Corporate digest february 2018

Venture Care

Digest Strategy | Finance | Digital | Legal www.venture-care.com WHY IS A STRONG ONLINE PRESENCE MARKET FEASIBILITY STUDY:

BUSINESS VALUATION:

CONDONATION OF DELAY

IMPORTANT FOR YOUR BUSINESS? DEPENDS ON MANY FACTORS

HOW TO DO IT

AND HOW CAN YOU ACHIEVE IT. - STRATEGY

February 2018 INR 150/-

- FINANCE

- DIGITAL

SCHEME 2018: MCA - LEGAL

Index 3

EDITORIAL STRATEGY MARKET FEASIBILITY STUDY : HOW TO DO IT 9 PROVEN WAYS THAT WILL FLOURISH YOUR BUSINESS THE WHAT, WHEN AND HOW ABOUT YOUR NEW BUSINESS VENTURE 9 TIPS TO GIVE LIFE TO YOUR BUSINESS PARTNERSHIP

4 6 8 10

FINANCE THE WHAT AND HOW OF COMPANY VALUATION

12

BUSINESS VALUATION: FACTORS THAT MATTER

14

DIGITAL WHY IS A STRONG ONLINE PRESENCE IMPORTANT FOR YOUR BUSINESS?

16

AND HOW CAN YOU ACHIEVE IT.

LEGAL & COMPLIANCE CONDONATION OF DELAY SCHEME 2018: MCA

21

STARTING AND RUNNING A PRIVATE LIMITED COMPANY IN INDIA

22 26

EXCLUSIVE RIGHTS OF THE HOLDER OF A COPYRIGHT

www.Venture-Care.com/Magazine

February 2018

2

Editorial

Editorial People believe that sale of product and service is the most important factor which increases business valuation. Of course if sales increase valuation increases. But this is not the only factor.

Other factors which are equally important include market share, industry growth rate, management team, operating conciseness, execution team, strategy, quality of fixed assets including others.

Starting with a new project is easy. Getting finance is also easy but understanding the market feasibility is bit difficult. Few analysts say that SWOT analysis is most important. But we should not be confined to it only. Rather, combination of strengths & opportunities and weakness & threats should be looked into.

Prashant Kumar Editor

Let your business grow on new trajectory. Here are some ways that will flourish your business such as "getting your business spread in the existing market", "seek referrals", "improve or modify the existing product/service", "extend your market reach", "winning the niche market", "reduce cost" etc. In this digest you will get nine proven, practical and interesting ways to grow your business.

The whole business world is now digitalized. In this article you come to know why and how aspects of online presence of your business.

"What" aspect of business considers the market where you want to establish and the right amount of capital needed to be put. "when" aspects considers the right time to enter into the market and "how" aspects considers how you are going to generate cash from the business.

Business valuation is frequently required- whether for raising funds or for internal monitoring purpose. It becomes easier for running business but difficult for start-ups. But while valuing any company we should find out the critical factors involved. Some of the important factors areBusiness Ideas, Survival factors in the industry, Commitments of management, Skill set of management team, Approach of way forward, Business model, Business plan.

The Companies which are registered under the companies Act, 2013 or 1956 has to file their Annual Financial Statement and Annual Return with Registrar of Companies and Non-filing of such reports is an offence under the said Act. Directors are disqualified if the company does not file financial Statement and Annual Return for continuous period of 3 year after 01.04.2014. Read the complete article in depth.

In another legal section you will come to know the pros and cons of running private limited company in India. Simultaneously, you are informed about the exclusive rights of holder of a copyright.

.

Happy Reading... www.Venture-Care.com/Magazine

February 2018

3

Strategy

Market feasibility study: How to do it

Under market feasibility study, we should look at technological, economic, legal, and demographical issues to nd the best possible direction for our business. Few analysts say that SWOT analysis is most important. But we should not be conned to it only. Rather, combination of strengths & opportunities and weakness & threats should be looked into.

A 360-degree research analysis of market/industry is required. We should analyse the three top players of industry globally. Let us discuss what to analyse: ©

Market share of the top three players- this gives fair idea that whether the market is concentrated or fragmented

©

Their product and service strategies- we must analyse that how fast the existing players are changing their products and enhancing their services.

©

Their marketing strategies- what kind of marketing strategies they have adopted? What more can be feasible to adopt?

©

Time to market strategies- what is the right time of launch new or change the existing product

©

Market overview with relevant country- always analyse the market of country where your business will have main establishment.

www.Venture-Care.com/Magazine

February 2018

4

Strategy © Key drivers and industry forces shaping the market- It may be geographic area or change in demographic pattern. ©

Customer and end-user expectations for solutions offered to this market- we should analyse that what exactly customers are looking for and change in their expectations.

