SETTING UP OF BUSINESS ENTITIES IN INDIA - PPT - 20.09.2023.pptx

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By
SETTING UP OF BUSINESS ENTITIES
IN INDIA

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PRACTICAL ISSUES
SETTING UP OF
BUSINESS

NEED..
• BUSINESS STRATERGY
• BUSINESS SOLUTION
• BUSINESS PLANING
• TAX PLANING
• CONTROLE
• LONG TERM VISION
• RISK MANGEMENT
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research book

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m,m,m
Who can do
Who Can do better Structuring ?

PRESENT YOUR SELF
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WHY IIM STUDENTS PAID MORE?

PRESENT YOUR SELF
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RULES OF THE GAME:

PRESENT YOUR SELF-
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EXPLAIN ROLE OF CS WITH YOUR OPTION
IN A
CREATIVE MANNER WITH CONTENT

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Sole Proprietor
Partnership Firm
Hindu Undivided Family
Section 8 Company
Private & Public Company
OPC
AOP/BOI
Limited Liability Partnership
Trusts
MNC
Government Company
Cooperative Society
NBFC
MSME
Foreign Company
Mutually Aided Cooperative Society
Dormant Company
Small Company

SOLE PROPRIETORSHIP
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 one person owns all the assets.
 no legal formalities
 reports income/loss from this business along with is personal
 income tax return.
 Unlimited Liability
 Easy to Start

MERITS OF SOLE PROPRIETORSHIP
1. Negligible Cost of Registration
2. No Specific Business Address Required
3. No Audit Costs (unless substantial cash flows)
4. Simple Accounting / Profit & Loss Accounting
5. Simple Tax Regime & Low Tax Rates
6. No Partner - No Dispute
7. No Trade Laws and Policies applicable
8. Easy Closure
9. Independence and Autonomy
10. Flexible Working Hours
11. You keep all the profits
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DEMERITS OF SOLE PROPRIETORSHIP
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1. Single Owner Personally Liable for all matters
2. Entire Burden of Investment on one person
3. Inability to raise Financing
4. Slow expansion
5. Licensing & Trade Bodies Registration Problems
6. Software Export Licenses Problems
7. Property Purchased in Personal Name
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REGISTRATION PROCESS OF SOLE
PROPRIETORSHIP
Step 1: Choose a Business Name
Step 2 : Obtain a Permanent Account Number (PAN)
Step 3: Open a Current Bank Account
Step 4: Register for Goods and Services Tax (GST) (if applicable):
Step 5: Apply for any Required Licenses or Permits
Step 6: Register with the Shops and Establishment Act (if applicable):
Step 7: Register for Professional Tax (if applicable)
Step: 8: Maintain Proper Accounting Records
Step 9: Consider Trademark Registration (Optional)
Step 10: Keep Updated on Regulatory Changes
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Practical Aspects
KYC DOCUMENTS FOR THE PURPOSE OF BANK OPERATIONS
ADVANTAGE OF TITLE
MISUSE OF BRAND
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Role of CS
For getting all the registrations
For advising on Bank Account
For applying Trademark/copy right / patent / other Iprs
for planning next structure
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PARTNERSHIP FIRM
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PARTNERSHIP FIRM
 Association of persons who agree to combine their financial resources and
managerial abilities to run a business and share profits in an agreed ratio.
 Partnership business, usually grows out of the need for expansion of
business with more capital, better supervision and control, division of work
and spreading of risks.
 The persons who have agreed to join in partnership are individually called
“Partners” and collectively a ‘firm’.
 A partnership firm can be formed with a minimum of Two partners and it
can have a maximum of Fifty partners.
 Governed by the provisions of Indian Partnership Act, 1932.
 Registration is not mandatory

TYPES OF PSFs
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Types of Partnership
According to the nature of agreement among partners, there can be
three types of partnership as follows:
(i) Partnership at-will: Such a partnership exists on the will of the
partners. That is, it can be brought to an end whenever any
partner gives notice of his intention to do so.
(ii) Particular partnership: A particular partnership is formed for
undertaking a particular venture. It comes to an end
automatically with completion of the venture.
(iii)Partnership for a fixed duration: Such partnership is for a fixed
period of time say 2 years, 5 years or any other duration.

PSF – MERITS VS DEMERITS
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Merits:
• Ease in formation
• Pooling of financial
resources
• Pooling of
managerial skills
• Balanced business
decisions
• Sharing of risks
Demerits:
 Uncertainty of existence
 Risks of implied authority
 Risks of disharmony
 Difficulty in withdrawal from
the firm
 Lack of institutional confidence
 Difficulties of expansion

REGISTRATION OF PSF
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 A PSF can be registered either at the time of its formation or even subsequently. You need
to file an application with the Registrar of Firms of the area in which your business is
located.
 Application for partnership registration should include the following information,
namely, name of your firm, name of the place where business is carried on, names of any
other place where business is carried on, date of partners joining the firm, full name and
permanent address of partners and duration of the firm. The Application should be duly
signed by all the partners of the firm or by their duly authorised agents.
i. Every partner needs to verify and sign the application
ii. Following documents and prescribed fees to be enclosed with the registration
application
i. Application for Registration in the prescribed Form -1
ii. Duly filled-in Affidavit
iii. Certified copy of the Partnership deed
iv. Proof of ownership of the place of business or the rental/lease agreement thereof .

Practical Aspects
https://registration.telangana.gov.in/firmRegistration.htm
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Role of CS
Drafting deed
Regsitraration of firm
Applying for pan and income tax formalities
Registration of deed with subregstrar
Periodical and yearly compliance
Proceedings and minutes of Paternship minutes
Making investments in companies and other entities
Branding and marketing strategies
Registration and structuring of IPRS
Tax planning
Conversion of firm into llp/ company
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HINDU UNDIVIDED FAMILY (HUF)
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 The expression “Hindu Undivided Family” has not defined either in the
Income Tax Act or in any other statute.
 When we dissect – essentials are
 (i) One should be Hindu, Jains, Sikhs and Buddhists are considered as Hindus but
not Muslims or Christians;
 (ii) There should be a family i.e group of persons – more than one and
 (iii) They should be undivided i.e living jointly and having commonness amongst
them. All these three essentials are cumulative
 It is a body consisting of persons lineally descended from a common
ancestor and include their wives and unmarried daughters, who are living
together, joint in food, estate and worship (now not necessary). The
daughter, on her marriage, ceases to be a member of her father’s HUF and
becomes a member of her husband’s HUF. However, after 1-9-2005,
daughter married or unmarried, is a coparcener like a son.

