A must that All Entrepreneur should Know: How to Name your Company: Changes - Companies (Incorporation) Amendment Rule 2016

Indian Government has taken another step to add to ease of incorporation of the company in India.
With new Companies (Incorporation) Amendment Rule 2016 there are a few changes in the naming rules of the company rather has relaxed some of the previous norms.

Munim.in, an online marketplace for accessing Company Registration, Trademark Registration, Service Tax Registration and other allied professional CA and Legal services, presents the highlights of the amendment with direct comparison with the previous rules.

#1
Earlier:
Company's name was necessary required to be in consonance with the principal object for example XYZ Builder Private Limited had to be for construction and building works, if such name resembled any object of the company.

Now:
Name of the company will not be undesirable even if it is not in consonance with the principal objects of the company as set out in Memorandum of Association. Thus XYZ Builder Private Limited may engage in other activities as well.

#2
Earlier:
Restriction on usage of vague and abbreviated names

Now:
The restriction has been levied and such names are accepted now. For example 123K limited etc

#3
Earlier:
If the company has changed its activity which are not in line with its name then the company has to change the name to be inline with the activities

Now:
No such requirement as already cleared in #1.

#4
Earlier:
Incase key words used in the proposed name of the company is the name of the person(s) other than the name of the promoter(s) or their close blood relatives, then an NOC from such person(s)  and the proof of relation were required to be attached, respectively.

Now:

No requirement of furnishing NOC and proof of relation now.

#5
Earlier:
Only one opportunity used to be given to remove defects or deficiencies before re-submission for fast track mode of incorporation that is through INC 29

Now:
The registrar can provide third opportunity for removing defects or deficiencies before re-submission for INC 29 or fast track mode of incorporation but the opportunity can only be availed with in 30 days of the first notice.

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List of SEBI Registered Venture Capitalists for accessing a Government Corpus of Rs 10,000 Crore at #StartupIndia

Startup Indian Action Plans Clears the way to access the Government Fund corpus of Rs 10,000 Crore for Startups to be utilized over a period of 4 years. To start with  Government will set up a fund with an initial corpus of Rs 2,500 crore and a total corpus of Rs 10,000 crore over a period 4 years (i.e. Rs 2,500 crore per year) . The Fund will be in the nature of Fund of Funds, which means that it will  not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.

Key features of the Fund of Funds are highlighted below: 

• The Fund of Funds shall be managed by a Board with private professionals drawn from industry bodies, academia, and successful Startups 
• Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
• The Fund of Funds shall contribute to a maximum of 50% of the stated daughter fund size. In order to be able to receive the contribution, the daughter fund should have already raised the balance 50% or more of the stated fund size as the case maybe. The Fund of Funds shall have representation on the governance structure/ board of the venture fund based on the contribution made. 
• The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc. 

Munim.in, an online marketplace for accessing Company Registration, Trademark Registration, Service Tax Registration and other allied professional services, presents the list of SEBI Registered Venture Capitalist from where these funds can be accessed.

You may visit here for complete list.

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Prime Minister Shri Narendra Modi: Start-up India Action Plan

At the amidst of the Startup culture in India, PM Modi has announced the 15 Action Plan to boost Startups in India. 

Munim.in, a marketplace for company registration, trademark registration, service tax registration and other allied professional services, has listed the action plans as below:.

1) No Capital Gains Tax on Personal Property Sold to Invest in Startups.
2) No Income Tax on Profits for First Startups to 3 years.
3) Self-Certification based compliance.
4) No Inspection for the First Three years
5) Startup Hub India. A single Point of Contact
6) Simpligying Patent Regime
7) 80% Rebate on Filing a Patent Application
8) Mobile Oriented Application form for startups
9) Exit Policy to be introduced. Startups for
10) Brought Bankruptcy Bill, 2,015th in Parliament to Help Exit startups. in 90 days
11) Dedicated Fund Worth Rs 10,000 Crore Will be up fro startups SET
12) Credit Guarantee Scheme for Loans
13) Will bring in New Policies to Help Women Entrepreneurs. 

14) Will bring in Sector-Specific Incubators. 

15) 5 New Bio Clusters. will be set up to help Biotech Sector. 

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Service tax rate goes up from 14% to 14.5% w.e.f 15th Nov 2015.

Service tax rate goes up from 14% to 14.5% w.e.f 15th Nov 2015 vide notification 22/2015 ST dated 6-11-2015. The government has decided to impose, a Swachh Bharat Cess at the rate of 0.5 per cent on all services, which are presently liable to service tax. The additional cess would be over and above the 14 per cent Service Tax rate which is already being levied and may yield the government an additional about Rs 400 crore during the remainder of the current fiscal.

