In this article we will cover LLP Filing due dates for Financial Year 2021-22, Every LLP Incorporated in India is required to file mandatory returns as per LLP Act , Income Tax Returns, and GST Returns , if applicable
Here we are covering the all the Filings that an LLP is required to file and there due dates :
LLP Annual Return in Form 11
Every LLP is required to file its annual Return to Registrar of Companies (MCA) within 60 days from the end of Financial Year of LLP in Form 11.
Capital Contribution by each designated partner /Partner of LLP
Turnover of LLP – If exceed 5 cr it LLP annual return is required to be certified and signed by Company Secretary in Practice
Name of Companies and LLP’s in which Partner /Designated partner are Directors or Partners
DIR-3 KYC of Designated Partners
Every Designated partner is required to file KYC form with MCA every year. This is mandatory requirement other the DIN of Designated partner got deactivated and Payment of Rs. 5000 is required to be paid to get activated after 30th Sept due date.
LLP Accounts and Solvency in form 8
Every LLP is required to file Form 8 to MCA within 30 days from the end of 6 months from the end of Financial year , Form 8 of LLP contains information regarding Annual Financial Statements of LLP , wherein LLP is required to file full amounts of Balance Sheet and profit and Loss Account.
Audit Requirement in LLP : LLP is required to get its accounts Audited if its contribution exceed Rs. 25 Lakhs or Turnover Exceeds 40 Lakhs from Chartered Accountant.
Income Tax Return of LLP
Income Tax Filing is mandatory for LLP in India, the taxability of LLP is same as partnership firm except few changes, Every llp is required to file its income Tax return by 31st of July and if accounts of LLP are required to get audited the last date for filing llp income Tax return will be 30th September.
TDS Return for Tax Deducted (Quarterly) of LLP
Every LLP is required to file TDS return every quarter, if there exists any Tax Deductions for payments of Salary in 24Q form , and payments for Services in Form 26Q, TDS returns are filed every Quarter
GST Return (Monthly/Quarterly) of LLP
If LLP has GST Registration than LLP is required to file monthly /Quarterly GSTR1 and GSTR3B Returns. If LLP is not having GST Registration than this return is not required to be filed.
In this article we will discuss about the new procedure for registration of entities for undertaking CSR Activities, with effect from 1st April 2021 every entity undertaking CSR Activities must register with MCA by filing form CSR-1.
In accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, company can undertake CSR activities either itself or through entities defined under Rule 4 sub rule (1). These companies/entities are required to mandatorily register themselves with the central government for undertaking any CSR activity by filing the e-form CSR-1 with the Registrar.
Procedure for obtaining CSR Registration Number :
Class of Entities that can be registered :
Company established under Section 8 of the Companies Act, 2013 with Section 12A and Section 80G registrations under the Income Tax Act, 1961.
Registered Public Trust with Section 12A and Section 80G registrations under the Income Tax Act, 1961.
Registered Society with Section 12A and Section 80G registrations under the Income Tax Act, 1961.
Company established under Section 8 of the Companies Act, 2013 or Registered Trust or Registered Society established by the Central Government or State Government
Entity is established by any company or group of companies Registration- YES/NO
if not, established by any company or group of companies:
that entity must have established track record of three years in undertaking similar activities
Name of Entity
Date of incorporation
Details of Directors/ Board of Trustees/ Chairman/ CEO/ Secretary/ Authorized Representatives of the entity
Documents Required :
Certificate of Registration
PAN of Entity
Uploading of CSR 1 form with MCA :
The CSR 1 form is required to be uploaded with MCA after certification from Authorized Person and by Company Secretary /CA/ CMA in Practice
Processing Type of CSR 1 form
When an eForm is successfully processed, an acknowledgement of the same is sent to the user in the form of an email to the email id of the entity. Further, a digitally signed approval letter along with CSR Registration number with Format CSRXXXXXXXX where X represents system generated unique sequential number will be sent to the FO User as well as the email ID of the entity as entered in the eform.
In this article we will discuss the main requirements for trademark registration in India, Trademark Registration is very important part of brand building and creating intellectual assets for any business, Trademark registration process is now fully online procedure and can be done online by applicant himself or through his attorney or agent Authorized by him.
Following are the main requirements of filing of Trademark Application :
Public Search of Trademark (Main requirements for Trademark Registration)
Public search of trademark enables applicant to know the existing mark that are identical or similar to any previously used mark , this helps us to know that we should opt for particular trademark or not , Public search of Trademark can be done online via public search of Trademark link.
Public search of trademark is required to be done carefully, unproperly public search of trademark may lead you in serious trouble and your trademark process may takes years to complete or you may have to leave the mark in vain.
