LEGAL SYNERGYCORPORATE OFFICE: CORE TEAM MEMBERS:#21 ARIHANT NAGAR CA RAJIV JAINWEST PUNJABI BAGH (9654364067)DELHI-110026 ADV. ANJALI JAINlegalsynergy1@gmail.com (9958565238)

Your friendo-legal hand

ABOUT USLEGAL SYNERGY provides the comprehensive services over a single platform. Believing in customer satisfaction, we ensure to provide professional services with personal interest giving you the most convenient and safest approach to provide a legal background to your vision in the fields like COMPANY REGISTRATIONS,TAX FILINGS,DOCUMENTS LIKE HIRING AGREEMENTS, EMPLOYMENT CONTRACTS, PROPERTY RELATED AGREEMENTS,PATENT AND COPYRIGHT REGISTRATION AND OTHER MANDATORY COMPLIANCE'S etc.

SERVICES WE PROVIDE

*STARTUP BUSINESS *TAX AND REGISTRATIONS *TRADEMARK,COPYRIGHT AND PATENT* LEGAL DOCUMENTATION* MANDATORY COMPLIANCES

*CLICK ON THE TOPIC YOU NEED TO KNOW THE DETAILS

STARTUP BUSINESS

• PRIVATE LIMITED COMPANY • LIMITED LIABILITY PARTNERSHIP• ONE PERSON COMPANY• PARTNERSHIP FIRM• SOLE PROPRIETORSHIP BUSINESS

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TRADEMARK,COPYRIGHT AND PATENT

TRADEMARK COPYRIGHT PATENT

TRADEMARK REGISTRATION

COPYRIGHT REGISTRATION

PATENT SEARCH

TRADEMARK OBJECTIONS

PROVISIONAL PATENT

TRADEMARK ASSIGNMENT

PATENT

TRADEMARK RENEWAL

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TAX AND REGISTRATIONSREGISTRATIONS FILINGS

VAT REGISTRATIONS VAT RETURNS

SERVICE TAX REGISTRATION SERVICE TAX RETURNS

IMPORTER EXPORTER CODE

INCOME TAX RETURNS

PROFESSIONAL TAX REGISTRATION

WEALTH TAX

SHOPS AND ESTABLISHMENTS PROPERTY TAX

PASSPORT REGISTRATION EXCISE RETURNS

PASSPORT RENEWAL

PANCARD REGISTRATION

SSI/MSME RESISTRATION

DSC REGISTRATION

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WEB/APP RELATED

TERMS OF SERVICE AND PRIVACY POLICY

DISCLAIMER

HIRING DOCUMENT

EMPLOYMENT CONTARCT

CONSULTANCY AGREEMENT

FREELANCER AGREEMENT

INVESTMENT SUPPORT

FOUNDER’S AGREEMENT

TERM SHEET SHAREHOLDER’S AGREEMENT

SHARE PURCHASE AGREEMENT

PROPERTY MATTERS

GIFT DEED SALE DEED RESIDENTIAL RENTAL AGREEMENT

MAKE A WILL

CONFIDENTIAL AGREEMENT

NON DISCLOSURE AGREEMENT

LEGAL NOTICE LEGAL NOTICE

SERVICE/VENDOR RELATED

SERVICE LEVEL AGREEMENT

MASTER SERVICE AGREEMENT

VENDOR AGREEMENT

BUSINESS COLLABRATION AGREEMENTS

MEMORANDUM OF UNDERSTANDING

FRANCHISE AGREEMENT

JOINT VENTURE GAREEMENT

LEGAL DOCUMENTATION

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SECRETARIAL COMPLIANCES

CONVERSION CLOSURE CHANGES IN BUSINESS

ESOP ACCOUNTS

ANNUAL FILINGS FOR PVT. LTD

SOLE PROPRIETORSHIP TO PVT. LTD

CLOSE YOUR PVT. LTD

ADD A DIRECTOR EMPLOY-EE STOCK OPTION PLAN

MAINTAIN YOUR ACCOUNTS

ANNUAL FILINGS FOR LLP

PARTNERSHIP TO LLP

CLOSE YOUR LLP

REMOVE A DIRECTOR

INCREASE IN AUTHORISED CAPITAL

PVT. LTD TO PUBLIC LTD

ADD A DESIGNATED PARTNER

PVT. LTD TO ONE PERSON COMPANY

CHANGE OBJECTIVES OF BUSINESS

CHANGE OFFICIAL ADDRESS

CHANGE COMPANY NAME

CHANGE LLP AGREEMENT

MANDATORY COMPLIANCES

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Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Start-ups and growing companies pick it because it allows outside funding to be raised easily, limits the liabilities of its shareholders and enables them to offer employee stock options to attract top talent. As these entities must hold board meetings and file annual returns with the Ministry of Corporate Affairs (MCA), they tend also to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC) or General Partnership.