Finance minister Arun Jaitley had in Budget 2015-16 proposed to levy a Swachh Bharat cess of up to 2 per cent “on all or certain services, if need arises”.

Swachh Bharat is among the major initiatives of the Modi government, which has embarked on a major drive to ensure cleanliness across the country.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

New Delhi, the 6^th November, 2015

Notification No. 22/2015-Service Tax

G.S.R. —(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) read with sub-section (5) of section 119 of the Finance Act, 2015 (20 of 2015), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all taxable services from payment of such amount of the Swachh Bharat Cess leviable under sub-section (2) of section 119 of the said Act, which is in excess of Swachh Bharat Cess calculated at the rate of 0.5 percent. of the value of taxable services:

Provided that Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994.

This notification shall come into force from the 15^th day of November, 2015.

Sovereign Gold Bond

Sovereign Gold Bond is being promoted by RBI, where in the person will be having an option to purchase the gold bond at the market rates. These bonds may be converted in to demat form as well.

The application of these bonds will be accepted from 5^th November, 2015 till 20^th November, 2015 through banks and designated post offices. The dates may further be opened in tranches by RBI through Public Notification. 

Details of the Bonds are as follows:

1.       Eligibility for Investment:

The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. Resident Indian entities include individuals, HUFs, trusts, Universities, Charitable institutions. Thus the bonds may be purchased in the name of the Resident Indian Entity. The holder of the bond shall be provided with certificate as per Form C (click to see the format).

2.       Applications

Subscription for the Bonds may be made in the prescribed application form (Form ‘A’) or in any other form as near as thereto stating clearly the grams of gold and the full name and address of the applicant. The receiving office shall issue an acknowledgment receipt in Form ‘B’ to the applicant.

3.       Denomination:

The minimum size of gold bond that a person can buy is 2 gm of gold, further the bond is available in the multiples of 1 gm of gold with maximum limit of 500 gm of gold.

4.       Issue Price

Price of the Bonds shall be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average closing price for gold of 999 purity, published by the India Bullion and Jewellers Association Ltd. (IBJA).

5.       Payment Options

Payment shall be accepted in Indian Rupees through Cash or Demand Drafts or Cheque or Electronic banking. Cheque or draft should be drawn in favour of the bank / post office (Receiving Office), specified in paragraph 7 above and payable at the place where the applications are tendered.

6.    Redemption / Maturity / Exit Option

The Bonds shall be repayable on the expiration of eight years from the date of issue. Pre-mature redemption of the Bond is allowed from fifth year of the date of issue on the interest payment dates. The redemption price shall be fixed in Indian Rupees on the basis of the previous week’s (Monday – Friday) simple average closing price for gold of 999 purity, published by IBJA.

7.   Loan against Bonds

The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the authorized banks.

8.  Interest Rate

The investor will be compensated at a fixed rate of 2.75 percent per annum payable semi-annually on the initial investment.

9.  Tax Treatment (Income Tax on interest of Gold Bonds)

Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. Capital gains tax treatment will be the same as that for physical gold.

10.  Tradability in Bonds

The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.

11.   Transferability

The Bonds shall be transferable by execution of an Instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December, 2007.

12.   SLR Eligibility

The bonds will be eligible for Statutory Liquidity Ratio

13.   Nomination

Nomination and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December, 2007.

Munim.in is a marketplace that helps startup in Company Incorporation, Trademark Registration, Service Tax Registration and other Company Compliance through the most eligible Professional Service Providers.

For more query or guidance, please visit www.munim.in or mail us at contact@munim.in

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Indian Gold Coin and Indian Gold Bullion

Indian Gold Coin

Indian Gold Coin is a Government Coin marketed by MMTC which is first coin in India to have BIS standard hallmarking. It is the only coin in India to have Ashoka Chakra on one side and Father of nation, Mahatama Gandhi, on the other. The coin is having various security features in its packaging which prevent it from being replicated. The coin is initially available in 5gm, 10gm and 20gm bar.

The Indian Gold Coin is unique in many respects and will carry advanced anti-counterfeit features and tamper-proof packaging that will aid easy recycling.

1. Purity of Indian Gold Coin: The Indian Gold Coin is available only in 24 KT (999 fineness) Gold Coin.
2. Denominations:Currently available denominations as of 05^th November, 2015, are 5gm, 10gm coin and a Indian Gold Bullion of 20gm. The denominations may increase in future.
3. Sales Points: At present Indian Gold coins are being sold through designated MMTC outlets.  List is available here.
4. Pricing: The rates of Indian Gold Coins and bar are independent and different from any of the other schemes and will be update on the Indian Gold Coin website on daily basis.

