Any MSME unit which has supplied goods or render any services to any Company or any other person (buyer of goods or recipient of Services ) and the buyer or recipent is delaying in payment or not making due payment as agreed , can make an application for recovery of dues by MSME under MSME Samadhan Scheme.
Where any Micro or small enterprises supplies any goods or render any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier. Period of payment between the supplier and the buyer in writing shall not exceed forty five days upon from the day of acceptance
Where the buyer fails to make payment to supplier within forty five days the buyer shall be liable to pay the amount with interest thereon.
Who can apply under for Recovery of dues by MSME:
Any Micro or small enterprises having valid Udyog Aadhar/Udhyam Registration (UAM) can make Application for recorvery of dues from Debtors.
How much Amount MSME unit can claim Recovery of dues by MSME under MSME Samadhan Scheme :
The buyer is liable to pay bill amount and compound interest with the monthly rests to the supplier. Interest is calculated on the amount at the three times of the bank rate notified by RBI.
Filing of Application under MSME Samadhan Scheme
MSME units are required to file Application under Msme Samadhan Portal online with all the supporting documents including Invoices, purchase orders etc.
Examination of Application by MSME department
MSME department will examine application filed by MSME unit and if application is complete in all respact than department will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.
Appeal by Appellant :
If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the state council shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount.
A private limited company is the most accepted and popular business structure in India and is governed by the provisions of the Companies Act and rules made thereunder, to carry out business operations loan from director to company is the main source of debt funding private limited access.
In every type of business structure there are two main sources of funds that an organisation deals with, one is in the form of capital and other is in the form of loan or debt.
In case of a company accepting funds from the capital it has to issue shares, and if the company is accepting funds from loan there should be an agreement with respect to the terms and conditions assigned to the particular loan and the security provided for a given loan.
In this article we will discuss accepting loans from the directors of the company by a private limited company.
Please note that accepting any type of loans or money from any person in a private limited company falls under the provisions of companies acceptance of deposit rules 2014
“deposit” includes any receipt of money by way of deposit or loan or in any other form, by a company, but does not include –
“(viii) any amount received from a person who, at the time of the receipt of the amount, was a director of the company or a relative of the director of the Private company:
Provided that the director of the company or relative of the director of the private company, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others and the company shall disclose the details of money so accepted in the Board’s report;”
Step by step procedure for accepting loans from directors to Company
hold Board meeting and pass necessary resolution approving the limit up to which company can accept loans
The company is required to hold the board meeting and pass necessary resolution in this regard for approving the limit of loan up to which company can accept the loans.
Pass Resolution for Authorising Director to sign Necessary Terms and Conditions /Loan agreement for the loan
Accept at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting loans or deposits from others
Credit of Funds to Company Bank Account
Compliance with Respect to Loan : If the Loan Agreement or Terms of Loan Contains clause relating to the conversion of this loan into equity then the company is required to file form mgt 14 within 30 days from the date of such agreement
Annual Compliance with respect to loan from Director to Company :
As this loan is exempted from the deposit, the company is required to file Form DPT -3 with the amount of loan accepted from Directors of the Company under the column, Items Not considered as Deposits
Loan Agreement is an instrument and Stamp duty is required to be paid while executing the loan agreement as per rates prescribed by the State of Rajasthan in Rajasthan ( Stamp duty on Loan Agreement in Rajasthan) . Loan Agreement is a very important document that confers rights and obligations on lender and borrower (parties to Agreement )
Stamp duty Payable on Loan Agreement in Rajasthan
Amount of stamp duty Payable
0.25% of Loan amount max. Rs. 25 lacs
Loan Agreement to Start-Up, up to rupees ten lakh
Rs.0 after rebate
Loan Agreement to Start-Up exceeds rupees ten lakh
0.25% of Loan amount
Agreement Relating to Deposit of Title Deed/ Equitable Mortgage Deed when Loan repayable in more than 3 months
0.25% of Loan Amount Max 25 lakh
Agreement Relating to Deposit of Title Deed/ Equitable Mortgage Deed when Loan not more than 3 months
0.075% of Loan Amount Max 5 lakh
Loan to set up a Micro, Small or Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, or enhancing credit facility or transfer of loan account from one bank to another by Micro, Small or Medium Enterprises, in the State – Per document in case of loan agreement and deposit of title deed and lease contract Rs. 100/
Loan to set up a Micro, Small or Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, or enhancing credit facility or transfer of loan account from one bank to another by Micro, Small or Medium Enterprises, in the State – Per document in case of simple mortgage with or without transfer of possession of property Rs. 500/-
In this article we will discuss the amount of Stamp duty payable on power of attorney (POA) in Rajasthan, In India stamp duty varies from state to state and every state has its own rates for payment of stamp duty.