HINDU UNDIVIDED FAMILY (HUF)
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 It does not have any separate and distinct legal entity from that of its members.
The laws that govern HUFs are not codified and are read along with the Hindu
Succession Act and the Income tax Act.
 The business of Joint Hindu Family is controlled under the Hindu Law instead of
Partnership Act.
 The membership in this form of business organisation can be acquired only by
birth or by marriage to a male person who is already a member of Joint Hindu
Family
 Benefits
 Easy to Start
 Efficient Management
 Secrecy
 Prompt Decision
 Credit Facilities
 Freedom regarding Selection of Business

PROCESS FOR CREATION OF HUF
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 Process for Creation of HUF
i. Create a HUF Deed
ii. Register the Deed
iii. Obtain PAN
iv. Open bank account
 The HUF is now functional. The karta will have to invest in
tax saving instruments and file tax returns on behalf of the
HUF.
Note: Under the Income Tax Act, an HUF is a separate entity for
the purpose of income tax return. The same tax slabs are
applicable to HUF as to individual assesses.

Practical Aspects
https://incometaxindia.gov.in/Pages/i-am/huf.aspx?k=PAN
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Role of CS
Drafting HUF family history along with roles
Applying for pan
Registration off deed with subregstrar
Proceedings and minutes of HUF meetins
Tax planning
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SECTION 8 COMPANY
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 A Section 8 Company is a type of corporation established to
promote non-profit activities, such as education, social welfare,
environment preservation, arts, sports, charity, and more. This
follows the provisions of the Companies Act 2013.
 The essential purpose of registering a Section 8 Company is to
encourage non-profitable goals, including but not limited to trade,
arts, commerce, education, charity, environmental protection,
sports research, and social welfare. To register a Section 8 Company,
a minimum of two directors are required, and there is no
requirement for a minimum paid-up capital to set up such a
company

BENEFITS OF OPENING A SECTION 8
COMPANY IN INDIA
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 Tax Exemption
 No Minimum Capital Requirement
 No Need for Paying Stamp Duty
 Separate Legal Entity
 Increased Credibility
 No Title Required

SECTION 8 COMPANY INCORPORATION
PROCESS
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 Step 1: Obtain Digital Signature Certificate (DSC)
 Step 2: Obtain Director Identification Number (DIN)
 Step 3: Reserve the Company
 Step 4: File the Application for Incorporation Increased
Credibility
 Step 5: Obtain a License for Section 8 Company
 Step 6: Obtain a Certificate of Incorporation

Practical Aspects
https://www.mca.gov.in/content/mca/global/en/home.html
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Role of CS
Drafting moa and aoa
Incorporation
Applying for pan and income tax formalities / GST
Registering under sectio 12 & 80G
Apply ing for CSR
Approaching for central government/ state government/ central govt agencies / companies
for funding
Proceedings and minutes recording
Tax planning
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PRIVATE & PUBLIC COMPANY
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 The Companies Act, 2013 provides for the
kinds of companies that can be promoted and
registered under the Act. The three basic
types of companies which may be registered
under the Act are:
(a) Private Companies;
(b) Public Companies; and
(c) One Person Company (to be formed as Private Limited
Company)

PRIVATE COMPANY
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As per Section 2(68) of the Companies Act, 2013, “private
company” means a company having a minimum paid-up
share capital as may be prescribed, and which by its
articles,–
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the
number of its members to 200:
 Provided that where two or more persons hold one or
more shares in a company jointly, they shall, for the
purposes of this clause, be treated as a single member:

PUBLIC COMPANY
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By virtue of Section 2(71), a public company means a company which:
(a) is not a private company; and
(b) has a minimum paid-up share capital, as may be prescribed
Provided that a company which is a subsidiary of a company, not being a
private company, shall be deemed to be public company for the purposes
of this Act even where such subsidiary company continues to be a private
company in its articles.
As per section 3(1)(a), a public company may be formed for any lawful
purpose by seven or more persons, by subscribing their names or his name
to a memorandum and complying with the requirements of this act in
respect of registration.

MERITS & DEMERITS OF COMPANY:
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MERITS
• Limited Liability
• Perpetual Existence
• Professional
Management
• Expansion Potential
• Transferability of Shares
• Diffusion of Risk
DEMERITS
• Lack of Secrecy
• More Legal Requirement
• Management Mischief’s
• Lack of Personal Interest

Practical Aspects
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Role of CS
Incorporation
Obtaining for various licenses and registrations
Proceedings and minutes of board meetings and general
Meeting
Tax planning
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INCORPORATION OF COMPANY ON
MCA V3 PORTAL

INCORPORATION OF COMPANY ON
MCA V3 PORTAL…contd
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 Subscribers / First Directors to register as Business Users in MCA:
The SPICe+ linked Forms such as E-MoA, E-AoA, INC-9 and AGILE
PRO-S will be auto-generated. All subscribers and/or First Directors
who have to affix their Digital Signature Certificate (DSC) on the forms
shall create their individual business users as Authorised signatories on
MCA V3 website and associate their DSC on the business user.
 Web-based filing of Forms: The following forms regarding
incorporation / conversion of a company have been shifted to the MCA
V3 website: Form RUN, INC-4, INC-6, INC- 9, INC-12, INC-13, INC-18,
INC- 20, INC-20A, INC-22, INC-23, INC-24, INC-27, INC-28, INC-
31,SPICE+ (INC-32), INC-33, INC-34, INC-35,URC-1

INCORPORATION OF A COMPANY
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Procedure for incorporation of a company:
 Acquire Digital Signature Certificate (DSC)
 Apply for Name Approval in RUN-
 Applicant have to login into their account on MCA Website
 After Login users have to click on the icon “RUN” in MCA Service
 Applicants have to fill the information online
 Upload the PDF documents, if required
 Reserved name shall be valid for 20 days from the date of approval
of Name.

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 Preparation of Documents for Incorporation of Company- After approval of name or for
Incorporation of Company applicant have to prepare the following below mentioned
Documents-
 INC-9 – Declaration by first Subscriber(s) and Director(s)
 DIR-2- Declaration from first Directors along with Copy of Proof of Identity and residential
address.
 NOC from the owner of the property
 Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
 Copy of the utility bills which should not be older than two months
 In case of subscriber/ Director does not have a DIN, it is mandatory to attach: Proof of identity
and residential address of the subscribers
 All the Subscribers should have Digital Signature.
Once all the above mentioned documents/ information are available. Applicant has to fill the information
in the e-form “Spice” INC-32.

