Which businesses require a PAN card?

Any individual or corporate involved in business in India requires a PAN card. Be it an Indian company or a foreign company, you need to get registered and have a PAN card.

Also, if your company is generating money from outside India but was registered in India or has a permanent establishment or even a simple office in India, you need a PAN card.

If you come under any of the following entities, then you should be having a PAN card to deal in any kind of business.

1. Company
2. Partnership firm
3. Association of persons
4. Limited Liability Partnership (LLP)
5. Body of Individuals
6. Trust
7. Incorporation
8. Limited company
9. Private firm
10. Association
11. Foreign institutional investor
12. Hedge fund
    

Why should your company have a PAN Card?

Your company‟s PAN card is of huge significance as every transaction will go through this number. It also helps in identifying the tax flow of your company. Additionally, even if you are not eligible to pay tax under income tax benefits given to start-ups, you still need a PAN card if you are earning money.

The following are the reasons why your company needs it:

For any tax-related transactions and documentation, you need to quote your PAN. By giving this number, the Income Tax Department can track your transactions. It is important that you have this so that no trouble comes your way

If you are a foreign company, you need to have a PAN to operate in India. Otherwise, the government can charge you the highest possible tax rates

The PAN helps you in the payment of your invoices without deduction, filing of tax returns, remittances, and much more

If you need a TRN (Tax Registration Number), a PAN is a must

According to the amendments made under Section 206AA in 2009, every foreign company must have its own PAN to continue with any business with a company in India or inside the country. All kinds of entities are included in this

The Indian government has the right to charge you 30% or more of your invoiced payments in case you do not have a PAN

How to apply for a PAN Card for your Business

You can apply for a PAN card through the online route through the NSDL website or do it via the offline method.

The online method

• You need to visit the NSDL website and fill the Form 49A from the drop-down menu
• For the option of ˜Application Type‟, fill the form listed under ˜Firm‟. Fill in all the details like company name, date of application, and so on
• Post this, you need to fill in the income details and company registration number. You also need to fill in the communication address
• Fill in the Assessing Officer code (AO Code). If you do not know it, you can find it in the AO Code Search Panel on the NSDL website
• You need to upload copies of the required documents and pay the said fees. Certificate of Incorporation and Address proof are the two most important copies of information
• Upon following all the steps, you will get an acknowledgment number through which you can track the details of progress regarding your PAN Card
• You then need to send a signed acknowledgment form to the NSDL head office within 15 days

The offline method

• You first need to download the Form 49A from the NSDL website and then print it
• Fill the form as per the requirements and attach all the necessary documents
• You need to submit the form and documents to the nearest NSDL centre. If you do not know a centre near you, you may find it on the website
• The centre will issue a letter of acknowledgement as a proof to the fact that you have submitted your details and documents
• Upon thorough verification of your details, you will receive the PAN card at the mentioned company address. The cost of this whole procedure costs you just 100/-
  

Documents required

For an Indian company

• An identity or address proof

• A copy of the Certificate of Incorporation

• A copy of a No Objection Certificate issued by MCA (Ministry of Corporate Affairs)

For a foreign company

• A copy of the registration certificate issued by Indian officials to setup an office in India
• A copy of the certificate of registration from the applicant‟s native country, duly attested by “Apostille” or by the Indian Embassy or High Commission or even by authorised officials of overseas branches of scheduled banks registered in India

Furthermore, you need a bank draft that will be used to pay the issuance fee to the Tax Department to get a PAN card. Make sure that the payment is done in INR. You can also draw a foreign currency draft in favour of NSDL.

If your ID proofs and company-related documents are all correct, the whole process does not even take a month. You can easily acquire the PAN card for your company and indulge in business in a smooth manner.

The post Does your Company need a PAN Card? appeared first on Legal Desire Media and Insights.

Company is an association of two or more person for filling of common business goal. The definition of companies has been given under Sec 2(20) of Companies Act, 2013 which states that company means any association of person registered under the present or the previous companies act. It is also mentioned as „body corporate‟ because of composition of group of people in it. The status of artificial person and separate legal entity has been given to company.

FEATURES OF COMPANY

• Incorporated association-Company is considered as an incorporated association of group of people which is registered under the Companies Act, 1956.The incorporation of company is first legal step for recognition. It creates a corporate legal entity and separates the assets of company from owners and members. After the incorporation of company, it has been granted separate legal entity which grants power to enter in contracts, holding properties etc.

• Separate Legal entity-The Company becomes eligible after the incorporation to hold as a separate legal entity. It bears separate seal and separate assets from the members. The legal identification also grants power of suing and being sued exclusively which does not involve personal liability of members. The existence of company persists even without motives and conduct of members.

• Limited Liability of Members- This feature carries extreme benefit of performing business under the name of organisation. The company becomes owner of assets and bounded by liabilities after the company gets separate legal entity. The liability of paying off companies‟ debts lie entirely on the company and there is no personal burden on the members. The liability of members is restricted only with the burden of shares taken in the them.
  
• Artificial Person-It is considered as an artificial legal person as because of its process of formation is through operation of law. It has been granted legal sanction and registered under law.
  
• Perpetual Succession-The company has trait of perpetual existence and succession irrespective of death, lunacy of members. The membership of company can keep on changing and it does not affect the existence and continuity of company. There is no mortality or soul to be preserved of the company.