Date of Use of Trademark (Main requirements for Trademark Registration)
Date of Use of Trademark is also most important thing we must take seriously , Date of use makes lot of sense in Trademark registration and help you stand out from others with prior user tag, Applicant of Trademark must ensure that he should have proper evidence for establishment of date of use , Evidence may be any sales bill, Spending on Advertisement etc.
In the trademark registration process applicant must submit affidavit that he is using the mark from the particular date.
Goods and Services Description in Trademark Registration
Goods and Services Description in Trademark is another important thing we must consider seriously, goods and services description helps you to get trademark for the particular product and services, in Trademark there are Forty five (45) classes in total for different goods and services description, we need to carefully decide that in which class our trademark is falling and we should apply accordingly.
Status of Proprietor of trademark in Trademark Registration Application
The Fee Structure of Trademark is based on the legal structure of business of Proprietor , for Single Firm, MSME and Startups fee for Trademark Application of Rs. 4500 and other Rs. 9000 per class, so the applicant of mark is MSME or startup, he should accordingly.
You have decided to start your business which you had kept on a burner for a long time. You are very excited and genuinely believe in your product. Having a marketing plan is very important when you are starting a business. Unless you have sales your business will die a slow and painful death.
Don’t worry, you can make sure that you to solve the issue of getting sales by using the 3 marketing tips we have mentioned below to kick start your startup marketing plan. Let’s get started.
1. Set up your website and legal formalities in place
Having a website to showcase your business to the world is one of the most important aspect for a startup. You won’t be able to market your ideas, goods, services, etc to the world without it.
There are many options when it comes to setting up your website. If you have an E-commerce website, Shopify is the best option for you. If you have a services business, WordPress is the best solution for you. If you have a location based website, you can set up a beautiful location based WordPress website.
You need to make sure though that your website is hosted on a robust and stable hosting server. If your business goes viral and you get a lot of visitors to your website, you don’t want your website to just because the hosting wasn’t strong enough. This has happened many times when a business idea went viral. For example, this has happened to businesses that were showcased on Shark Tank.
You can also opt for a local hosting service so that the website is shown to your audience faster. For example, if you are based in Australia, you can find a quality Australian web host to host your website.
Also, make sure that you have set up all the required legal formalities which include setting up your business as an LLC or a Private Limited Company, etc as per your requirements. File all the necessary tax and other declarations, etc. It is best to go with a professional company like us to ensure that there are no compliance issues in the future.
2. Get on social media
Getting your business of product or service viral is very important. You can do so by getting your website or your product viral on social media. Most startups have a very tight budget. To ensure that you make sales fast, social media is the best platform that you can leverage.
It is very easy to sell your products and create awareness for your product on social media platforms. Depending on your product or service, you can focus on various social media platforms.
Instagram and Pinterest are great for home décor, fashion, and retail businesses. LinkedIn is perfect if you want to target other businesses. If your product is visually appealing then you can go for Instagram or YouTube
3. Get Local Press
Using local press to your advantage is an excellent strategy that you can use as a business startup. Most local newspapers and magazines cover a local success story or an upcoming business. You will be able to expand your business and brand awareness with little to no cost. If you are lucky, the article may also be picked up by syndicated news publishers and your product or service can go viral.
Bootstrapping a Startup is difficult but not impossible. With the above three tips, you can easily get started and have sales which will lead to profits. You can use the profits to invest in paid advertising and other avenues which well get more sales and help your business grow.
With the object of unleashing the entrepreneurial spirits of our youth and to remove the fear of criminal prosecutions for non- substantive minor and procedural omissions and commissions in the normal course of their business transactions, the Government of India in the Ministry of Corporate Affairs (MCA) decided to initiate the process of decriminalization of compoundable offences under the limited liability partnership (LLP) Act, 2008, for greater ease of doing business for law abiding LLPs.
The Government treats Honest and Ethical Corporate entrepreneurs as wealth creators and nation builders. The objective of the De-criminalization exercise is to remove criminality of offences from business laws where no malafide intentions are involved. In furtherance of the said objective, an exercise was undertaken to identify those provisions of the Limited Liability Partnership Act, violations of which do not result in injury to public interest but are presently criminal in nature with fine as well as punishment after conviction being provided for in the Act.
Principles adopted for Decriminalization of Compoundable Offences:
Principle 1: Offences that relate to minor/ less serious compliance issues, involving predominantly objective determinations, are proposed to be shifted to the In-house Adjudication Mechanism (IAM) framework instead of being treated as criminal offences.
Principle 2: Offences that are more appropriate to be dealt with under other laws, are proposed to be omitted from the LLP Act, 2008.
Principle 3: For non-Compoundable offences that are very serious violations entailing an element of fraud, intent to deceive and caused injury to public interest or non- compliance of order of statutory authorities impinging on effective regulation, Status Quo would be maintained.