©

Level of competition in the industry- rivalry among the existing customers is to be assessed.

©

Entry barriers of industry- main entry barriers are capital requirement and legal barriers. Whether there is possibility of entry of new players. Fragmented industry will have higher possibility of entry whereas concentrated industry will have lower.

.

©

Industry growth rate- it should be assessed in terms of revenue growth of industry.

©

Future potential, trends, current/projected degree of market saturation- what is the future potential, whether the trend visible is smooth or uctuating, what is the estimated years of market saturation etc should be analysed.

©

Categorization of opportunities- what are new opportunities expected to be created and more importantly in which category of opportunity it is best suited establish our product or service.

www.Venture-Care.com/Magazine

February 2018

5

Strategy

9 PROVEN WAYS THAT WILL FLOURISH YOUR BUSINESS

Let your business grow on new trajectory. Here are some ways that will ourish your business.

Get your business spread in the existing market Getting new customers is not bad. But better will be to sell more to the existing customers; retain the existing customers. Acquisition of new customers will involve higher promotion out-go. Whereas, selling to existing customers will be cost-effective. Pricing is another aspect which will help your business in penetrating the existing market. Remember that always charging competitive price may not help.

Sometimes you need to reduce the weight/quantity of the product (indirect pricing) or offer free gifts. You may even change the packaging.

You may seek referrals During or after every job or sale, ask your satised customers if he knows anyone else who would be interested in your products or services. However, this is possible only if your deliverables can delight the customers.

Innovate or modify your product Every product or service has some life. It is always suggestible to go for product innovation or modication. This will help in adding new customers also. However, research & development wing should be strong enough to perform this. Just think of transformation of ofine business into online business.

www.Venture-Care.com/Magazine

February 2018

6

Strategy Extend your market reach You may start locally but increase the market reach. Many businesses have gone this way and grew tremendously. There are many ways to get it- open stores in new locations, go virtual, acquire other companies, make tie-ups, use social media, use website etc.

Participate in trade shows and arrange seminars Trade shows can be a great way to grow too. Because trade shows draw people who are already interested in the type of product or service you offer. They can powerfully improve your bottom line.

Win the niche market Big market customers try to follow the customers of niche market. Once your product or service has got hold in niche market, it will be easy to extend the present big market. Think of branded apparels, use of home appliances, mobile handsets and many more.

Reduce the costs Don't forget that reducing cost directly helps in increasing bottom line and thus valuation of business. It is not necessary to cut costs in all the areas. Few areas where it can be done are- reduce wastages, electricity cost admin costs and other indirect costs.

Diversify your products or services Diversiď€ cation in products and services is interesting way to empower growth. Package the products.

Simply think of a burger or pizza is available with sauce and chilli akes and cold drinks. Or, a restaurant serves meal with pickle and 'papad' and 'chutney'.

.

Franchising

Franchising is good way to grow your business. It may not be possible to directly reach the customers to create brand of your product or services and go for franchising model.

To conclude, there is no option to let your business grow. The above ways are not exhaustive but there are ways possible to achieve that depending upon the nature of product/services and business model.

www.Venture-Care.com/Magazine

February 2018

7

Strategy

THE WHAT, WHEN AND HOW ABOUT YOUR NEW BUSINESS VENTURE As an entrepreneur, there are a lot of things that you need to put into perspective as you plan to embark on a new business venture. You will always need a business support solution that is brilliant whether healthcare business or otherwise. It is never really about waking up and starting a business as some people would like to think. It requires a lot of thinking, planning, and more. It requires a comprehensive business analysis of the idea you have. You will also need to come up with a comprehensive business management solution before moving ahead since it will help with the management processes later on.

Therefore, as you look forward to venturing into business, here are the aspects that you need to consider.

THE WHAT OF THE BUSINESS This is all about what kind of business you are going to establish. A wise businessman once said that if you want to be a success in doing business, you must ď€ rst identify the place that has a certain need and with no one to meet the need. As long as you have found this, you can rest be assured that you will make it big time. All you need is a comprehensive business plan development.

You will also need to ask yourself what amount of capital will be enough. You have to have the right estimate. To come up with this, look at everything that is going to require money; the equipment needed (if any), the bills to be paid, the licenses to acquire, the goods you will have to purchase, and so on. This will give you a good estimate of the amount you need for small business funding.

www.Venture-Care.com/Magazine

February 2018

8

Strategy In this place, you also need to look at what you are going to require for the realization of the dream. Part of what you require is a well written and a comprehensive business plan for start-up. In case you have no idea on how to write a comprehensive business plan, you can easily hire one of the many freelance business plan writers. There are no limitations on how you can get the thorough plan that you need. All you have to ensure is that it is a perfect plan because it gives an outlook of the business and how well it will generate proď€ ts.