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SPICe +(INC-32) a Single Window Form for Incorporation of Company:
Earlier if a Person wants to incorporate Company then it has to apply for
the DIN, Approval of the Name Availability, and Separate form for first
Director, Registered office address, PAN, TAN etc. But this form is a single
window for Incorporation of Company. This form can be used for the
following purposes:
 Application of DIN (up to 3 Directors)
 Application for Availability of Name
 No need to file separate form for first Director (DIR-12)
 No need to file separate form for address of registered office (INC-22)
 No need to file separate form for PAN & TAN
 No need to file separately for GST, IEC

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 Preparation of MOA & AOA (Electronic or
Physical).
 Fill details of PAN & TAN, GST, IEC etc. in
AGILE PRO-S
 Submission of INC-32, 33, 34, AGILE on MCA
 Certificate of Incorporation

MCA V3 WEBSITE
(PRE-REQUISITES)
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 Registration on MCA V3 website by creating Business user under the applicable role.
 While creating the business user, either of the following roles can be selected:

MCA V3 WEBSITE
(PRE-REQUISITES)
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 Business User Creation: Upon filling the requisite information and the OTP received
on the email ID and phone number, the business user is created. The CIN / LLPIN
will be the username in case of a business user of Company / LLP, whereas email ID
of the Director / designated partner / manager / secretary / authorized
representative etc. will be their username for login.
 Association of DSC: All signatories to the Form shall create their business users and
associate their DSC. The Associate DSC option will be available after logging – in on
the Business user.
 Steps to Associate DSC are: Login to business user > MCA Services > FO Services >

MCA V3 WEBSITE
(PRE-REQUISITES)
-
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 Upon following the above steps, the below tab shall open:
 As mentioned in the above photo, certain applications such as emsigner and
embridge shall be installed on the Computer. After following all information
provided above, the DSC can be associated.

MCA V3 WEBSITE
(PRE-REQUISITES)
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 About 65 Company forms and all the LLP Forms have been shifted to MCA V3
version. All the Forms are available under the MCA services tab, which is
accessible on the business users. After ensuring that the above steps have been
complied with, the Company can file the forms on MCA V3 website.
 Steps to file forms are as given below:
 Open the Form on V3 website
 Fill all details required
 Submit the Form
 Download the PDF version of Form available on the business user.
 Affix the DSC of the signatories i.e. Director / Secretary / Manager / CFO/
CEO etc. and the DSC of a practicing professional for certification, if
required.
 Login to the business user, upload the signed PDF version of the Form.
 Make payment.
 Download the receipt for the payment.

Practical Aspects
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Role of CS
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VARIOUS REGISTRATIONS REQUIRED
TAN

VARIOUS REGISTRATIONS REQUIRED
TAN
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TAN (Tax Deduction and Collection Account Number): TAN is a 10-digit alphanumeric number
required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section
203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction and Collection Account
Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.
 Procedure:
1. A deductor may either make an online application through this website or submit physical TAN
Application to any TIN-Facilitation Center (TIN-FC) of NSDL.
2. Applicants may obtain the application forms from TIN-FCs, any other vendors providing such
forms or can freely download the same from the website.
3. These applications are digitized by NSDL and forwarded to ITD. ITD will issue the TAN which will
be intimated to NSDL online. On the basis of this, NSDL will issue the TAN letter to the applicant.
4. The processing fee for both the applications (new TAN and change request) is 65/- INR (including
Goods and Services Tax).

Practical Aspects
https://incometaxindia.gov.in/Pages/tax-services/online-tan-registration.aspx
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Role of CS
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GST
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 GST: Section 22 of Central Goods & Services Tax Act, 2017 mandates that
every person who has an aggregate turnover for sale of goods of more than
Rs 40 Lacs in the relevant financial year, is liable to be registered under the
Act. It must be noted that for North-Eastern states, the threshold is Rs 20
Lacs.
 Aggregate Turnover under the Act includes all taxable supplies, exempt
supplies, zero-rated supplies, interstate supplies, but doesn’t include the
inward taxable supplies under the Reverse Charge Mechanism.
 The registration under GST is Permanent Account Number (PAN) based
and state-specific. GST Identification Number (GSTIN) is a 15-digit number
and a certificate of registration, incorporating the GSTIN is made available
to the applicant upon registration.

GST contd.
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Compulsory Registration
 In the following cases, registration is made compulsory,
irrespective of the aggregate turnover:
 For a supplier who makes inter-state supplies
 Casual taxable person
 Non-resident taxable person
 E-commerce operators
 Persons discharging liabilities under reverse charge mechanism

GST contd.
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 Persons Not Liable to Register:
 The following people are not liable to register under the
Central Goods & Services Tax Act, 2017:
1. Engaged exclusively in the supply of goods / services / both which
are not liable to tax
2. Engaged exclusively in the supply of goods / services / both which
are wholly exempt from tax
3. Agriculturalist to the extent of supply of produce from land
cultivation
4. Specified categories as may be notified by the Government

GST contd.
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Procedure:
 Every person who is liable to register themselves under the CGST Act, 2017 must do
so within 30 days from the date when he becomes first liable or five days prior to
commencement of business in case of casual/non-resident taxable person.
 If the proper officer doesn’t take any action within 3 days of submission of
application along with necessary details and documents, or within 7 days of
receiving the clarifications so solicited, the application for grant of registration is
deemed to be approved.
 Registration must be taken state-wise. In case there are several branches within a
single state, they can all operate under a single registration so long as one of the
places are declared as Principle Place of Business (PPOB) and the remaining are
Additional Places of Business (APOB).
 For composition levy, all businesses under a single PAN mandatorily either can be
registered under composition levy or all of them under normal levy and there is no
facility of choosing the Composition Scheme for only a few businesses under the
Goods & Services Tax Act, 2017.

Practical Aspects
https://services.gst.gov.in/services/quicklinks/registration
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Role of CS
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SHOPS & ESTABLISHMENTS
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Shops & Establishments Act: The Shop and Establishment Act in India is
promulgated by the state and may slightly differ from state to state.
However, as per the Act, all shops and commercial establishments
operating within each state are covered by the respective Shop &
Establishments Act.
Shops are defined as premises where goods are sold either by retail or
wholesale or where services are rendered to customers, and includes an
office, a store-room, go-down, warehouse or workhouse or work place.
Establishments are defined as shop, a commercial establishment,
residential hotel, restaurant, eating-house, theatre or other places of public
amusement or entertainment. However, factories are not covered by the
Shops & Establishments Act and are regulated by the Factories Act, 1948.