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PRIVATE LIMITED COMPANY

LIMITED LIABILITY PARTNERSHIP

Limited Liability Partnership (LLP), introduced only in 2008, has quickly become a popular legal structure for businesses. Its main improvement over the General Partnership is that, as the name indicates, it limits the liabilities of its partners to their contributions to the business and also offers each partner protection from the negligence, misdeeds or incompetence of the other partners. The LLP is also cheaper to incorporate than a private limited company, requires fewer compliances and can be a smart choice from a tax perspective. However, if you're looking to raise venture capital or attract talent with employee stock options, private limited is the way to go as LLPs cannot easily accommodate it. This is why they are most popular with professional services firms (web designers or architects, for example) that require no equity funding. BACK

ONE PERSON COMPANY

The One Person Company (OPC) was recently introduced as a strong improvement over the sole proprietorship. It gives a single promoter full control over the company while limiting his/her liability to contributions to the business. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). So there's no chance of raising equity funding or offering employee stock options. Furthermore, if an OPC hits an average three-year turnover of over Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it must be turned into a private limited company or public limited company within six months.

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PARTNERSHIP FIRM

A General Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. This structure is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low costs, ease of setting up and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for General Partnerships.

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SOLE PROPRIETORSHIP BUSINESS

A sole proprietorship is a business that is owned and managed by a single person. You could have one up and running within 15 days, which makes it very popular among the unorganised sector, particularly small traders and merchants. There is no such thing as registration; proprietorships are recognised by other registrations, such as a service tax registration or sales tax registration. As you would imagine with a business that’s so easy to set up, though, its shortcomings are severe: the liability of the proprietor is unlimited and it does not have a continuous existence

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VALUE ADDED TAX

Value-added Tax (VAT) Registration, also erroneously known as TIN and CST Registration, is mandatory for any business entity engaged in the sale of goods in India and a turnover of over Rs. 5 lakh (although it may be higher in some states). It is a multi-stage state tax that accumulates at various stages of production and supply. At every stage, the purchaser pays the tax and is allowed to offset the same on subsequent sale. Consumers, therefore, ultimately bear this tax. VAT is collected by the state government and it is essential to know what the VAT rate is for the type of good or service you provide in each state you provide it in. Returns need to be filed on the 20th of each month (partnerships, LLPs and proprietorships can do so quarterly).

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SERVICE TAX

Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994. The service provider (a restaurant or tour operator, for example) pays the tax and recovers the amount from its customers. To pay this tax, the service provider must be registered with the Central Government if the preceding fiscal year's turnover is over Rs. 9 lakh. However, collection must start, at the rate of 14.5%, only when the turnover of the business exceeds Rs. 10 lakh. Service Tax is to be paid to government via designated branches once every quarter by LLPs, partnerships and sole proprietors and once every month by all other entities.

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IMPORTER EXPORTER CODE

All businesses engaged in importing and exporting goods must have an Importer Exporter Code (IEC). Without one, you cannot import or export. You don't need to be a registered entity to apply for one; you can apply even as an individual. The IEC does not apply to technology and services. However, it does in certain cases in which international trade is restricted, such as nuclear weapons and automatic guns. The IEC is a 10-digit code with permanent validity issued by the Directorate General of Foreign Trade.

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PROFESSIONAL TAX

Professional Tax is a state-level tax that applies to salaried employees and professionals, including chartered accountants, lawyers and doctors. The following states impose this tax: Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura and Madhya Pradesh. Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. This tax needs to be deducted from the salary or wages paid; the amount varies by state and amount.

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SHOPS AND ESTABLISHMENTS

The Shops and Establishments Act regulates conditions of work, lists rights of employees in the unorganised sector and provides a list of obligations for every employer. It applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. Every shop and establishment is required to register itself under the Act within 30 days of commencement of work, whether or not it has employees.

