April 9, 2024 | CA B K Goyal & Co LLP

Section 5 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 9, 2024

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Section 4 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 9, 2024

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Section 3 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 9, 2024

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Section 2 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 9, 2024

Interpretation In this Act, unlessthe context otherwise requires,—(a) “adaptation” means,-(i) in relation to a dramatic work, the conversion of the work into a non-dramatic work;(ii) in relation to a literary work or an artistic work, the conversion of the work into adramatic work by way of performance in public or otherwise;(iii) in relation to a literary or dramatic work, any abridgement of the work or any versionof the work in which the story or action is conveyed wholly or mainly by means ofpictures in a form suitable for reproduction in a book, or in a newspaper, magazine orsimilar periodical;3[***](iv) in relation to a musical work, any arrangement or transcription of the work; 4[and]4[(v) in relation to any work, any use of such work involving its rearrangement oralteration;]5[(aa) “Appellate Board” means the Appellate Board referred to in section 11;](b) 5[“work of architecture”] means any building or structure having an artistic character or 1 The Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962, sec. 3 and Schedule; to Dadra and Nagar Haveli by Reg.6 of 1963, sec. 2 and the First Schedule; to Pondicherry by Reg. 7 of 1963, sec. 3 and the First Schedule; and brought into force in the Stateof Sikkim (w.e.f. 27-4-1979) : vide notification No. S.O. 226(E), dated 27-4-1979, see Gazette of India, Extraordinary, Part II, sec. 3(ii),p.430.2 Came into force on 21st January, 1958, vide S.R.O No. 269, dated 21st January 1958, see Gazette of India, Extraordinary, Part II, sec. 3,p.167.3 The word “and”omitted by Act 38 of 1994, s. 2 (w.e.f. 10-5-1995).4Ins. by s. 2, ibid. (w.e.f. 10-5-1995).5 Subs. by s.2, ibid. for “architectural work of art” (w.e.f. 10-5-1995).design, or any model for such building or structure;(c) “artistic work” means,—(i) a painting, a sculpture, a drawing (including a diagram, map, chart or plan), an engraving or aphotograph, whether or not any such work possesses artistic quality;(ii) a 1[work of architecture]; and(iii) any other work of artistic craftsmanship;(d) “author” means, —(i) in relation to a literary or dramatic work, the author of the work;(ii) in relation to a musical work, the composer;(iii) in relation to an artistic work other than a photograph, the artist;(iv) in relation to a photograph, the person taking the photograph;2[(v) in relation to a cinematograph film or sound recording, the producer; and(vi) in relation to any literary, dramatic, musical or artistic work which is computer-generated, the personwho causes the work to be created;]3[(dd) “broadcast” means communication to the public—(i) by any means of wireless diffusion, whether in any one or more of the forms of signs, sounds orvisual images; or(ii) by wire,and includes a re-broadcast;](e) “calendar year” means the year commencing on the 1st day of January;4[(f) “cinematograph film” means any work of visual recording 5[***] and includes a sound recordingaccompanying such visual recording and “cinematograph” shall be construed as including any workproduced by any process analogous to cinematography including video films;]6[(fa) “commercial rental” does not include the rental, lease or lending of a lawfully acquired copy of a computerprogramme, sound recording, visual recording or cinematograph film for non-profit purposes by a nonprofit library or non-profit educational institution;Explanation.