Author: anandnataraj

Entrepreneur, Blogger, Traveller, Pet Lover, Networker, Social Drinker, Party Animal, Movie Addict, Startup Enthusiast, Organic Gardner, Avid Reader....

Creating Private Limited Company In India


Pre-requisites to incorporate a private limited Company in India by foreign citizens:

Step-1:
i) Obtaining Director Identification Number (DIN-1) for all the Directors of the proposed company.

Documents required – Passport of the applicant containing address of the applicant and passport size photograph.

If all the particulars are given, DIN-1 provisional number can be generated in half a day’s time.

DIN-1 application for foreign citizens require attestation by Notary of the country concerned.

Once the signed copy of physical form attested by notary of foreign country is sent to MCA Office, Noida, it will take a week’s time approx to get the number approved. Once approved by the MCA authority, provisional DIN-1 which has already been generated will be final.

ii) Obtaining Digital Signature for at least one Director of the proposed company.

It requires ID Proof, Address Proof and the applicant’s signature on the application form. It will take 2 to 3 days once the application is received duly filled in all respects.

Step-2:

Making online application to ROC for availability of Name in Form 1A.
The particulars required for making this application are:

-Name of the proposed company
-State in which the registered office of the proposed company will be situated
-Main Objects, in brief
-Names of Subscribers to the Memorandum of Association (it is nothing but, first shareholders of the company, who should sing MOA & AOA)
-Proposed Authorized Share Capital of the Company

This process will take 3 to 5 days approx.

Step-3:
Once the name is approved by ROC, then preparation of MOA, AOA, other forms & documents viz., Form 1, Form 18 & Form 32 along with other documents have to be done and filed with ROC.

Approximately it will take a week’s time to complete incorporation formalities.

Q : How many days we have to wait for this getting Name approval and registering ROC

Ans:- Name approval process will take 3 to 5 days. Entire Registration process will take Minimum 15 to 20 days provided all the information has been furnished promptly.

Q: If the director is registering for first Time can we apply without DIN? Or should we apply for DIN first?

Ans:- Applying for DIN is prerequisite before proceeding for registration of the Company

Q: What is “Subscribers to MOA”?

And:- It is nothing but, first shareholders (also known as promoters) of the Company, who should sign the Memorandum & Articles of Association.

Q: Can registration be done in any part of India?

And:- Place of registered office can be in any part of India. Depending upon place of registered office, registration has to be done in the respective State.

Q: Need details about all the forms

Ans:- These are Statutory forms which have to be filed for registration of the Company.
Form 1 – Contains details of promoters of the Company
Form 18 – About the place of registered office of the Company
Form 32 – About Directors of the Company

Q: Suppose 2 directors are non india citizens can they start the company?

Ans:- There is no objection for non Indian citizens to start a company in India and to act as Directors. But they have to appoint Alternate Directors representing them, to comply with the statutory requirement of convening quarterly Board Meetings and to take day to day decisions to run the company, signing other documents and forms for getting various registrations as applicable to the company. It is recommended to allot atleast 1 share each to 2 Indian citizens to comply with the statutory requirement of convening Annual General Meeting every year & EGM as and when required.

Q: Can we register the company without the directors coming to india?

Ans:-This is possible provided foreign citizens execute power of attorney in favor of Indian citizen attested by Notary/Magistrate in the Foreign Country. Then the authorized person can sign in the Memorandum & Articles of Association on behalf of foreign citizens.
More clarification on this point will be sent soon.

Q: Need more specific Breakup time frames like how long for name checkup, then the time for next process, also define total process involved like submitting forms to different departments etc?

Ans:- Entire incorporation process will take 15 to 20 days appox provided all the information has been provided immediately.

Subsequent to formation of the Company generally the following formalities have to be complied with:
a) Applying for PAN (Permanent Account Number) & TAN (Tax Deduction Account Number)
b) Opening of Bank Account
c) VAT & CST Registration, if applicable
d) Preparation of Common Seal & Share Certificates
e) Appointment of Auditors
f) PF Registration (applicable only if 20 or more employees are there)
g) Professional Tax Registration
h) Other Registrations & Licenses, such as Excise, Customs, STPI as applicable to the company

Mobile The Future Opportunity


Right now we are doing some research to explore opportunities in mobile technology, happened to come across this presentation done by bill gates which i wanted to share with you.

Adding my blog to technorati


Currently in the process of adding my blog to technorati. Folowing there instructions to list to Claim the blog.

You can check for my Technorati Profile

Management Decisions


This is one funny forward I got it from Aparnaa who blogs at http://lunchtime-arratai.blogspot.com/

Once PVNR (PV Narasimha Rao), L.K. Advani and Laloo Prasad Yadav were
travelling in an Auto Rickshaw. They met with an accident and all three of them died. Yama was waiting for this moment at the doorstep of death. He asks PVNR and Advani to go to HEAVEN. But, for Laloo, Yama had already decided that he should be sent to HELL. Laloo is not at all happy with this decision. He asks Yama as to why this discrimination is being made. All the three of them had served the public. Similarly, all took bribes, all misused public positions, etc. Then why the differential treatment? He felt that there should be a formal test or an objective evaluation before a decision is made and should not be just based on opinion or preconceived notions.

