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Eligibility and Process:

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalized. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

GST Turnover Limit:

There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through e-commerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier is provided below.

Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.

Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

  • Should not be providing any services.
  • The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.
  • Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States: Under GST, the following are listed as special category states - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.

Voluntary GST Registration

Any person or entity irrespective of business turnover can obtain GST registration at any-time. Hence, GST registration is obtained by many businesses in spite of not reaching the aggregate turnover limit. Some of the main reasons for obtaining voluntary GST registration are:

  • To improve the business credibility.
  • To satisfy the requirements of B2B customers.
  • To claim input tax credit benefits.
GST Registration Responsibilities

Entities registered under GST have various responsibilities and compliance requirements from time to time. Failure to comply with the GST regulations or compliance requirements can lead to penalties and revocation of GST registration by the authorities. Some of the main responsibilities of a person registered under GST include:

  • Collecting and remitting GST amount from customers.
  • Issuing proper GST invoice as per the GST rules and regulations.
  • Filing GST returns whenever due based on turnover - even if there is no turnover or business activity.
  • FIling annual GST return.
  • Maintaining all records pertaining to GST for a period of 8 years.

GST has been implemented in India from 1st July, 2017. Under the new GST regime, nearly 1 crore busineses in India have obtained GST registration. All entities having GST registration are required to file GST returns, as per the GST return due date schedule mentioned below. GST return filing is mandatory for all entities having GST registration, irrespective of business activity or sales or profitability during the return filing period. Hence, even a dormant business that obtained GST registration must file GST return.

GST registration holder are required to file GSTR-1 (details of outward supplies) on the 10th of each month, GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return) on the 25th of each month. Dealers registered under the GST composition scheme are required to file GSTR-4 every quarter, on 18th of the month next to the quarter. Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December. The due dates for the GST return due in July, August and September are different from the normal schedule to help the taxpayers and GSTN network ensure a smooth GST rollout.

Civictax is the leading business services platform in India, offering end to end GST services from registration to return filing. Civictax can help you file GST returns in India. The average time taken to file a GST return is about 1 - 3 working days, subject to government processing time and client document submission. Get a free consultation on GST return filing by scheduling an appointment with an Civictax Advisor.

GST has been implemented in India from 1st July, 2017. Under the new GST regime, over 1.3 crore business in India have been registered and issued GST registration. All entities having GST registration are required to file GST annual returns, as per the GST return due date schedule mentioned below. GST annual return filing is mandatory for all entities having GST registration, irrespective of business activity or sales or profitability during the return filing period. Hence, even a dormant business that obtained GST registration must file GST return.

GST registration holder who obtained the registration any time before 1st April 2018 are required to file GST annual return for the financial year 2017-18 on or before 30th June 2019. Before filing GST annual return the taxpayer must have filed all GSTR-1 or GSTR-3B or GSTR-4 return for the period of July to March 2018. In case there are overdue GST returns for the above-mentioned period, the GST registration holder will not be allowed to file GST annual return.

GST Annual Return Types

GST Annual Return Filing can be divided into three types based on the form to be filed as under:
GSTR-9: All entities having GST registration are required to file GST annual return in form GSTR-9.
GSTR-9A: GST registered taxpayers who have opted for the GST Composition Scheme under Goods and Services Tax (GST) are required to file GSTR-9A.
GSTR-9C: Form GSTR 9C is meant for filing the reconciliation statement of taxpayers pertaining to a particular financial year. The form is a statement of reconciliation between the Annual Returns in GSTR-9 and the figures mentioned in the Audited Financial Statements of the taxpayer.GSTR 9C is applicable to taxpayers who are required to obtain an annual GST audit of their accounts. GSTR-9C must be prepared and certified by a Chartered Accountant or Cost Accountant. GST audit is applicable for person having GST registration with an annual aggregate turnover of above Rs. 2 crores in a particular financial year.

GST Annual Return Due Date

The due date for filing GST annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 to 2018 has been extended up to 30th June 2019.

GST LUT or Export Bond Filing

Letter of Undertaking is commonly known as LUT. The Letter of Undertaking (LUT) is prescribed to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfil all the requirements prescribed under GST while exporting without making IGST payment.

All GST registered goods and service exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws. In such cases, where the exporter is not eligible to file LUT, they would have to furnish an export bond.

Civictax can help you with GST LUT filing or export bond filing. Get in touch with our GST Experts to know more about exporting under LUT or export bond.

Letter of Undertaking (LUT) for Exports

According to the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.

All GST registered goods and services exporters are eligible to submit LUT except the exporters who have been prosecuted for any offence and the amount of tax evasion exceeds Rs.250 lakhs under the CGST Act or the Integrated Goods and Services Tax Act,2017 or any of the existing laws.