— For the purposes of this clause, a “non-profit library or non-profit educational institution”means a library or educational institution which receives grants from the Government or exempted frompayment of tax under the Income-tax Act, 1961(43 of 1961).] 1 Subs. by Act 38 of 1994, s. 2, for “architectural work of art” (w.e.f. 10-5-1995).2 Subs. by Act 38 of 1994, s. 2, for sub-clauses (v) and (vi) (w.e.f. 10-5-1995).3Ins. by Act 23 of 1983, s. 3 (w.e.f. 9-8-1984).4 Subs. by Act 38 of 1994, s. 2, for clause (f) (w.e.f. 10-5-1995).5 The words “on any medium produced through a process from which a moving image may be produced by any means” omitted by Act 27of 2012, s. 2(i) (w.e.f. 21-6-2012).6Ins. by s. 2(ii), ibid. (w.e.f. 21-6-2012).1[(ff) “communication to the public” means making any work or performance available for being seen or heard orotherwise enjoyed by the public directly or by any means of display or diffusion other than by issuingphysical copies of it, whether simultaneously or at places and times chosen individually, regardless ofwhether any member of the public actually sees, hears or otherwise enjoys the work or performance somade available.Explanation.— For the purposes of this clause, communication through satellite or cable or any other meansof simultaneous communication to more than one household or place of residence including residentialrooms of any hotel or hostel shall be deemed to be communication to the public;](ffa) “composer”, in relation to a musical work, means the person who composes the music regardless of whetherhe records it in any form of graphical notation;(ffb) “computer” includes any electronic or similar device having information processing capabilities;(ffc) “computer programme” means a set of instructions expressed in words, codes, schemes or in any other form,including a machine readable medium, capable of causing a computer to perform a particular task orachieve a particular result;(ffd) “copyright society” means a society registered under sub-section (3) of section 33;](g) “delivery”, in relation to a lecture, includes delivery by means of any mechanical instrument or by2[broadcast];(h) “dramatic work” includes any piece for recitation, choreographic work or entertainment in dumb show, thescenic arrangement or acting, form of which is fixed in writing or otherwise but does not include acinematograph film;3[(hh) “duplicating equipment” means any mechanical contrivance or device used or intended to be used formaking copies of any work;](i) “engravings” include etchings, lithographs, wood-cuts, prints and other similar works, not beingphotographs;(j) “exclusive licence” means a licence which confers on the licensee or on the licensee and persons authorisedby him, to the exclusion of all other persons (including the owner of the copyright) any rightcomprised in the copyright in a work, and “exclusive licensee” shall be construed accordingly;(k) “Government work” means a work which is made or published by or under the direction or control of—(i) the Government or any department of the Government;(ii) any Legislature in India;(iii) any court, tribunal or other judicial authority in