In all, twelve (12) offences are proposed to be decriminalized and one (1) provision (Section 73) entailing criminal liability is proposed to be omitted. The 12 de-criminalized offences would then get shifted to IAM thereby de-clogging the criminal courts from routine cases.
In addition to the De-criminalization of the Act the Government also proposes Introduction of certain new concepts into the Act for greater Ease of Doing Business:
Small LLP: It is proposed to create a class of LLP called as “Small LLP” in line with the concept of Small Companies. Such Small LLPs would be subject to lesser compliances, lesser fee or additional fee and lesser penalties in the event of default. Thus, lower cost of compliance would incentivize unincorporated micro and small partnerships to convert into the organized structure of an LLP and derive its benefits.
Non-convertible Debentures (NCDs): It is proposed to allow LLPs to raise capital through issue of fully secured Non-Convertible Debentures (NCDs) (as an alternative to equity participation) from investors who are regulated by SEBI or RBI. This will help deepen the Debt Market and enhance the capitalization of LLPs.
Reduction of Additional Fee: It is also proposed to amend Section 69 of the Act with a view to reduce the additional fee of Rs. 100 per day which is presently applicable for the delayed filing of forms, documents. A reduced additional fee is expected to incentivize smooth filing of records and returns of LLPs and consequently result in an updated registry for proper regulation and policy making.
Starting a new business needs some decision making at a very initial stage. But they have bearing on the overall success of the business. The first question we need to answer is to choose the Business setup. There are various options. Indian law provides many options for a business set up. It contains a small business entity like a proprietor and can go to a complex one like a public limited company or further a listed company.
In this article you will understand all these setups.
Different Types of Business Setup to Choose
a). How to set up a proprietorship?
It is the simplest form of business setup. There is no need to apply for a separate PAN for starting a business as an individual. You can have different names for the business. No extra compliances are required.
b). How the income of a proprietor will be taxed in income tax?
The income of a proprietor is taxed on the normal tax rates of an individual. The income is shown in the income tax return of the proprietor as an income from business or profession. The tax rates of individuals are applicable on a proprietorship business.
a). How to set up an HUF?
A HUF is automatically formed at the time of marriage & includes women such as wives & unmarried persons/daughters. There must be one common ancestor to continue the lineage/descendants. Gifts, wills, property sale or inheritance are all collectively shared as assets & so not repeatedly subject to tax.
Upon being established, a HUF needs to be officially registered in its name. It should have a legal deed, containing details of members and the business nature of the HUF. A PAN number and bank account should be opened in the name of the HUF.
b). How to tax income of an HUF?
A Hindu Undivided family unit can save taxes by creating & pooling in assets to form an overall entity. This is taxed separately from its individual members.Hindus, Buddhists, Jains, and Sikhs can also form a HUF. This unit has its own PAN and files tax returns independently of its members.
The main advantage of this is that each family member can claim their own respective exemption as a deduction or tax rebate. Additionally, insurance can be undertaken for the entire family unit, whilst internal functional member salaries can be disbursed & later deducted from the total income (treated as an expense). Investment returns are again taxable overall, however HUF tax rates are the same as for individuals. This saves money for the family.
3. Partnership firm
a). How to set up a partnership firm?
A formal partnership deed on a stamp paper is required. The names of all partners and their details should be there in the deed. The object clause is required in partnership deed. The manner of sharing the profits , salary of partners and capital contribution is also covered in partnership deeds.
b). How to tax income of a partnership firm?
There is a separate tax rate to tax the income of a partnership. Their tax incidence is highest in comparison to all other forms of business. They don’t get any minimum exemption like the individual and huf.
An LLP can be set up fairly easily. All that’s required is a minimum of 2 or more assigned partners, their respective documents, including PAN & address proof, such as Aadhar, Driving license, etc. Furthermore, a photo of each participant & credentials pertaining to the property where the business will be based or conducted. These could be a rent agreement, tax receipt/ownership deed or latest utility bill. The same also applies in the case of partnerships with foreign nationals (using their documents from abroad).
b). How to tax income of an LLP?
This is simple & tax is levied at a flat rate of 30% on all income under Rs. 1 Cr, beyond which an additional 10% surcharge is applied over the total amount. Method of payment include downloading & filling a physical challan document (ITNS 280), subsequently making the payment at a designated bank branch. Alternatively, one can pay online via the e-pay portal.
a). How to set up an OPC?
A One Person Company (OPC) can be established with just 1 director & member (totalling a minimum of 2 people overall). This is as per Section 2(62) of the Company’s Act 2013. Firstly, one needs to apply for a Digital Signature Certificate (DSC) of the intended director. This requires an Aadhar & PAN card (both for ID, address proof & tax purposes), photo, email address & phone number.
