April, 2024 | CA B K Goyal & Co LLP

The Director Identification Number (DIN) is a unique identification number assigned to individuals who wish to become directors of a company or designated partners in a Limited Liability Partnership (LLP) in India. The Registrar of Companies (ROC) is responsible for issuing DINs under the Companies Act 2013. However, certain circumstances allow for surrendering a DIN. In this article, we will discuss the legal provisions and the process of surrendering a DIN. Director Identification Number (DIN) can be surrendered due to different reasons, and the DIN can also be surrendered voluntarily for the purposes of cancellation or deactivation on certain conditions. Director Identification Number DIN is the Director Identification Number allotted to an individual by the Central Government who intends to appoints as a Director in the Company or a Partner in an LLP registered in India. The application for allotment of DIN shall be made in Form DIR-3/ Spice+ along with required fees and documents. The same DIN allotted to the Director shall not be allotted to any other person and such DIN is valid for lifetime. It is a unique 8-digit number written underneath the signature of the concerned director in returns, applications, forms, etc. Any change in details mentioned in Form DIR-3 or Spice+ shall be intimated through Form DIR-6 to the concerned authority along with supportive documents. Any individual shall not apply for another DIN when already possess the same otherwise it shall be considered as non-compliance of Section 155 and such director or the Company shall be liable to an imprisonment or fine. Legal Provisions According to Section 153 of the Companies Act 2013, individuals who wish to become directors or designated partners must obtain a DIN. Rule 11 of the Companies (Appointment and Qualification of Directors) Rules, 2014 outlines the grounds on which a DIN may be surrendered: Death of the DIN holder The unsound mind of the DIN holder Insolvency of the DIN holder Disqualification of the DIN holder Duplicate DIN Unused DIN Reasons for Surrender of DIN Multiple DIN– As per Section 153 of the Companies Act, 2013 if any Director holds more than one DIN, then he should make an application to Regional Director in Form DIR-5 along with notarized affidavit stating that such DIN has never been used in any kind of a document required to be submitted to ROC. Also, an application for compounding shall be filed in Form GNL-1. DIN obtained by fraud or wrongful manner- If a Director has obtained a DIN by furnishing false information or in a wrongful manner, then DIN is required to be surrendered by such concerned person/director or regulatory authorities shall deactivate such DIN after issuing show cause notice to the director. When Director declared as a person of unsound mind- As per Section 153 of the Companies Act, 2013 if the competent court has declared any person as of unsound mind, then DIN is required to be surrendered by filing Form DIR-5 along with the order of court as an attachment. When Director adjudicated as an insolvent- If the DIN holder adjudged as an insolvent, then he shall surrender his DIN by filing Form DIR-5 along with the order of court. Death of the Director- In case of death of director, his relative shall file Form DIR-5 and shall attach death certificate to it. Ways to surrender DIN On order of Central Government– Central Government shall order Director to surrender his DIN in certain cases such as: If Director has multiple DIN If Director has obtained the DIN by fraud or misrepresentation On Death of Director If Director has been declared insolvent If Director has been adjudged as an insolvent Voluntary by DIN holder– A DIN holder shall surrender his DIN on his own if the director has not been appointed in any company or body corporate while in possession of DIN and such DIN has not been used in any document which is used in communication to regulators. In such cases director can surrender his DIN voluntarily. Process of Surrendering a Director Identification Number (DIN) n order to surrender your Director Identification Number (DIN), you will need to file an online application in Form RC-1 with the Regional Director of the Ministry of Corporate Affairs. Along with this application, you must submit supporting documents. Additionally, you will need to fill out and sign a physical application called DIR-5, which is used specifically for the surrender of a DIN pursuant to Section 153 and Rule 11(f) of the Companies (Appointment and Qualification of Directors) Rules, 2014. Once you have completed and signed the DIR-5 application, it must be attached to the RD-1. Important Points RD-1 is an online application for Regional Director The RD-1 form must be signed by the DSC of the director DIR-5 is a physical application; the scan to be attached The government fee is Rs. 1000 for filing RD-1 An affidavit of non-use of DIN is also required DIN must have active DIN KYC filings FAQs What is DIN surrender? DIN surrender is the process by which a director can voluntarily deactivate their Director Identification Number. Why would someone surrender their DIN? Directors may choose to surrender their DIN if they no longer serve as a director in any company or if they wish to discontinue their directorship for any reason. How can I surrender my DIN? You can surrender your DIN by filing Form DIR-5 on the MCA (Ministry of Corporate Affairs) portal along with the necessary documents. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate

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Registrar of Companies

Companies Act 2013 / CA Bhuvnesh Goyal / April 21, 2024

The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act, 2013, The Limited Liability Partnership Act, 2008, The Company Secretaries Act, 1980 and The Chartered Accountants Act, 1949. These officers are from Indian Corporate Law Service cadre. ‘ICLS’ is an organised Group A service recruitment of which is done by UPSC through Civil Service Examination since 2009 along with other services like IRS, IAS & IPS etc.[1] There are currently 25 Registrars of Companies (ROC) operating from offices in all major states of India. Some states, such as Maharashtra and Tamil Nadu, have two ROCs each. Also in some places unified ROC offices manned by senior Group A ICLS officers are located in capital cities like Jammu and Srinagar. Section 609 of the Companies Act, 1956 tasks the ROCs with the primary duty of registering companies and LLPs floated in the respective states and the union territories under their administration. As per section 609 of the Companies Act, 1956, the ROCs are tasked with the principal duty of registering both the companies and LLPs across the states and the union territories. Currently, after the introduction of Companies Act, 2013, the same powers conferred under section 609 is provided under section 396 of the Companies Act, 2013 to the ROCs. The Registrar of Companies also certifies that LLPs (Limited Liability Partnerships) comply with the legal requirements contained in the Limited Liability Partnership Act, 2008. Registrar of Companies maintains a registry of records concerning companies which are registered with them and allows the general public to access this information on payment of a stipulated fee. The Central Government preserves administrative control over the Registrar of Companies with the help of Regional Directors. As of today, there are seven Regional Directors, supervising the operations of ROCs within their relevant regions. Jurisdiction of ROC The ROCs are located in different states/UTs and the companies must file registration applications with the ROCs under whose jurisdiction their principal place of business is located. All companies must subsequently file annual forms only with the ROC from where they have obtained company registration. You can find the details of all the ROCs here. Functions of ROC The ROC takes care of registration of a company (also referred to as incorporation of the company) in the country. It completes regulation and reporting of companies and their shareholders and directors and also administers government reporting of several matters which includes the annual filing of numerous documents. The Registrar of Companies plays an essential role in fostering and facilitating business culture. Every company in the country requires the approval of the ROC to come into existence. The ROC provides an incorporation certificate which is conclusive evidence of the existence of any company. A company, once incorporated, cannot cease unless the name of the company is struck off from the register of companies. Among other functions, it is worthy to note that the Registrar of Companies could also ask for supplementary information from any company. It could search its premises and seize the books of accounts with the prior approval of the court. Most importantly, the Registrar of Companies could also file a petition for winding up of a company. Company Registration by ROC No company can come into existence by itself. It requires a certificate of incorporation issued by the Registrar of Companies after the finalization of several statutory requirements. As part of the statutory process, the promoters need to submit several documents to the Registrar of Companies. The documents to be submitted to the ROC include Memorandum of Association (MoA), Articles of Association (AoA), the pre-incorporation agreement for appointing directors/ managing directors and the declaration by an authorized person confirming that requirements relating to registration have been adhered to. After authenticating the documents, the ROC inputs the company’s name in the register of companies and releases the certificate of incorporation. The Registrar together with the certificate of incorporation also issues a certificate of commencement of business. A public limited company is required to get this certificate prior to commencing business. ROC Refusal for Company Registration-ROC can refuse to register a company on various grounds. The Memorandum of Association (MOA) which is filled with the registrar comprises five clauses viz. name clause; objects clause; registered office clause; capital clause and liability clause. The registrar needs to ensure that no registration is allowed for companies having an objectionable name. The registrar could also decline to register any company which has unlawful objectives. Role of ROC After the Registration of a Company- There is no end to the association of the ROC and a company. For instance, a company might require changing its name, objectives or registered office. In every such instance, a company would have to intimate the ROC after completion of the formalities. Filing Resolutions With ROC- As per the provisions contained in section 117 of the Companies Act, 2013, every resolution is required to be filed with the ROC within 30 days of being passed. The Registrar of Companies needs to record all such resolutions. The Companies Act, 2013, has also laid down the penalty in case of failure to file the resolutions with the registrar within the stipulated time. In other words, a company is required to intimate the Registrar of Companies concerning all of its activities which includes appointing directors or managing directors, issuing prospectus, appointing sole-selling agents, or the resolution regarding voluntary winding up, etc. Filing Forms With ROC- The companies must file annual forms with the ROC as specified under the Companies Act and Rules. The compliance of the company after its establishment includes filing forms with the ROC within the specified due dates. They will have to pay a huge penalty when they do not file forms within the due dates. The annual forms to be filed with the ROC include filing the reconciliation of share capital audit report, return of deposits, submission of director KYC for DIN holders, annual company accounts, annual company returns, etc. ROC Filing Fees- The fees to file forms and various