Letter of Undertaking will be valid for a period of twelve months from the date of submission. If the exporter fails to comply with the conditions of the Letter of Undertaking, privileges could be revoked and the exporter would be required to furnish a bond. All exporters are required to submit letter of undertaking or export bond under the new format specified under GST on or before 31st July 2017.

Export Bond for GST

Entities not eligible to submit a Letter of Undertaking (LUT) as per the conditions mentioned above would have to furnish an export bond along with bank guarantee. The bond should cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. Export bond should be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is being furnished.

Also, exporters can furnish a running bond, so that export bond need not be executed for each and every export transaction. However, if the outstanding tax liability on exports exceeds the bond amount at any time, then the exporter must furnish a fresh bond to cover the additional liability.

A bank guarantee can be mandated along with export bond. The value of bank guarantee should normally not exceed 15% of the bond amount. However, based on the track record of the exporter, the bank guarantee required to be submitted with export bond can be waived off by the jurisdictional GST Commissioner.

Most persons or entities who supply goods and/or services in India have a GST registration. After obtaining GST registration, sometimes a GST registration may need to be cancelled. Some of the most common reasons for cancellation of GST registration are closure of business, no requirement to pay GST, transfer of business, change in constitution and no business activity. Surrendering a GST registration will reduce the compliance requirement for the taxpayer, as GST returns would no longer have to be filed monthly. To cancel a GST registration, application must be submitted on the GST Common Portal in FORM GST REG-16 along with the required information. On submission of an application for cancellation of GST registration, the GST officer is required to verify the application and issue an order in FORM GST REG-19, within 30 days from the date of application.

Civictax offers a suite a complete range of GST services from GST registration to cancellation of GST registration. In addition, through Civictax, you can also easily maintain GST compliance through LEDGERS GST Platform and file GST returns with our GST Expert support, at an affordable cost. Get a free phone consultation about GST registration cancellation in India.

An income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. We help to save income tax for our customer without risk By law, taxpayers must file an income tax return annually to determine their tax obligations. Income taxes are a source of revenue for governments.

Proprietorship firms are required to file income tax return like LLPs and Companies registered in India. Since proprietorship firms are considered to be one and same as the proprietor, the income tax return filing of the proprietorship firm is the same that of the proprietor. Under Income Tax Act, all proprietors below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of proprietors over the age of 60 years but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Proprietors over the age of 80 years and above are required to file income tax return if the total income exceeds Rs.5 lakhs. Civictax provides income tax return filing for thousands of small and medium sized proprietorship firms across the country. Get in touch with an Civictax Tax Expert to file the income tax return for your proprietorship firm today.

Tax Audit for Proprietorship Firm

An audit would be required for a proprietorship firm if the total sales turnover is over Rs.1 crore during the financial year. In the case of a professional, audit would be required if total gross receipts is more than Rs.50 lakhs during the financial year under assessment. Also, an audit would be required for any proprietorship firm under presumptive taxation scheme irrespective of turnover if the income claimed is lower than the deemed profits and gains under the scheme.

Due Date for Proprietorship Firm Tax Return

The income tax return of a proprietorship that doesn’t require audit is due on 31st July. In case the income tax return of a proprietorship needs to be audited as per Income Tax Act, then the return would be due on 30th September. Proprietorship firms would be required to file Form ITR-3 or Form ITR-4-Sugam. Form ITR-3 can be filed by a proprietor or a Hindu Undivided Family who is carrying out a proprietary business or profession. Form ITR-4-Sugam can be filed by a proprietor who would like to pay income tax under the presumptive taxation scheme. Presumptive taxation scheme is designed to help ease the compliance burden of small businesses by assuming a set profit margin on the total income of the business or profession.

Partnership firms is among the most common types of business entity in India wherein two or more persons join together to undertake a profit for business. Under Income Tax Act, a partnership firm is defined as “Persons who have entered into a partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name". Partnership firms are required to file income tax return in form ITR 5 each financial year. To file the income tax return of a partnership firm, book of accounts must be maintained and tax audit may have to be obtained based on various criterias. Civictax provides a comprehensive compliance and income tax return filing service for partnership firms. Get in touch with an Civictax Tax Expert to file the income tax return for your partnership firm today.

Tax Audit for Partnership Firm

An audit would be required for a partnership firm if the total sales turnover is over Rs.1 crore during the financial year. In the case of a professional firm, audit would be required if total gross receipts is more than Rs.50 lakhs during the financial year under assessment.

Due Date for Partnership Firm Tax Return

The income tax return of a partnership firm that doesn’t require audit is due on 31st July. In case the income tax return of a partnership firm needs to be audited as per Income Tax Act, then the return would be due on 30th September.