Other than these, there are a few other 'what' questions you will have to ask yourself. If you have the perfect answers, then you are in the right direction.

THE WHEN OF THE BUSINESS To answer the 'when' question relating to business, the right answer is always when all the preparations are done, and you are ready. Other than this there are some best seasons to venture into a business.

Typically, when you ď€ nd out a need that is in demand, but there are few suppliers to meet the demand, then you can venture into the business at any given time when you are ready. Also, when you are selling certain goods or services, it is a good idea to open the business when the market is at its top value, and the goods or services are in very high demand. Try to avoid opening a business when it is a low season.

You may not make enough to compensate the money spent to open the business.

.

THE HOW OF THE BUSINESS

This revolves around how you are going to generate the funds to start the business, how you are going to run the business, how you are going to market the business, and so on. As long as you have your comprehensive business plan for start-up in order, this will be a very easy answer to give.

As you plan to venture into business, let these three guide you and you will do excellently good.

www.Venture-Care.com/Magazine

February 2018

9

Strategy

9 Tips to give life to your business partnership Making a business partnership work is not a piece of cake, and it demands determination, hard work, efforts, thoughtfulness and a desire to enter into a long lasting business relationship. A partnership works like any other relationship and requires the same amount of time and efforts in nurturing it throughout its life.

The formation is not a big deal but maintaining the partnership from day to day is the area where most people tend to fail.

1. Team up The partner's contributions to the business should be complemented with their separate talents and set of skills which will take the company to the zenith and bring the maximum prots. All the partners should depend on each other as they benet from their different expertise for a long-lasting relationship.

2. Similar aim The aim and objective of the partners should be the same to remove the chances of a possible dispute.

If they have the same goals concerning the future of their rm, then they will share the same mindset which is quite essential for a lifelong business partnership.

3. Outline your eld of work It is very natural for any person to feel offended if another person interferes with his/her work. So to avoid any conicts, partners should set out their work area wherein they will be conned to. This will also prevent any ghts which might occur due to a different approach to any problem in the rm.

www.Venture-Care.com/Magazine

February 2018

10

Strategy 4. Pre-signing duty Future partners should consider and question themselves before signing the draft partnership agreement which can clear up the fuss in their head. Questions like why to enter into this partnership, what goal do we want to achieve, and where do we see ourselves down the line is essential and should be considered.

5. Agreement The deed drafting process starts with deciding the nature of the agreement, i.e., whether it will be verbal or in writing. However, a verbal contract is not considered when ď€ ling income tax return, which is why it is mandatory to have it in writing. The deed should contain the name and address of the business along with the partners. Also, the term period of the partnership, proď€ t and loss sharing percentage, and the investment made by every partner should be explicitly stated in the deed.

6. Consultation If a long lasting and faithful partnership is what you are looking for, then a consultation from an expert should be taken without any delay as he/she will put a lot of intricate details about the working of the partnerships in the real world before you which will be quite beneď€ cial.

7. Connection A healthy connection of minds and hearts will ensure a lifelong business relationship between partners.

Therefore, entrepreneurs should look for individuals with whom their thoughts and values match.

.

8. Respect

Partners must be able to respect each other personally in addition to the decisions made by them.

Mutual respect for one another will help the partnership to go on for times immemorial.

9. Accepting faults

Partners should accept their mistakes and not let their ego come in between which can be harmful.

Overall, following these tips will keep a partnership alive for a healthy amount of time.

www.Venture-Care.com/Magazine

February 2018

11

Finance

The What and How of Company Valuation People believe that sale of product and service is the most important factor which increases business valuation. Of course if sales increase valuation increases. But this is not the only factor. Let us explore the other factors which are equally important.

Market share Increasing sales does not always signify that company's market share is commendable. There is possibility that competitors' sales are increasing more rapidly. But yes, if market share is good then valuation will be better. It is commonly told and understood that "Rule of Three" applies to any industry. Sometimes bankruptcy of competitors helps in improving valuation of the stable and healthy players. For example, bankruptcy of Kingď€ sher airlines made Indigo airlines "king of good times". If business comes in the list of top three companies then valuation will be stronger.

Industry Is the industry, where in company is operating, is concentrated or fragmented. If industry is fragmented then valuation of business will be relatively more volatile.

Further, how old the company has presence in the industry. Whether, the company owns key survival factors of the industry. Whether, the company well understands of the trigger points of the Industry; if yes then whether it is ready to take leverage of trigger points. If all these are present then valuation will be better.

www.Venture-Care.com/Magazine

February 2018

12

Finance Management's capability and commitment It is an important factor in the sense that if company takes up any new project then management should be able to execute it successfully within the deadline. It is not only about any ad-hoc project but valuation factors the sustained commitment from management. Management's strengths and commitment will help in increasing valuation of the business.