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Section 1 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 9, 2024

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Powers of Board and Restrictions on Powers of Board

Companies Act 2013 / CA Bhuvnesh Goyal / April 9, 2024

The board of directors is the highest authority in any company. According to Section 179, Companies Act 2013, the power of directors of a company – entitled to make any and all decisions, and thus exercise all the power, which the company has authority to enact. the Companies Act 2013, a Company can exercise its power through a Board of Directors or shareholders. The relationship between the shareholders and the board of directors works as an alliance because the board of directors has some powers that are exercised exclusively by them and also has some powers that can only be exercised with the approval of the shareholders either through an ordinary resolution or a special resolution. Power of Directors POWERS OF BOARD as per section-179(1)- Board of Directors of a company shall be entitled to exercise all such powers, and to do all such acts and things, as the company is authorised to exercise and do Provided that while exercising such powers or doing such act or thing, the Board shall be subject to the provisions contained in that behalf in 1. Companies Act, 2013 2. Article of Association 3. Memorandum of Association 4. Any regulations not inconsistent therewith and duly made thereunder 5. Regulations made by the company in general meeting Provided further that the Board shall not exercise any power or do any act or thing which is directed or required, whether under. 1. Companies Act, 2013 2. Article of Association 3. Memorandum of Association SEC 179 empowers the board of directors and authorizes them to exercise all these powers, and the board of directors, within the scope of this authority, may perform any act or thing on behalf of the company that the company is authorized to do and act, if: When the board of directors exercises such powers or any such in or matter, it shall be subject to certain provisions contained herein in that representation under the Companies Act, or the memorandum, or articles of association, or some other regulations duly made thereunder and includes also the regulations of the company at their general meeting. This means that the powers vested in the board of directors should be within the limits of the Companies Act, Articles of Association, Memorandum of Association, or any rule or regulation made by the Companies Act or any order made by the company in general meeting.The Board of Directors cannot exercise any power that is inconsistent with the Companies Act, the Articles, the Articles of Association, or any rule or regulation made by the Companies Act or any regulation of the company in general meeting. Nor can the Board of Directors exercise its powers or do any act or thing which is either ordered or required, either by the Companies Act or by the memorandum or articles of association, which can only be done or done by the company at a general meeting of the company. Restriction on powers of Board of Directors SECTION 180 Sell, lease, or otherwise dispose of all or substantially all of the Company’s business, or if the Company owns more than one business, all or substantially all of any such business. If the company wishes to sell, lease or otherwise dispose of (including by mortgage) the whole of the business or a substantial part of the business, it requires the prior approval of the shareholders through a special resolution. Unless the company passes a special resolution for the above transaction, and the purchaser or other person in good faith buys or takes on lease any property without knowing that the company has failed to comply with the law, then the claim of such person against such person’s property shall not be affected thereby. If the company sells or leases real estate in the ordinary course of business, shareholder approval is not required. Any special resolution adopted by the Company for the foregoing transaction may, within the scope of such resolution, set forth such conditions as to the use, disposition, or investment of the proceeds of sale which may arise from the transactions.To otherwise invest in the trust securities the amount of compensation it receives as a result of any merger or amalgamationIf the company has received any amount of compensation as a result of any merger or amalgamation and wants to invest such amount anywhere, the company requires the approval of the shareholders through a special resolution.It may be noted that the approval of the shareholders is not required if the company wants to invest such an amount in trust securities.Borrow money where the money to be borrowed by the company, together with money already borrowed by the company, exceeds the aggregate of its paid-up share capital, free reserves, and securities premium, excluding temporary loans obtained from the company’s bankers in the ordinary course of business:Temporary loans mean loans payable on demand or within six months from the date of the loan, such as short-term, cash credit arrangements, bill discounting and issuance of other short-term loans of a seasonal nature, it does not include loans obtained for financial expenses of a capital nature. If a company wants to borrow money and the amount of money already borrowed plus the amount of money to be borrowed exceeds its paid-up capital, free reserves, and securities premium. In such a case, the company requires the approval of the shareholders through a special resolution. (Amount already borrowed + amount to be borrowed > paid-in share capital, free reserve,s, and securities premium) = a special resolution is required.It can be said that if the money already borrowed and the money to be borrowed is less than the sum of its paid-up share capital, free reserves, and securities premium, a resolution of the board of directors is sufficient and no special resolution needs to be passed.(Amount already borrowed + Amount to be borrowed < paid-up share capital, free reserves, and premiums for securities) = Resolution of the board of directors is sufficient. The acceptance by banking companies of any deposits