• Common Seal-The company functions under common seal and it is the symbol of incorporation. However, it is not mandatory for the company to have common seal. Any important documents of company can be signed by appointed key managerial person or officer after the mutual of consensus of board of directors and shareholders

If the company does not have common seal, then the authorisation can be made by two directors or by director and company secretary.

• Separation of ownership and management- The Company has proper set of structure .It is owned by group of shareholders who take decision on the behalf of company. The objectives and goals are set by board of shareholders and conveyed to representatives  who are directors of company. The directors appoint several executives for controlling various operations of the company.

• Transferability of shares-The shares of company are considered as movable property which can be transferred considering the norms of Article of association as per section of 44 of companies Act,2013. The registration of companies does allow the members to sell and investment in shares of company in open market. It provides liquidity to investor and liberty of exiting any time in future.

CLASSIFICATION OF COMPANY

• On the basis of numbers- Private company and Public Company

1. Private company-It has been defined under Section 3 (1)(b) of Companies Act. The main feature of private company is that it is restrictive in nature and transfer of shares are limited under Articles of Association. The shares are not available for public at large. The maximum number of members in private company can be 200.The recognizable feature of private company is that it ends with suffix „pvt. Ltd.‟
   
2. Public company-It has been defined under 2(71) of Companies Act,2013.All the companies which do not fit in criteria of private companies fall under public company. The main feature of public company is that shares and debentures are available for public at large. They can expand in financial markets by selling equity or debts for raising capital in order for an expansion.

• On the basis of classification of share-Limited by shares, Limited by guarantee and unlimited liability company

1. Limited by shares- The liability of members are related with the numbers of shares which are unpaid and held. There will be no liability once the payment is securities is made.
2. Limited by guarantee- In this type of company, the liability of members is limited to the undertaking they have given under Memorandum of Association. The amount which has been agreed in MOA has to be paid back by members after the winding of company.
3. Unlimited Liability Company- The reach and expansion of this company is low in Indian market. There is no limit on the amount of liability it can add on members if any debt arises.

• On the basis of domicile- Indian company and foreign Company

1. Indian Company- This has been defined under 2(20) of Companies Act,2013. Any company which has been registered under Companies Acts are called Indian Company. The proof of place of business is shown in case of dispute arises.
2. Foreign Company-Section 2(42) of Companies Act,2013 defines foreign company. Any company which is situated outside India but also has registered place in India. The existence of foreign company can be considered either physically or online.

• Few other classifications of company- One Man company, Government Company, Holding company, Subsidiary Company

1. One Man Company-This is company incorporated by single person. It has been came into effect after the enactment of Companies Act,2013. Section 2(62) of the Companies Act,2013 states that a single person can be member/shareholder of the company and a single individual can form a company where director and member are same person.
   

OPC shall have minimum paid-up share capital of INR 1 lacs. It also restricts the right to transfer its shares. The concept of one Person Company has motivated more people to initiate business.

1. Government company-This has been defined Section 2(51) of Companies Act, 2013. Any company which has minimum 51% of paid-up share capital held by either state government or central government.
2. Holding Company-Section 2(46) of Companies Act, 2013 defines holding company. The main purpose of holding company is to hold another company and manage the administration of that company.
3. Subsidiary Company- Section 2(87) of Companies Act, 2013 defines subsidiary company. The main objective of subsidiary company is that it is secondary of some another company. It has been controlled by parent company.

The post How should the Legal Structure of your Company Look Like? appeared first on Legal Desire Media and Insights.

There are majorly four type of company in the business structure of India which have covered below-

• One Person Company (OPC)-This is company incorporated by single person. It has been come into effect after the enactment of Companies Act, 2013. Section 2(62) of the Companies Act,2013 states that a single person can be member/shareholder of the company and a single individual can form a company where director and member are same person. OPC shall have minimum paid-up share capital of INR 1 lacs. It also restricts the right to transfer its shares. The concept of one Person Company has motivated more people to initiate business.

Documents which are required for registration of One Person Company are-

1. Pan card of the member
2. Passport size photograph of the owner
3. Copy of Aadhaar card/vote identity card
4. Copy of rent agreement (if the business place is rented)
5. Electricity bill (place of business)
6. Water bill (place of business)
7. Legal property paper (if place is owned by owner)
8. Non objection Certificate of Land lord (if the business place is rented)

Sole Proprietorship – There is no specific law for governing this structure of business. This business method is not complex and hence opted by people. It is run solely by either one person or one family. There is no separate entity of business firm and entire liability is bear by the owner. There is no mandate registration for sole proprietorship; however it is always better to register for establishing the proof existence of firm.

Mandatory Documents which are required for registration of Sole Proprietorship are-

1. Pan card of Proprietor
2. Passport size photograph
3. Proof of place of business
4. Rent agreement (if the business place is rented)
5. Electricity bill (place of business)
6. Legal property paper (if place is owned by owner)
7. Non objection Certificate of Land lord (if the business place is rented)
8. Bank account details of proprietor.

Private limited company-In India, most of businesses are registered under Private limited company. Section 2(68) of Companies Act,2013 defines Private Limited company. These companies are restricted in aspect of transferability of shares as per article or association and public at large cannot subscribe to them. Also, the number of members is restricted to 200 at maximum. It contains directors/board of directors, shareholders, members.