Private Limited Company Annual Filing & Compliances

All companies registered in India like private limited company, one-person company, limited company, and section 8 company must file MCA annual return and income tax return each year. Before filing annual return, the company must conduct an Annual General Meeting at the end of each financial year. For newly incorporated Companies, the Annual General Meeting should be held within 18 months from date of incorporation or 9 months from the date of closing of financial year, whichever is earlier. Subsequent Annual General Meetings should be held within 6 months from the end of that financial year. In India, normally the financial year starts on April 1st and end on 31st March. So a Company's annual return would be due on or before September 30th.

In addition to MCA annual return, companies must also file income tax return irrespective of income, profit or loss. Hence, even dormant companies with no transactions are required to file income tax return each year. Private limited companies, limited companies and one person companies would be required to file Form ITR -6. The due date for filing income tax return for a company is on or before the 30th of September.

Civictax provides a comprehensive cloud based iCFO and compliance management service for small and medium sized business. Our compliance service includes financial statement preparation, secretarial services, income tax return filing and MCA annual return filing. Based on requirement as your business scales, we can also provide GST return filing services, TDS return filing services, advance tax computation and payroll processing. Get in touch with an Civictax Advisor to begin managing your company’s compliance in an easy and hassle-free manner.

LLP Annual Filing

LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from end of six months of close of financial year. Unlike Companies, LLPs mandatorily have to maintain their financial year, as April 1st to March 31st. Therefore, LLP annual return is due on May 30th and the Statement of Account & Solvency is due on October 30th of each financial year. In addition to the MCA annual return, LLPs must also mandatorily file income tax return every year. Civictax provides a comprehensive LLP compliance service which includes LLP Annual Filing and LLP income tax return filing at a very affordable price point.

LLP Form 11

Form 11 contains details of the number of partners, total number of partners, total contribution received by all partners, details of body corporate as partners and summary of partners. All LLPs should file this form within 60 days from the closure of the financial year with the prescribed fee. Hence, the due date for filing LLP Form 11 is 30th of May each year. Civictax LLP Annual Compliance includes preparation and filing of LLP Form 11.

LLP Form 8

Form 8 must be filed within 30 days from the end of 6 months of the financial year along with some prescribed fee. This must be digitally signed by 2 designated partners and it must be certified by a chartered accountant/company secretary/cost accountant. Form 8 has contains Statement of Solvency, Statement of Accounts and Statement of Income & Expenditure. Civictax LLP Annual Compliance includes preparation and filing of LLP Form 8.

LLP Tax Audit

LLPs are separate legal entities. Therefore, it is the responsibility of the Designated Partners to maintain proper book of accounts and file annual return with the MCA each financial year. LLPs are not required to audit its accounts unless the annual turnover exceeds Rs.40 lakhs or if the contribution exceeds Rs.25 lakhs.

LLP Tax Audit

LLPs must file income tax return using Form ITR 5. Form ITR 5 can be filed online through the income tax website using the digital signature of the designated partner. The deadline for LLP tax filing in India is July 31st if tax audit is not required. LLP whose turnover exceeded Rs. 40 Lakh or whose contribution exceeded Rs. 25 Lakh are required to get their accounts audited by a practising Chartered Accountant. The deadline for tax filing for LLP required to obtain audit is September 30th.

Foreign Subsidiary Company Compliance

Foreign subsidiary companies are mandatorily required to maintain compliance as per Income Tax Act, Companies Act, transfer pricing guidelines and FEMA guidelines. Hence, maintaining compliance for a foreign subsidiary company would include filing of income tax return with the Income Tax Department, annual return with the Ministry of Corporate Affairs and other filings with authorities like Reserve Bank of India or Securities & Exchange Board of India (SEBI). Finally, like all companies, foreign subsidiaries would also have to comply with other Indian tax regulations like TDS regulations, GST regulations, VAT / CST regulations, Service Tax regulations, ESI regulations and others. The compliance requirement for a foreign subsidiary company would vary based on the industry, state of incorporation, number of employees and sales turnover.

Civictax is the largest business services platform in India, offering a variety of services like foreign subsidiary company compliance, foreign subsidiary incorporation, trademark registration, GST registration, income tax filing and more. Civictax can help you maintain compliance of your foreign subsidiary company. Get a free consultation for foreign subsidiary compliance maintenance through Civictax by scheduling an appointment with an Civictax Advisor.

Partnership Agreements are be used by Partners wishing to form a partnership for doing business together. It is strongly recommended or encouraged for partnerships to have some kind of agreement among themselves, in case future disputes prove difficult to arbitrate. It is meant to promote mutual understanding and avoid mistrust. It indicates the terms on which the business corporation is founded.

Also, registration of a Partnership will make the firm eligible for obtaining PAN, applying for bank loan, opening bank account in Partnership Firm name, obtaining GST registration or IE Code or FSSAI license in partnership firm name and more.

Executing a Partnership Deed

Partnership agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more based on the value of properties held in the partnership firm. The partnership agreement is usually signed in the presence of all the partners and each of the partners would retain a signed original for his/her records. Once the document is signed by the Partners, the document is witnessed and the signed partnership deed is held by each of the Partners is duplicate or triplicate.