Munim.in is a marketplace that helps startup in Company Incorporation, Trademark Registration, Service Tax Registration and other Company Compliance through the most eligible Professional Service Providers.

For more query or guidance, please visit www.munim.in or mail us at contact@munim.in

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Gold Monetization Scheme, Sovereign Gold Bond and Indian Gold Coin and Indian Gold Bullion

Prime Minister has launched three Gold schemes on 05^th November 2015 to increase circulation of domestic gold in the market.

1. Gold Monetization Scheme

2. Indian Gold Coin and Indian Gold Bullion

3. Sovereign Gold Bond 2015-16 or Gold Bond

Gold Monetization Scheme is related to channelize the domestic gold kept in the lockers in to the market through collection agencies and providing equivalent gold credits in the bank alongwith a certain interest rate. Person wishing to lend gold may go to the collection centers where purity shall be checked and then equivalent gold credits may be deposited in hi/her bank account and the person shall have the option to convert in cash or receive interest on the same or get the gold bar of that much quantity. For more information regarding features, locations and other investment aspects, read more

Indian Gold Coin is a Government Coin marketed by MMTC which is first coin in India to have BIS standard hallmarking. It is the only coin in India to have Ashoka Chakra on one side and Father of nation, Mahatama Gandhi, on the other. The coin is having various security features in its packaging which prevent it from being replicated. The coin is initially available in 5gm, 10gm and 20gm bar. For more information regarding features, locations and other investment aspects, read more

Sovereign Gold Bond is being promoted by RBI, where in the person will be having an option to purchase the gold bond at the market rates. These bonds may be converted in to demat form as well. The bond shall have a tenor / maturity period of 8 years and have an exit option from 5^th year. The person shall also receive the interest @ 2.75% per annum on the initial investment. For more information regarding features, locations and other investment aspects, read more

Munim.in is a marketplace that helps startup in Company Incorporation, Trademark Registration, Service Tax Registration and other Company Compliance through the most eligible Professional Service Providers.

For more query or guidance, please visit www.munim.in or mail us at contact@munim.in

Munim Team

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How Startup Funding Works

You’re starting a new company. Congratulations! Before preparing for your product launch or talking to customers, however, you need to agree upon the allocation and terms for the equity, or ownership, of the company among you and your co-founders.

This is one of the toughest decisions you’ll have as a founder, but it’s also one of the most important to get right from the get-go. Even minor differences in equity can mean a lot down the road, so starting off with everyone on the same page (and feeling good about the agreement) will prevent big issues from coming up in the future. So, how should you get started?

Dividing the Pie

As with most things, there are philosophical differences in the approach to founder equity. One camp believes that founder equity should never be evenly split because it can result in stalemates, which can kill a company fast. The other camp believes that fairness should prevail and if an even split seems fair, then it’s appropriate.

While there’s no formula or one-size-fits-all approach, there are a number of factors that are generally taken into consideration:

·         Whose idea was it? Unless someone is contributing patented technology, this shouldn’t be a big factor—it’s widely accepted in the start-up community that execution is more important than ideas. The founders of MySpace and other social networking sites had an idea similar to Mark Zuckerberg’s, but failed to execute on that idea as well as Facebook did. Instead, the founders who execute on the idea deserve more equity.

·         Full-time versus part-time: If one co-founder is quitting her job to dedicate herself full-time to the company and the other is working part-time, the part-time founder deserves less equity because she’s both taking on less risk and providing less value and time commitment to the company. Typically, this person should get less than half of the equity that a full-time founder is getting.

·         Salary: It’s not uncommon in the early days of a start-up for founders to work for a reduced salary or forego it altogether. But, foregone salary should not be “paid” in the form of equity, for a couple of reasons. It’s nearly impossible to determine the right amount of equity for foregone salary, and this practice can raise a host of difficult tax, withholding, and accounting issues. The same advice goes if one founder contributes equipment, working space, or other tangible things—pay for those with convertible debt or series seed preferred.

·         Capital Contributions: One co-founder may be in a position to make a significant capital contribution to the company, and you might think she could just get additional founder shares in return. But, it’s typically better to allocate founder equity based upon each person’s actual level of work contribution (called “sweat equity”) and treat financial contributions from a founder the same way you would that of a seed investor—by issuing convertible debt or series seed preferred stock.

·         Future Roles: Consider each co-founder’s expected role in the company based on her level of skill, capability, and the company’s needs. For example, if the company requires significant technology innovation and one founder is a world-class VP of engineering, she may deserve more equity. Just remember that the needs of your company, and perhaps the roles of the founders, will change significantly over time—don’t skew the equity split too much over a single contribution or skill.