There are different instances where Power of attorney can be executed, stamp duty payable depends accordingly
Stamp Duty on Power of Attorney (POA) in Rajasthan
Particulars (Type of Instrument)
Amount of Stamp duty
When Power of Attorney is executed for the sole purpose of procuring the registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documents
When Power of Attorney is executed authorizing one person or more to act in a single transaction other than the case mentioned above
When authorizing not more than five persons to act jointly and severally in more than one transaction or generally
Power of Attorney executed by Client in favour of Stock Broker registered in SEBI for purchase of securities
When authorizing more than five persons but not more than ten persons to act jointly and severally in more than one transaction or generally
When given for consideration and authorizing the attorney to sell any immovable property
6% of consideration
When given for consideration and authorizing the attorney to sell any immovable property (Female SC/ST/BPL)
4% of Consideration (After Rebate)
when given for consideration and authorizing the attorney to sell any immovable property; (Female other than SC/ST/BPL)
5% of Consideration (After Rebate)
When given for consideration and authorizing the attorney to sell any immovable property; (Disabled 40% & above)
5% of Consideration (After Rebate)
When power of attorney is given without consideration to sell immovable property to the father, mother, brother, sister, wife, husband, son, daughter, grandson or grand daughter of the executant
when power of attorney is given without consideration to sell immovable property to any other person
0.5% of market value of property (After Rebate )
When given to promoter or developer by whatever name called for construction on, or development of, or sale or transfer (in any manner whatsoever) of, any immovable property, (Sale power not given)
1% of market value (After Rebate)
When given to promoter or developer by whatever name called for construction on, or development of, or sale or transfer (in any manner whatsoever) of, any immovable property, (with Sale power)
1.5% on proportionate part and 1% on remaining part of market value
Authentication Power of Attorney (any other Case)
How to Pay Stamp duty on Power of Attorney
Stamp Duty on Power of Attorney in Rajasthan can be paid both in Online and offline Mode, In case of Offline Mode you need to visit to Registered Stamp Vendor office and Purchase the stamp Paper of applicable amount and in case of Online mode , you may purchase stamp paper through registered office of stock holding corporation and authorized stamp vendors.
In this article, we will discuss step by step procedure on how to check if a brand name (trademark) is registered in India or not, checking of brand name registration status is very important for every business entity operating in any jurisdiction whether it is in India or outside.
Make a list of proposed Brand name’s (Trademark)
The first step is to make a list of the proposed brand names, business names or product names that you wish to register or check whether it is registered or not in India, It can be done by simple brainstorming, it is very much possible that if you brainstorm the brand names or the trade names for some time you will get some great names in your mind,
now what you have to do is you need to to know whether the said name is already available or not the best thing to do now is to check the same name on the search engine like Google or Bing if anything is available in this world with the same name or not it is a much higher possibility that if the same name is available you should skip that name as soon as possible because someone else is making some efforts on that name and it is better to leave that to the person or company, this is in a general sense if you have any specific requirements you may consider that name also.
Find the exact class of the product or services
In Trademark search there are 45 classes for different category of products and services, these 45 classes are based on a different type of categories like if you say your product falls in agree culture or agro-industry it will come under class 1 as all these products related to the agriculture of our underclass 1 of trademark, you are selling pharmaceutical medicines it will come under class 5 in TM also if you have electronic products mobile accessories and other items related to the electronics it will come under class 9 of the trademarks 2534 related products also under the class 35 normal business advertisement in business services a cover.