Lease Deed

Lease deeds are agreements entered for letting out of property for more than 12 months. Lease deeds have to abide by strict rent control laws that are mostly favorable to the tenants. Further, rental control laws currently prevent the landlords from overcharging the tenants and protect the tenants from sudden or unfair eviction.  Also, the right to ownership of the property gets transferred from the landlords to the tenants in case of a lease agreements, making it harder for the landlord to vacate a tenant. Hence, most landlords do not prefer to enter into registered lease deeds that are over 12 months.

Lease Deed Format

This lease deed is designed for leasing or renting of commercial property. Lease deed is a legal document which lays out the prescribed terms and conditions under which the property is leased out. Lease deed must contain information about the lessor, lessee, tenure of lease, lease payments payable and other terms to be followed by the lessee and lessor during the lease term. Though the relationship between the land lord and the tenant is cordial most of the time, it is good to have a written rental agreement in place if the relationship turns sour or becomes fraught with complaints and misunderstandings.

Execution of Lease Deed

This lease deed format can be used by the lessor or lessee for leasing of commercial property. It is signed by the lessee and lessor to indicate agreement to the conditions placed by the lessor during the lease terms. It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The lease deed must be printed on a Non-Judicial Stamp Paper. The value of the non-judicial stamp paper or stamp duty payable on the lease agreement would depend on the State and the value of the lease payable as per the lease agreement. Lease deeds can also be registered at a Sub-Registrar Office having jurisdiction over the premises to be leased. Two copies of the lease deed are usually executed, with each party retaining one of the original copies.

Lease Deed Vs Rental Agreement

Based on the term and tenure of the agreement, the document can be termed as a lease deed or rental agreement. Lease deeds and rental agreements are treated differently under the Laws in force in India.

Rental Agreement

Rental agreements on the other hand are entered into for a period of 11 months, with an option to renew the agreement at the expiration of the agreement. As a rental agreement that is 11 months long is just a license for the tenant to occupy the premises for a short duration, rent control laws do not apply. Further, rental agreements that are 11 months long allow the landlord to take more measures in case of eviction of tenant from the property. Hence, most landlords prefer to enter into a rental agreement that is 11 months long, with an option to renew at the end of the agreement period.

Rental Agreement Format

A rental agreement is a legal document which lays out the prescribed terms and conditions under which the rented property is leased out that is to be followed between the land lord and the tenant. Though the relationship between the land lord and the tenant is cordial most of the time, it is good to have a written rental agreement in place if the relationship turns sour or becomes fraught with complaints and misunderstandings.

Executing a Rental Agreement

This rental agreement or lease deed format can be used by the lessor or lessee of a residential property. It is signed by the lessee and lessor to indicate agreement to the conditions placed by the lessor. It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The rental agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more. The rental agreement is usually signed on payment of deposit for the rental property between the lessor and the lessee. Two copies of the document are usually executed, with each party retaining one of the original copies.

Terms of Rental Agreement

One of the most common features while entering into a property rental transaction in India is the prevalence of the 11-month rental agreement or license agreements. A period of 11 months is preferred by most landlords while entering into property rentals, because there are two types of agreements that deal with property rental in India, lease agreement and leave & license agreement.

Lease Agreement

Rental agreements that are over 12 months have to abide by strict rent control laws that are mostly favorable to the tenants. The rental control laws currently prevent the landlords from overcharging the tenants and protect the tenants from sudden or unfair eviction.  Also, the right to ownership of the property gets transferred from the landlords to the tenants in case of a lease agreements, making it harder for the landlord to vacate a tenant. Hence, Landlords do not prefer to enter into rental agreements that are over 12 months.

Rental Agreement or License Agreement

Rental agreement or license agreements on the other hand are entered into for a period of 11 months, with an option to renew the agreement at the expiration of the agreement. As a rental agreement that is 11 months long is just a license for the tenant to occupy the premises for a short duration. Hence, rent control laws do not apply in most States. Further, rental agreements that are 11 months long allow the landlord more measures to take in case of eviction of tenant from the property. Hence, most landlords prefer to enter into a rental agreement that is 11 months long, with an option to renew at the end of the agreement period.

Memorandum of Association Amendment

Memorandum of Association of a Company sets down the constitution of a company including the permitted range of activities of the company, state of incorporation, type of company, capital clause, liability clause and more. Changes to Memorandum of Association of a company can be required while changing name of a company, changing registered office from state to state. alteration of objects clause, alteration of capital clause or increase of authorised capital. Changes to the Memorandum of Association of a company would require the passing of a special resolution and shareholders consent.