Operating Conciseness Whether, operating cost is signicantly higher than required. If yes, then company should nd the loopholes and reduce the operating cost. Raw material wastage, wastage of electricity and other resources etc. reduce valuation of business.

Team's skill and sustainability Team is an important factor to execute the project. Team must have required skill set. Moreover, team should be trained time-to-time. There should be high motivation level in the team. Moreover, there should be little turnover of executives. These factors will improve valuation of the business.

Strategy Overall strategy of a company includes many things: Marketing strategy- Time has gone that companies used to depend on traditional marketing such as newspaper and television ads; i.e. pure traditional marketing way. Now the time is to use mix of traditional and contemporary marketing way. In few businesses still only traditional way of marketing is desirable such as steel, cement, FMCG etc. But in a few businesses online marketing is more suitable such as movies politics or else. It means to say that choosing the right marketing mix tool will improve the valuation of business.

Pricing strategy- It depends upon which market is getting served, niche or general. In niche market pricing will be skimming whereas in general market pricing will be penetrative. Choosing the right pricing strategy will improve valuation.

Financial strategy- Right sources of raising funds, optimum utilization of funds and raising funds at minimum cost will improve valuation.

Nature of xed assets owned by the company

.

Productive xed assets owned by the company will improve valuation of the company. Moreover, it does not just about own the assets but also about productive assets in use. Similarly, quality of current assets also is factored in valuation. Very lengthy credit period given to customers is not appreciable.

To conclude, the above factors mentioned are not exhaustive. But there may be many other factors which are factored into valuation of business. Valuation shows worth of shareholders' wealth.

Therefore, business managers should take care of all the factors responsible for valuation.

www.Venture-Care.com/Magazine

February 2018

13

Finance

Business Valuation: Factors that matter

Let us rst discuss what needs to be valued in start-up companies. For this we need to start with what is critical for start-ups:-

© © © © © ©

Business Ideas Survival factors in the industry Commitments of management Skill set of management team Approach of way forward Business model

Let us discuss some techniques for the start-up valuation.

Asset approach: New businesses normally have few assets. Under this approach, market value of all the assets is assigned.

Assets include current assets also. Apart from that, value of intangibles must also be assigned. The combined value will be the value of business.

Use of discounted cash ow is also a good idea. A reasonable number of future years for which sales seem to be visible can be forecasted. The cash prot should be capitalized at a discount rate. While estimating the discount rate care should be taken to factor the risk and uncertainty and if possible a bit conservative discount rate should be chosen.

www.Venture-Care.com/Magazine

February 2018

14

Finance There is a famous saying "whenever there is transaction, there is valuation". It is true. But the reverse is NOT true- "whenever there is valuation, there must have been transaction".

Many times valuation is isolated from transaction.

A start-up has developed an idea. It has validated the idea. Business promoters would like to the value of their start-ups now and in future also. Why so? They need it to conrm that:-

© ©

Whether idea has been successful Whether business model and business plan has been successful.

© © © ©

The growth rate of the business Employees and other stakeholders' satisfaction Improvement in protability Strategic position in market place etc.

Start-up valuation is different from valuing any running business due to many reasons. Start-ups may not have:-

© © © © © © ©

Business experience Operational skill set Brand name for their products/services Strong R&D base Dedicated execution team Experience of affording sudden economic shocks Required amount of fund etc.

However, the best part of is that start-up owners are not biased and secondly, they can be guided and moulded on the above issues easily.

To conclude, whatever may be the techniques used for start-up valuation, care should be taken that:

© © © © © ©

It is unbiased It is relevant

.

It considers all the aspects of valuation It is explanatory

It serves the purpose of various stakeholders It should help in making decisions

www.Venture-Care.com/Magazine

February 2018

15

Digital

Why is a Strong online presence important for your Business? and how can you achieve it.

As we have traditional methods for doing business then why do we need an online presence for our business? You might have come across this question in your mind as well just like mine. When I started searching for this particular question on the internet, found many answers in the google search. Did you notice one thing here, I have started searching on the internet instead of calling a professional or an expert. So, it's very interesting that these days EVERYONE(pretty much) uses the Internet all day, every day.

People are not using the internet for social networking only. They are constantly looking for online products and services to save their time and money. The majority of consumers turn to the internet when looking for something they want to buy. Yeah! Millions out there looking for the services you provide. Like travel booking, shopping, medical assistance, transportation, real-estate and much more‌

Why move online?

Š

The internet has become go-to for information and reviews on products and services. Chances are, if you are already operating a business there are people online talking about it.

Š

There are limitless opportunities when opening the door to an online business, giving you access to customers you may have never been able to target by any other means.