Yama agrees to this and asks all the three of them to appear for an English test.
1] PVNR is asked to spell “INDIA” and he does it correctly. Advani is
asked to spell “ENGLAND” and he too passes. It is Laloo’s turn and he is asked to spell “CZECHOSLOVAKIA”. Laloo protests that he doesn’t know
English. He says this is not fair and that he was given a tough question and thus forced to fail with false intent. Yama then agrees to conduct a written test in Hindi (to give another chance assuming that Laloo should at least feel that Hindi would provide an equal platform for all three).

2] PVNR is asked to write “KUTTA BOLA BHOW BHOW”. He writes it easily and passes. Advani is asked to write “BILLY BOLI MYAUN MYAUN”. He too passes. Laloo is asked to write “BANDAR BOLA GRRRRRR…..” Tough one. He fails again. Laloo is extremely unhappy. Having been a student of history (which the other two weren’t), he now requested for all the 3 to be subjected to a test in history Yama says OK but this would be the last chance and that he would not take any more tests.

3] PVNR is asked: “When did India get Independence?”. He replied “1947” and passed. Advani is asked “How many people died during the independence struggle?” He gets nervous. Yama asked him to choose from 3 options: 100,000 or 200,000 or 300,000.Advani catches it and says 200,000 and passes. It’s Laloo’s turn now.Yama asks him to give the Name and Address of each of the 200,000 who died in the independence struggle. Laloo accepts defeat and agrees to go to HELL.

Moral of the story: IF YOUR MANAGEMENT HAS DECIDED TO SCREW YOU, THERE IS NO ESCAPE.

How to become an e-Entrepreneur? Part I


Since the very moment I started my Company, I have been approached by my friends, their spouses and relatives to get them some projects, be they part –time or full-time. Sometime, the people I meet talk to me about their experience they had had with sites which promise to offer home based jobs which require some intial deposit. For sites like that, one needs to have a big sense of trust, as many out there could be ponzy.

Love Story That Touched My Heart




I got this video shared by one of my friend aparnaa who blogs at http://lunchtime-arratai.blogspot.com/. The album show how much the boy cares for his girl. Really something thing makes me think of taking it as movie in india.

Talent + Idea + Passion = Business


I normally like people who live for there passion. I’ve read a lot about people like Vishal Gondal, Subir Malik, Madhu Menon, T.G. ‘Tiger’ Ramesh & cherished how they turned there passion into commercial ventures. Today I took my sister and cousin sisters to a Amusement park, I happened to meet this gentle man Mr.Venkatesh who had an unique talent. He uses broken glasses and makes dolls, ear rings, key chains, neck chains etc. His charges are pretty nominal it ranges from Rs.10 to Rs.20 for a product. He takes 15 min man for a tough art. Most important aspect of my excitement is his business model,

1. Less time consuming work
2. Low cost products
3. Selection of a place which attracts crowd
4. Concentrate on volumes
5. Turning waste into loveable art work and more important is converting it into money.
6. And shoud not forget to specify this smart action, his open showcase of how he does this art work
a. It really attracts people to his open stall
b. Convinces people on worthiness of making the purchase
c. It converts the suppose to be onlookers into customers

It to have the FLIP side like any other business,
1. He uses a Gas Cylinder to fuel his fire rod which is highly dangers not only to him but also to public
2. Melting glass causes pollution
3. Also this is not good for his own eyes

Other than this I’m happy to see a person who makes a living with his passion, not sure if he has got any media attention like others but I’d like bring it out my reader’s atleast. I’m also sure people can come with lot more business ideas using his skills. If you want to meet this person to see his art work/learn the art work/got a business idea you can email him, snail mail his or call him, I’ve given all the details at the end of the blog. I’ve planned to take a video interview with him soon and publish more about his works soon. Also I show a small video of his work which I’ll upload and publish it here soon, but you can go thru the photos below,

glass_work
You can see broken glasses in the table

glass_work_1
Making a peacock key chain

P7150037
A closer view

P7150038
This full view shows the Gas Cylinder, Venkatesh wearing a glass and meling the glass which i specified as the drawbacks.

P7150039
His works on display.

Name: Mr.L.Venkateswaran
Address: #1/261, Mettu Street, East Cost Road, Muthukadu, Kancheepuran District – 603112,
Tamil Nadu, India.
Mobile: 9841672683
Email: venkatesh_glassworld@yahoo.com

Smart Moves to take Loan


Smart Move # 1

Opt for lifetime free, zero surcharge credit cards: This will take care of two major recurring annual costs. Even as you opt for such a card, don’t forget the old rules of not revolving credit, since interest rates are a huge 2.95 per month or 41.74 per cent per annum.

Smart Move # 2

Use overdraft facility instead of credit card cash: You should also avoid withdrawing cash using credit cards since you have to pay a processing fee, an interest of 2.95 per cent per month charged on daily basis and service taxes. Instead, opt for a bank savings account with an overdraft facility that will allow you to access funds at a much lower 21-22 per cent per annum.