SHOPS & ESTABLISHMENTS
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Registration:
 Submit an application in the prescribed form to the Inspector of the area within 30 days of
starting any work in your shop/establishment. The application is to be submitted along
with the prescribed fees and should contain the following information:
a) Your name as the employer and the name of a manager, if any;
b) The postal address of your establishment;
c) The name of your establishment;
d) Such other particulars as may be prescribed.
 Upon receiving the application for registration and the fees, the Inspector shall verify the
accuracy and correctness of the application. Once suitably satisfied, he shall enter the
details in the Register of Establishments and issue a registration certificate of your
establishment to you. This certificate will be valid for 5 years and has to be renewed
thereafter. It is important that the registration certificate has to be prominently displayed
at your establishment.

Practical Aspects
https://labour.telangana.gov.in/home.do
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Role of CS
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ESI (Employee State Insurance)

ESI (Employee State Insurance)
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ESI Registration Procedure:
 Any employer having more than 10 employees is mandatorily required to register under
ESI.
 Within 15 days of submission of Employer’s registration form (Form-01), the company or
firm is expected to obtain an Identification number or Code Number from the Regional
office.
 Documents required for such registration:
1. Documents about the establishment of the company.
2. Evidence supporting date of commencement of production / business.
3. List of partners, stakeholders, directors along with necessary information and proof of address.
4. Copy of PAN
5. Identity proof like voter id/passport
6. List of employee

PROVIDENT FUND
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 PF Registration Process:
1. A detailed application form called ‘Proforma for coverage’ and Form 5A has to be filed while registering the
company online.
2. After that, a temporary PF registration number allotted, and an employer has to submit all concerning
documents online.
3. After that, the PF authorities carry out an inspection of the premises and verify the documents submitted
online.
4. Once they are satisfied, a PF allotment letter will be granted.
5. Various Documents to be submitted:
 A copy of Memorandum and Articles of Association and the certificate of incorporation issued by the Registrar of
Companies, in the case of Public and Private Ltd. Companies.
 A copy of partnership deed in the case of partnerships.
 A copy of Registration certificate issued by the Registrar of Co-operative societies.
 A copy of Registration certificate issued by Registrar in the case of societies registered under Societies Registration Act
along with a copy of the objects and Rules of the Society.
 Partition deeds creating HUF.
 Any agreement or other legal documents in the case of Association of persons as defined in the Income Tax Act.

Practical Aspects
https://www.esic.in/ESICInsurance1/ESICInsurancePortal/Signup.aspx
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Role of CS
89

ONE PERSON COMPANY (OPC)
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Section 2(62) of Companies Act, 2013 defines a One-Person Company as “a company
that has only one person as a member”. Furthermore, members of a company are
nothing but subscribers to its MOA or any person who acquire shares in the Company
on a later date.
So, an OPC is effectively a company that has only one shareholder as its member.
Such companies are generally created when there is only one founder/promoter for the
business.
Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead of sole
proprietorship business because of the several advantages that OPCs offer.
One Member with one Nominee and one Director can incorporate an OPC

OPC – Merits vs Demerits
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Advantages:
1. Lesser Compliance
Burden
2. Organised sector of
Proprietorship
business
3. Easy to get loans
from Banks
4. Easy to Manage
5. Complete control of
the company with
single ownership
Dis-advantages:
1. Restrictions on business activities: You
cannot incorporate an OPC under Section 8
of the Companies Act, 2013.
2. Taxation: OPC is not recognized in Income
Tax Act 1961. For taxation purpose One
Person Company is treated similar to
Private Limited Company and the tax rules
for a private limited company apply to an
OPC too.
3. Costlier to start as compared to sole
proprietorship
4. Member: It only allows one person to own
and run the entire business.

Practical Aspects
93

Role of CS
95

AOP/BOI
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An Association of Persons (AOP) is a group of two or more people who come
together for a common purpose, such as running a business or carrying out a specific
project. According to the Income Tax Act of India, an AOP is not considered a legal
entity, but rather a collection of individuals who jointly undertake an activity with a
view to earning profits. In an AOP, each member shares the profits and losses of the
activity in proportion to their respective contributions.
A Body of Individuals (BOI) is also a group of two or more people who come together
for a common purpose, but unlike an AOP, a BOI is not formed with the intention of
earning profits. BOI is a type of association where the members collectively own and
manage a property or asset, and the income generated from that property is
distributed among the members.

REGISTRATION OF AOP/BOI
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For a fact, whether it is a BOI or AOP, the purpose for which you are incorporating it does matter
by reason that registration procedures do vary as the applicable law (Act under which you shall
register) varies as well. If it for a profitable or profit oriented activity, the BOI or AOP would have
to be registered as a partnership firm or a private company. However, if it is for a non profitable
activity, the registration comes under the Societies Registration Act, 1860.
The steps for registration of AOP/BOI for non profitable purposes

REGISTRATION OF AOP/BOI
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Submit all the above documents along with the following:
a. A covering letter requesting the registration of the society which shall be signed by a
the founding members.
b. A certified copy of the duly passed resolution for the registration of the society.
c. Minutes of the meeting.
d. Declaration by the president of the society.
e. ID proof as address proof of members.
All these documents shall be filed with the concerned Registrar of Societies in the
respective state ( where you want your AOP registered) along with a few that is
specified by the State Government (generally about 50 rupees). 9n being satisfied with
the documents filed and the terms and conditions of the organization, he may certify
to deem your organization to be registered as a society (which usually takes about 30
days).

Role of CS
Drafting deed / bye laws
Applying for pan
Registration of deed with subregstrar
Proceedings and minutes of HUF meetins
Tax planning
10
0

LLP
llp .. with best profit sharing ratio

LIMITED LIABILITY PARTNERSHIP(LLP)
10
2
 LLP is a corporate business vehicle that enables
professional expertise and entrepreneurial initiative to
combine and operate in flexible, innovative and efficient
manner, providing benefits of limited liability while
allowing its members the flexibility for organizing their
internal structure as a partnership.
 The LLP is a body corporate having separate entity from
its partners and perpetual succession and Limited
Liability

LLP – Merits vs Demerits
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3
Merits:
 Easy to form
 Limited Liability
 Perpetual succession
 Easy transferability of ownership
 not subject to Dividend
Distribution Tax
 No compulsory audit required -
The audit is required only in
those cases where the turnover of
the company exceeds Rs 40 lakhs
and where the contribution
exceeds Rs 25 lakhs
 Fewer compliance requirements
Demerits:
 Restricted Access to Capital Markets
 Rights of partners
 Public Disclosure of LLP
Information
 Offenses and penalties
 Exit Options are Not Easy for LLPs
in default of Filings
 Limitation in External Commercial
Borrowings (ECB)

