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GST REGISTRATION

TYPES OF GOODS AND SERVICE TAX REGISTRATION

  1. Compulsory Registration: Generally, GST Registration is required only if the aggregate turnover of the business exceeds the threshold limit during the financial year. However, in some cases, GST Registration is mandatory even if the aggregate turnover of the business is below the threshold limit. Individuals or business that are required to register under GST are mentioned below:
    1. Inter-State Suppliers of Taxable Goods
    2. e-Commerce Operators or TCS Collectors
    3. e-Commerce Suppliers of Goods
    4. Non-Resident Taxable Person
    5. Casual Taxable Person
    6. Input Service Distributor
    7. Agent
    8. OIDAR Service Provider (Online Information Database Access and Retrieval Services)
    9. TDS Deductor and
    10. RCM (Reverse Charge Mechanism)

2. Voluntary Registration: Voluntary registration means applying for registration under GST(Goods and Service Tax) on a voluntary basis. The dealers who are not required to register as per the GST Act can apply for voluntary registration under GST.

3. Registration Under Composition Scheme: This is a form of voluntary registration as it is an optional scheme. A business is compelled to register under GST if their aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for the Composition Scheme of the goods and restaurant services is at 1.5 Cr. So businesses having turnover below the threshold limit (1.5 Cr) can avail themselves of this scheme.

4. No Registration: There are different categories of people that do not require GST Registration:

    • The business for which aggregate turnover during the financial year does not exceed Rs.40 lacs for goods (Rs.20 lacs for special category states) or Rs.20 lacs for services (Rs.10 lacs for special category states).
    • The business that does not fall under the provisions of compulsory registration.
    • Persons selling goods or services that are exempt under GST or not covered under GST.
    • Agriculturists for the supply of crops produced from the cultivation of land.

COMPANY REGISTRATION

TYPES OF COMPANY REGISTRATION REGISTRATION

On the basis of incorporation, companies can be classified as:

(i) Chartered companies

(ii) Statutory companies

(iii) Registered companies

(i) Chartered companies:

The crown in exercise of the royal prerogative has power to create a corporation by the grant of a charter to persons assenting to be incorporated. Such companies or corporations are known as chartered companies. Examples of this type of companies are Bank of England (1694), East India Company (1600). The powers and the nature of business of a chartered company are defined by the charter which incorporates it. After the country attained independence, these types of companies do not exist in India.

(ii) Statutory companies:

A company may be incorporated by means of a special Act of the Parliament or any state legislature. Such companies are called statutory companies, Instances of statutory companies in India are Reserve Bank of India, the Life Insurance Corporation of India, the Food Corporation of India etc. The provisions of the Companies Act 1956 apply to statutory companies except where the said provisions are inconsistent with the provisions of the Act creating them. Statutory companies are mostly invested with compulsory powers.

(iii) Registered companies:

Companies registered under the Companies Act 1956, or earlier Companies Acts are called registered companies. Such companies come into existence when they are registered under the Companies Act and a certificate of incorporation is granted to them by the Registrar.

On the basis of liability the company can be classified into:

(i) Companies limited by shares​

(ii) Companies limited by guarantee

(iii) Unlimited companies.

(i) Companies limited by shares:

When the liability of the members of a company is limited to the amount if any unpaid on the shares, such a company is known as a company limited by shares. In a company limited by shares the liability of the members is limited to the amount if any unpaid on the shares respectively held by them. The liability can be enforced during existence of the company as well as during the winding up. Where the shares are fully paid up, no further liability rests on them.

(ii) Companies limited by guarantee:

It is a registered company in which the liability of members is limited to such amounts as they may respectively undertake by the memorandum to contribute to the assets of the company in the event of its being wound up. In the case of such companies the liability of its members is limited to the amount of guarantee undertaken by them. Clubs, trade associations, research associations and societies for promoting various objects are various examples of guarantee companies.

(iii) Unlimited companies:

A company not having a limit on the liability of its members is termed as unlimited company. In case of such a company every member is liable for the debts of the company as in an ordinary partnership in proportion to his interest in the company. Such companies are not popular in India.

(C) On the basis of number of members:

(i) Private company:

A private company means a company which by its articles of association:

(i) Restricts the right to transfer its shares

(ii) Limits the number of its members to fifty (excluding members who are or were in the employment of the company)

(iii) Prohibits any invitation to the public to subscribe for any shares or debentures of the company.

(iv) Where two or more persons hold one or more shares in a company jointly, they are treated as a single member. There should be at least two persons to form a private company and the maximum number of members in a private company cannot exceed 50. A private limited company is required to add the words “Private Ltd” at the end of its name.

(ii) Public company:

A public company means a company which is not a private company. There must be at least seven persons to form a public company. It is of the essence of a public company that its articles do not contain provisions restricting the number of its members or excluding generally the transfer of its shares to the public or prohibiting any invitation to the public to subscribe for its shares or debentures. Only the shares of a public company are capable of being dealt in on a stock exchange.

(D) According to Domicile:

(i) Foreign company:

It means a company incorporated outside India and having a place of business in India.

According to Section 591 a foreign company is one incorporated outside India:

(a) Which established a place of business within India after the commencement of this Act or (b) Which had a place of business within India before the commencement of this Act and continues to have the same at the commencement of this Act.

(ii) Indian Companies:

A company formed and registered in India is known as an Indian Company.

(E) Miscellaneous Category:

(i) Government Company:

It means any company in which not less than 51 percent of the paid up share capital is held by the Central Govt, and/or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments. The subsidiary of a Government company is also a Government company.