On the official website of the trademark search you will be getting the columns for the search and the first column you need to check whether you want to search for the exact match or it contains a search for searching the start word with the word so it depends on this search mark that you are going to do so it is advisable first to search with contains and then go with the start and exact match.
Now you need to write the brand name (trademark) in the next column
now come to Ganesh from which you need to put the class you simply put the class of your products or services discuss the home and like a if you are a searching for products relating to the readymade garments and put out class 25 simply put 25 in the next column.
Now you need to click on the search button and if you are finding some of the trade marks you need to go through and check them to see if these are relating to your mark if you find some confusion on that just simply don’t use tgis mark as it is not available to you.
If there is no mark available on the search page you need to search it again for the next process and in all that processes if you find more results it is beat her and most probably the mark is available for registration.
As per the information available on the flair portal of RBI for submission of the foreign asset and liabilities returns for the entities holding foreign investment and liabilities is now been extended to 31st July 2020.
All entities can file a return to the RBI for Foriegn Assets and Liabilities on or before 31st July 2020
Insurance Broking business is gaining popularity in India due to increasing awareness about insurance and large untouched market, also many new insurance companies are now coming with different insurance products, while now Term Insurance, Health Insurance, and Vehicle Insurance is now a very important part of individual’s financial planning, Also if we consider the requirements of Insurance also in a business where Fire Insurance, Machinery, Keyman Insurance, Directors and Officers liability insurance are importantly required. Insurance Brokers play a very important role in the Insurance Industry as
An insurance broker is a professional who offers, negotiates, and sells policies. He acts as an intermediary between insurers and customers and receives compensation.
An important role of brokers is to help insurers to assess the types of risks they face. Risks include natural hazards such as bad weather, hurricanes, tornadoes, fires, and floods. At the same time, brokers act on behalf of and in the interest of customers. They do comparison shopping to find the best deals and offer policies from more than one insurance company. Brokers also help their clients to outline risk management strategies, which are suitable for their profile. There are different types of risk to look into, including natural disasters, car accidents, credit risks, cash flow problems, legal liabilities, and others
In this article we will discuss about the registration of Insurance Broking Company in India
Categories of the Insurance brokers
Following are the categories of Insurance Brokers:
Direct broker (life)
Direct broker (general)
Direct broker (life & general)
Registration of Private Limited Company/LLP
In India, IRDA regulates the Insurance broking business in India and as per regulations of IRDA, an Insurance Broker should be registered as Private Limited Company /LLP in India
Name of Insurance Broking Company
The insurance brokers shall have the word ‘Insurance Broker’/ ‘Insurance Brokers’/‘Insurance Broking’ in the name of the Insurance Broker to reflect their line of activity and to enable the public to differentiate insurance brokers registered with the Authority from other non-registered insurance-related entities.
Minimum Capital Requirement for Insurance Broking Business
Any applicant seeking to become an insurance broker shall have a minimum paid-up capital/contribution as mentioned below:
Minimum Capital/ Contribution (Rupees)
Seventy Five Lakh
The above Capital should be only in equity and not in any other form, further, the investment in the applicant by the promoters/ shareholders/ partners shall be from their own funds and not from any other sources.
Explanation: Own funds do not include funds arranged by way of borrowings or loans.
Net-worth requirements for Insurance Broking business
The net-worth of an Insurance Broker shall at no time during the period of the certificate of registration fall below:
Rupees fifty lakh for a direct broker,
50% of the minimum capital requirements or contribution or equivalent for reinsurance / composite broker.
Explanation: For the purposes of these regulations, “net worth” shall have the meaning assigned to it in the Companies Act 2013 and as amended from to time
Every Insurance broker shall submit net worth certificate duly certified by an Auditor every half-year to IRDA
Deposit requirements for Insurance Borking Business in India
Every insurance broker shall before the commencement of their business, deposit and keep deposited with any scheduled bank a sum equivalent to:
Rupees ten lakhs for Direct broker
10% of the minimum capital/ contribution specified under Regulation 19(1)for reinsurance / composite broker in fixed deposit, which shall not be released to them without the prior written permission of the Authority.