INCORPORATION OF LLP ON MCA V3
PORTAL
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4
 MCA vide Notification No. G.S.R. 173(E). dated 04th March, 2022 issued the Limited
Liability Partnership (Second Amendment) Rules, 2022. The said notification
amended the incorporation forms and most of the Forms which a LLP is required to
file such as Form 8, Form 9, Form 11 etc.
 The Incorporation forms and all other forms mentioned in the Notification were
shifted to the MCA website Version 3.0 (MCA V3 website). Pursuant to the
introduction of MCA V3 website, there were certain requirements to be fulfilled by
the LLP’s to file forms on MCA V3 website.
 In this regard, the LLP’s were required to register themselves on MCA V3 website
by creating their business users on the website to access the forms and file them.
Further, the signatories of the Forms were required to create their business users in
the role of Designated Partner on the MCA V3 website and associate their Digital
Signature Certificate (DSC) on their business users.
 However, in case of incorporation of LLP, the proposed designated partners shall
create their business users in the role of Authorised Signatory on the MCA V3
website and associate their Digital Signature Certificate (DSC).

LLP – Incorporation
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5
Procedure for Incorporation of LLP
a. Name reservation through Form RUN LLP
b. Drafting of Partnership Agreement with details of
Partners viz, designated partners, sleeping Partners,
etc
c. Incorporate LLP- After reserving a name under LLP-
RUN, applicant should file Form FiLLiP along with
requisite attachments for incorporating a new LLP.
d. On approval of the form, the certificate of
incorporation will be issued by RoC.

Documents to be attached with Form
FiLLiP:
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6
i. Consent of partners
ii. In case of partners are body corporates, certified true copy of board resolution
passed by such body
iii. Proof of address of registered office of LLP;
iv. Subscribers’ sheet including consent;
v. Detail of LLP(s) and/ or company(s) in which partner/ designated partner is a
director/ partner;
vi. Copy of approval obtained from any sectoral regulator/in-principle approval;
vii. Identity and address proof of individuals acting as Partner and/or Designated
Partner;
viii. List of main objects of an LLP;
ix. If the name proposed is linked to registered trademark, NoC from the trade mark
owner;
x. NOC of foreign body corporate for usage of name (In case of foreign entities
intending to incorporate LLPs in India)

TRUST
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A trust is a legal entity with separate and distinct rights, similar to a
person or corporation. In a trust, a party known as a trustor gives
another party, the trustee, the right to hold title to and manage
property or assets for the benefit of a third party, the beneficiary.
Trusts can be established to provide legal protection for the
trustor’s assets to ensure they are distributed according to their
wishes. Additionally, trusts can save time, reduce paperwork, and
sometimes reduce inheritance or estate taxes.
Trusts can also be used as a closed-end fund built as a public limited
company

VARIOUS TYPES OF TRUST
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9
• Public Trust: A Public Trust essentially benefits the public at large. Unlike private trusts,
public trusts do not function under the Indian Trusts Act and are formed to serve a charitable
or religious purpose. Such Trust follows the general law, which is in effect for the time being.
Just like the private Trust, these trusts may be formed inter vivos by will.
• Private Trust: It is a legal arrangement created for the benefit of individuals other than a
public or charitable purpose. It is formed for the financial benefit of one or more
beneficiaries who are known to the Trustor. Private Trust doesn’t serve a charitable purpose,
and its benefits are only accessible to designated beneficiaries. Such trusts are bound to
follow the provisions of the Indian Trusts Act, 1882
• Public Cum-Private Trust: As the name suggests, the Public-Cum-Private Trusts serve a
dual purpose. They are eligible to use their income for the public as well as private purposes.
That implies that beneficiaries of such Trust could be either public or private persons or both.

Procedure for Registering a Trust
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Step 1: Select an Apt Name for the Trust The first and foremost step in the process of Trust
registration is the name selection for the proposed Trust. Be mindful while serving such a purpose
and take the following points into account to avoid any hassles:
•The name should fit the provisions of the Emblems and Names Act, 1950
•There should be no violation whatsoever when it comes to Trademark Act.
•The name should stay to the originality.
Step 2: Drafting of Trust Deed Drafting of Trust Deed is an important undertaking because it is the
only thing that makes the Trust legally enforceable.
In general, the trust deed consolidates the below-mentioned clauses:
Objects The Object clause reflects the object behind the formation of the Trust
Acceptance of Funds This clause enables the Trust to accept contributions, donations &
subscriptions from any person, government body, or charitable avenue, in the form of cash,
immovable assets without any charge on it. Furthermore, the clause states that any contributions
that hamper the Trust’s object are non-acceptable in nature.

Procedure for Registering a
Trust..contd
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1
•Investments: the investment clause sets out the conditions for the lawful and effective
administration of the Trust’s fund. Further, this clause also framed conditions for effective
allocation of the additional funds that are not in use and could help in generating extra
income via investment.
•Power of the Trustees: As the name suggests, this specific clause talks about the
responsibilities of the trustees.
•Generally, such clauses confer the following powers to the trustees. Appointing employee(s)
•Alienating the trust properties
•Opening the bank account in the Trust’s name
•Suing defaulters in case of legal dispute on behalf of the Trust
•Accepting any gift, donation via legitimate individuals or sources
•Investing additional funding in securities

Documentation Required for Trust
Registration
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•Proof related to Identity for Trustor & Trustee such as Aadhaar Card, Voter ID, Passport, DL
•Address Proof related to Registered Office such as Copy of Certificate of Property/Utility Bills
•No objection certification from the Landlord if the property is rented .
•Trust deed's objective
•Detail about the Trustee and settlor such as Self-attested copy Id & Address Proof and
occupation
•Trust Deed on Proper Stamp Value
•Trustee and settlor Photos
•Trustee and settlor
•PAN details
•Trust deed must reflect the following information:
•Number of trustees
•Trust registered address
•Proposed name of trust
•Proposed Rules that will govern the trust
•Presence of settlor as well as two witnesses at the time of registration of Trust

Practical Aspects
https://registration.telangana.gov.in/societyRegistration.htm
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Role of CS
Drafting deed
Regsitraration of trust deed
Applying for pan and income tax formalities
Registering under sectio 12 & 80G
Apply ing for CSR
Approaching for central government/ state government/ central govt agencies / companies
for funding
Proceedings and minutes
Tax planning
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NBFC
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A Non-Banking Financial Company (NBFC) is a company registered
under the Companies Act, 1956 engaged in the business of loans and
advances, acquisition of shares/stocks/bonds/debentures/securities
issued by Government or local authority or other marketable
securities of a like nature, leasing, hire-purchase, insurance business,
chit business but does not include any institution whose principal
business is that of agriculture activity, industrial activity, purchase or
sale of any goods (other than securities) or providing any services and
sale/purchase/construction of immovable property. A non-banking
institution which is a company and has principal business of receiving
deposits under any scheme or arrangement in one lump sum or in
instalments by way of contributions or in any other manner, is also a
non-banking financial company (Residuary non-banking company).