Civic Tax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, GST registration, income tax filing and more. Civic Tax can help you amend Memorandum of Association of a company. The average time taken to file for complete a Memorandum of Association amendment is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation on procedure for amendment of memorandum of association by scheduling an appointment with an Civic Tax Advisor.

Partners in a LLP are responsible for the carrying on the business of the LLP. To add a Partner to a LLP, the person proposing to become a Partner must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians and Foreign Nationals can obtain DIN and be appointed as Partner of a LLP in India.

Civic Tax is the leading business services platform in India, offering a variety of services like LLP registration, trademark filing, GST registration, income tax filing and more. Civic Tax can help you appoint a director in your company. The average time taken to file for appointment of Partner is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation for appointment of Partner by scheduling an appointment with an Civic Tax Advisor.

A private limited company is an artificial judicial person and requires various compliances like appointment of Auditor, regular filing of income tax return, annual return filing and more. Failing to maintain compliance for a Company could result in fines and/or disqualification of the Directors from incorporating another Company. Therefore, if a private limited company has become inactive and there are no transactions in the company, then it is best to wind up the Company.

Voluntary winding up of a company can be initiated at anytime by the shareholders of the company. In case there are any secured or unsecured creditors or employees on-roll, the outstanding dues must be settled. Once all the dues are settled, the bank accounts of the company must be closed. Finally, the company must regularise any overdue compliance like income tax return or annual filing and surrender the GST registration. Once, all activities are stopped and the registrations are surrendered, the winding up application petition can be filed with the Ministry of Corporate Affairs.

Civic Tax can help you wind up your Company, quickly and easily. Civic Tax can help you initiate the winding up process within 10 to 14 business days. The entire process for winding up of a company can be completed within 3 to 6 months, subject to government processing times. The timeline for winding up of a company could also differ from case to case, based on unique circumstances. To discuss more about winding up a company, get in touch with an Civic Tax Advisor.

A LLP winding up can be initiated voluntarily or by striking off or by a Tribunal. If a LLP is to initiate winding up voluntarily, then the LLP must pass a resolution to wind up the LLP with approval of at least three-fourths of the total number of Partners. If the LLP has lender's, secured or unsecured, then the approval of the lenders would also be required for winding up of the LLP.

To begin the process for winding up of LLP, a resolution for winding up of LLP must be passed and filed with the Registrar within 30 days of passing of the resolution. On the date of passing of resolution of winding up of LLP, the voluntary winding up shall be deemed to commence. Civic Tax can help you wind up your LLP quickly and easily.

Voluntary Winding Up

LLPs can also be wound-up easily with the approval of 3/4th of the partners. To start the liquidation process for a LLP, a greater part of the designated partners, will have to make a declaration that the LLP has no debt or that it will be competent to pay the debts in full within a period of not more than 1 year from the start of winding up. Further, the LLP partners must declare that the LLP is not being wound up to defraud any person or persons. This declaration for winding up of the LLP must be prepared along with a statement of assets and liabilities until the most recent practicable date right before the making of declaration for winding up. A valuation of the assets related to the LLP prepared by a valued must also be submitted, if there are assets in LLP. Voluntary winding up will be deemed to start on the date of passing of resolution for the reason of voluntary winding up.

Striking Off

The Ministry of Corporate Affairs has recently amended Limited Liability Partnership Rules, 2009 by introducing the Limited Liability Partnership (Amendment) Rules, 2017 with effect from 20th May, 2017. With this amendment, LLP Form 24 has been introduced by the MCA and it is now possible to easily close a LLP by making an application to the Registrar for striking off name of LLP. Before the introduction of the Limited Liability Partnership (Amendment) Rules, 2017, the procedure for winding up a LLP used to be long and cumbersome. However, with the introduction of LLP Form 24, the procedure has been made easy and simple.

Winding Up by Tribunal

Winding up of LLP can be initiated by a Tribunal for the following reasons:

  • The LLP wants to be wound up.
  • There are less than two Partners in the LLP for a period of more than 6 months.
  • The LLP is not in a position to pay its debts.
  • The LLP has acted against the interests of the sovereignty and integrity of India, the security of State or public order.
  • The LLP has not filed with the Registrar Statement of Accounts and Solvency or LLP Annual Returns for any five consecutive financial years.
  • The Tribunal is of the opinion that it is just and equitable that the LLP should be wound up.

The ownership of a company limited by shares is held by the shareholders of the Company. The shareholders in turn appoint Directors to manage the affairs of the Company. Hence, ownership of a company rests with the shareholders and not the Directors. Transfer of ownership of a company can therefore be accomplished by transferring shares of the company from one person or entity to another. Share transfer in a private limited company is usually more restricted when compared to a listed company that is publicly traded. The entire shares of a private limited company are usually owned by a family or a small group of persons or entities. Hence, most of the Articles of Association of a Private Limited Company limit the right of a shareholder to transfer the company's shares to an outsider. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer. Civic Tax can help you transfer shares of a private limited company by completing the necessary procedures as per Companies Act, 2013.

