequent criteria;

    1. Minimum of two shareholders 

    2. Minimum of two Directors and that they may be shareholders further

    3. At least one amongst the administrators must be an Indian resident

    4. No minimum capital requirement must have a registered office address in India

    What do we provide? 

    We, at Finaxis, have developed an internet service marketplace where people can get online directory services from our well-versed professionals like Chartered Accountants or Company  Secretaries and Advocates, etc. you’ll be able to avail of cost-effective customized services as per your requirements. you’ll be able to expect services like Online Firm Registration Process in India,  Company Incorporation, Start-up Registration, Proprietorship Firm Registration, Online Company  Registration in India, etc.

    We have the answers to all of your queries like the way to register a corporation name in India? a  way to register a company? Company Registration Process, a way to get a Registration Certificate,  Company Incorporation in India, etc. 

    Why finaxis? 

    The company registration process is a completely online process so have so you don’t have to leave your home to register your company. At Finaxis we complete the registration process within 14 days.

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  • What Is Copyright?

    What Is Copyright?

    What is Copyright

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    What Is Copyright

    The copyright gets its importance from its appearance, duplicate, or words. Initially, it was utilized in 1586. It was the primary thing that was perceived as Intellectual property.

    There is a very much settled precept of “Ubi jus ibi remedium”. “where there is a right, there is a cure”. This principle is additionally pertinent to copyright. It gives different privileges to the creator or craftsmen and solutions for safeguarding those freedoms.

    Copyright

     

    Meaning Of Copyright

    Copyright is a creation of a statute. It is a form of intellectual property. It is a negative right; since it prevents others from copying or reproducing a work. It is a monopolistic right. Section 13 of the act envisages certain works in which copyright subsists. Section 14 provides for the meaning of copyright. Ipso facto copyright means the right to reproduce the work in which copyright subsists. It is an exclusive right to do or authorize others to do certain acts in relation to-

    (a)Literary, dramatic, or musical works;

    (b)Artistic works;

    (c)Cinematograph films;

    (d)Computer programmers/ software programmers;

    (e)Sound recording

    More so, the exclusive right for doing the respective acts extends not only to the whole of the work, but to any substantial part thereof, or to any translation or adoption thereof.

    The right to protection of copyright extends to original, literary, dramatic, artistic, and sound recording.

    Characteristics of Copyright

    (i)Exclusive right

    Copyright means the exclusive right to do or authorize others to do certain acts in relation to (a) literary, dramatic or musical works; (b) artistic works (c) cinematograph films (d) sound recording. Such elite ideal for doing separate demonstrations stretches out not exclusively to the entire of the work, yet to any significant part thereof or to any interpretation of variation thereof.

    (ii) Negative Right

    An option to keep others from replicating or imitating the work.

    (iii) Monopolistic Right

    Copyright like the patent is a monopoly restraining the public from doing that which, apart from the monopoly, it would be perfectly lawful for them to do.

    (iv) Copyright Is A Form Of I.P.R.

    Just like trademark, trade name, and patent right, copyright is a form of I.P.R.

    (v) Extensive Right

    Copyright is extensive in nature and it extends to replication of copies, etc.

    (vi) Global Perspective

    Copyright is protectable even beyond the territories of India.

    Salient features of Copyright

    The Copyright Act, of 1957 is based on the Berne Convention. The Indian Act borrowed its principle from U.K. law.

    The Act has the following salient features:-

     

      1. The Act has created a copyright office and a Copyright Broad to facilitate registration of copyright and to settle certain kinds of disputes arising under the Act and for compulsory licensing of copyright.

      1. The Act defines various categories of works in which copyright subsists and the scope of the rights conferred on the author under the Act.

      1. The Act lays down terms of copyright for different categories of works.

      1. The Act defines infringement of copyright and provides civil and criminal remedies against infringement.

      1. The Act emprovisioned first owner of copyright in a work.

      1. The Act provides for international copyright.

      1. The Act specifically provides for rights of authors of work.

      1. The Act specifically provides for civil and criminal remedies for infringement and damages thereof.

      1. The Act deals with rights of performers and broadcasters.

    The procedure of registration of copyright

    Registration Of Copyright

    Chapter X, The copyright Act, 1957, i.e., Section 44 to 50-A and Chapter VI of the copyright rules 1958,i.e., Rules 15 to 20 deals with Registration of copyright.

    Essentials For Registration

    Rule 15 provides for six separate registers of copyrights. More so, Rule 16 (g) of the rules provides for the procedure of registration, as under:-

     

      1. Application for registration of copyright should be made in accordance with prescribed Form IV.

      1. Such application should be in regard to one work just, and should be in three-fold and should be alongside determined expense.

      1. The person applying for such registration has to give notice of his application to every person who claims or has any interest in the subject matter of the copyright or disputes the right of the applicant to it.

      1. Within 30 days of the receipt of such application the Registrar receives no objection to such registration, he may enter such particulars in the Register of copyright.

      1. If the Registrar is not satisfied about the correctness of the particulars given in the application, he may hold such inquiry into as he deems fit.

    Rights of the copyright owner

    The copyright connotes the exclusive right to do or authorize the doing of any of the following acts in respect of a work or any substantial part thereof; of

     

      • Re: Literary, Dramatic or musical work

      • To reproduce the work in any material form including the storing of it any medium by electronic means.

      • To make any translation/adaptation of the work.

      • Re: Computer Programmers.-

      • To sell or give on commercial rental or offer for sale or for commercial rental any copy of the computer programmers.

      • Re: Artistic work.-

     

      • To reproduce the work in any material form.

      • To communicate the work to the public.

      • To make any adaptation of the work.

      • Re: Cinematograph Film.-

      • To make any copy of the film, including a photograph of any image forming part thereof.

      • Re: Sound Recording.-

      • To make any other sound recording embodying it.

    Whether Registration Essential

    The registration of copyright has not been made necessary under the Copyright Act, 1957. More so, the copyright exists whether the registration is done or not, and the registration is merely a piece of evidence as to when a certain author started claiming copyright in some artistic or some other work.

    Similarly, it has been held that registration of copyright is not essential. More so, the absence of such registration does not preclude the rights of the owner of the copyright.

    Further, non-registration of a work does not debar action against infringement of copyright.

    Infringement of copyright

    The exclusive right of the copyright owner includes publication, reproduction, storage, adaption, translation, the performance of work, etc. Where any of the aforesaid acts relating to work is carried out by a person other than the owner without a license from the owner or a competent authority under the Act, it comprises an encroachment of copyright in the work.

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