REQUIREMENTS FOR REGISTRATION
WITH RBI
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A company incorporated under the Companies Act, 2013 and desirous
of commencing business of non-banking financial institution as
defined under Section 45 I(a) of the RBI Act, 1934 should comply with
the following:
i. it should be a company registered under Section 3 of the companies
Act, 2013
ii. It should have a minimum net owned fund of ₹ 200 lakh. (The
minimum net owned fund (NOF) required for specialized NBFCs like
NBFC-MFIs, NBFC-Factors, CICs is indicated separately in the FAQs on
specialized NBFCs)

PROCEDURE FOR APPLICATION TO THE
RESERVE BANK FOR REGISTRATION
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• The applicant company is required to apply online and submit a physical copy of the application
along with the necessary documents to the Regional Office of the Reserve Bank of India. The
application can be submitted online by accessing RBI’s secured website https://cosmos.rbi.org.in .
• At this stage, the applicant company will not need to log on to the COSMOS application and hence
user ids are not required. The company can click on “CLICK” for Company Registration on the login
page of the COSMOS Application.
• A window showing the Excel application form available for download would be displayed. The
company can then download suitable application form (i.e. NBFC or SC/RC) from the above website,
key in the data and upload the application form.
• The company may note to indicate the correct name of the Regional Office in the field “C-8” of the
“Annex-I dentification Particulars” in the Excel application form. The company would then get a
Company Application Reference Number for the CoR application filed on-line.
• Thereafter, the company has to submit the hard copy of the application form (indicating the online
Company Application Reference Number, along with the supporting documents, to the concerned
Regional Office.
• The company can then check the status of the application from the above mentioned secure
address, by keying in the acknowledgement number.

Ministry of Micro, Small & Medium
Enterprises
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Classification Micro Small Medium
Manufacturing
Enterprises and
Enterprises
rendering
Services
Investment in
Plant and
Machinery or
Equipment:
Not more than
Rs.1 crore and
Annual
Turnover ; not
more than Rs. 5
crore
Investment in
Plant and
Machinery or
Equipment:
Not more than
Rs.10 crore and
Annual
Turnover ; not
more than Rs.
50 crore
Investment in
Plant and
Machinery or
Equipment:
Not more than
Rs.50 crore and
Annual
Turnover ; not
more than Rs.
250 crore

MSME Registration on Udhyam
Registration..contd
12
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1. Visit the Udyam registration Portal where you will be required to fill a form

Registration…contd
12
3
2. If you are registering your business as an MSME for the first time, click on the first link on
the page

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3. Enter the Aadhaar Number and Name and click on ‘Validate & Generate OTP

12
5
4. Once verification is done, you will have to fill in the PAN details. You can select the No option
if you don’t have a PAN card yet

Registration..contd
12
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5. Post this, you will have to fill the form having field numbers 5-24yet

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6. At the end of the form, an OTP request will be sent to your phone again. Enter the OTP and
verification code to submit the form successfully.

Registration..contd
12
8
7. After successful registration, a “Thank You” message will appear with a Registration Number.
Keep that number handy for future reference.

Registration..contd
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8. Once the application form is submitted, it can take 2-3 days for the approval and
registration to complete.
9. If the application gets approved, the registration will be done and the MSME
certificate will be delivered to you via email.

Role of CS
13
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FOREIGN COMPANY
13
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‘Foreign Company’ has been defined under section 2 (sub-section 42)
“foreign company” means any company or body corporate incorporated outside India
which—
(a) has a place of business in India whether by itself or through an agent, physically or
through electronic mode; and
(b) conducts any business activity in India in any other manner.

Ways in Which Foreign companies can be
Registered in India
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• Joint venture
• Wholly-owned subsidiary
• Liaison office
• Project office
• Branch office

Joint venture registration process
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•A joint venture is a contract/arrangement where two or more parties get together to
run a business or achieve a commercial object.
•To establish a company in India through a joint venture, the foreign entity/national
has to choose a local partner with whom they want to enter into a joint venture.
•Then, the foreign entity and the local partner should sign an MOU or a Letter of
Intent.
•The MOU or a Letter of Intent should state the basis for the joint venture agreement.
•The foreign entity and the local partner must negotiate and discuss all the terms of
the joint venture agreement thoroughly.
•The joint venture agreement must be consistent with regional and international law.
•It should contain essential matters like dispute resolution agreements, holding shares,
applicable law, transfer of shares, confidentiality, board of directors non-compete, etc.

Wholly-owned subsidiary registration
process
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6
•A minimum of two directors are required to register a wholly-owned subsidiary, out of which one director must be
a resident in India.
•All directors must apply for DIN (Director Identification Number) and DSC (Digital Signature Certificate).
•The Memorandum of Association (MOA) and Article of Association (AOA) must be drafted.
•The shareholders must subscribe to the MOA.
•The company’s name must be reserved through Part-A of the SPICe+ form (company registration application).
•The registration application must be filled (Part-B of the SPICe+ form) on the Ministry of Affairs (MCA) portal.
•The applicant must submit the required documents along with the SPICe+ form. The documents are as follows:
• Address proof of the company
• Indian directors must submit their PAN card, address proof and identity proof.
• Foreign directors must submit their passport and address proof, such as driving license, utility bills or any
government license certified by the Indian consular or consulate.
•After submitting the required documents, the applicant must pay the applicable fees and submit the registration
application.
•The Registrar of Companies (ROC) will verify all the documents and SPICe+ form.
•When the ROC verifies the correctness of the form, he/she will issue the Certificate of Incorporation and the PAN
number.
•The company must open a bank account.
•After the subscription of the company share, share capital documents must be submitted for FDI compliance.