(ii) Holding and subsidiary companies:

A company is known as the holding company of another company if it has control over another company. A company is known as subsidiary of another company when control is exercised by the latter over the former called a subsidiary company. A company is to be deemed to be subsidiary company of another

(a) If the other Controls the composition of its Board of directors or

(b) Exercises or controls more than half of its total voting power where it is an existing company in respect where of the holders of preference shares issued before the commencement of the Act have the same voting rights as the holders of equity shares or

(c) In the case of any other company holds more than half in nominal value of its equity share capital or

(d) If it is a subsidiary of a third company which is subsidiary of the controlling company.

(iii) One man Company:

This is a company in which one man holds practically the whole of the share capital of the company and in order to meet the statutory requirement of minimum number of members, some dummy members hold one or two shares each. The dummy members are usually nominees of principal shareholder. The principal shareholder is in a position to enjoy the profits of the business with limited liability. Such type of companies are perfectly valid and not illegal.

BRAND REGISTRATION

TYPES OF GOODS AND SERVICE TAX REGISTRATION

Selecting a Strong Trademark: The Four Types of Marks

When selecting a trademark, there are two important considerations: (1) avoiding the likelihood of confusion with other marks and (2) selecting a “strong” mark in the legal sense. A likelihood of confusion will occur when your mark is the same or similar to another mark that indentifies related goods or services. Whether or not a mark is “strong” in the legal sense depends upon into which category the mark falls.

The Four Types of Marks

There are four categories of trademarks: (1) fanciful or arbitrary, (2) suggestive, (3) descriptive, and (4) generic. Fanciful or arbitrary marks are the strongest. Generic marks cannot be registered and offer no protection. Suggestive and descriptive marks fall in between. Therefore, it is important that you design your trademark so that it offers the most protection possible.

A.Generic Marks

Generic marks are marks that use common, everyday terms that everybody has the right to use. Often, a generic mark will describe the particular class or variety of which the good or service is a member. For example, attempting to use the term CAR for an “automobile” would be generic. To allow someone to trademark CAR would unfairly prevent everybody else from using that term in the sale of automobiles.

B.Descriptive Marks

Descriptive marks use terms that merely describe the good or service. This might be a mark that utilizes the color, smell, or ingredients of a good or service. For example, the term SOFT as used to describe towels. A mark that is only descriptive cannot be registered unless it acquires distinctiveness. Typically, the mark must be highly used in commerce for at least five years before it will acquire any kind of distinctiveness. UPS, for example, has trademarked its brown color because of the distinctiveness it has acquired. Marketing professionals like to use descriptive marks because it makes it easy for the consumer to identify the attributes of a good or service. Resist the urge to take this advice. Because a descriptive mark is weak, it will require a great deal of time, effort, and money to police the mark’s use in commerce while it attempts to gain distinctiveness.

C.Suggestive Marks

Suggestive marks suggest the qualities or attributes of a good or service. These marks differ from descriptive marks in that they do not actually describe the product but merely suggest an attribute that requires some thought or perception on the part of the consumer. GREYHOUND for bus services is a good example. Suggestive marks are strong marks and the next best choice after fanciful or arbitrary marks.

D.Arbitrary or Fanciful Marks

Fanciful or arbitrary marks are made-up words or real words that have no relationship to the good or service supplied, respectively. These are the strongest types of marks and are afforded all protection. Also, because they are often made-up or arbitrary words, it is less likely that anybody else is using them to describe your particular good or service. APPLE as it relates to computer products is an arbitrary mark, and therefore very strong, because apples have nothing to do with computers (if APPLE was used to describe an apple product, it would be a generic or descriptive mark and therefore very weak).

As you can see, the type of mark you select has a big impact on the amount of protection it is afforded, so it is important that you choose a strong one.

IMPORT-EXPORT CERTIFICATE

TYPES OF GOODS AND SERVICE TAX REGISTRATION

n this age of cut-throat competition, everyone wants to grow their business beyond the limits of the domestic market. However, doing business globally isn’t just a cup of tea for everyone. Before going global, you need to follow several procedures and laws in place and get different registration and license. IEC (Import Export Code) license is one of such prerequisite when you’re thinking of importing or exporting from India.

IEC (Import Export Code) is required by anyone who is looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code which has a lifetime validity. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.

IEC is required in the following situations

1. When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.

2. When an importer sends money abroad through banks then it’s needed by the bank.

3. When an exporter has to send his shipments then its needed by the customs port.

4. When an exporter receives money in foreign currency directly into his bank account then its required by the bank.

Steps Involved in IEC (Import/Export Code) Registration

Step 1: First, you need to prepare an application form in the specified format – Aayaat Niryaat Form no. 2A format and file it with the respective Regional office of DGFT.

Step 2: Secondly, you need to prepare the required documents with respect to your identity & legal entity and address proof with your bank details & the certificate in respect of ANF2A.

Step 3: One your application is completed, you need to file with DGFT via DSC (Digital Signature Certificate) and pay the required fee for the IEC Registration.

Step 4: Finally, once your application is approved then you would receive the IEC Code in a soft copy from the government.

Documents required for IEC (Import Export Code) Registration

For IEC Code Registration following documents are required:

  • Individual’s or Firm’s or Company’s copy of PAN Card
  • Individual’s voter id or Aadhar card or passport copy
  • Individual’s or company’s or firm’s cancel cheque copy of current bank account
  • Copy of Rent Agreement or Electricity Bill Copy of the premise

Benefits of IEC Registration

1. Expansion of Business

IEC assists you in taking your services or product to the global market and grow your businesses.

2. Availing Several Benefits

The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.

3. No Filling of returns

IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.

4. Easy Processing

It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.

5. No need for renewal

IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.

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