·         Future Employees: Similarly, it’s important to think about founder equity stakes relative to the employees that get brought on afterward. If a founder ends up as director of product marketing with a huge equity stake, that will make it challenging to hire other senior executives with smaller option grants. The allocation of equity should take into account both past and future contributions to the company.

·         Control: Founder equity should not be allocated based upon how the company should be controlled or managed—you should have a separate agreement that specifies how important decisions get made. It’s also crucial to have rights of first refusal (an agreement stating that if a founder wants to sell her shares, she must first offer them to the company), so you don’t end up with a partner you didn’t bargain for.

Vesting

No matter how you divide the founder equity, those shares should be subject to vesting restrictions, so that until the shares are “vested,” the founder does not fully own them. This is important because it prevents a co-founder from leaving after only a few months, and yet retaining a huge part of the company. The last thing you (or an investor) will want is for someone to hold a lot of equity and no longer be contributing to your success.

Under a typical vesting schedule for employees, shares vest over a four-year period, with 25% vesting at the end of the first year (called a “one-year cliff”), which ensures employees stay around for a year before owning any of the company. The remaining shares vest thereafter on a monthly or quarterly basis.

For founders, some shares are typically vested up front (in our experience, 20% to 25%, though it can go as high as 33.3%) [Editor's note: This is one perspective. As with all numbers surrounding equity, multiple perspectives exist, and you should read more than one source when making an important decision.]. Founders also often have provisions that accelerate vesting in the event of a change of control (i.e., an acquisition) or a termination without cause.

Dilution

When founders launch a start-up, they own the entire thing. But, it’s inevitable that your shares will be diluted as the company grows in order to attract employees and investors, and there are very few examples of successful founders owning 100% of their companies at the time of a sale or IPO.

When you raise Series A funding, you’ll issue additional shares of stock that will go to your investors, and you can expect those investors to take anywhere from 25% to 50% of the company. In later funding rounds, they may take a smaller percentage, though depending on the terms you negotiate, it can still be as much as in your Series A. Each time, your shares will be diluted accordingly.

You’ll also need to leave a pot of equity for future employees, particularly early-stage ones. In general, when you’re setting up equity at the beginning, it’s a good idea to leave between 10% to 20% in the pie for employees. If you plan on raising funding at some point, your investors will require you to have this—and if it’s already in place, you won’t have to dilute your shares further to make room for it.

Every situation is different, and there’s no right answer for splitting founder equity. But when it’s all said and done, each co-founder should feel good about the equity divide. If the agreed-upon split causes you angst, it’s probably not right. Raise your concerns and iron out the details up front—it will only get harder to ask for a bigger piece of the pie as your company becomes successful and the equity increases in value, and it’s well worth it to have these conversations finalized early on. 

Good luck!

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Munim Team

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Income Tax Due date Calender September 2015

Due Dates for selected month and year

7 September 2015 -

​​Due date for deposit of Tax deducted/collected for the month of August, 2015

15 September 2015 -

​​First instalment (in the case of a non-corporate assessee) or second instalment (in the case of a corporate-assessee) of advance income-tax for the assessment year 2016-17

22 September 2015 -

​​Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of August, 2015​

30 September 2015 -

​​Audit report under Section 44AB for the assessment year 2015-16 in the case of a corporate-assessee or non-corporate assessee (who is required to submit his/its return of income on September 30, 2015)​

30 September 2015 -

​​Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5Eand 5F (if due date of submission of return of income is September 30, 2015)​​

30 September 2015 -

​​Annual return of income and wealth for the assessment year 2015-16 if the assessee (not having any international or specified domestic transaction) is (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner (of a firm whose accounts are required to be audited)

30 September 2015 -

​​Audit report under section 44AB for the assessment year 2015-16 in the case of a corporate-assessee or non-corporate assessee (who is required to submit his/its return of income on September 30, 2015)​

Make Sure Every Day is Independence Day !! #Azaadi4Me #Startupdream #Munimservices #Your PersonalMunim

What Independence Day means for an Entrepreneur?

Freedom from Complex Company Registration process

Freedom from handling Company Compliances

Freedom from managing TDS and Tax formalities

Freedom from Tax Compliances & filings

Freedom from bureaucratic process for Sales tax and Servicetax registration and filing

Freedom from Auditing Requirements

Freedom from all legal assistance and  documentation

Freedom from filing delays, fines and penalties

Freedom from name and logo infringement by Trademark Registration

Finally,

Freedom from tedious and cumbersome following up with Chartered Accountants, Company Secretaries and Lawyers

Munim.in celebrates Entrepreneurial  freedom.

Happy Independence Day!!