Process of setting up a liaison office
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•The foreign company must have a profit-making record during the prior three financial years in the home country. Its net
value should not be less than USD 50,000 to set up a liaison office in India.
•The foreign entity should forward the application to establish a liaison office to the Foreign Exchange Department through a
designated Authorised Dealer Category–I Bank (AD).
•It should file the English version of the certificate of incorporation/registration or MOA or AOA and its latest audited balance
sheet attested by the Indian Embassy or Notary Public in the country of registration.
•The RBI will give the liaison office a unique identification number.
•The foreign company has to obtain PAN from Income Tax Authorities when setting up the liaison office in India.
•All the expenses should be met entirely through inward remittances of foreign exchange from the Head office located
outside India.
•If a foreign entity that is also a subsidiary of other company does not fulfil the above condition, it can submit a Letter of
Comfort from its parent company if it satisfies the above conditions.
•A foreign insurance company can establish a liaison office after getting approval from the IRDAI (Insurance Regulatory and
Development Authority)
•A foreign bank can establish a liaison office after getting approval from the Department of Banking Regulation (DBR).
A liaison office can undertake the below activities:
•Representing the parent company or parent company in India.
•Promoting export or import in India.
•Promoting financial or technical collaborations on the group or parent company’s behalf
•Coordinating communications between the parent or group companies and Indian entities.
•However, it cannot undertake any business activity and earn any income in India.

Process to set up a project office
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The RBI prescribes the process for setting up a project office in India by a foreign
company when the following conditions are fulfilled:
•A foreign company can establish a project office without prior permission from RBI
only when it has obtained a contract from an Indian company for executing a project in
India.
•The project should be funded directly by inward remittance from abroad.
•The project should be funded by a bilateral or multilateral International Financing
Agency.
•An appropriate authority has cleared the project.
•A company or Indian entity providing the contract has been granted a term loan by an
Indian bank or Public Financial Institution for the project.
If the above conditions are not complied with, the foreign entity must approach the RBI
for approval to set up a project office.

Process of setting up a branch office of a
foreign company
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•The foreign company should be engaged in trading or manufacturing activities.
•It should have a profit record during the preceding five financial years and a net worth of not less
than USD 1,00,000 in its home country.
•The foreign entity should forward the application to establish a liaison office to the Foreign
Exchange Department through a designated Authorised Dealer Category–I Bank (AD).
•It should file the English version of the certificate of incorporation/registration or MOA or AOA and
its latest audited balance sheet attested by the Indian Embassy or Notary Public in the country of
registration.
•RBI will give the branch office a unique identification number.
•The foreign company has to obtain PAN from Income Tax Authorities when setting up the branch
office in India.
•All the expenses should be met entirely through inward remittances of foreign exchange from the
Head office located outside India.
•It requires specific approval from the Reserve Bank of India (RBI) under FEMA 1999 and
approval from the Insurance Regulatory and Development Authority (IRDA).
•If a foreign entity that is also a subsidiary of other company does not fulfil the above condition, it
can submit a Letter of Comfort from its parent company if it satisfies the above conditions

MULTI NATIONAL CORPORATIONS
FOREIGN COMPANY

MULTI NATIONAL CORPORATIONS
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• Multinational corporations conduct business in two or more
countries.
•Some consider a multinational company to be one that generates
25% or more of its revenue outside the home country.
•An MNC can have a positive economic effect on the countries in
which it operates.
•Some believe outsourcing U.S. manufacturing to a foreign
country has a negative effect on the U.S. economy.
•Investing in a multinational corporation is a way to add
international exposure to a portfolio
•Multinational corporations conduct business in two or more
countries.

Role of CS
14
2
Incorporation
Applying for RBI for registration and remittances
FEMA compliances
Strutting inbound and out bound investments
Meeting
Tax planning

GOVERNMENT COMPANY
14
4
As per Section 2(45) of Companies Act 2013
• “Government company” means any company in which
not less than fifty-one per cent. of the paid-up share
capital is held by the Central Government, or by any
State Government or Governments, or partly by the
Central Government and partly by one or more State
Governments, and includes a company which is a
subsidiary company of such a Government company

Role of CS
14
5
Incorporation
Coordination with concentred ministry / nitiayog for necessary approvals
PSU guidelines
FEMA compliances
Meeting
Tax planningg

COOPERATIVE SOCIETY
14
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Co-operative societies are profit-oriented entities which aim to obtain marketability for the
products produced by agricultural and other labour-intensive businesses. Based on the
recommendations of the Mirdha Committee and the Model Co-operative Societies Act, the
Government of India passed the Multi-State Co-operative Societies Act in 2002 which provided
for a democratic and autonomous working of the Co-operatives. This article mentions the
essential aspects of Co-operative Societies in India.
A co-operative society is often a voluntary association of individuals who come together with
the intention to work together and to promote their economic interest. These societies work
on the principle of self-help as well as mutual help. The primary goal is to provide support to
the members. Nobody leaves a co-operative society without earning a profit. People of the
same interest come forward as a group, pool their resources, utilise these resources in the best
possible manner and derive a common benefit out of it. It is an association of persons who
voluntarily share their resources for using them for the mutual welfare of its members itself. A
co-operative society is formed for the promotion of thrift, self-help and mutual assistance of
the members.

REGISTRATION OF COOPERATIVE SOCIETY
14
8
Eligibility
The following are the individuals who may become members of a Co-operative Society at the
State level as per the State Act.
1.An individual competent to contract, attained majority and is of sound mind and belongs to a
class of persons if any for whom the society is formed as per its bye-laws.
2.A society registered or deemed to be so under the Co-operative Societies Act.
3.The Central Government and any State Government, or the Government of a Union Territory
Checklist to Form a Co-operative Society
The following are the steps involved in establishing a Co-operative Society under the State Act.
•The prescribes application duly filled in shall be made to the Registrar of Co-operative Societies.
•The application should be attached along with four copies of the proposed bye-laws of the co-
operative society.
•All the applicants must be individuals, and the number of applicants shall be above ten.
•All the applicants should sign the application if the applicants are individuals.
•If the applicant is a society by itself, then by a member duly authorised by such society.