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Food Security Card

Government Schemes / CA Bhuvnesh Goyal / April 9, 2024

The National Food Security Act (NFSA), also known as Right to Food Act is considered historic legislation which was introduced with an aim to provide specific rights and entitlement to the underprivileged people of the country. These rights are introduced to help underprivileged people to get proper nourishment and lead healthy lives. Launched in 2013, the National Food Security Act comprises a mid-day meal program, integrated service of child development, and a public system of food distribution. Moreover, under the implementation of the act, the government has allocated subsidized food grains to over two third of the underprivileged population of India. The document referred to as the National Food Security Card, additionally known as the Food Security Ration Card, gives cardholders with right to important items like rice, sugar, fertilisers, kerosene, and LPG at decreased charges. Through the ‘One Nation One Ration’, cardholders can buy essentials from any ration shop. Furthermore, the card serves as a flexible file, serving as legitimate evidence of identity for each of the cardholder and their families. What is NFSA in Ration Cards? The “One Nation One Ration Card” (ONORC) Scheme was launched by the Department of Food & Supplies and Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution in 2018. It is a national Ration Card portability scheme to ensure food security for all including internal migrants within India. It enables migrant workers and their family members to access PDS benefits from any Fair Price Shop anywhere in the country, thus ensuring the food security through the inter-state portability of ration cards under the National Food Security Act, 2013 (NFSA). A Fair Price Shop (FPS) is a public ration store licensed under Section 3 of the Essential Commodities Act of 1955. Ration card details and entitlements are available online on any ePoS device in the country. It includes both inter-State and intra-State (inter-district/intra-district) portability of ration cards.Assam is the 36th State to implement the One Nation One Ration Card (ONORC) scheme. The ONORC plan has successfully been implemented in all 36 States/UTs making food security portable throughout the country. The government has launched a mobile app, namely ‘MERA RATION’ for acquiring the maximum benefit of the ONORC plan. Benefits of National Food Security Card It will benefit approximately 81 crores beneficiaries by digitizing Ration Cards. This system allows all NFSA beneficiaries, particularly migrant beneficiaries, to claim either full or part food grains from any Fair Price Shop (FPS) in the country through an existing ration card with biometric/Aadhaar authentication in a seamless manner. With the ONORC, all the beneficiaries in one state can get the same fair rations in other states where the ration card was issued. The scheme will ensure food security of migrant laborers who move to other states to seek better job opportunities. It will improve the mechanism to identify fake/duplicate ration cards. It seeks to provide universal access to PDS food grains for migrant workers. Ration card portability will be achieved by implementing an IT-driven system that installs ePoS devices in each Fair Price Shop (FPS). The ONORC will also help achieve the target set under SDG 2: Ending hunger by 2030. National Food Security Act, 1999 The National Food Security Act of 2013 plays an important role in ensuring fundamental human rights of Indian citizens as enshrined in Article 21 of the Constitution. Pre-NFSA Situation: Public Distribution Systems Before the NFSA, the government managed matters related to food through the Public Distribution System and the Targeted Public Distribution System. NFSA Implementation On July 4, 2013, the Union Cabinet accredited the National Food Security bill, marking a massive change. This legislative degree brought massive benefits to over sixty seven % of the population. Primary Goal: UN’s Hunger Eradication Objective The primary intention of the NFSA aligns with the United Nations’ worldwide agenda to remove hunger with the aid by 2030. Through its provisions, the NFSA targets to ensure meals security and address the broader right to live for the residents of India. National Food Security Card Eligibility Households which are covered under provisions associated with Antyodaya Anna Yojana (AAY). Priority households mentioned under the clauses of the Targeted Public Distribution System or TPDS. As per the latest data released by the census, the population coverage is determined by the Central Government of India. As per the latest reports, National Food Security Act scheme is aimed for the 50% of the people residing in urban India and 75% of the people staying in rural parts of the country. The cost of foodgrains are set for a tenure of three years after which the rates of food grains set by the Central Government will change as per the ‘Minimum Support Price’ criteria. In case of the shortage of foodgrains, the beneficiaries will be compensated with a food security allowance which will be administered by providing cash to purchase food grains. Security Allowance and Food Entitlements Under the NFSA, each month, the beneficiaries will get 5kg food grain per person. Under this scheme of AAY, the beneficiaries will get 35 kg food grains each month. The cost of the foodgrains are set for a period of three years after which the government will change the fixed rates as per the ‘Minimum Support Price’. The price of foodgrains is set maximum of Rs.2 per kg of wheat, Rs.3 per kg of rice, and Re.1 per kg of coarse foodgrains for three-year tenure. In case of the shortage of foodgrains, the households will be duly compensated with foodgrain security allowance which will be administered by providing cash to purchase foodgrains. Special Facility to Women and Children NFSA pays special emphasis to women and children by providing certain benefits to them. Given below are the principles of NFSA which aims to give special focus to women and children Pregnant and lactating women can get free meal at any time during their pregnancy and this facility is valid for six months after the birth of a child. Children aged between six months and six years can get meals free of cost.