The registered office of a Company or LLP is the principle place of business for a private / public limited company and all official correspondence from the Ministry of Corporate Affairs is sent to this location. The registered office of a Company or LLP can be changed within the local limits of any city, town or village where such office is situated by just giving a notice to the concerned Registrar within 30 days after the date of the change. But a special resolution will be required if the change of the registered office is from one village, town, etc., in the same state. Where the place of registered offices is to be altered from one State to another State, the Company or LLP may do so by passing special resolution and getting confirmation of the Company Law Board. The Company or LLP is also required to give an advertisement in the newspapers indicating the change proposed to be made and also a notice is to be given to the State Government when it is proposed to transfer the registered office from one State to another.

A change to the registered business office address can be required due to various reasons. Further, the formalities and process for changing the Registered Office of the Company or LLP will depend on if the Company or LLP is changing address within the same city/town/village or if the Company is changing address between city/town/village of if the Company is changing the Registered Office between States. Civic Tax can help you change the Registered Office in all three scenarios, talk to our Business Advisors today.

Payroll processing and HR management is a highly complex task for most small businesses due to the various compliance requirements in India. Most startups and small businesses do not have well established HR systems and processes leading to challenges in hiring top talents, retaining good employees and building a productive workplace culture. By outsourcing payroll and HR management to Civic Tax, you can enjoy stress and error-free payroll cycle every month, knowing it has been done by the experts. Also, our HR Experts can help you implement world-class HR processes in your organisation from day one to support the growth of the business.

Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the umbrella of Employees’ Provident Fund Organisation (EPFO). PF registration is applicable for all establishment which employs 20 or more persons. PF registration can also be obtained voluntarily by establishments having less than 20 employees.

The PF contribution paid by the employer is 6% of (basic salary + dearness allowance + retaining allowance). An equal contribution is payable by the employee. In case of establishments which engage less than 20 employees or meet certain other conditions, as per the EPFO rules, the contribution rate for both employee and the employer is restricted to 10%. For most employees working in the private sector, it’s the basic salary on which the contribution is calculated.

It is obligatory that employees’ drawing less than Rs 15,000 per month, to become members of the EPF. As per the guidelines in EPF, employee, whose ‘basic pay’ is more than Rs. 15,000 per month, at the time of joining, is not required to make PF contributions. Nevertheless, an employee who is drawing a pay of more than Rs 15,000 can still become a member and make PF contributions, with the consent of the Employer.

ESI Registration

Employee's State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. For all employees earning INR 21000 or less per month as wages, the employer contributes 4.75 percentage and employee contributes 1.75 percentage, total share 6.5 percentage. This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. But most of the dispensaries and hospitals are run by concerned state governments.

Employees registered under the ESI enjoy a range of benefits under the scheme. Employee enjoy medical attendance and treatment for the person insured and their families including full range of medical, surgical and obstetric treatment, supply of all drugs, ambulance services, super-specialty consultation, etc., In addition, to the medical care, insured persons also enjoy sick pay benefits. Registration with ESI provides the employee with tremendous benefits and improves worker morale and retention. Civic Tax can help your Company obtain and manage ESI Registration.

Provident fund is a social security system that was introduced for the purpose of encouraging savings among employees, so as to benefit them during the course of their retirement. Contributions are made by the employer and the employee on a monthly basis. PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions. All employers having PF registration are responsible to file returns on a monthly basis. The filing of returns must be completed by the 15th of each month.

Civic Tax offers a comprehensive Payroll solution which includes TDS compliance, PF compliance, ESI compliance and payroll computation. Talk to an Civic Tax Business Expert to outsource your Payroll compliance to Civic Tax.

Form 2

This form is filed for the purpose of declaration and nomination under the flagship schemes of Employees Provident Fund and Employees Family Pension. It must be filed by an employee when he joins an entity. The form must be submitted along with Form 5. Form 2 is divided into two distinct parts:

Part A

Part A of Form 2 specifically deals with nominating the recipients of EPF balance of a particular account holder, in the event of his/her death. The following details of the nominee must be included in this part of the form:

  • Name
  • Address
  • Relationship with the subscriber
  • Age
  • Sum of money to be paid to the nominee
  • Guardian details (if the nominee is a minor)

Note: This section must be signed or a thumb impression has to be made at the end of the section.

Part B

Part B should contain the details of the nominee as already specified in Form A. In addition to it, details of the family members who are eligible to receive the children/widow pension must be furnished.

Note: This section must be signed or a thumb impression has to be made at the end of the section.