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SSI/MSME REGISTRATION Small Scale Industries (SSI) or Micro, Small and Medium Enterprises (MSME) can register themselves under the MSMED Act. It isn't necessary, but very beneficial to do so, as it only exists to offer benefits to those registered under it. These benefits include priority sector lending, excise and direct tax exemptions, capital investment subsidies and power tariff subsidies. To qualify as an MSME, manufacturing enterprises need to have investment of less than Rs. 10 crore in plant and machinery, while service enterprises must have no more than Rs. 5 crore invested in plant and machinery. If, at any time, you cross this investment limit, you need to cancel your registration under the MSMED Act.

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PASSPORT REGISTRATION

A passport is a document that enables its bearer to travel internationally. It is issued by the Government of India only to Indian citizens. It is governed by the Passports Act, 1967. The Consular Passport & Visa (CPV) Division of the Ministry of External Affairs, functioning as the central passport organisation, is responsible for issuing Indian passports on demand to all eligible Indian citizens. Passports are issued at 37 locations across India and at 162 Indian High Commissions, embassies and consulates abroad.

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SALES TAX RETURN

All business entities engaged in the sale of goods (traders and manufacturers) need to have a Value Added Tax (VAT) Registration, often called TIN Registration, once their annual turnover crosses Rs. 5 lakh (Rs. 10 lakh in some states). The tax needs to be collected from consumers and deposited in a designated bank account to the state government. You then need to file VAT returns each month if you're running a private limited company and quarterly if you're running a partnership, LLP or proprietorship. This needs to be done on the 20th of each month for the previous month.

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SERVICE TAX RETURN

If you have a Service Tax Registration, you need to file returns twice a year, regardless of whether your turnover exceeds Rs. 10 lakh. In fact, even if you don't have any revenues, you still need to file returns as nil by October 25 (for April to September) and by April 25 (for October to March). Before this filing, however, all your service tax dues need to be cleared. Failure to pay service tax or file service tax returns by the due date would result in penalties. The fine is Rs. 500 if the delay is up to 15 days, Rs. 1000 if the delay is up to 30 days and an additional Rs. 100 per day thereon, subject to a maximum of Rs. 20,000.

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TRADEMARK REGISTRATION

A trademark is any unique expression related to a product or service that distinguishes it from others. This expression could be a word, slogan, photograph, logo, graphic, colour combination, sound or even smell. Owners of trademarks have exclusive rights to their use under the categories they are registered in (there are a total of 45 categories, called classes). Trademark registration enables owners to easily establish their right to the trademark in court and earn royalties. It also deters piracy and prevents similar names from being registered by other businesses. In India, you could get a ™ within three days, but it takes up to two years for it to be registered so that you can use the ® symbol. BACK

TRADEMARK OBJECTION

The Trade Marks Office can, for various reasons, have objections to your trademark application. This may be because the word or logo is too similar to an existing trademark, because it could hurt religious sentiments or if it is likely to cause confusion, among various other reasons. You must file your response to this objection within a month from when the Examination Report has been published online. If it has been sent to you or your lawyer, then a month from when it was received. If you don't, the Registrar could abandon the application altogether. BACK

TRADEMARK ASSIGNMENT Trademark rights are transferrable through assignment agreements. When a trademark is assigned by an owner to another party, its ownership is conferred upon the other party, either completely (with goodwill) or for a limited number of products or services (without goodwill). It usually involves a one-time payment. Such an agreement (often called an assignment deed) can be signed even if the trademark is unregistered; creative designers, for example, are often asked to assign ownership of the work to the entity that commissioned it. Registered trademarks can also be assigned, of course. In both cases, the assignee must apply to the Registrar within six months.

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TRADEMARK RENEWAL

Registered trademarks have a 10-year validity and can be renewed indefinitely. The Registrar has set a wide window for you to do so, beginning from 6 months before the date of expiry. Even if you've forgotten, as even large organisations tend to do, you will be sent a notice to the registered address regarding the expiry before the 6 months is up. If you still do not file for renewal, the Registrar may advertise its intention to remove the trademark in the Trade Marks Journal. This is, however, likely to happen only 12 months after the expiry date. Between 6 and 12 months after expiry, trademark registration can be renewed on payment of a fine through a process called restoration.