Moving to an online platform for a business is absolutely necessary for this digital era, whether it is to drive leads or simply inform curious visitors about your products or services.

www.Venture-Care.com/Magazine

February 2018

16

Digital Why it's the best time to move your business online?

Now it's super simple and cheap to have a website.

If you have a business and don't have a website, you are losing out on the great opportunities for your business. A website itself can be used to accomplish many different marketing strategies to help your business grow.

You're already a hot topic As mentioned earlier in this article, even if you don't have an online presence it's highly likely that your customers are already talking about your business online.

It's important to create a portal that invites this conversation whether through a comments section on your website or a discussion board.

Potential customers can ď€ nd you Majority of consumers will research a company online before they do business. If your business does not feature in search engines, it's likely to deter potential customers and point them in the direction of a competitor that has an online presence.

By having an online presence like a website, not only are your customers ď€ nding you but you are also opening the doors to new customers that may stumble upon your site from search engine searches.

So, don't wait long. If you run a business, move online sooner rather than later. Otherwise, you are likely to be left behind in this competitive world.

Now, I want to ask you a very simple question. Suppose you are a business owner then Is just having an idle website (online presence) enough for your business? Will it lead you to the top in today's competitive world? Nope. Right. I agree with you. So, for getting success in your business, you need to do a lot of things to achieve it like maintaining of the website, up-to-date information on the website through blogs and news, conversation with the customers and clients on social media etc.

www.Venture-Care.com/Magazine

February 2018

17

Digital How to achieve online presence for your business The very basic requirements to achieve online presence are:

©

Content platform- As we all know that content is king. That's why Google wants you to deliver value to the site visitors and content is one of the best ways to do it.

©

Believe it, it really works! A good quality content that is educational, informative and entertaining is the most productive element in the online marketing prospects. To improve the quality and visibility of your post you need to input the adequate amount of relevant pictures, videos, slide deck and interviews. With the further attachments like well-designed infographics, effective backlinks and polls, a blog post becomes loaded with more authoritative tone.

©

Organic SEO- Build a solid SEO strategy around your content marketing strategy. Select a relevant keyword and provide valuable content related to those keywords.

©

Paid- Doing paid, whether search, display or social, can be really effective if done correctly.

©

Does it have any downside?

©

It can become expensive quickly if you aren't careful.

©

For example, terms in the insurance industry can have CPCs ( cost-per-clicks) of $50 in a search environment.

©

Constantly monitor your campaigns what works and what not.

©

Email marketing- Email marketing is a great avenue for businesses trying to increase retention or brand loyalty. Give tangible value to your customers through Emails.

©

Social media marketing- Do you know where are the biggest spenders focusing? If no, then let me explain you here.

©

At present, only Facebook has 2.07 billion(52%) monthly active users all over the world and other social networks have only 20% users. Also, Facebook is the clear Ad leader but this is dwarfed by search Ad networks. As search networks have 64% monthly active users now.

©

As a result, social can be a really effective way of engaging consumers and building brand loyalty interacts with your Fans and listens to their concerns.

©

Smart advertising- Sponsored advertising is the way of directing your advertising and promotional effort with the help of many other websites of the same niche. Each click on your advertisement will directly bring the trafc to your website. The method is also important that even if the customer doesn't, click on it, he simply watches it, knows about your company and your mean of improving the digital presence is solved.

©

Mobile-friendly websites- Today, making your website mobile-friendly is an absolute must. If you do the research, the experts will all tell you the same thing, and they're right. Mobile is where your customers are – so it's also where you should be.

www.Venture-Care.com/Magazine

February 2018

18

Digital We've compiled a list of the top reasons to make your website mobile-friendly. So, without further a do: Google prioritizes mobile-friendly websites over those that are not mobile-friendly in mobile search results.

People everywhere use mobile devices to do everything from simple information gathering to purchasing big-ticket items and much, much more. The reason? It's fast and easy.

It helps you build credibility with your customers, your clients, and inuencers in your industry. Whether you're selling B2B or B2C, with a mobile-friendly website, anyone who tries to visit your site on a mobile device will have a proper experience, and that will encourage them to see you as a credible resource for information, products, and services.

It's becoming a standard best practice. A great many websites are mobile-friendly (usually the most reliable websites, I might add), with more and more coming online every day. Responsive web design has made mobile optimization more straightforward and accessible to everyone.

You can reach more customers, faster. Google rewards websites that are mobile-friendly with a higher ranking in mobile search results (see No. 1 on this list). So, simply by the virtue of having a mobile-friendly website, your site will be seen and visited by more people.

You'll make your customers much happier. Because many people use mobile devices to access the web, only a mobile-friendly website can promise to offer that experience. Happy customers will return to your site and tell others about how great it is. Unhappy customers will do the opposite.

It benets your reputation. Not just online, but ofine as well. People will take note of a website they have a great experience with – and they will also take note of a website they have a bad experience with.