Form 5

Form 5 is a monthly report which contains details pertaining to the employees who have been newly enrolled into the provident fund scheme. The form must include the following details:

  • Name of organization
  • Address of organization
  • Code number of organization
  • Account number of employee
  • Name of employee
  • Name of the husband/father
  • Date of Birth of the employee
  • Date of joining
  • Track record of work

Note: The form must be filed and stamped by the employer, with the date of filing of form.

Form 10

Form 10 is a monthly report that contains details of the employees who have ceased to be a part of the scheme on a given month. The following details must be filled in the form:

  • Account number.
  • Name of employee.
  • Name of the father or husband.
  • Date of leaving service.
  • Reason for leaving service.

Note: The form must be filed and stamped by the employer, with the date of filing of form.

Form 12A

Form 12A is a report that includes the details of the payments contributed to the account of the respective employee in a particular month.

ESI Return Filing and Due Date

Employee's State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for employers having 10 or more employees. For all employees earning Rs. 15,000 or less per month as wages, the employer must contribute 4.75% and employee must contribute 1.75% towards ESI. The ESI fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. Civic Tax can help you obtain ESI registration for your business.

All employers having 10 or more employees are required to be registered with Employee State Insurance (ESI) Corporation. Those entities having ESI Registration must then file ESI returns. ESI returns are due half-yearly. Civic Tax can help file ESI returns for your business. Our ESI experts can also help you computer ESI payments and maintain ESI regulation compliance for your businesss. Use ReminDue to know more about your due dates for ESI return and ESI payment due date.

Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Since a company is an artificial judicial person created by law, it can only act through the agency of natural persons. Thus, only living persons can be Directors of a company and the management of a company is entrusted to the Board of Directors. Appointment of Directors can be required for a company from time to time based on the requirements of the shareholders of the business.

To appoint a director, the person proposing to become a Director must obtain a digital signature certificate (DSC) and director identification number (DIN). DIN can be obtained for any person who is above the age of 18. The nationality or residency status of the DIN applicant does not matters. Hence, Indian Nationals, Non-Resident Indians and Foreign Nationals can obtain DIN and be appointed as Director of a company in India.

Civic Tax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, GST registration, income tax filing and more. Civic Tax can help you appoint a director in your company. The average time taken to file for appointment of director is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation on appointment of director by scheduling an appointment with an Civic Tax Advisor.

Resignation of Director

Director of a company is a person elected by the shareholders for managing the affairs of the company as per the Memorandum of Association and Articles of Association of the company. Director in a company may need to resign or the Board of Directors or Shareholders may want to remove a Director for any reasons. In such cases, a Director can resign or be removed by filing the intimation of change of Director with MCA.

The procedure for resignation of director and removal of Director by the Board or Shareholders vary. A Director can resign from a company by giving a notice in writing to the company and the Board is required to file the necessary filings with MCA within 30 days. A Director can also send a copy of the resignation letter to the ROC directly by filing a different set of forms.

Civic Tax is the market leader in company registration services in India, offering a variety of Civic Tax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, GST registration, income tax filing and more. Civic Tax can help you effect resignation of director of a company. The average time taken to file for resignation of director is about 10 - 15 working days, subject to government processing time and client document submission. Get a free consultation on procedure for resignation of director by scheduling an appointment with an Civic Tax Advisor.

The authorised capital of a Company determines the number of shares a Company can issue to its shareholders. An increase in authorized capital might be required for issuing new shares and/or inducting more capital into the Company. The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The authorised capital can be increased by the company at any time with shareholders approval and by paying additional fee to the Registrar of Companies.

To begin the process for increasing authorized capital a resolution must be passed by the Board of Directors. In the Board Resolution, authorisation must be provided for increasing the authorised capital of the company and making the necessary changes to the MOA and AOA of the company. Civic Tax can help you easily increase the authorised capital of your company.

The name of a company or LLP can be changed by the promoters at any time after incorporation. Some of the major reasons for change of company name are business model change, change of promoters, rebranding, etc., To change the name of a company, shareholders approval is required along with approval from the Ministry of Corporate Affairs. The change of name of a company or LLP however has no impact on the legal entity or its existence. Hence, all assets and liabilities of the entity would continue, while only the name of the company would have been changed.

Change of company name requires passing of a board resolution, obtaining name approval from MCA, passing of a special resolution and applying for approval of new company name to the MCA. If the MCA accepts the application, a new certificate of incorporation is issued. After obtaining the new certificate of incorporation, changes must be made to incorporate and change the MOA and AOA of the company as well.

Civic Tax is the leading business services platform in India, offering a variety of services like company name change, trademark registration, GST registration, LLP registration and more. Civic Tax can help you file for change of company or LLP name in India. The average time taken to complete a company name change is about 90 working days, subject to government processing time and client document submission. Get a free consultation on company or LLP name change by scheduling an appointment with an Civic Tax Advisor.