Upon receiving the DSC, one needs to apply for the Director Identification Number (DIN) for the proposed Director using the SPICe form. This should be accompanied by the name and the address proof of the director. For existing companies, form DIR-3 is required. Since January 2018, the applicant doesn’t need to file this separately. The DIN can now be applied within the SPICe form for up to three directors.
Now the name of the company needs submitting & approval. This needs to be in the form of “ABC (OPC) Private Limited”. There are 2 avenues in applying for this: either using form SPICe 32 or the RUN web service by MCA (by submitting 1 name & the justification of this). Since 23/3/2018 though, the Ministry of Finance has permitted 2 proposed names & 1 resubmission (RSUB), whilst reserving unique names for unique names (RUN service) for companies.
Upon approval by the MCA, one can progress further.
The following documents need preparing to be submitted to the ROC (Registrar of Companies):
The Memorandum of Association (MoA) which are the objects to be followed by the Company or state the business purpose for which the company will be incorporated
The Articles of the Association (AoA) which stipulates the operating company by-laws
As there’s only 1 Director and a member, a representative nominee needs to be appointed. In the event that they become incapacitated or dies & is unable to perform their duties, the nominee will act on the director’s behalf. Consent will be acquired in Form INC – 3, along with their PAN & Aadhar Card
Proof of the proposed company’s registered office, plus ownership and a NOC from the owner is also required. Furthermore, affidavit & consent from the proposed director on form INC -9 & DIR–2, respectively. Finally, a declaration by the professional which certifies that all regulations are fulfilled.
No coming onto the filing of forms with the MCA. All documents will be attached to the SPICe form series along with the DSC of the director & member. These will then be uploaded to their site for approval. Upon uploading, forms 49A & B will be generated for the PAN & TAN of the company. These need to be sent to the MCA as well.
Lastly, upon verification, the ROC will issue a certificate of incorporation, ready for initiating business operations.
b). How to tax income of an OPC?
This is simple: it’s merely applied at a flat rate of 30%.
6. Private company
a). How to set up a private company?
Upon finalising & deciding a name for the company:
#1: Apply for DSC (Digital Signature Certificate)
#2: Apply for the DIN (Director Identification Number)
#3: Check for the proposed name availability & secure it
#4: File the EMoa and EAOA to register the private limited company name
#5: Apply for both the PAN and TAN of the company
#6: Certificate of incorporation will be issued by RoC, along with PAN & TAN
#7: Open a current bank account using the company name
b). How to tax income of a private company?
This is levied at a rate of 25% plus surcharge of 7% if the total income exceeds Rs. 1 Cr but less than 10 Cr. Above 10Cr, the surcharge increases to 12%. The overall rate increases to 30% if the annual turnover exceeds 250 Cr.
7. Public company
a). How to set up a public company?
The requirements for registration of Public Limited Companies (PLC) are similar to those of establishing an OPC, with a few differences – yet it remains simple. There are a multitude of rules and regulations set under the Companies Act, 2013 for this. Aspects to consider during this process include:
A minimum of 7 shareholders & 3 directors are needed to form a PLC
A share capital of at least Rs. 5 lakhs is required
A Digital Signature Certificate (DSC) of one of the directors is needed for submission
Self-attested copies of identity and address proof
The intended directors of the company will need a DIN
An application is warranted for selecting the company name
The main object clause of the company must be mentioned, stating what a company will do after its incorporation. The application needs to be submitted to the ROC along with the required documents like MOA, AOA, filled forms DIR – 12, INC – 7 & 22. These need to be accompanied by the applicable registration fees. Upon obtaining an approval from the ROC, the company can apply for the ‘certificate of business commencement.’
Documents required for incorporating a PLC:
Proof of identity & address plus PAN number of all the shareholders and directors
Utility Bill of the proposed registered company office location
NOC from the landlord/leaseholder where the company office intends to be situated
DIN & DSC of all the directors
Memorandum & Articles of Association (MOA) & (AOA)
b). How to tax income of a public company?
This is levied at a rate of 30% plus surcharge of 5% if the total income exceeds Rs. 1 Cr. Additionally, 3% Education cess & Secondary and Higher Education cess on the total of the income tax & surcharge.
8. Listed company
a). How to get a company listed?
Firstly, the issuer should be a company incorporated under the Companies Act 1956 / 2013 in India. Secondly, the post issue paid up capital of the company (face value) shouldn’t exceed Rs. 25 crore. A track record of at least three years of either:
i. the applicant seeking listing; or
ii. the promoters (holding a minimum of 3 years of relevant experience & holding at least 20% share of post issue equity capital share, collectively or individually) or a promoting company, established in or outside India or
iii.Proprietor/Partnership firm which subsequently converted into a company (however not in established as such for three years), then approaches the exchange for listing
The company/entity should have an operating profit (earnings excluding interest, depreciation and tax) from operations for a minimum of any 2 out of 3 financial years preceding the application and its net worth should be in the positive balance.