Mandatory Documents which are required for registered office address of the Company by the Director who is Indian Nationals:

1. PAN Card-PAN is issued by Department of Income Tax of India. The name in the Pan card will be used Ministry of Corporate affairs for all matters pertaining to the company
2. Passport size photograph of the director
3. Copy of Aadhaar card/vote identity card
4. Electricity bill (as an address proof)
5. Water bill (as an address proof)
   
6. Bank statement

Mandatory Documents which are required for registration of Private limited company by the Director who is Foreign Nationals:

1. Passport which is notarized or apostilled in the issued country
2. Driving license (as an address proof)
3. Resident Card (as an address proof)
4. Bank statement (as an address proof)
5. Government issued form for identity which contains address
6. Electricity bill (as an address proof)
7. Water bill (as an address proof)
8. Bank statement

Mandatory Documents for registered office address of the Company-

1. Registered documents of title of premises of registered office in the name of company
2. Notarized copy of lease agreement in case of lease
3. Notarized copy of Rent agreement in case of Rent
4. Copy of rent-receipt not older than one month
5. Non objection certificate of Landlord in case of rented property
6. Proof of evidence in any regular utility receipts such as water, electricity bill in the name of legal owner in case of rented property.

Mandatory Documents for Shareholder either Indian Nationals for Foreign nationals-

1. Identity and address proof as per requirement of Article of Association is needed to be submitted

Public Limited Liablity-Section2 (71) of Companies Act, 2013 defines public limited liability. It has limited liability and offers shares to general public. The stocks of Public limited liability can be acquired by either Initial public offer or through stock market trading. It is properly regulated by Government. The minimum paid-up share capital must be 5 lakhs. There is less risk in the business structure so probability of growth and expansion are high.

Mandatory Documents which are needed for registration of Public Limited liability-

1. General proof of identity of all shareholders and directors
2. Aadhar card
3. Pan card
4. Voter Id Card
5. Electricity bill (as an address proof)
6. Water bill (as an address proof)
7. Bank statement
8. Director Identification Numbers of Director
9. Digital signature certificate of directors
10. Registered documents of title of premises of registered office in the name of company
11. Notarized copy of lease agreement in case of lease
12. Notarized copy of Rent agreement in case of Rent
13. Copy of rent-receipt not older than one month
14. Non objection certificate of Landlord in case of rented property
15. Proof of evidence in any regular utility receipts such as water, electricity bill in the name of legal owner in case of rented property

The post How to Register a Company? appeared first on Legal Desire Media and Insights.

The CCI vide its order dated December 17, 2021, temporarily suspended, and kept its approval order in abeyance, imposing a heavy penalty of Rs. 202 crores on Amazon. The CCI further ordered Amazon to refile the notice in the long-form (Form II) for reassessment of the combination. This Form II notice is a more detailed way of CCI investigation and is applicable for parties that may have a combined market share of 15% and 25% in the horizontal and vertical markets, respectively.

Amazon, on the other hand, has been contending that the impugned combination comprised three (3) transactions in terms of which Amazon’s purchase of 49% in FCPL was not contingent on the completion of the other two ancillary transactions (primary issuance of Class-A voting equity shares of FCPL to FCRPL, and secondary transfer of shares held by FCRPL in FRL in favour of FCPL), and accordingly, all three transactions must not be viewed as ‘interconnected transactions’. Amazon argued that neither of the ancillary transactions, on a standalone basis, was notifiable to the CCI as the transactions were proposed to be consummated between a parent entity and its subsidiary, and therefore, the main acquisition transaction, on a standalone basis, was exempted under the benefit of ‘Target Exemption’ as the value of assets and turnover of FCPL (as of March 31, 2019) was below the prescribed thresholds in the Competition Act.

The dispute arose when Future Coupons (FCL) allowed Future Retail (FRL) to enter into a scheme of arrangement for selling its retail, wholesale, and logistics assets to Reliance Retail for Rs. 25,000 crores. Amazon restrained this arrangement on the ground that it has secured preferential rights over the assets of Future Retail, where, in accordance with the terms of the acquisition, the assets of Future Retail cannot be sold to any of Amazon’s competitors. Although Amazon secured a favourable interim Emergency Award (EA) in the Singapore International Arbitration Centre (SIAC) that stayed the impugned sale arrangement until the final order was pronounced on the dispute, Amazon, on a complaint of Future Retail, was penalised by the CCI for making contradictory stands in the Singapore arbitration proceedings as compared to its submissions before the CCI. The CCI noted in its order that Amazon intentionally suppressed its objectives from the CCI of controlling Future Retail with its acquisition of Future Coupons.