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COPYRIGHT REGISTRATION

Copyright Registration confers upon its owner sole rights to copy or reproduce the work or grant permission to another to do so. The applies to literary (books, scripts, even software) and audio-visual (music, photographs, movies) works. Business entities often copyright instruction manuals, product literature and user guides. Copyright is usually owned by the creator of the work, but may also be owned by the employer of its creator or the person who has commissioned the work (unless there is an agreement to the contrary in either case). Copyrights are also transferrable. BACK

PATENT SEARCH A patent gives its owner the right to prevent others from making, using, importing or selling the invention without approval. Before such a right is granted, there obviously is a rigorous check on whether the process or product is inventive (i.e. isn't obvious), novel (hasn't been anticipated in any published document) and industrially applicable (possesses utility). It involves a search of the database of the intellectual property regulator of India to check whether there exists an object or invention that is the same as or similar to applicant's invention. This is also known as a prior art search. BACK

PROVISIONAL PATENT

As a patent can be so crucial in maintaining a business advantage, many inventors/businesses wish to patent their inventions even before they are finalised. This is possible through a provisional patent, which helps the inventor establish earliest ownership over the invention on submission of the provisional specifications of the product or process. As India follows the first-to-file system, this would ensure that the holder of the provisional patent would also be granted the permanent patent. The documents for the permanent patent would, however, have to be filed within 12 months or else the application would be abandoned entirely. BACK

PATENT

A patent is a right granted to an individual or enterprise by the government that excludes others from making, using, selling or importing the patented product or process without prior approval. In exchange for this right, the applicant must fully disclose the minutae of the invention. A patent for a product or process that proves successful can give its owner a serious competitive advantage over rivals. It is valid for 20 years, after which it falls into the public domain. A patentable invention can be any art, process, method or manner of manufacture; machine, apparatus or other articles; substances produced by manufacturing; computer software with technical application to industry or used with hardware; and product patent for food, chemicals, medicines and drugs. BACK

TERMS OF SERVICE AND PRIVACY POLICY All online businesses need a terms of service agreement and privacy policy prominently displayed on their website. Most users ignore them and perhaps wonder whether they're of any use at all, but all entrepreneurs know their importance. While the terms of service agreement explains the conditions on which service is being delivered, privacy policy explains to users what will and will not be done with their information.

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DISCLAIMER A disclaimer is a statement/notice informing the user of any product or service of the possible consequences of the same. The law mandates the display of a disclaimer in certain cases, such as where there is an inherent risk of harm to one's health (the warnings displayed on cigarettes are a prime example), but are used commonly in all product and service literature. A disclaimer helps to clearly establish/limit one’s rights and liabilities with respect to the user of a particular product or service. It is used in situations which involve an element of risk or uncertainty.

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EMPLOYMENT CONTRACT

An employment contract is necessary when hiring any employee or consultant, whether part-time of permanent. It is a comprehensive document that addresses all terms and conditions governing employment, as well as the rights, duties and responsibilities of each party with respect to the other. Common points would include breakdown of salary, date of joining, notice period and non-compete clause.

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CONSULTANCY AGREEMENT A Consultancy Agreement clearly lays down the most relevant details about the relationship between consultant and employer. It stipulates the job requirements, time for completion, the mode and method of payment as well as other aspects related to the rendering of service by the consultant. Of particular importance if the consultant is working toward developing a new design or invention is stating who owns the resulting intellectual property.

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FREELANCER AGREEMENT

A freelance agreement clearly lays down the most relevant details about the relationship between freelancer and client. It stipulates the job requirements, time for completion, the mode and method of payment as well as other aspects related to the rendering of service by the freelancer. Now that modes of communication enable freelancers to work for employers across the world, such agreements have grown in popularity, particularly in the IT industry.

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FOUNDER’S AGREEMENT A founders' agreement outlines the various roles and responsibilities of the founding members of a company, the equity vested in them, the ownership of intellectual property created by them and their roles and responsibilities. It is a broad agreement covering various aspects of the endeavour that the founders are about to undertake, including the consequences of their departure or death.

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TERM SHEET

A term sheet is a critical document, particularly for an Indian businessman. Months into negotiation and contract drafting, you may find out that there is no agreement on the basics of the contract. A term sheet solves this problem by putting into place a framework for the final contract. The term sheet, therefore, reflects the broad consensus of the parties on the material terms and conditions, such as price, quantity, valuation, due diligence and pre-emption.