It’s also imperative that the applicant company has not been referred to a former board for Industrial and Financial Reconstruction (BIFR). Furthermore, no action should have been taken under the Insolvency and Bankruptcy Code against the issuer and promoting companies.
Lastly, the company shouldn’t have received any winding up petition admitted by a NCLT or court. No material regulatory/disciplinary action by a stock exchange or regulatory body should be recorded in the previous three years against the applicant company.
b). How to tax income of a listed company?
This is also referred to as corporation tax. It is set at 25% for annual turnovers of less than (& including Rs. 250 Cr) & 30% above this. A 5% surcharge is levied on any amount exceeding 1 Cr, irrespective of the total amount.
CA Shaifaly Girdharwal
CA Shaifaly Girdharwal is a qualified chartered accountant practicing in GST. She is the co-founder of www.consultease.com and a famous YouTuber with more than 2,40,000 subscribers for her channel dedicated to the GST videos. She is also a trainer and author. She is a trainer at https://www.consultease.com/courses/.
Every law firm needs new clients to grow and survive. Your firm could be located anywhere in the world, but more clients means more business. Word of mouth has long been the most effective marketing strategy in getting clients. However, times are changing, as there are plenty of online marketing strategies to acquire new clients for your practice area.
With 96 percent of people seeking legal advice using search engines and around 74 percent who begin their searches actually end up calling law firms through their phones. Online presence has become a necessity in growing a successful law firm in today’s digital age. Search Engine Optimization (SEO) is key in building your online presence and making you visible to prospects. Law firms that optimize SEO ranks their website higher on search engines and generate more traffic which ultimately leads to more clients. In this article, you will learn some key aspects in building your SEO law firm and boost higher in website rank boosting.
(What is Law Firm SEO and Why is it Important in Boosting Website Rank. Credit: Pexel)
What is SEO and why Law firm SEO?
SEO has always been an integral part of a successful marketing strategy. Whether you are offering a product or a service, the competition has become more evolved than ever before. SEO is a process of improving your online presence and website with a collection of tools so that your site ranks higher in search engines. Well, we know the fact that if your site receives more clicks, the more people visit your site and this brings an opportunity for those users to find the service or product that interests them.
In other words, if your law firm appears on the first page of the top search engine results, your site will drive it more visitors. Once visitors click your website, they will have access to the content on your site and could reach out to you provided your information is helpful or not. The challenge is trying to get your law firm to the top of the search results. SEO is business is similar to law firm SEO’s as the process remains the same but few things such as targeted keywords and content differ. Since we are talking about optimizing websites, if you are looking for a good web hosting provider, 28msec provides excellent reviews on hosting services. You can check their web hosting comparisons which can help you make a decision for your company.
For example, if you are a criminal attorney practicing in Toronto, Canada. When people living in your city type ‘criminal attorney Toronto’, a list of attorneys are visible to them from which they can choose from. The same goes for other law practices from any part of the world. The goal is to be found by potential clients first.
Benefits of Law Firm SEO
People use keywords to search information on search engines to find what they are looking for. Knowing what these keywords are is the first step to optimizing your website and driving more traffic to it. By making a list of phrases and keywords that people could use for your services is the first step in optimizing your website and driving traffic to it. You can use free keyword tools that are available such as Google suggestions, Google trends, WMS Everywhere and Keyword.IO.
Strategic Keyword Selection
Using any keyword aimlessly or excessively within your content can result in penalizations by search engines. Your keywords should be distributed on your website such as in your home page, service pages, blogs,etc. You can also include them in your H1s. H2s and H3s. Another important strategy is using keywords in your meta descriptions and images on your site.
One of the first steps taken by potential clients is seeking legal counsel in search engines for general information. Providing clients with high quality content which is informativ can reduce bounce rates and increase the chances of turning your website visitors into leads. Guest posts, blogs and social media are a great way to reach out to readers with relevant and informative content. Use keywords in your content to make it visible to search engines. Your posts will also be a valuable source of quality backlinks to help improve your search rankings.
(What is Law Firm SEO and Why is it Important in Boosting Website Rank. Credit: Pexel)
Website Design and Structure
User experience is an essential part of keeping visitors on your site long enough to turn them into clients. That’s why a website with good design and structure is vital for SEO. Your website should not only be attractive in design but also be easy to navigate. It should present information in a way that makes it easy for users to get the information they need.
Your website should have a friendly design yet reflect professionalism. It should be a reflection of your law firm.
You can boost your website’s visibility in SERPs using schema markup. This powerful tool involves putting code (semantic vocabulary) on your website that helps search engine bots to pick up more information on web pages that is relevant to users.