The NCLAT bench, consisting of Justice M. Venugopal and Justice Ashok Kumar Mishra upholding the order of the CCI noted that even the CCI sought justification from Amazon for filing the combination notice in Form I as the combined market shares exceed the statutory thresholds. In response to the same, Amazon had submitted that “the Investor has no shareholding in Future Retail (FRL) and does not exercise any control or influence on it, therefore, the Proposed Combination should not be subjected to Form II filing requirement”. The bench noted that Amazon had only furnished limited details and disclosures, indifferent to the details/disclosures made at the Singapore International Arbitration Centre (SIAC) and therefore, had not disclosed its strategic acquisition of rights and interests over Future Retail. The NCLAT has noted that: “the omissions, false statements and misrepresentations have the effect of influencing the line of inquiry in assessing the Combination. Irrespective of what would have been the outcome of a notice with true, correct, and complete disclosures, the misleading submissions, false statements, omission and suppression of material particulars, facts, and documents, have denied and disabled the CCI an opportunity to assess the effects of the actual Combination, with specific focus to the actual intended objectives. Condonation of such lapses would effectively mean that a notifying party could disclose its legal contracts in a distorted and elongated manner of its convenience and engage in suppressions and misrepresentations of the actual scope and purpose of the Combination. This makes all details sought in Form I and purpose of regulation of combination under the Act, otiose, besides stultifying the very legislative intent for the merger review process.”

Concisely put, the NCLAT endorsing the CCI’s order will supply considerable emphasis on the imperative to provide complete, accurate and all vital information of parties entering into combinations. Further, all interconnected and simultaneously negotiated transactions must be duly notified to the CCI. The quantum of penalty levied on Amazon is likely to have a deterrent impact on parties failing to comply with the requirement of disclosing all details concerning the purpose, scope, and contours of the investment deals in India. While preparing the combination notice, parties need to make full, whole, fair, forthright, and frank disclosure of relevant materials in respect of the deal to enable the CCI assess the proposed combination accurately.

Amazon will now have the option to either appeal against the order of the NCLAT before the Supreme Court on the question of law, or file the combination notice in Form II (long-form) and deposit the penalty of Rs. 202 crores with the CCI. Upon filing the details of the acquisition in Form II, the CCI is likely to take detailed scrutiny into the proposed combination in the Phase II review, whereafter the CCI may approve the combination, approve with structural or behavioural remedies, or may even disallow the transaction, making it the first of its kind.

Recently, Reliance has withdrawn its deal to acquire the business of Future Group after the latter’s secured creditors rejected the deal. However, due to the non-payment of dues and rentals by Future Group, Reliance has reportedly taken control of many Future Group flagship companies operating in retail, wholesale, logistics and warehousing segments (Big Bazaar, etc.) and this has dragged Future Group towards insolvency proceedings.

This tussle between the two biggest business groups over acquiring the assets of India’s second-largest retailer, Future Group having more than 1,700 stores in India, has taken unprecedented turns. With the Indian Government approving 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route and further plans to allow 100% FDI in e-commerce, more foreign investors are set to bid to get a piece in the booming Indian retail sector. As the Indian online retail market is projected to reach USD 350 billion by 2030, the ongoing Amazon-Reliance battle is set to have far-reaching consequences on Indian retail, both in offline and online retail markets. 

The article is written by Ketan Mukhija, Partner, and Devanshu Gupta, Associate, at Link Legal, New Delhi. The views expressed in this piece are those of the authors and are not intended for any solicitation of work. It is advisable to take prior legal consultation before taking any formal actions.

The post NCLAT endorses CCI’s penalty order against Amazon: A setback for Amazon and a leap in jurisprudence appeared first on Legal Desire Media and Insights.

In this case, one of the significant decisions you need to consider when you’re a small business owner is whether or not to transition from a sole proprietorship or general partnership and incorporate your business as an LLC.

Sole proprietorships and general partnerships tend to be popular among small businesses because of the flexibility these legal structures give them. However, turning it into an LLC can actually offer you so much more, especially in terms of your long-term business goals.

So, why exactly should you form an LLC for your small business? Discover the top 4 reasons and benefits in this article.

LLC Business Structure – What Is It?

Before we discuss the reasons, let’s take a quick look at what an LLC is first. Simply put, LLC is an acronym for “Limited Liability Company.” This is a hybrid business structure between sole proprietorships and corporations.

What does that mean? It means that it offers the best of these two legal structures, which is perfect if you’re looking to protect your business like corporations while retaining all the perks of more informal business structures.

LLCs for Small Businesses – 4 Reasons to Incorporate as One

So, why should you form an LLC for your small business? Isn’t a sole proprietorship enough? Let’s find out with these 4 reasons.

1. Liability Protection for Your Assets

One of the most significant reasons you should form an LLC for your small business is the fact that LLCs offer you limited protection against liabilities. What does this mean? It means that forming an LLC means establishing your business as a separate legal entity from your own, which entails keeping your company’s assets apart from your personal ones.

As a result, you have a safety net for your personal assets, which means even if your business runs into some legal or financial trouble, your personal assets like your car or house can’t be used to pay off debts or legal expenses for the company.

With an LLC, you won’t have to worry about becoming bankrupt if your business runs into some legal or financial trouble. This business structure is also ideal if your business is in a high-risk industry.

2. Easy Formation and Management

Another reason you should form an LLC for your business is because it’s relatively easy enough to establish one. You can either file your business as an LLC yourself or avail of the many incorporation services available online. 

Aside from that, the turnaround time for forming LLCs is relatively quick as well, with some states taking as short as 7 to 10 business days to process your application. Take note that the exact duration depends on your chosen state of incorporation.