Reputation is everything, and most businesses can't afford to give people a bad experience – digital or otherwise.

Your business will be seen as modern and relevant. You might offer some of the most useful, valuable, and unique products or services on the market, but if your website's mobile experience is poor or nonexistent, your company will be seen as a digital dinosaur – encouraging people to seek help elsewhere.

On the other hand, mobile-friendly websites are seen as contemporary, cutting-edge and legit – they are how you get your foot in the door with anyone that has a smartphone.

Websites that aren't mobile-friendly are quickly becoming defunct within our fast-evolving digital landscape. As time goes by, more and more websites will emerge that are mobile friendly, pushing those are not even farther down the search results page and away from customers.

www.Venture-Care.com/Magazine

February 2018

19

Digital If you want your website to perform well and support your business, you need to make it mobile-friendly.

It can only help you move forward to achieve the growth and success that you're meant for.

©

Analytics and conversion- The saying "You can't manage what you can't measure" certainly applies to online marketing. With no tracking in place, it is nearly impossible to separate worthwhile campaigns from the "money pits."

Since not all of your marketing campaigns will be protable, you need a system to measure campaign conversions and determine the return on investment.

Google Analytics (GA) is one of the best tools I've found for monitoring online activity in support of these aims.

How to do Conversion-

© © © © © © © © ©

Add Google Analytics.

Set up goals for newsletter and eBooks.

Create visual funnels.

Create tracked links for all campaigns with google URL. Identify your top three trafc conversion channels.

Explore ways to personalize content.

Add site search to google custom or WordPress.

Set up a UserTesting test to get feedback on your site.

.

Add engagement tools such as click to chat.

To Conclude

In today's rapidly changing marketplace, businesses that don't establish and maintain an effective online presence are invisible. It's essential to develop a site to showcase your products and services and expand your visibility on social media hubs, and it's crucial to handle your online categorization and search strategies consistently so that your business gets maximum exposure. That can quickly turn into a full-time job, so your best bet is to turn it over to an expert so that you can focus on what you do best.

www.Venture-Care.com/Magazine

February 2018

20

Legal & Compliance

Condonation of Delay Scheme 2018: MCA Condonation of Delay Scheme 2018

The Companies which are registered under the companies Act, 2013 or 1956 has to le their Annual Financial Statement and Annual Return with Registrar of Companies and Non-ling of such reports is an offence under the said Act. Directors are disqualied if the company does not le nancial Statement and Annual Return for continuous period of 3 year after 01.04.2014.

Previously Ministry Corporate of Affairs (MCA) had launched Company Law Settlement Scheme (CLSS) to clear defaults by Companies.

Now Central Government has decided to introduce "Condonation of Delay Scheme 2018" (CODS-2018)

Features of Scheme Is as follows: © The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to

31.03.2018. © This scheme is applicable to all defaulting companies other than company which have been stuck off.

A defaulting company is permitted to le its overdue documents which were due for ling 30.06.2017. © This scheme is apply to following documents:

£ Form 20 B / MGT-7 - Annual Return £ Form 21 A / MGT -7 - Annual Return of company not having share capital £ Form 23AC & ACA, 23AC & ACA XBRL, AOC 4, AOC 4 (CFS), AOC 4 (XBRL) AOC 4 (Non XBRL) – Balance Sheet/ Financial Statement and Prot and loss account. £ Form 66 – Compliance Certicate £ Form 23B / ADT- 1 – Appointment of Auditor.

.

Registrar concerned shall withdraw the prosecution pending if any before the concerned courts for all documents led under the Scheme.

www.Venture-Care.com/Magazine

February 2018

21

Legal & Compliance

Starting and Running a Private Limited Company In India Private Limited Companies are those sorts of organizations where least number of individuals is two and greatest number is two hundred. Procedure for incorporation of the Private Company is very simple as compare to other entity. Procedure for Incorporation of Private Company is online process no need to visit to ROC ofď€ ce or to professional ofď€ ce who will incorporate company on your behalf.

Here we will discuss Pros and procedure for incorporation of Private Limited Company.

PROS OF A PRIVATE LIMITED COMPANY Separate identity: A private limited company is considered to be a separate legal entity. It has its own identity and very much recognized as a separate company under the law. Also, the company can own property due to this feature under its name. The company can sue and also it can be sued under its own name due to this very same feature.

Minimum requirement of shareholders and members: Only two members and two shareholders are required to incorporate a private limited company. This gives many Entrepreneurs an opportunity to set up their own company.

Free & Easy transferability of shares Shares of a company limited by shares are transferable by a shareholder t any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership.