Trademark Registration - Online Filing with Expert Help

A trademark is a visual symbol, which may be a word, name, device, label or numerals used by a business to distinguish it goods or services from other similar goods or services originating from a different business. A registered trademark is an intangible asset or intellectual property for a business and is used to protect the company's investment in the brand or symbol. A trademark is registrable if it is distinctive for the goods and services you provide. Proposed trademarks that are similar or identical to an existing registered trademark cannot be registered. Also, trademarks are not registrable if it is offensive, generic, deceptive, not distinctive, contains specially protected emblems, etc.,

Trademarks in India are registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India. Trademarks are registered under the Trademark Act, 1999 and provide the trademark owner with a right to sue for damages when infringements of trademarks occur. Once a trademark is registered, R symbol can be used and the registration will be valid for 10 years. Registered trademarks nearing expiry can be easily renewed by filing a trademark renewal application for a period of another 10 years.

Civictax is the market leader in trademark filing services in India, offering a variety of trademark services like trademark filing, trademark objection reply, trademark opposition, trademark renewal and patent registration. Get a free consultation for trademark registration by scheduling an appointment with an Civictax Trademark Expert.

Trademark Rectification

Trademark registration is a type of intellectual property protection, under which a word or visual symbol used by a business to distinguish its goods or services from other similar goods or services originating from a different business can be protected. To register a trademark, a trademark application must be filed by the applicant with the relevant Trade Mark Registrar in the prescribed format. Once a trademark application is filed, the Trade Marks Registrar would process the application. If any concerns are noted on the trademark application, the Examiner would mark the application as Formalities Chk Fail and request rectification of the trademark application. If there are no concerns, the Trademark Examiner could also allow for the trademark application to be advertised before registration or raise an objection for registration.

Hence, in cases wherein the Trade Mark Registrar marks the application as Formalities Chk Fail or Send Back to EDP, the applicant has an opportunity to rectify and resubmit the trademark application. The rectification deed to the Trademark Examiners note must be prepared based on the reasons and facts as to why the mark was not allowed for further processing. If the Trademark Examiner finds the rectification sufficient and addresses all the concerns raised by him/her, application is allowed to be processed and marked for examination by a Trademark Examiner for preparing Trademark Examination Report.

Civictax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, tax registration, tax filing and capital syndication. Civictax can help you rectify an existing trademark application. The average time taken to draft and file a trademark rectification is about 5 - 10 working days, subject to government processing time and client document submission. Get a free consultation on filing a trademark rectification by scheduling an appointment with an Civictax Advisor.

Trademark Objection Reply

Trademark registration is a type of intellectual property protection, under which a word or visual symbol used by a business to distinguish it goods or services from other similar goods or services originating from a different business can be protected. To register a trademark, a trademark application must be filed by the applicant with the relevant Trade Mark Registrar in the prescribed format. Once a trademark application is filed, the Trade Marks Registrar would process the application and issue an Examination Report. Among the outcomes, the Trademark Examination Report could allow for the trademark application to be advertised before registration or the Trademark Examiner could raise an objection for registration of the mark.

In cases wherein the Trade Mark Registrar raises an objection for registration of a trademark, the applicant has an opportunity to submit a written reply for the objection raised. The reply to the Trademark Examination Report should contain reasons, facts and evidences as to why the mark should be registered in favor of the applicant along with supporting evidence, if any. If the Trademark Examiner finds the reply sufficient and addresses all the concerns raised by him/her in the Examination Report, the application would be allowed to be published in the Trademark Journal, before registration.

Civictax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, tax registration, tax filing and capital syndication. Civictax can help you respond to the objection raised by a Trade Mark examiner. The average time taken to draft and file a trademark objection reply is about 5 - 10 working days, subject to government processing time and client document submission. Get a free consultation on replying to a trademark objection by scheduling an appointment with an Civictax Advisor.

Trademark Renewal

Trademark registration is a type of intellectual property protection, under which a word or visual symbol used by a business to distinguish its goods or services from other similar goods or services originating from a different business can be protected. To register a trademark, a trademark application must be filed by the applicant with the relevant Trade Mark Registrar in the prescribed format. Once a trademark application is filed, the Trade Marks Registrar would process the application and provide registration under the Trade Mark Act. On registration of a trademark, the R symbol can be used along with the trademark and the registration is valid for a period of 10 years. During registration, in case of infringement of trademark, a suit can be filed to prevent misuse of the mark.

Trademark renewal must be filed before expiry of the mark. The trademark renewal application form must be prepared and filed before deadline to enjoy seamless protection of the trademark without any chances of litigation.

Civictax is the leading business services platform in India, offering a variety of services like company registration, trademark filing, tax registration, tax filing and capital syndication. Civictax can help you renew an existing trademark. The average time taken to draft and file a trademark renewal is about 5 - 10 working days, subject to government processing time and client document submission. Get a free consultation on filing a trademark renewal by scheduling an appointment with an Civictax Advisor.