Your listing on search engine results pages will be a rich snippet that includes information such as images, star ratings, site links, images and much more. Providing users with more information about what they can expect when they visit your website or who you are is a great way to attract qualified leads to your website.
Very GMB Listing
You can improve your online presence and drive traffic to your website by adding your business on Google My Business. Your clients or potential clients will be provided with detailed information about business on Google Maps and GooGle Search pages such as address, phone number and client reviews. You can add images to make your listing a bit attractive. Include relevant keywords to ensure you get better ranking on Google Maps and Google Search.
The easiest way to improve online visibility is social media. By posting relevant and informative content can drive people to your social media handle and in turn to your website. You can also add your social media platforms to your website which will add credibility to your firm and improve your websites SEO. By doing so people will be inspired to share, comment or report if your content is relevant to them.
These are just some of the benefits you will receive from running an SEO campaign on your law firm website. As you can see by changing a few things on your website, it will not only improve your website but help you grow and reach out to valuable clients to your site. If you are new to these resources, you may want to turn to an SEO company or coach who can guide such as Matt Diggity. He is a proficient SEO coach who can teach you on how to double or triple your SEO results. You can also check their page to learn more about SEO marketing strategies. Here are a few tips to help you find the best SEO company for your law firm.
(What is Law Firm SEO and Why is it Important in Boosting Website Rank. Credit: Pexel)
How to Find the Right SEO Company
A portfolio tells you a lot about a company and the work they do. By looking at a company’s portfolio, it will give you insight into their experience and process as a SEO agency.
The next you would want to look out for is results. Any successful SEO company for lawyers will have a long history of results from their clients. A successful SEO is beneficial in improving your website and achieving great results.
Company values are a very important part of selecting an SEO company. Hiring a company that shares similar values will help create a better partnership and help you drive better results for your law firm.
It is important that you investigate the teams dn see what qualifications they have. You can make sure they fit well with your company because a knowledgeable SEO company will help you drive in more traffic.
When you find an SEO company you think fits your website’s need, don’t be afraid to ask them questions. A qualified SEO company will address your questions or concerns as best as possible. If they are transparent and upfront with you about any concerns. You too can be honest, flexible and will to do what’s best for you and your company. This is a great way to help you find the best SEO company for lawyers.
Now that you know the importance of law firm SEO, you can optimize your website to achieve better results.
Section 149 (3) of the Companies Act, 2013 has provided for the residence of a director in India (Resident Director in India) as a compulsory i.e. every company shall have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year.
So if you are Incorporating a new company that has all the Directors who is not Indian Residents, you need to hire one Indian Resident Director.
Duties and Responsibilities of Resident Director in India
Resident Director will be fully responsible as Normal Director of the Company,
Resident Director will not be involved in operational control of the company.
Resident Director will be appointment to fulfill the statutory requirements.
Directorship will be covered under the officers and liability insurance.
Resident Director will participate in Board Meetings of the Company, wherever required
Fastlegal provides Professional Resident Director appointment services for foreign subsidiary companies setting up Business in India to fulfill the requirements of provisions of the Companies Act, 2013
Pricing for Resident Director Services: Provided on request.
The government has extended the deadline for filing income tax returns for assessee whose accounts are required to get audited to 15th of February, 2021 for assessment year 20-21.
While filing the tax audit report have been limited to 15th of January only.
The income tax India Twitter handle announce the extension of the deadline for filing income tax returns, the income tax returns for the individual taxpayers whose accounts are not required to be audited has been extended to 10th of January 2021
In this article, we will discuss the process of hedge fund Registration in India i.e. alternative investment fund in India with securities and exchange Board of India (SEBI)
Securities And Exchange Board Of India (Alternative Investment Funds) Regulations, 2012 mainly regulate the Hedge funds in India.
Meaning of Hedge fund and Alternative Investment Fund :
“Hedge fund” means an Alternative Investment Fund which employs diverse or complex trading strategies and invests and trades in securities having diverse risks or complex products including listed and unlisted derivatives
“Alternative Investment Fund” means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which,-
Is a privately pooled investment vehicle which collects funds from investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors; and
Is not covered under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999 or any other regulations of the Board to regulate fund management activities:
Provided that the following shall not be considered as Alternative Investment Fund for the purpose of these regulations,-
family trusts set up for the benefit of ‘relatives’ as defined under Companies Act, 2013;
ESOP Trusts set up under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 or as permitted under Companies Act, 2013;
employee welfare trusts or gratuity trusts set up for the benefit of employees;
’holding companies’ as defined under sub-section 46 of section 2 of Companies Act, 2013;
other special-purpose vehicles not established by fund managers, including securitization trusts, regulated under a specific regulatory framework;
funds managed by securitisation company or reconstruction company which is registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; and
Any such pool of funds which is directly regulated by any other regulator in India;
How to Register Hedge Fund or Alternative Investment Fund with SEBI
Choosing Category for Hedge Fund or Alternative Investment Fund with SEBI
SEBI under alternative investment funds regulations has prescribed the three types of the categories for the alternative investment fund for hedge funds registration under which they can seek registration depending upon the activities of the fund
Categories for Hedge Funds or Alternative Investment Funds
“Category I Alternative Investment Fund” which invests in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, social venture funds, infrastructure funds.