Filing and signing a share transfer form and handing over the buyer of the shares along with share certiď€ cate can easily transfer shares..

www.Venture-Care.com/Magazine

February 2018

22

Legal & Compliance Attract Funding Funding is essential for starting, maintaining, and growing a business. A business can be self-funded, funded by friends and family, or by debt or equity. Growing a business today requires all four types of funding. Proprietorships, partnership rms, and Limited Liability Partnerships cannot issue shares, and are thereby unable to attract equity funding. This disadvantage could be critical in the growth stages of a business, wherein the business requires equity capital from sources like friends, family, angel investors or private equity rms to grow quickly.

Today small businesses are being out-competed by larger businesses. Hence, it is essential for all businesses to grow quickly, and have the ability to attract funding from any source. Thus, a private limited company is the ideal type of business entity for growing businesses.

Limit the Risk to Personal Assets Prot and loss are a part of a business. Therefore, it is important to be protected against losses, to protect our near and dear ones in case of nancial difculties. If a business owner has "limited liability" protection, it means that only the assets of the business are at risk, and not the promoter's personal assets such as personal bank accounts, cars and houses.

Therefore, it is important to register an entity that provides limited liability protection to its shareholders, such as a private limited company, a one person company, a limited company, or a limited liability partnership.

Improve Business Credibility Today customers, vendors and investors look for credibility in the businesses they deal with. If a business is started as a proprietorship or partnership rm, the business is not registered with the Ministry of Corporate Affairs and cannot be located in the online company or LLP databases. Oftentimes, there is no credible proof of the business' existence, making it hard to open a bank account, acquire reputed customers, or obtain credit from vendors.

In starting a private limited company, the information relating to the company, such as name of the company, date of incorporation, registered ofce address, status of the company, and other information are made available in a publicly searchable database. This feature makes it easy to authenticate the existence of the business, improving business credibility.

Exit Plan Most entrepreneurs, while launching their businesses, only think about expanding their businesses, and never have an exit plan. An exit plan is essential for every business to capitalize, and for entrepreneurs to get rewarded for all their hard work. Further, the entity choice made at the start of the business, without any consideration for an exit plan, could have huge implications down the road.

Private limited companies offer the best type of exit strategy for all promoters. Only shares of a company can be sold or transferred in part or whole to another entity easily without any hassles, while the business remains a going concern. Therefore, starting a private limited company provides a tremendous edge in planning and executing a business exit plan.

www.Venture-Care.com/Magazine

February 2018

23

Legal & Compliance PRE-REGISTRATION REQUIREMENTS FOR REGISTERING A PRIVATE COMPANY Minimum Two Directors: Minimum Two Directors are required to incorporate Private Limited Company.

Minimum Two Members: Private Limited Company can be started with two members.

Minimum Capital Requirement: Private Limited Company Should have Capital of Rs.1,00,000/The name of the company must have word as Private Limited at the end.

PROCEDURE FOR INCORPORATION OF PRIVATE LIMITED COMPANY : © Get Digital Signature Certicate (DSC) of two members. © Get Director Identication number (DIN) of two Directors by using DSC. © Suggest at least Six Company name. We will do search for name availability. © Apply to ROC for name approval with adding word Private Limited. © Once name is approved by ROC File Incorporation document with ROC like MOA AOA Consent of

Director, Afdavit and declaration from directors etc. © Once Incorporation form is approved by ROC, ROC shall issue Certicate of Incorporation with PAN

and TAN No. Requirement to Apply for DSC: All 2 members should have DSC © Pan Card Self Attested © Residential Proof Self Attested © Dully ll and sign DSC application form.

Requirement to Apply for DIN: (Minimum two Directors are required for Incorporation of Private Company) © © © © © © © ©

©

Photograph of the Applicant - To be Self-attested.

PAN - To be Self-attested Mobile No. Email id.

Educational Qualication Occupation Proof of residence of applicant Address proofs like passport, election (voter identity) card, ration card, driving licence, electricity bill, telephone bill or bank account statement shall be attached and should be in the name of applicant ( shall not be later than 2 months).

DSC of Individual.

Requirement to Apply for Name Availability: Six Proposed name with signicance of Name © Authorized Capital- Minimum 1 Lacs © Jurisdiction of Registrar of Companies. © Main Object to be pursued by Company ©

Requirement to Apply for Incorporation of Private Limited Company

© © © ©

Registered ofce address of Company.

Recent Address proof with NOC from Owner.

Consent from all Directors Afdavit and declaration from all directors and subscribers.

TIME PERIOD: Time Required for Incorporation of Private Limited Company Shall be 10-20 days, depending on government approval.

www.Venture-Care.com/Magazine

February 2018

24

Legal & Compliance WHAT IS NEXT AFTER INCORPORATION OF COMPANY? Opening of Bank Account: The Company needs to open Bank Account in the name of Company.