LLCs are also easier to operate than corporations especially when you create an LLC operating agreement, so you don’t have to worry about exerting more effort managing one. You can choose to manage it yourself or assign managers to do so on your behalf. 

3. Tax Benefits

LLCs also enjoy enticing tax benefits, much like sole proprietorships. In fact, even if you’ve already established your small business as an LLC, you can still enjoy the benefits of pass-through taxation.

This means that all your business profits are filed with your personal income tax returns, and the taxes are deducted at individual tax rates. As a result, you can avoid experiencing double taxation, even if you enjoy the liability protection that corporations have.

Aside from that, you can also file with the IRS so that your LLC will be taxed as an S-Corporation instead. This means you retain your pass-through taxation status without being subjected to taxes for Medicare or Social Security.

4. Boosted Credibility

Last but not least, one of the most significant reasons you should form an LLC for your small business is the added credibility it gives your business. Incorporating as an LLC allows you to establish your business as a legitimate one, which increases its overall trustworthiness and credibility among customers and potential investors.

You can also gain more convenient access to additional funding because you can now open a dedicated bank account for your business. In fact, this can also benefit you as an individual because a dedicated account will help separate your company’s finances from your own.

This can also make it easier to keep track of your business’s transactions and allow you to organize your company’s financial information more efficiently.

Forming an LLC for your small business gives you the best of both worlds – the flexibility and tax benefits of sole proprietorships and the protection against liabilities of corporations. Incorporating as an LLC also establishes your business as a legitimate one, making it more attractive to potential investors and customers alike.

The post Top 4 Reasons You Should Form an LLC for Your Small Business appeared first on Legal Desire Media and Insights.

Determining Fraud At Its Core

You will need to establish what type of fraud they have committed. Once you have accomplished that, you will see that it is far easier to regain your lost finances. Examples of the scams they could have committed include bond and misconduct, a fiduciary duty breach, a failure to supervise properly, merging trading, investment fraud, and excessive trading. Unfortunately, this list is just the beginning. You will find at least fifty other ways that your financial advisors could be taking advantage of you. Thankfully, you don’t have to accept that abuse, and the process of having an attorney help you isn’t as challenging to navigate as you might think. 

Hiring A Securities Attorney Will Enforce Action 

Hiring a securities attorney will help you with the actions that begin the process for financial restitution. You will find that your securities attorney will look closely at the SEC and FINRA. Both of these areas are authorized to take action that will include restitution for the investors that have been harmed. You will find that the SEC maintains a complete list with the correct information that damaged investors can use, and it is just one tool in an attorney’s arsenal.

The FINRA is similar in the fact that you will have enforcement actions. However, it is different because you will find that you receive your funds differently and take administrative action differently. 

The Review Process

When you have suffered at the hands of your financial advisors and have lost investments, you will see that the securities attorney will immediately begin a review and a comprehensive investigation into your finances and the legalities. The sooner you hire them to do this, the sooner you get your money back. Your attorney will look at numerous areas that include the following options.

• Your relationship with your brokerage firm
• The relationship that you have established with your advisor
• The entirety of the losses you have sustained because of negligence or fraud
• Any promises that were made to family members
• Any deposits made to you
• Any unlawful actions
• Any promises that were made

When they look at these carefully, they will have a solid starting point for determining precisely what happened and how best to proceed. You don’t want to waste time that you don’t have with an ineffective claim. One great benefit to doing this is the consultation with the securities attorney will be free. That lets you get comfortable with them and how they work. 

Avoiding A Court

Most people won’t realize this, but you don’t have to go to court to sue your financial advisor. It rarely goes to court in the traditional sense when you sue them. Instead, you settle the problem in arbitration. It becomes an easy issue to deal with as it will be easy to prove that your advisors will see that they should have had your best interest in mind and tell if they have omitted facts from you. 

When you find that you are in this situation, your securities attorney will file a claim and start the process of getting you compensated. It’s a complex process, and you will find that it would be almost impossible to do on your own. You won’t have the legal prowess to understand the mechanics. Your attorney, however, will navigate the arbitration process easily so that you have the best chance of winning. 

During the arbitration, your attorney will use tools like FINRA that we have mentioned above, but depending on the size of your claim, they will need a possible panel of three arbitrators instead of one. As with a trial, you will see that both parties have the opportunity to present facts, witnesses, evidence, and more. However, unlike a trial, this process is straightforward, quicker, and far cheaper. Your securities fraud lawyer will also be filing the formal complaints and moving through the paperwork for you, so there will be no mistakes and no slip-ups. You need to get this right the first time, and an attorney is a way to make this happen. You will also notice that with claims like these, you will see that you have to meet minimum competency requirements and standards before they can file the suit, which is another reason that you can’t do this on your own.

The Time Frame 

With a qualified securities attorney, you will see that the average time of waiting is far less. In various cases, you will find that it takes less than a month to get through the arbitration process. Other areas like this can take longer, but this process can go far more quickly due to expertise. After this process is over, you will find that the awards are binding. You also will not be able to overturn the decision. It is nearly impossible to do this, and people’s success rate is under three percent.

A Successful Securities Attorney Won’t Waste Time

When you want to earn your losses back, you shouldn’t waste time, which your securities attorney will take seriously. With the proper knowledge and skill, you will find that you can get your money back within a short period instead of making you wait for months on end with no results.