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Sovereign Gold Bond Scheme 2023-24

learn / CA Bhuvnesh Goyal / April 9, 2024

In a world where financial stability often feels like a distant dream, finding reliable investment avenues becomes paramount. Enter the Sovereign Gold Bond Scheme, a beacon of hope in the tumultuous sea of investments. This innovative scheme, introduced by the government, offers a unique opportunity to invest in gold without the hassle of physical ownership. Purpose of the Sovereign Gold Bond Scheme 2023-24 The Sovereign Gold Bond Scheme serves as a bridge between traditional gold investments and modern financial instruments. Its primary purpose is to: Provide individuals with a secure and convenient way to invest in gold. Encourage investments in gold for its role as a store of value and hedge against inflation. Reduce the reliance on imported gold, thereby stabilizing the country’s economy. Advantages of Investing in Sovereign Gold Bonds Investing in the Sovereign Gold Bond Scheme comes with a myriad of benefits, making it an attractive option for investors looking to diversify their portfolios. Here are some advantages to consider: No Hassle of Physical Storage: Unlike physical gold, which requires safekeeping and incurs additional costs, Sovereign Gold Bonds are held in electronic form, eliminating the need for storage worries. Fixed Interest Income: Investors earn a fixed rate of interest on their investment, providing a regular income stream in addition to the potential capital appreciation of gold. Capital Appreciation: With gold prices historically appreciating over time, investors stand to benefit from potential capital gains upon maturity or premature redemption. Tax Benefits: Sovereign Gold Bonds offer tax benefits on both interest income and capital gains, making them a tax-efficient investment option. Liquidity: Sovereign Gold Bonds can be traded on stock exchanges, providing investors with liquidity and flexibility to exit their investments when needed. Who Can Invest? The Sovereign Gold Bond Scheme is open to a wide range of investors, including: Individuals Hindu Undivided Families (HUFs) Trusts Universities Charitable Institutions However, minors are not eligible to invest directly in Sovereign Gold Bonds but can do so through their guardians. Additionally, non-resident Indians (NRIs) are not eligible to invest in the scheme. Prescribed Authority: Who Regulates the Scheme? The Sovereign Gold Bond Scheme is regulated by the Reserve Bank of India (RBI) on behalf of the Government of India. The RBI oversees the issuance, pricing, and redemption of Sovereign Gold Bonds to ensure compliance with regulatory standards and investor protection. Subscription Dates: Grab the Opportunity Series I: Subscription Period: June 19 to June 23, 2023 Issuance Date: June 27, 2023 Series II: Subscription Period: September 11 to September 15, 2023 Issuance Date: September 20, 2023 During the specified subscription periods, interested individuals can apply for the respective series of Sovereign Gold Bonds. It’s important to note that the subscription window is open for a limited time, and applications must be submitted within the designated period. Interest Rate: Maximizing Returns One of the key attractions of the Sovereign Gold Bond Scheme is the competitive interest rate it offers to investors. The interest rate is fixed at the time of issuance and remains constant throughout the tenure of the bond. The rate is determined based on the prevailing market conditions and is typically higher than other fixed-income instruments. Investors can thus enjoy attractive returns while benefiting from the appreciation of gold prices. Sovereign Gold Bond 2023: Offering Price and Discount The Indian government has set the offering price for the initial installment of the Sovereign Gold Bond Scheme 2023-24 at Rs.5 926 per gram of gold. This scheme, available for subscription over five days commencing on Monday, provides a discount of Rs.50 per gram to investors who apply online. Consequently, online investors can purchase a Gold Bond at an issue price of Rs.5 876 per gram of gold. Sovereign Gold Bond: Investment Limit The minimum investment allowed is 1 gram of gold. For individual investors, the maximum subscription limit is 4 kilograms of gold. The maximum subscription limit for Hindu Undivided Families (HUF) is also 4 kilograms of gold. Trusts and similar entities have a higher maximum subscription limit of 20 kilograms of gold. These limits apply on a fiscal year basis, from April to March. Tenure of the Bond The Bond will have a duration of 8 years, and starting from the 5th year, investors will have the option to exit on the interest payment dates. This means that from the 5th year onward, you can redeem the Bond on the 6th, 7th, or at its maturity in the 8th year. Before the 5th year, redemption is not possible. The Reserve Bank of India (RBI) or the depository will provide one month’s notice to investors regarding the Bond’s maturity date, ensuring that investors are informed well in advance. Maturity Period Sovereign Gold Bonds (SGBs) have a maturity period of eight years. However, investors have the option to redeem them early after the completion of the fifth year. The redemption price of the bonds, whether upon maturity or early redemption, is determined based on the average closing price of gold with a 999 purity over the preceding three working days. Where to Purchase Sovereign Gold Bond Scheme 2023-24 Series I? The bonds can be acquired directly or through authorized agents from different sources, recognized stock exchanges, and the Bombay Stock Exchange. Sovereign Gold Bond Scheme 2023-24 Series Interest Income: The semi-annual interest income earned will be considered taxable income. For individuals in the 10%, 20%, or 30% tax bracket, the post-tax return would be 2.25%, 2%, and 1.75%, respectively. This income should be declared under the head of “Income from Other Sources,” and taxes should be paid accordingly, similar to your Bank Fixed Deposits (FDs). Redemption of Bond: As mentioned earlier, from the 5th year onwards, you can redeem the Bond in the 6th, 7th, or 8th year (last year). Let’s assume you invested in the Bond for Rs. 2,500, and at the time of redemption, the bond price is Rs. 3,000. In this case, you would realize a profit of Rs. 500. The capital gain arising from redemption is exempt from Tax for individuals. Selling in the Secondary