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SHAREHOLDER’S AGREEMENT

A Shareholders' Agreement is simply an agreement governing the relationship between the shareholders of a company. These include their rights and obligations, transfer of shares, how the company is going to be run and how important decisions are to be made

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SHARE PURCHASE AGREEMENT

A share purchase agreement (SPA) is an agreement between 2 parties in which the seller agrees to sell the stated number of shares to the buyer at a particular price. The aim of the document is to prove that the terms of the agreement were mutually agreed upon. Such an agreement specifies the consideration and the number of shares to be sold, the conditions precedent (the authorisations necessary, for example) and covenants by the parties. The shares will be allotted after this agreement is signed (and on the basis of this agreement)

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LEGAL NOTICE A legal notice is a formal communication to a person or entity informing him that you intend to undertake legal proceedings against him. It is a step taken before filing a suit, and is meant to warn the other party that legal action may be taken against him/her, if he/she fails to comply with some specified condition. For example, a legal notice served upon a tenant by a landlord for non-payment of rent usually states that if the tenant fails to pay the outstanding amount by a specified date, the landlord will take legal action against him.

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NON DISCLOSURE AGREEMENT

A non-disclosure agreement (NDA) is a legal contract stating that certain information is confidential, and the extent to which its disclosure is restricted to third parties. It can be entered into with a person or organisation. Confidential information includes trade secrets, business plans, business methods and strategies, drawings, charts and more. Software programs and code are also confidential information.

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GIFT DEED

The lawful owner of a property can transfer it to another party without any monetary consideration through a gift deed. All such deeds must be signed by the donor, attested by 2 witnesses and then registered. Charges will vary in each state as stamp duty must be paid on the value of the property. Generally, such gifts are given by one family member to another, but there is no such restriction. However, gifts from relatives (and wedding gifts) are exempted from tax.

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SALE DEED

Now that you've found the place you want to buy or found a buyer for your property, you need an agreement prepared. There is no underestimating this document, given the large sums involved in property deals. The agreement between you and the other party should cover comprehensively the terms on which the sale will take place, the conditions, and the date on which the sale will be completed. Sale Deed is the document that would be executed once final possession is given.

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RESIDENTIAL RENTAL AGREEMENTA rental agreement protects the interests of both the landlord and tenant. The terms of the agreement bring clarity to the arrangement, such that the consideration, rights and obligations of both parties, and the rental term are established. In most Indian cities, rental agreements last only 11 months to protect against rental control laws. Agreements with a longer term need to be registered.

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MAKE A WILL

A will allows you to communicate how your assets are to be distributed among those close to you after your death. This document ensures that your belongings do not devolve as per the laws of inheritance (which vary for each major religion) but as per your wishes. Its creation is frequently postponed, but it's a good practice to have one in place and then keep updating it when necessary. All such a document needs to contain is a declaration that it is being made free from any pressure, the details of your property and who will inherit it. It need not be registered, but it is suggested that you do so at the office of the sub-registrar.

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SERVICE LEVEL AGREEMENT

A service level agreement (SLA) is a formal document between a service provider and the user. It does not define how the service will be delivered but rather provides a measurable framework for the provision of that service. Some metrics that are used to define the SLA might include the mean time between failures, an agreed accepted level of downtime across an agreed time frame, support response and resolution times.

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MASTER SERVICE AGREEMENT

A Master Service Agreement is a contractual agreement in which two parties, a client and service provider, agree to terms and conditions that are to govern all transactions between them for the long-term. Contracts such as this find use in sectors that involve a large number of transactions between the provider of a service as well as a customer and may include a separate statement of work for each. The IT sector is the most common user of such an agreement.

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VENDOR AGREEMENT

A Vendor Agreement is an agreement stipulating the conditions under which the work is to be performed by the vendor. It is a comprehensive agreement covering various aspects such as the quality of goods supplied or service provided, duration of the contract, terms and mode of payment. Such an agreement would be useful to those hosting a large event (a trade exhibition, for example) where several vendors will be selling their wares.