You also save money with this process, making it far easier for you as the client. You will find that this is the best choice and the only choice to ensure that your money comes back to you the way it is supposed to. In such a complicated process, you need to make the best decision possible to ensure that you are safe from advisors who are not trustworthy.

The post Has Your Financial Advisor Scammed You? You Need A Securities Attorney appeared first on Legal Desire Media and Insights.

If you’re thinking of forming a business, you could consider an LLC. But first, it may be wise to assess the pros and cons. This article could be a great starting point.  

About LLCs 

A limited liability company is a business with a corporate structure designed to protect the owners from being personally answerable for its liabilities and debts. The laws and regulations governing LLCs may vary depending on the state. But generally, LLCs don’t directly pay taxes on their profits. Their profits or losses are reported through their owners, who pay through individual returns. 

The Pros Of An LLC 

Registering your business as an LLC has a fair share of advantages. And here are some of them. 

1. It’s Easy To Start And Run 

Despite the slight variances in state fees and requirements, the initial paperwork filing for registering an LLC is relatively easy and user-friendly. In many states, the process of registering an LLC is simple enough that it could be done in no time and with no special expertise. Sites like Start Filing and many other agents like them offer a straightforward platform to register your LLC. 

2. There’s No Limit To Ownership 

You can form an LLC independently or with as many people as you like. If you’re scared of absorbing the risk of business ownership, you could team up with others and register your LLC.  

3. There’s Limited Liability 

As its name suggests, an LLC has limited liability. This means when you’re running an LLC, all your personal assets, such as cash and cash equivalents, bank accounts, certificates of deposits, and the like, are protected from any creditor that may want to claim from your business. All you need to do to ensure this protection remains is to keep your business finances separate from your personal finances. 

4. It Involves Easy Tax Filing 

An LLC is what’s known as a pass-through entity. This means its profits or losses are passed on directly to its owners without first going through government tax reporting. In simple terms, your business profits don’t have to be taxed by the government at a company level. They’re instead taxed through your income tax returns as a business owner.  

Filing taxes as an individual is a lot easier than doing it at a business or corporate level. In the event of a loss, you’d also have the advantage of reflecting the loss on your returns, thereby lowering your tax burden.  

5. It’s Easy To Manage 

LLCs are easy to manage. They’re member managed by default, but they have an option to select nonmembers to manage the company. Thus, you have the option to handle the day-to-day operations of your LLC, or you could get others to handle them. If you want to employ more experienced or qualified people to manage your LLC, you can file with the secretary of state or other such authorities.  

The Cons Of LLCs 

Like any other business, an LLC has its own few disadvantages. Below are some of them. 

6. It Has Limits 

If you don’t separate your business and personal finances, you could risk piercing the corporate veil. In such a case, a judge can rule your personal assets are not protected by your LLC. If the court can prove you’ve run your business in ways that resulted in losses for others, they may hold you liable and go for your personal assets. 

7. There’s A Need To Pay Self-Employment Tax 

Generally, when it comes to tax issues, your LCC is considered the same as a partnership, unless, of course, you choose to be taxed as a corporation. Because the Internal Revenue Service (IRS) would consider you self-employed in an LLC, you’re compelled to pay self-employment, including Social Security and Medicare taxes. This is, nonetheless, based on your business’s net earnings. 

You could, however, file forms with the IRS so you’re taxed as an S corporation. This would mean as an LLC owner, you’d pay Social Security and Medicare based on your actual compensation instead of the company’s gross profits. 

8. The Death Or Loss Of A Member Dissolves The LLC

In most states, you have to register another LLC if one of your members dies or goes bankrupt. Apart from this inconvenience, you may also have to adopt any remaining financial or legal obligations.  

9. It’s Not Always Investor-Friendly 

Investors are more likely to invest in a corporation than an LLC. This could make it harder to raise the financial capital you may need for a smooth operation.  

Conclusion 

As briefly shown above, an LLC has many great advantages, but it may have some disadvantages, too, depending on your business goals. One thing for sure is that an LLC could be a great way to start your enterprise.  

The post 9 Pros And Cons Of Forming A Limited Liability Company appeared first on Legal Desire Media and Insights.

Post the announcement of NSWS in the Union Budget of 2020-21, DPIIT along with Invest India were in the process of developing the NSWS portal which is now put into effect. This portal will do away with requirement of running to and coordinating with multiple Government offices. This system has been launched in line with the objective of the Indian Government viz ease of doing business and ease of living Azadi (i.e. freedom) from paperwork, duplication and informational unevenness. NSWS aims to eradicate the earlier stringent process of various business registrations through ‘Windows within Window’ in order to provide a hassle-free procedure to obtain all business-related necessary approvals, clearances and registrations, through a single window.

Major Announcements and Key Services

The Indian Government has made the following major announcements in relation to NSWS:

• As per the announcement made by the Indian Government, under Phase-I of its implementation, the NSWS portal will host approvals across 18 Central Government Departments and 9 State Governments. 
• It is planned that under Phase-II of its implementation, another 14 Central Government Departments and 5 State Governments will be added to the NSWS portal by December 2021.
• All information will be available on a single dashboard on NSWS, consisting of applicant’s dashboard to apply, track and respond to queries.
• NSWS will provide strength to other schemes and initiatives introduced by the Indian Government, such as ‘Make in India’, ‘Startup India’, various Production Linked Incentive (PLI) schemes and India Industrial Land Bank System.