MUTUALLY AIDED COOPERATIVE SOCIETY

15
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Where not less than twenty one individuals of class or
category with common bondage and each being a member of
a different family or intend to form a Co-operative Society, or
two or more Co-operative Societies of a class or category with
common bondage and registered under this section wish to
form into a federation, or a society registered
(under the provisions) of the 11Telangana Co-operative
Societies Act, 1964 intends to convert itself into a co-
operative society under this Act

REGISTRATION OF MACS
15
1
An application for registration shall be submitted to the Registrar by hand or by registered post. Every
such application shall be accompanied by,-
(a) the original and one copy of the bye-laws of the proposed Co-operative Society as adopted by the
individuals or delegates of Co-operative Societies who wish to form into a co-operative society under
this Act or by the general body of a Society registered under the 15Telangana
Co-operative Societies Act, 1964 which wishes to convert itself into a Co-operative Society under this
Act;
(b) a list of names of individuals or co-operatives who wish to form into a Co-operative Society under
this Act or of the members of the committee of the society registered under the Telangana Co-
operative Societies Act, 1964 which intends to convert itself into a Co-operative Society
under this Act with their addresses, occupations and their financial commitments along with address /
and Identity proof of self and family members i.e. Aadhaar / Food Security card to the proposed Co-
operative Society.
(c) a true copy of the minutes of the meeting at which the bye-laws were adopted, duly signed by at
least a majority of individuals or delegates present at the meeting where the bye-laws were adopted,
or by a majority of the members of the Committee of the Co-operatives concerned
where a Society registered under the Telangana Co- operative Societies Act, 1964 intends to concert
itself into a Co-operative Society under this Act;

15
2
(d) registration fee amounting to one percent of the total authorized share capital by whatever
name called subject to a minimum of one hundred rupees and a maximum of ten thousand
rupees; and
(e) in the case of a Society registered under section 7 of the Telangana Co-operative Societies Act,
1964 and wishing to convert itself into a Co-operative Society under this Act, evidence to show
that the Society has returned to the Government, the share capital, loans, land / properties
(movable / immovable), subsidies, concessions, interest it received from the Government and
No-objection Certificate issued by the Government in this regard before its application for
conversion into this Act can be considered.
(4) The Registrar shall if he is satisfied that,-
(a) the application is in conformity with the requirements of this Act;
(b) the proposed bye-laws are not contrary to the provisions of this Act; and
(c) the name of the proposed Co-operative Society is not the same as that of a Co-operative
Society already registered under this section, or the same as that used by aclass of Societies
already registered under section 7 of the Telangana Co-operative Societies Act, 1964,-
Register the Co-operative Society and also its bye- laws and communicate by registered post a
certificate of registration

DORMANT COMPANY (SEC:455)
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(1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and
has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in
such manner as may be prescribed for obtaining the status of a dormant company.
Explanation.—For the purposes of this section,—
(i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any
significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns
during the last two financial years;
(ii) “significant accounting transaction” means any transaction other than—
(a) payment of fees by a company to the Registrar;
(b) payments made by it to fulfil the requirements of this Act or any other law;
(c) allotment of shares to fulfil the requirements of this Act; and
(d) payments for maintenance of its office and records.
(2) The Registrar on consideration of the application shall allow the status of a dormant company to the applicant and issue a
certificate in such form as may be prescribed to that effect.
(3) The Registrar shall maintain a register of dormant companies in such form as may be prescribed.
(4) In case of a company which has not filed financial statements or annual returns for two financial years consecutively, the
Registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant
companies.
(5) A dormant company shall have such minimum number of Directors, file such documents and pay such annual fee as may be
prescribed to the Registrar to retain its dormant status in the register and may become an active company on an application made
in this behalf accompanied by such documents and fee as may be prescribed.
(6) The Registrar shall strike off the name of a dormant company from the register of dormant companies, which has failed to
comply with the requirements of this section.

SMALL COMPANY
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Section 2(85) of Companies Act 2013
“small company’’ means a company, other than a public company,—
(i) paid-up share capital of which does not exceed fifty lakh rupees or such
higher amount as may be prescribed which shall not be more than ten crore
rupees; and
(ii) turnover of which as per profit and loss account for the immediately
preceding financial year] does not exceed two crore rupees or such higher
amount as may be prescribed which shall not be more than one hundred crore
rupees

Case Study 1-CS Students
15
9
A, B and C are three CS students who met in Executive Development Program at Hyderabad.
Post completion of the program they have decided to set up practicing firm after qualifying as
Company Secretary. Unfortunately, after becoming qualified, they were relocated to different
cities viz Kolkata, Delhi and Chennai. In the given scenario, please present a best suitable
legal structure, business strategies, and possible solutions with commercial wisdom for
setting up their practice, stating the reasons.

Case Study 2-Candle Business
16
0
A Marwari Family located in Hyderabad old city is into the business of Candle
manufacturing. Their family consist of total 25 members. Please present best legal
structure, business strategies, and possible solutions with commercial wisdom for
doing the business in a simplified manner and demonstrate the same in role play..

Case Study 3-ISRO-Projects
16
1
ABC is a Russian Company based from Moscow. As per an existing bilateral relationship
treaty with India, they got a project from ISRO. Accordingly, they want to set up a
business for executing the project. Please present a suitable legal structure, business
strategies, and possible solutions with commercial wisdom.

Case Study 4-Villa Projects
16
2
PQR a gated villa community in Hyderabad,consisting of 200 villas, want to set up a
business structure for maintenance of villas, for establishing super markets, shopping
complex, pharmacies, growing organic vegetables, and other related activities. Please
present them a relevant legal structure, business strategies, and possible solutions
with commercial wisdom for doing such business.

Case Study 5-Brilliant Boy
16
3
Mr. K lost his 15 years old son who is a very brilliant boy. In the memory of his son, he
wants to help the poor and needy students for their education and other related
activities. Please present a suitable legal structure, business strategies, and possible
solutions with commercial wisdom for Mr. K.

Case Study 6-Tea Estate
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4
Mr. X is 60 years old man having one tea estate, orange garden and one apartment. He
has 2 sons and one daughter. He wishes to enjoy the property during his lifetime and
simultaneously he wants to ensure the distribution of his properties to his children
with proper administration and management. Further, he wants to impart the skills
relating to administration and management to his children during his lifetime by
assigning the properties to them. Please present a suitable legal structure, business
strategies, and possible solutions with commercial wisdom. Please note that Mr. X
passed away at age of 65 years.

Case Study 7-App
16
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Mr. W has designed an app and looking forward to expand his app in a big way. Please
present a skit demonstrating a best legal structure, business strategies, and possible
solutions with commercial wisdom to expand the scale of operations.

Case Study 8-Insolvency Professionals
Research Book
16
6
A group of 10 Insolvency Professionals have decided to publish a research book
containing discussions on critical issues on Insolvency law, finding out the solutions on
practical difficulties, and analyzing the case laws, practical aspects, and advising best
practices across India and Globe. Please demonstrate a best legal structure, business
strategies, and possible solutions with commercial wisdom for the same..

CS Dr AHALADA RAO VUMMENTHALA
So friends protect your
Intangible Assets always..
Don’t differentiate with gender
ALL THE BEST
168

SETTING UP OF BUSINESS ENTITIES IN INDIA - PPT - 20.09.2023.pptx

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