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MEMORANDUM OF UNDERSTANDING

A Memorandum of Understanding (MoU) is a document in which two or more parties declare that they agree on a common course of action or business. It is the first stage of the making of a contract. An MoU is generally recognised as binding even though it creates no rights and obligations in itself. To be legally operative, an MoU must identify the contracting parties, spell out the subject matter of the agreement and its objectives, summarise the essential terms and must be signed by the contracting parties.

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FRANCHISE AGREEMENT

A franchise agreement is an agreement wherein the franchisor agrees to lend the trade name or business system to another person or entity (the franchisee). The contract will define the basis of the arrangement between the two parties, specifying the consideration to be paid by the franchisee (partial payment is often in the form of royalties for the use of the franchisor's trademark), how the brand name can be used, the length of the arrangement, and clauses dealing with penal provisions, ranging from fines and compensation to cancellation of the franchise.

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JOINT VENTURE AGREEMENT

A joint venture (JV) agreement is entered into by a group of persons or companies to do business together or to collaborate on a particular project without losing their individual legal identities. Such an agreement is legally binding and clearly lays down the areas of cooperation and divergence, and makes provisions for profit-sharing and operations. Usually, before entering into such a formal agreement, the parties sign a Memorandum of Understanding (MoU)

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ANNUAL COMPLIANCES FOR PRIVATE LIMITED COMPANY All the benefits of a private limited company, such as the ability to raise capital easily and accommodate shareholders, come at the cost of increased compliance. While the majority of small businesses do not fulfil their compliance requirements in their opening years, they end up paying heavy penalties (up to Rs. 1 lakh a year) for failing to do so. In the worst scenario, such companies and their directors are even blacklisted for a short period of time.

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ANNUAL FILINGS FOR LLP’S

Limited liability partnerships (LLPs) have very few compliances to fulfil, in comparison to private limited companies. LLPs need only file information related to statement of accounts and annual returns on an annual basis. Penalties, however, are huge for failure to comply. Entities that don't end up doing so could be fined heavily, with penalties going up to Rs. 5 lakh in some cases.

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INCREASE IN AUTHORISED CAPITAL The maximum number of shares a private limited company can issue is decided by its authorised capital. Most start-ups start their journey with the minimum authorised capital of Rs. 1 lakh, but this is too little as the business grows. To issue new shares or raise the capital a company is authorised to raise, the capital clause of theMemorandum of Association needs to be amended by passing a special resolution of the board. If, at this point, you may also need shares to be issued to existing promoters or new shareholders.

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ADD A DIRECTOR

As per section 260 and section 284 of the Companies Act, 1956, the Articles of Association of a company are the source of authority from where the Board of Directors draws the right to add new directors to the Board or remove existing ones. The Articles of Incorporation must provide for the addition of Directors. The person appointed must be eligible as per the relevant clauses in the Articles of Association and must give his consent to be a director in written form which the company must register with itself.

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REMOVE A DIRECTOR

A company can remove a director if he incurs any of the disqualifications specified under the Act, absents himself from board meetings over 12 months, enters into contracts or arrangements against the provisions of section 184, is disqualified by an order of a court or Tribunal, or is convicted by a court of any offence and sentenced to imprisonment for not less than six months.

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ADD A DESIGNATED PARTNER

In case of a Limited Liability Partnership (LLP), at least two individuals who are partners shall act as designated partners. These partners must have a Designated Partner Identification Number and their names must feature in the LLP agreement.

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CHANGE THE OBJECTIVES To change the goals or aims and objectives of your business, you need to amend the Memorandum of Association. The MoA contains the object clause. Now, this can be difficult to do, particularly if you're a young company looking to completely change the main objects. But if you follow the right methods, it can be done quickly. For example, one mistake many companies make is to include several domains in the main objects. This will not be approved. For example, if you are in the software business, you can cover all software services in the main objects, but other services, such as design, should be included in ancillary or other objects of the company.

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CHANGE OFFICIAL ADDRESS

The registered office of a company or LLP is the principle place of business and all official correspondence from the Ministry of Corporate Affairs is sent to the mentioned location. The registered office address can be changed within the local limits of the city, town or village by simply giving notice to the concerned registrar within 30 days from the date of change. If, however, you are moving the registered office to another state, a special resolution needs to be passed and an advertisement needs to be placed in a newspaper, before notice is given to government.