The portal provides for the following key services:

• ‘Know Your Approval’ (KYA) Services, which is an information tool that generates a list of approvals required by any business to commence its operations in India.
• Common Registration Form, which is a single point of submission of information and documents across Central Ministries and State Governments.
• State Registration Form, which enables investors to access Single Window System of various State Governments.
• Applicant Dashboard, which facilitates the investors with a single online interface to apply, track and respond to the queries relating to approvals, clearances and registrations across various Ministries and State Governments.
• Document Repository, which enables one-time document submission through an online centralized storage services for investors and thereby eliminating the need to submit documents at multiple Government portals.
• E-Communication Module, which facilitates the investors to respond to queries and obtain clarifications pertaining to their applications for approvals, clearances and registrations.

Our Comments

The launch of NSWS is a much-awaited reform in the Indian business ecosystem that will facilitate the investors, entrepreneurs, start-ups, and existing players in obtaining necessary approvals, clearances, and registrations for setting up and operating businesses in India. NSWS also provides for a platform where the investors can obtain clarifications in respect of the required approvals which is likely to simplify and streamline the application procedures and will also address the issues relating to accountability, transparency, and responsiveness of the Governmental departments.

NSWS has been launched in the backdrop of the announcements made in the Union Budget 2020-21, which also proposes to set up an Investment Clearance Cell (ICC) with an objective to provide ‘end-to-end’ support to prospective investors, such as advisory in relation to pre-investment requirements, available land banks and facilitation of several Governmental approvals and clearances. 

NSWS and ICC, once implemented, will make the process of obtaining approvals and clearances more efficient and will reduce the irregularities which are currently prevalent due to the presence of multiple Government offices and online portals which often results in lack of clarity, duplicity of information and delay in obtaining the necessary approvals, clearances and registrations by investors, entrepreneurs, and businesses in India. NSWS is in its initial phase of implementation and its viability is yet be tested in the coming few months. Needless to say, the launch of NSWS is a progressive measure to boost various objectives of Indian Government, more particularly, the ease of doing business in India.

Authors:

Nusrat Hassan (Co-Managing Partner), Link Legal

Ambuj Sonal (Associate Partner), Link Legal

Abhinav Anand (Associate), Link Legal

The post One-stop-shop for Business Approvals: India launches ‘National Single Window System’ appeared first on Legal Desire Media and Insights.

To legally protect your small business, below are a few ways to consider from the get-go:

1. Pick The Right Business Structure

For most small business owners, operating as a sole proprietorship may not be the best business structure to legally safeguard your business from litigation. That being said, it’s important to choose the right form of business that can protect both your company and personal assets. 

Typically, having the sole proprietorship structure may be unable to shield your personal assets against a lawsuit. This means if someone sues your small business and demands payment but your organization’s assets can’t afford it, that person may run after your personal savings and other assets to ensure payment. 

Hence, if you don’t want to put your business and personal assets at risk, select the right structure such as forming a limited liability company (LLC). That way, you can have peace of mind knowing your small business is protected from legal issues. 

2. Research The Essential Business Laws

Another way of legally safeguarding your small business is to have some knowledge of the essential laws in the business industry. However, unless you’re a legal expert yourself, you may need the assistance of an experienced attorney like the ones in www.blakeandayaz.com and other reputable law firms to help you explain the following business laws:

• Intellectual Property: If your small business has intangible creations such as designs, inventions, logos, or marks that distinguish your company from other competitors in the market, be sure to have them registered to prevent others from using your intellectual property. By doing this, your brand will stay protected in the market. 

• Employment And Labor: Hiring and managing employees can become a tricky job. If your employees feel they’re not treated fairly, it may end up in costly litigation against your business. To avoid this from happening, it’s best if you’re well aware of the different employment and labor laws applicable in your area. These can include laws pertaining to workplace safety, workers’ compensation, family and medical leave, civil rights, labor relations, and many more. 

• Marketing And Advertising: Generally, false advertising or misrepresentation may end up in business litigation. As such, it’s essential to know the laws surrounding advertising and marketing. For example, you need to understand legal standards so you’ll not get into any trouble along the way. 

3. Use Written Agreements

When it comes to doing business with other people, trusting their words may not be the best thing to do. It can result in a potential dispute between you and the other party. When this happens, you may have to pay a considerable amount of money to settle the disputes and move forward. 

Thus, to avoid dealing with costly disputes and litigations, make sure all the terms and conditions agreed by you and the other party are reduced in a written contract. That way, it’ll be much easier to resolve any problems by looking at the provisions of the contract. 

4. Insure Your Business

Your small business should purchase insurance to cover yourself and your company against liability. For example, if a client is injured as a result of a slip and fall accident, you should purchase liability insurance to cover this and avoid a case about premise liability from ruining your business. Also, if one of your clients accuses you of breaching a contract or making a mistake, you should get errors and omissions insurance to make sure your small business is legally protected. 