Explanation.─ For the purpose of this clause, Alternative Investment Funds which are generally perceived to have positive spillover effects on economy and for which the Board or Government of India or other regulators in India might consider providing incentives or concessions shall be included and such funds which are formed as trusts or companies shall be construed as “venture capital company” or “venture capital fund” as specified under sub-section (23FB) of Section 10 of the Income Tax Act, 1961
“Category II Alternative Investment Fund” which does not fall in Category I and III and which does not undertake leverage or borrowing other than to meet day-today operational requirements and as permitted
Explanation.─ For the purpose of this clause, Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator shall be included
“Category III Alternative Investment Fund” which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Explanation.─ For the purpose of this clause, Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator shall be included
Choosing and Setting up Structure of Hedge Fund or AIF:
Which Fund Investment funds can be formed either of the following:
Limited Liability Partnership
Private Limited Company
Eligibility Criteria for Hedge Fund Registration in India
The memorandum of association in case of a company; or the Trust Deed in case of a Trust; or the Partnership deed in case of a limited liability partnership permits it to carry on the activity of an Alternative Investment Fund
The applicant is prohibited by its memorandum and articles of association or trust deed or partnership deed from making an invitation to the public to subscribe to its securities
In case the applicant is a Trust, the instrument of trust is in the form of a deed and has been duly registered under the provisions of the Registration Act, 1908
In case the applicant is a limited liability partnership, the partnership is duly incorporated and the partnership deed has been duly filed with the Registrar under the provisions of the Limited Liability Partnership Act, 2008
In case the applicant is a body corporate, it is set up or established under the laws of the Central or State Legislature and is permitted to carry on the activities of an Alternative Investment Fund
The applicant, Sponsor and Manager are fit and proper persons based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008
The key investment team of the Manager of Alternative Investment Fund has adequate experience, with at least one key personnel having not less than five years experience in advising or managing pools of capital or in fund or asset or wealth or portfolio management or in the business of buying, selling and dealing of securities or other financial assets and has a relevant professional qualification
The Manager or Sponsor has the necessary infrastructure and manpower to effectively discharge its activities
The applicant has clearly described at the time of registration the investment objective, the targeted investors, proposed corpus, investment style or strategy, and proposed tenure of the fund or scheme
Whether the applicant or any entity established by the Sponsor or Manger has earlier been refused registration by the Board
Information Required for Making Application for Hedge Fund Registration in India
In case the applicant is a Trust:
1. Write-up on the activities of the applicant
2. Whether the Trust Deed is registered under the provisions of the Registration Act, 1908. (Enclose relevant extract of the Registered Trust Deed)
3. Whether the Trust Deed permits the carrying on of the activity of an Alternative Investment Fund
4. Whether the applicant is prohibited by its trust deed from making an invitation to the public to subscribe to its units;
5. Provide details of Trustees/ Trustee Company as below:
a. Whether Trustee is an individual or a Trustee company.
b. Name, registered office address, telephone number(s) and fax number(s) of the Trustees/ Trustee Company.
c. Name, direct line number, mobile number and e-mail of the contact person(s).
d. Identity and Address proof of Trustees/ Directors of the Trustee Company
e. Whether the Trustee Company is registered with Board, Reserve Bank of India or any other regulatory authority in any capacity along with the details of its registration.
f. Brief write up on the activities of the Trustee Company/ Profile of Trustees.
II. In case applicant is a Company:
1. Write-up on the activities of the applicant
2. Shareholding pattern and profile of the directors (Enclose Identity proof and address proof of the directors)
3. Whether the Memorandum of Association permits carrying on of the activity of an Alternative Investment Fund (Enclose relevant extract of the Memorandum of Association)
4. Whether the applicant is prohibited by its memorandum and articles of association from making an invitation to the public to subscribe to its securities;
III. In case applicant is a limited liability partnership:
1. Write-up on the activities of the applicant
2. Beneficial ownership pattern and profile of the partners (Enclose Identity proof and address proof of the partners)
3. Whether the partnership deed is duly filed under the provisions of the Limited Liability Partnership Act, 2008 and permits carrying on of the activity of an Alternative Investment Fund (Enclose relevant extract of the Partnership Deed)
4. Whether the applicant is prohibited by its partnership deed from making an invitation to the public to subscribe to its securities;
IV. In case applicant is a Body Corporate
1. Write-up on the activities of the applicant
2. Shareholding pattern and profile of the directors (Enclose Identity proof and address proof of the directors)
3. Whether the applicant is set up or established under the laws of the Central or State Legislature
4. Whether the applicant is permitted carrying on of the activity of an Alternative Investment Fund (Enclose relevant extract of the relevant Statute/Act)
5. Whether the applicant is prohibited by its memorandum and articles of association from making an invitation to the public to subscribe to its securities;
Details of Sponsor and Manager of Fund :
Name, address of registered office, address for correspondence and principal place of business, telephone number(s), fax number(s), e-mail address of the sponsor.