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CHANGE COMPANY NAME

To the Registrar of Companies (RoC), changing your name is no small matter. As you've already incorporated, you're aware of the rules involved in selecting a name for your company. The same applies for changing your name, too. The procedure is well-defined and to be followed strictly. And just in case you haven't complied with all RoC requirements, you can't go ahead with this until you do.

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CHANGE LLP AGREEMENT

The Limited Liability Partnership (LLP) Agreement is the charter of the LLP, similar to the Memorandum of Association and Articles of Association for a private limited company. It defines the scope and extent of the LLP's operations as well as the rights, duties, obligations of the partners. Altering the agreement is straightforward. All you need to do is pass a resolution approving the revision in the LLP Agreement. The second step is to file Form 3 with the Registrar within 30 days of the amendment in the agreement.

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CLOSE YOU PRIVATE LIMITED COMPANY Winding up a private limited company is a tedious, but necessary, procedure. Without doing so, you would need to annually meet the requirements of the Registrar of Companies (which means spending money on audit and compliances). The bigger reason you would want to do this, of course, is because it releases the assets and investments made by you.

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CLOSE YOUR LLP

To close down a limited liability partnership (LLP), the resolution to do so must be filed with the Registrar within 30 days of its passing. Once this has been done, the majority of the partners need to make a declaration to the effect that the LLP has no debts or that it is in a position to pay all debts within a specified period not exceeding one year from the date of commencement of winding up of LLP. Within 15 days of the passing of the resolutions, statement of assets and liabilities for the period from the last accounts closure to the date of winding up of LLP must be submitted, attested by at least two partners. A report of valuation of the assets of the LLP must be prepared.

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MAINTAIN YOUR ACCOUNTS

Accounting is the process of storing, sorting and recording financial transactions. All businesses are required by law to submit their accounts to the Income Tax (IT) Department. Several start-ups tend to ignore this requirement early on, and then scramble to put together their accounts when they are raising funding or being acquired. Maintaining the books in-house certainly is a tedious and possibly expensive affair, but getting it done would significantly reduce pains in complying with the requirements of the IT Department, give the promoters and shareholders a good sense of how the business is doing, prove eligibility for loans in later years, and even satisfy investors.

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SOLE PROPRIETORSHIP TO PRIVATE LIMITED COMPANY As the proprietorship has almost no definition, besides that given to it by one of the many licenses you can take to get one (SSI, VAT or Service Tax registration, for example), transferring the business to a private limited company is easy. All you need to do is go ahead and start a private limited company and submit an agreement between the sole proprietor and the private limited company, declaring that all the assets are to be transferred to the latter.

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PARTNERSHIP TO LLP

A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership. Partners aren't disadvantaged by personal liability and the LLP does away with the excessive regulations of the Indian Partnership Act, 1932. Furthermore, there are tax benefits, no audit requirements below a certain capital, no cap with regard to number of partners or capital contribution requirements.

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PRIVATE TO PUBLIC LIMITED COMPANY It's great news that you're looking to go public. The process to convert from private to public limited company is simple, but will take 30 to 35 days to complete, as there are many steps involved. First you need to alter the articles of association, then delete the word private from your name, commence the registration process and finally wait for the certificate of commencement of business. Do note, however, that some requirements and charges will depend on whether or not you already have three directors, seven members (shareholders) and a paid-up capital of Rs. 5 lakh (all are necessary for a public limited company).

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PRIVATE TO ONE PERSON COMPANY

A private limited company can convert itself into a one-person company (OPC) if it has a paid-up capital ofless than Rs. 50 lakh and an annual turnover of less than Rs.2 crore. An OPC also need a nominee. The procedure is time-consuming, as you cannot use the INC-29 procedure, but should be completed inside 25 working days. Our package includes everything from the filing of the forms for conversion to the alteration of your Memorandum of Association and Articles of Association.

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EMPLOYEE STOCK OPTION PLAN All entrepreneurs have at least one common problem: how to motivate employees in a way that’s mutually beneficial. The most practical solution to this is the employee stock options plan (ESOP), used by small and large businesses alike. It not only keeps deserving employees motivated to grow your company, rather than just fulfil their duties, it ensures that you don’t lose them for a number of years. In an ESOP, companies provide their employees with stock ownership, often at no up-front cost, but in lieu of work performed. Shares are allocated to employees, but may vest only after a pre-defined period.

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