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Foreign Company in India and Registration

Companies Act 2013 / CA Bhuvnesh Goyal / April 9, 2024

India’s rapid economic growth and favourable business environment make it an attractive destination for foreign companies looking to expand their operations. With a large population, comprehensive tax system, low operational costs, a vast trade network, and government initiatives to promote international trade, India offers numerous opportunities for foreign companies to establish a successful presence in the country.The fastest-growing economies globally, with substantial human potential and a large market comprising over 1.2 billion people. The opportunities present in India have attracted a large amount of Foreign Direct Investment (FDI) into the country. Each year, the FDI inflow increases due to many foreign businesses establishing their operations in India.NRIs and Foreign Nationals starting or investing in a business in India have mainly done through a private limited company, as it allowed for 100% Foreign Direct Investment (FDI) under the automatic route for many of the sectors. Though the cost for the incorporation of a private limited company is relatively low compared, the effort required to maintain compliance was an inhibiting factor. To allow NRIs and Foreign Nationals to freely invest in businesses in India and improve foreign investment, the Government has now allowed 100% FDI in LLP under the automatic route. Foreign Company Under the Companies Act, 2013 Sec 2(42) of the Companies Act, 2013 (‘Act’) defines a foreign company as a body corporate or company that is incorporated outside India, but- Has a business place in India, whether through an agent or by itself, either physically or through electronic mode Conducts business activity in India in any other manner India Entry for NRIs and Foreign Nationals Incorporation of Company: Incorporation of private limited company or investment in a company has been the most preferred India entry strategy for NRIs and Foreign Nationals. 100% FDI under the automatic route has been the main reasons for the popularity of private limited company amongst NRIs and Foreign Nationals. Opening of Branch Office: Opening a branch office requires approval from RBI and is a more cumbersome process when compared to the incorporation of a private limited company. Further, only well-established businesses having a good track record in terms of financials are allowed to open a branch office in India. Therefore, India entry through establishing a Branch Office has not been preferred by NRIs or Foreign Nationals. Registration of LLP: Prior to November 2015, investment in LLP by NRI or Foreign National required Government approval. This made LLP incorporation involving NRIs and/or Foreign Nationals – a long, cumbersome and expensive process. Thus company registration was preferred over LLP registration by NRIs and Foreign Nationals. With the relaxation of FDI norms in November 2015, LLP registration can be done easily by NRIs and Foreign Nationals, making it an ideal investment vehicle for establishing a small business in India with foreign direct investment. Ways in Which Foreign companies can be Registered in India The foreign national can establish a foreign company as a private limited company in India. Establishing a private limited company is the fastest way to set up a company in India. FDI of up to 100% into a private limited company is permitted under the FDI policy under the automatic route. A foreign national can incorporate a private limited company as a joint venture or a wholly-owned subsidiary. Joint venture- A foreign entity will elect a local partner in India with whom it wishes to enter into a joint venture to operate its business in India. A Letter of Intent or Memorandum of Understanding (MOU) is signed between the foreign entity and the local partner, which will state the joint venture agreement basis. The joint venture agreement contains all the business terms, and it must be consistent with regional and international law. Wholly-owned subsidiary- A foreign national/company can invest 100% FDI in an Indian company through the automatic route for the purpose of registering foreign in India. When a foreign entity invests 100% FDI in an Indian company, the Indian company will become a wholly-owned subsidiary of the foreign entity/company. A foreign company can register a liaison office, project office or branch office in India to carry on its operations in India. However, opening these offices requires RBI or government approval. Liaison office- A foreign company can establish a liaison office for all liaison activities in India. The parent company (foreign company) will meet all the expenses of a liaison office through foreign remittance. Project office- A foreign company can establish a project office in India to execute projects awarded to them by an Indian Company. However, to establish such a project office, the foreign company may be required to obtain approval from the Reserve Bank of India. Branch office- A foreign company can establish a branch office in India. To establish a branch office, the foreign company must be a large business and provide proof of profitability. Foreign Company Registration Process in India Joint venture registration process A joint venture is a contract/arrangement where two or more parties get together to run a business or achieve a commercial object. To establish a company in India through a joint venture, the foreign entity/national has to choose a local partner with whom they want to enter into a joint venture. Then, the foreign entity and the local partner should sign an MOU or a Letter of Intent. The MOU or a Letter of Intent should state the basis for the joint venture agreement. The foreign entity and the local partner must negotiate and discuss all the terms of the joint venture agreement thoroughly. The joint venture agreement must be consistent with regional and international law. It should contain essential matters like dispute resolution agreements, holding shares, applicable law, transfer of shares, confidentiality, board of directors non-compete, etc. Wholly-owned subsidiary registration process A minimum of two directors are required to register a wholly-owned subsidiary, out of which one director must be a resident in India. All directors must apply for DIN (Director Identification Number) and DSC (Digital Signature Certificate). The Memorandum of Association (MOA) and Article of Association (AOA) must be drafted.

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no objection certificate for building construction