Pan Card, Certicate of Incorporation, MOA & AOA and Board resolution is required to open Bank Account.

Deposit Share Application money in Bank Account Subscribers to MOA are required to deposit share application money in Bank Account of the Company by cheque.

Issue Share Certicate to members / Subscribers Once Share Application Money is deposited in company's Bank Account the Company is required to issue Share Certicate to Subscribers / Members. Share Certicate has to issue within 3 month from Date of Incorporation.

Appoint Statutory Auditor The Board of Directors of the Company needs to appoint Statutory Auditor of the company within one month from date of Incorporation.

Apply for licenses which are required for doing business The Company needs to apply for licenses which are required for running business smoothly.

ANNUAL COMPLAINCE WITH REGISTRAR OF COMPANIES Filling of Financial Statements or Financial Results Every Company is required to le its Financial Statements within 30 days of its Annual General Meeting with Registrar of Company in E-FORM AOC-4

Filling of Annual Return

.

It is mandatory for every company to le its Annual Return with Registrar of Companies within 60 days of Annual General Meeting in E-FORM MGT-7.

Appointment of Auditor An Auditor will be appointed for term of One year in AGM for next nancial year and the company needs to le form ADT -1 within 15 days from AGM date.

www.Venture-Care.com/Magazine

February 2018

25

Legal & Compliance

Exclusive rights of the holder of a copyright There are many exclusive rights inherited by the owner of the copyright, and he/she has a license for its exclusive use. These rights come into play only after the copyright registration has successfully been completed. All these rights are not absolute in nature and have their own limitations.

The main rights given by the Copyright Act to the holder are as follows: Reproduction of the material It is the most common right every holder knows and enjoys. It means that the right to produce a copy of your work is solely vested in the holder of a copyright and no other person can produce a duplicate of that work. An author or a photographer has an exclusive right to copy their stories and photos respectively.

Also, copying of articles and blogs from the net might also come under the scanner of copyright infringement and should be done with utmost care and caution. One can also not post a music video of others on YouTube as it will also amount to the violation of copyright. The holder has a right to sue in case of these breaches.

www.Venture-Care.com/Magazine

February 2018

26

Legal & Compliance Revision of the original work Only the holder of a copyright has the right to reproduce a new version or a modiď€ ed one. If any person produces a reworked form of the original work, then it will amount to infringement of copyright, and he/ she can be sued under the Copyrights Act of 1957. The holder can give his/her approval to someone else for modifying the copyrighted work. This will not be a breach of copyright. Derivative works, i.e., alterations can only be made by a holder until and unless he/she sells the copyright. If a revised work has been done keeping in mind the concept of fair use, then it is not a violation of copyright. For instance, a parody of a movie is a healthy depiction of humor and cannot be called as a copyright infringement.

Distribution of work in public The holder of the copyright has a decision to take as to the release of the material to the general public.

The date and time will be decided by the holder only. Movie piracy is a long time battle against copyright infringement. A camera recorded movie is easily downloadable from many websites on the net which is in violation of this act. If someone distributes your work in public keeping in mind the concept of fair use, then it won't be a breach. It is also to be noted that once a work has been distributed, it can be redistributed by anyone in the market. It is known as the doctrine of the First Sale.

.

Presentation of the material

The holder has the right to present his/her work according to his/her whims and fancies. Works of societal drama like plays and dance performances come under the turf of presentation of the copyrighted work.

A public performance means the presentation of work before a substantial number of individuals.

Hence, these are some of the rights a holder of a copyright can relish after the copyright registration.

www.Venture-Care.com/Magazine

February 2018

27

About Venture Care:Venture Care is India's 1st of its kind online Business Solution Company which helps to Plan, Launch, Manage and Grow Businesses. Find More about us at www.venture-care.com

WHAT WE DO

©

Since 2010, Venture Care (a S&F Advisory Brand) is helping businesses and enterprises to Plan a Business, start a business, run a business, Grow a Business and Close or Exit from a Business.

©

We at Venture Care generate ideas, spark actions and quantify time-bound results by providing tailored, practical and affordable solutions for the growth of your company. Venture-Care is dedicated to turning good ideas into measurable change

©

Our team of Chartered Accountants, Business planner, Technocrats, Strategist, Marketers, Senior Bankers, Company Secretaries, Tax Experts and other professionals enables us to help and guide you to ourish your business aspirations.

Head Ofce (India) Venture Care

Branch ofce (Netherlands) Venture Care

17 Ajinkytara, Kalaniketan Society s.no. 29, Kalanagar Near Rajrshi Shahu & Janta Bank.

Dhankawadi Pune 43. ask@venture-care.com 020 65363633

JonkerFransstraat 46, 3031 AV Rotterdam, (NL) Phone: +31 614 575 275

www.doc.venture-care.com/product-category/corporate-digest