Name, direct line number, mobile number and e-mail of the contact person(s)
Legal status of the sponsor (whether sponsor(s) is/are individual/company/limited liability partnership/body corporate) and date and place of incorporation/ establishment, wherever applicable.
In case of Sponsor being individual(s), provide a brief profile of the Sponsor including professional qualification. In case of Sponsor(s) being other than individual, write up on shareholding pattern/ Partnership interests and profile of the directors/partners including their professional qualification.
Identity proof and address proof of the Sponsor (if sponsor is an individual)/ directors of Sponsor(is sponsor is a company)/ partners of the Sponsor (if sponsor is an limited liability partnership).
Whether the Sponsor or its director(s)/ partner(s) is/are registered with the Board.
Details of past experience of the Sponsor(s) in advising or managing pools of capital or in fund or asset or wealth or portfolio management or in the business of buying, selling and dealing of securities or other financial assets.
Copies of the financial statements for the previous financial year (i) Whether the Sponsor has floated any Alternative Investment Funds/ Venture Capital Funds previously, which are registered with the Board. If yes, details of the same.
Meaning of Sponsor :
“sponsor” means any person or persons who set up the Alternative Investment Fund and includes promoter in case of a company and designated partner in case of a limited liability partnership
Meaning of Manager :
“manager” means any person or entity who is appointed by the Alternative Investment Fund to manage its investments by whatever name called and may also be same as the sponsor of the Fund
Details Of Business Plan And Investment Strategy for Hedge Fund Registration in India
Investment objective and investment style/ strategy of the fund.
The target investors
The target industries/ sectors, if any
Proposed fees to the Sponsor and Manager
Tenure of the fund or scheme
Details of proposed use of leverage in case of Category III Alternative Investment Fund
Amount To Be Paid As Fees for Hedge Fund Registration in India
Application fee Rs.1,00,000
Registration fee for Category I Alternative Investment Funds other than Angel Funds Rs. 5,00,000
Registration fee for Category II Alternative Investment Funds other than Angel Funds Rs.10,00,000
Registration fee for Category III Alternative Investment Funds other than Angel Funds Rs.15,00,000
Scheme Fee for Alternative Investment Funds other than Angel Funds `1,00,000 Re-registration Fee Rs.1,00,000
Registration Fee for Angel Funds Rs.2,00,000
The fees specified above shall be payable by way of direct credit in the bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI or by bank draft in favour of “The Securities and Exchange Board of India” at Mumbai
Investment Conditions And Restrictions for Hedge Fund in India
Investment in all categories of Alternative Investment Funds shall be subject to the following conditions:-
The alternative investment fund may raise funds from any investor whether Indian, foreign or non-resident Indians by way of issue of units;
Each scheme of the alternative investment fund shall have a corpus of at least twenty crore rupees;
The alternative investment fund shall not accept from an investor, an investment of value less than one crore rupees
In the case of investors who are employees or directors of the alternative investment fund or employees or directors of the manager, the minimum value of investment shall be twenty-five lakh rupees.
the manager or sponsor shall have a continuing interest in the alternative investment fund of not less than two and a half percent of the corpus or five crore rupees, whichever is lower,
In the form of investment in the alternative investment fund and such interest shall not be through the waiver of management fees
For category iii alternative investment fund, the continuing interest shall be not less than five percent of the corpus or ten crore rupees, whichever is lower.
The manager or sponsor shall disclose their investment in the alternative investment fund to the investors of the alternative investment fund;
No scheme of the alternative investment fund shall have more than one thousand investors
provisions of the companies act, 2013 shall apply to the alternative investment fund, if it is formed as a company
Application to SEBI for Hedge Fund Registration in India
The Application for Registration is required to be made in Form A to SEBI along with the Required application Fee and documents
Consideration of Application by SEBI
Once the proper Application is submitted to SEBI, SEBI will examine the Application and may ask for further information and if deems fit will approve or reject the Application
Certification of Registration for Hedge Fund by SEBI
Once the applicant is approved and applicant has deposited necessary fee , SEBI will grant Certificate to Applicant to carry on Activities of Hedge Fund or Alternative Investment Fund.