Smart Move # 3

Take loans against assets: For short-term cash requirements, opt for loans against assets instead of costly personal loans (interest rates 18-20 per cent). The best bets are loans against fixed deposits (FD) where you can get around 80 per cent of the FD amount at an interest rate 1-2 per cent above the FD rate.

“This way you can lock in funds for a longer duration and use the over-draft facility to meet short-term liquidity needs,” says Murali Natarajan, regional head, consumer banking (India & Nepal), Standard Chartered Bank. Next, come shares and mutual fund units of income schemes. You can get around 60 per cent of their value as loan at rates of 12-14 per cent.

Smart Move # 4

Go for an online credit card: You get an online credit card with your main credit card. It can be used only for online transactions, such as booking air tickets. These cards come with a low credit limit of about Rs 10,000 and separate your online transactions, so that even if some swindler gets your card details, the liability is limited. The card also enables you to avail discounts at travel and shopping portals.

Smart Move # 5

Time your car loan application: Submit your loan applications towards month-end so that executives sweeten the deal with freebies or discounts to meet their targets. Go during lean periods like “Shradh” (mostly a 15-day period in September, considered inauspicious for purchases).

You can also take advantages of schemes during September-end, when dealers provide promotional schemes to spur purchases by the self-employed and institutions to claim deprecation for vehicles during the same financial year. The same is true during March-end, when dealers try to clear their inventories of stocks.

Smart Move # 6

Opt for a joint home loan with spouse: This will enhance your loan entitlement and give you more tax-breaks — up to Rs 1 lakh (Rs 100,000) per annum each under Section 80C for principal repayment and up to Rs 1.5 lakh (Rs 150,000) each under Section 24 for interest repayment — since both would be entitled for them.

“Joint applications enhance loan eligibility since the income of the co-applicants are aggregated,” says S.K. Mitter, director and chief executive, LIC Housing Finance. The move really works well for double-income families. Says Swami Saran Sharma, a Delhi-based financial expert, “If both husband and wife are working and the property is self-occupied, then the tax deduction eligibility doubles too.”

Smart Move # 7

Leverage your credit history: If you have been a good borrower in the past, you can use your credit record to bargain for lower rates.

“An applicant with impeccable credit history can claim for lower interest rate and waiver of processing charges,” says S. Santhanakrishnan, chairman, Credit Information Bureau (India). Many banks have already introduced products that reward good credit history with loans at lower rates, waiver of processing charges and increased loan eligibility.

Smart Move # 8

Leverage your banking relationships for access to loans: Homemakers, part-time workers and others with irregular incomes and cash flows may find it difficult to get credit cards and loans. In such cases, it pays to have a regular banking relationship, where, among other things, you operate the account regularly.

The tenure of the relationship sometimes helps get access to these products, especially a credit card. Once you build a good credit history by using your credit card regularly and clearing your dues on time, you can prove your credit worthiness.

Smart Move # 9

Apply for loans in groups to get discounts. While seeking loans, it pays to apply in groups. “If a group of friends purchase flats in the same property, they can successfully negotiate for discounts,” says Harsh Roongta, CEO, Apnaloan.com.

The same is true if you take a loan along with your office colleagues. If your organisation is already in the list of preferred borrowers of the financial institution or bank, the employees can be offered lower-than-market rate loans. “The lender offer lower rates as it benefits from getting bulk business with its transaction, origination and servicing costs per loan coming down,” says Mitter. The rates can be lower still if your employer agrees to deduct the EMI from your salary.

Smart Move # 10

Part-prepay home loans and get Section 80C deduction. You can claim Section 80C benefits up to Rs 1 lakh per annum from a variety of sources, such as investments in Public Provident Fund (PPF), National Savings Certificate (NSC), premium of life insurance policies, investments in equity linked savings schemes (ELSS) and pension plans of mutual funds, and principal repayment of home loans, among others.

Experts suggest that a key objective for anyone buying a financed home has to be of complete home ownership at the earliest possible time without compromising other goals such as retirement.

So, it makes sense, especially during periods when interest rates are on a high, to increase the principal repayment through part prepayment of the loan (assuming that the loan has no prepayment penalty) and claim the entire Section 80C deduction from this.

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Are you Rich or Poor? A story of perception


One day a father of a very wealthy family took his son on a trip to the country with the firm purpose of showing his son how poor people live. They spent a couple of days and nights on the farm of what would be considered a very poor family.
On their return from their trip, the father asked his son, “How was the trip?”
“It was great, Dad.”
“Did you see how poor people live?” the father asked.
“Oh yeah,” said the son.
“So, tell me, what you learned from the trip?” asked the father.
The son answered: “I saw that we have one dog and they had four.

Conversation With God


Man: Tell me, why has life become complicated now?

God : Stop analyzing life. Just live it. Analysis is what makes it complicated.

Man: why are we then constantly unhappy?

God : Your today is the tomorrow that you worried about yesterday. You are worrying because you are analyzing. Worrying has become your habit. That’s why you are not happy.

Man: But how can we not worry when there is so much uncertainty?

God : Uncertainty is inevitable, but worrying is optional.

Man: But then, there is so much pain due to uncertainty. .