Aside from buying insurance coverage, it can also be a good idea to incorporate liability protection clauses in your business contracts. An example of this is when an act of nature makes it impossible for you to comply with a contract, you should add in your official document that you’ll not become liable for any incomplete job due to this factor. To get this thing done properly, hiring a business attorney can be a good idea. They can help you incorporate legal clauses that can protect you and your small business against any legal problem. 

Wrapping Up

Small business owners are responsible for protecting their business from all sorts of legal battles. Therefore, if you’re running one, keep these ways in mind so you can safeguard your business against anything that can take away your shot at a thriving future. Not only that, but you’ll also be in a stronger position to get rid of legal action when you know how to protect your business from start to finish. It is always better to hire a corporate lawyer when getting into a business. 

The post How To Legally Protect Your Small Business appeared first on Legal Desire Media and Insights.

We may now readily find web adverts for 1000+ legal drafts. These businesses entice individuals with their appealing pricing schemes. Many people assume that the company and the drafts are reputable and fall into the pit far too easily because these online draft services mention that lawyers created the documents so that they can maintain their veracity. As a result, many people assume that the company and the drafts are reputable and hence rely upon such templates. To the untrained eye, most business transactions can seem redundantly identical — just a matter of pushing the right papers in front of the right eyes. But it’s misguided to assume that one legal form can fit the wide scope of diversity that exists within all companies. Every business is guided by unique goals, leaders, and circumstances that have different needs and characteristics.

The issue associated with such drafts available online is the rigidity and inflexibility of an online template. These online legal drafts are deceiving, and they may not be accepted in all places. This is due to the fact that each state’s interpretation of various law texts differs. Another prevalent problem is that some provisions can be applied in one state but not in another. It’s possible that a lawyer who has never done any drafting has generated a series of similar drafts in order to attract clients. Another disadvantage of such online drafts is that they nearly never handle a variety of potential concerns that may arise properly and explicitly.

“Communication is the key.” In this case the keys are aplenty without knowing the mechanics  of the lock. Imagine trying to open a door being locked out with ready made samples from the market, based on assumption. 

Moreso, it’s penny wise pound foolish. Without understanding specific needs, in the long run disputes invariably arise, leaving the ‘saver’ with bundled legal cost. Business is a marathon. Unfortunately usually people looking at a short-term profit, tend to end up in a 100-meter sprint. 

Ashish Bhakta – Founding Partner, ANB Legal

Another issue is that these templates do not take into account the particular and circumstances of your scenario. There are no two persons or businesses that are exactly alike. If one of the drafts does not fit the situation, the court can easily dismiss it. Some of these documents are ambiguous and unsuitable for legal advice. For example, a divorce petition can be filed in a variety of ways, including mutual divorce or divorce for various reasons under Hindu or Muslim law.

These contracts are not in any way tailored to the facts of your deal. Rather, they are usually legal gibberish garnished with glitter that laypeople interpret as meaningful. The present tendency in all legal drafts is to write clearly and unambiguously according to the facts and circumstances of the case and how they demand it.

In the digitalised era, readymade contracts and agreement templates are accessible at a finger click. However, a crucial point to consider before opting to use the same would be whether it fits the requirement of one’s need as contracts are a list of terms and conditions that are to be adhered to by both the parties signing it. Moreover, each agreement and negotiated deal has ingredients that are unique to its own, thereby the same should be drafted upon consulting a lawyer instead of using a readymade contract which would fail to take into consideration the essence of the negotiated deal. The bottom line is that the key to avoid any legal tussles is to ensure that a contract is sealed at every probable loophole and consulting a lawyer would not only avoid unnecessary litigation but provide a tailor-made contract that would ensure that businesses are smooth sailing.

Sonam Chandwani – Managing Partner at KS Legal & Associates

If you’re a client, you should appreciate the value of a legal draft and the skill of a lawyer in drafting a legal document. You should not be fooled into purchasing a legal gibberish package that can be found simply online. The drafts are only a starting point; you’ll need to consult a lawyer because you’ll need to insert deal-specific words and provisions that aren’t available elsewhere. Those are the crucial provisions that help you win a case. Moreover, if you’re a lawyer who wants to develop his or her drafting skills, the ideal option is to either get a good book with major guidelines for the subject material it covers, or practice more and more, choosing a senior or mentor under whose supervision you may improve your skills.

The author here addresses a very important topic, realizing the importance of details or unique elements of a case/business in creating a legal document emphasizing the same is the difference between a good strong legal draft and a generic one.

While the availability of generic draft has come as a legal aide for the people who can’t afford to pay lawyers for the drafts but the lack of professional touch in the same has definitely lead to some grievances being encountered by the users who may end up spending their money in litigation for the lack of legal advice. I would strongly pitch that when it comes to contract/agreement drafting for any nature, professional legal help should always be sought, to avoid any future legal ramifications.

Kangan Roda – Partner, illuminIP

 

It’s difficult to replace the human factor. Despite the fact that the internet has played a significant part in revolutionizing, it cannot replace the legal professional’s understanding. Legal documents must be prepared or tailored to the demands and conditions of the contracting parties. The lawyer is aware of the client’s opportunities, needs, and threats, and works with them to develop legal documents that are appropriate. Just remember not to be deceived by these generic internet-drafts. 

Contributing Authors: Shivani Singh, Muskan Mahajan, and Mannat Sardana (Editorial Team)

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