learn / CA Bhuvnesh Goyal / April 9, 2024

Anyone who intends to carry out new development, erect, re-erect, make any improvements in a structure, or demolish any building must get building permits from the local planning authority. A developer is required to get a No Objection Certificate from as many as 19 departments prior to the construction of the house. These include, among others, the water, electrical, fire, environmental, and airport agencies. When the developer receives these approvals, the construction of the house may begin. What is a No Objection Certificate? A No Objection Certificate is a legally binding document that grants legal permission to build any structure. It can be granted by a government agency or an individual. It is a clearance that ensures that the authority or individual will not cause any legal problems. A No Objection Certificate is provided to confirm that the construction of the house does not violate any of the rules established by an agency, organization, or institute. Advantages of No Objection Certificate 1. Evidence: It is considered a legal document that can be used as evidence in court, particularly during mortgage settlement issues. 2. Avoid hassles: It can be used to smooth out any future inconsistencies or legal hassles during the construction of the house. 3. Credit information: It caters to credit score improvement by escalating a No Objection Certificate to the Credit Information Bureau. 4. Easy Loans: Obtaining further loans during the construction of a house becomes easier with a No Objection Certificate from the previous lender. 5. Valid document: It acts as a formal declaration that no monetary obligations are associated with the bank or financing provider. 6. Safety: The document ensures the safety of the people who are going to move in after the construction of the house. 7. No punishment: Prevents harsher penalties and imprisonment and protects against legal procedures and damages. 8. Legal permission: Building No Objection Certificate grants legal permission for the construction of a house or building. Prerequisites for No Objection Certificate Title clearance: A builder’s first objective should be to locate a clear land title or site for the construction of the house. This means that the land is appealing and follows any costs or deductions made to the property and its present state, allowing the potential buyer to grasp the chain of possession. Land clearance: approval from the local authority is necessary for the construction of the house and change in land use, and bare land dues from the main plan must be amended. The state government will publicize the land use plan once the limits have been authorized by the local authority. Building approval: The next step is to obtain permission from the authorities to approve building licenses under the building ordinances, master plan, and local body act. Approval for the construction of a house entails a building plan as well as the approval of the building’s structural format. Building plan: The manufacturer should install the building plan. After this process, the plan for the construction of the house will define how a building may turn out and ensure that the project conforms to building rules. Disapproval Imitation: The impersonation of disapproval refers to the conditions that must be met at various phases of the ground construction project. The Building permit is another name for the imitation of a restriction in specific regions. These circumstances are frequently classified into three types: – 1. Prior to the commencement of development work 2. During the construction of the house 3. Following the completion of construction Completion Certificate: Before selling the property, the Completion Certificate must be obtained once the construction of the house is done. Following the inquiry, a certificate of completion is awarded. This certifies that the builder followed the authorized plan when constructing the structure. Requirements for No Objection Certificate No Objection Certificate from the Society: Obtaining this document assures that the seller has no outstanding debts on the property at the time of sale. A No Objection Certificate is also necessary when completing the construction of a house or applying for a loan from a financial institution. No Objection from Developer: Developers typically get funds for project completion from banks and private financial institutions by mortgaging their properties as a guarantee. In such instances, it is critical to get a No Objection Certificate from the developer. No Objection Certificate from Mortgagee: Typically, developers get funds from banks and private financial institutions for the completion of their projects by mortgaging them as a guarantee. It is critical to get a No Objection Certificate from the developer. Once the NOC is received, the bank cannot dispute the property sale for a specific mortgaged project. Section 15 of the RERA: whenever a developer transfers his rights and responsibilities to a third party, they must get a No Objection Certificate from at least two-thirds of the allottees participating in the project. The RERA authority issues a comparable certificate after the allottees grant the certificate. Format of No Objection Certificate 1. Identity Proof of Applicant 2. Address Proof of the Applicant 3. Copy of the Analysis Report 4. Building blueprint that should be stamped 5. The architect’s layout of construction of the house 6. Building security certification 7. A checklist was used to fill out a questionnaire. 8. Photographs of construction of the house from the exterior Duration of No Objection Certificate A No Objection Certificate generally has a duration, after which it expires. A residential building has a 5-year expiration date, whereas a commercial building has a 3-year expiration date. The value of the NOC document becomes null after the expiration term. It no longer has any legal difficulties. The builder can no longer utilize the same to shield himself or herself from legal action. FAQs What is a No Objection Certificate (NOC) for building construction? A No Objection Certificate (NOC) is a legal document issued by a relevant authority or organization, typically a local municipal corporation or planning authority. It signifies that the concerned authority has no objection to the proposed construction project. Why is a No Objection Certificate (NOC) required for building

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