The deposit shall have a lien with the Authority
Such deposit shall not be pledged for taking any loan or overdraft facility by the insurance broker
Every insurance broker shall furnish to the Authority as and when called upon to do so a non-encumbrance statement from scheduled bank in which such fixed deposit is kept
The interest earned on the deposit shall not be subject to lien with the Authority
Professional indemnity insurance
Need to furnished, within 12 months for newly registered brokers
Other services that can be provided by Insurance Broker
Claim Consultancy and Risk Management can also be provided by Insurance brokers
Application Fee for Registration of Insurance Broker
Direct broker: Rs.25,000 and Rs.50,000/- after the grant of in-principle approval in case of a fresh applicant.
In the case of Renewal of Registration, the fee shall be Rs 1,00,000/- for a period of 3 years
Fifty hours (50hrs) of theoretical and practical training from an institution recognised by the IRDA from time to time, and should have passed an examination, at the end of the period of training, conducted by the National Insurance Academy, Pune or any other examining body recognized by the Authority
25 hours if the applicant is CA, CS etc and should pass the examination within 1 year
Step by Step Procedure for Registration of Insurance Broking Business
Register Private Limited company by including word “Insurance Broker’/ ‘Insurance Brokers’/‘Insurance Broking
Increase Capital to Rs. 75 Lakh
Obtain Training and Pass Required Examination
Make a Deposit of Rs. 10 Lakh
Apply to IRDA for Licence
Follow up with IRDA
Insurance Broking Licence
Professional Indemnity Insurance
Fastlegal Provide Insurance Borking Business Registration Services in India, Please call at 9782280098 or email us at [email protected]
Indian government has announced the relief of measures for economic revival due to COVID19 crisis happening. The government has is the definition of m s m e Enterprises to increase the limits of an investment in the business.
Earlier there was a different criteria for manufacturing as well as service units, now all these entities are treated as equally and criteria for both the manufacturing and service units are same.
this will cover more new service enterprises as well as manufacturing units with the higher turnover and investment into the micro small and medium enterprises definition and these Enterprises can now avail the various schemes provided to MSME by government of India
this criteria is applicable for all the entities suggest proprietorship firms,LLP, private limited companies and partnership firms
New criteria for classification of micro, small and medium enterprises (MSME):
(i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; (ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; (iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
The new criteria for MSME is effective from 1st June 2020.
In this article we will discuss Producer Company Registration in Rajasthan, A Producer Company is a Corporate legal entity ( Producer Company Registration ) formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A Producer Organisation can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. In some forms like producer companies, institutions of primary producers can also become member of PO.
Producer Company is registered as a private limited company with the last word of the producer company in the name comes with producer Limited, There is no limit for the maximum number of members in a producer company and there should be minimum 10 members and the minimum director in the company should be 5.
What are the Benefits of producer Company Registration in Rajasthan
Benefits and Income Tax Act for Agriculture Income
Loan facility can be provided to the members by the company
Can accept deposits in the form of fixed or recurring deposits
Good Pricing for produce
Procuring at cheaper price compared to individual purchase
Reduced Cost of Transporation
Reduced Cost of Production
Benefit of economies of scale.
Assistance by government in various schemes
NABARD has taken up the cause of supporting and to meet the needs of Producer Companies. It set up a Rs. 50 crore Producer Organisation Development Fund (PODF) in 2011, out of its operating surplus
What is Primary Produce
Primary produce means the produce of farmers from agriculture and allied activities or produce of persons engaged in handloom, handicrafts and other cottage industries, including any by-product and product resulting from ancillary activities thereof.
Primary produce also includes any activity intended to increase the production or quality of the aforementioned products or activities. Persons engaged in agriculture, horticulture, animal husbandry, fishery, sericulture, apiary, handloom, handicrafts, etc., can become members of the appropriate PO. Persons engaged in the collection of minor forest produce are also eligible for membership of PO although they gather these from forests and strictly are not producers
Documents Required for Members and Directors :
Bank statement or Bank pass book with name address and Last entry should not be older than 2 months
Passport size photograph of all the applicants
Certificate/Identity that all the applicants are involved in the activities relating to producer company