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Form 27EQ – TCS Return

learn / CA Bhuvnesh Goyal / April 21, 2024

“Easily file your TCS return with Form 27EQ. Simplify tax compliance and reporting for hassle-free transactions.” Tax Collected at Source (TCS) is a tax collected from the buyer and paid to the government by the seller. According to Section 206C of the Income Tax Act 1961, if the seller has collected the tax then they are required to file a TCS return in Form 27EQ. The form has to be submitted by both corporate and government collectors and deductors. What is Form 27EQ? Form 27EQ is a TCS Return/ Statement holding information on Tax Collected at Source by the seller while receiving payments from the buyer on specified goods. Basically, details of Tax Collected and paid to the central government are covered in Form 27EQ. It is required to be submitted quarterly on or before the due date. Who is Required to submit Form 27EQ? The following entities are required to submit Form 27EQ Corporate deductors and collectors Government deductors and collectors Contents of Form 27EQ Section 1: This section requires the deductor to fill in the following information: TAN Details PAN Details The financial year The year of assessment Whether a statement has already been filed previously for the quarter in question If such a statement has been filed then the provisional receipt number of the original statement will have to be provided Section 2: Under this section the following details and information of the collector will have to be filled in: The name of the collector The collector’s branch or division, if applicable The collector’s personal and residential details such as: Full address Telephone number E-Mail address Section 3: This section will contain the following details and information of the person in charge of tax collection The individual’s name The individual’s full address Section 4: This section is to be filled with the following information regarding the tax collected at source and subsequently paid to the credit of the Central Government: The collection code The amount of Tax Collected at Source (TCS) The surcharge amount The amount of Education Cess The amount of interest charged Any other amount The total tax deposit, which is the sum of the above mentioned amounts The cheque number or Demand Draft number if applicable The BSR code The date on which the tax amount was deposited The transfer voucher number or the challan serial number If the Tax Collected at Source was deposited via book entry Section 5: Under this section details of the tax that has been collected as well as details of the amounts that have been paid are to be mentioned along with the relevant signatures. All relevant details are to be entered in the annexure provided with the form. FAQs When is Form 27EQ due for filing? Form 27EQ is typically due for filing quarterly. The due dates for filing vary depending on the quarter for which the return is being filed. The due dates are usually July 15, October 15, January 15, and May 15 for the quarters ending June, September, December, and March respectively. What transactions are covered under Form 27EQ? Form 27EQ covers transactions where tax is collected at source, such as sale of goods, provision of services, sale of scrap, sale of minerals, and other specified transactions as per the Income Tax Act. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax

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Digital Gujarat

Government Schemes / CA Bhuvnesh Goyal / April 21, 2024

Digital Gujarat Online Scholarship Login & Registration: Gujarat government is Digital Gujarat www.digitalgujarat.gov.in. which will provide several such services on the lines of e-services already being rendered through digitalgujarat.gov.in. Earlier, when the common services portal was launched, people were still required to visit nearby Jan Seva Kendra to verify their credentials before being registered. People of Gujarat would soon be able to avail a host of government services through their smartphones and tablets, with the state government deciding to launch a mobile application for the same. Digital Gujarat Online Scholarship 2017 Organization: Digital Gujarat Portal (Tribal Development Department) Scholarship Name: Post Matric Scholarship 2017-18 Applicable For: Gujarat State bonafide students, studying within state or outside state, within India Applicable State: Gujarat Application Deadline: 15th November 2017 Website: https://digitalgujarat.online/ Using this Digital Gujarat www.digitalgujarat.gov.in site people can apply for various services, such as ration card. Initially, the services available through the app would include procurement of ration card, senior citizen certificate, caste certificate, domicile certificate, income certificate, widow certificate, SC/ST certificate, non-creamy-layer certificate and religious minority certificate. Digital Gujarat Registration – Step-wise Process Step 1: Visit the official website of Digital Gujarat. Step 2: Click on the ‘Register’ button on the right side of the dashboard. Step 3: An online registration form will open. Fill in all the required details and save the information. Step 4: Once you save the information, you will get an OTP on the registered mobile number. Step 5: Enter the OTP to complete the final registration step Digital Gujarat Registration – List of Scholarships Scholarship Name Department/ Provider Name Mukhyamantri Yuva Swavalamban Yojana, Gujarat Education Department, Government of Gujarat Scholarships to the Disabled Students, Gujarat Department of Social Justice and Empowerment, Gujarat Post SSC Scholarship for Girls (NTDNT), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Post SSC Scholarships for Boys (NTDNT) Gujarat 2018 Department of Social Justice and Empowerment, Government of Gujarat Post SSC Scholarship for Boys (SEBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Post SSC Scholarship for Girls (SEBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Food bill Assistance to SC Students, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Food Bill Assistance for Medical/Engineering Students (SEBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Educational Assistance for NTDNT Students Studying in Self-Financed College, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Higher Secondary Scholarship (Minority), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Fellowship Scheme for M.Phil and Ph.D. Students (SEBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Swami Vivekanand Stipend Scheme for Technical and Professional Courses (NTDNT), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Swami Vivekanand Stipend Scheme for Technical and Professional Courses (EBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Swami Vivekanand Stipend Scheme for Technical and Professional Courses (Minority), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Instrumental Assistance for Medical, Engineering, Diploma Students (SEBC), Gujarat Department of Social Justice and Empowerment, Government of Gujarat Higher Education Scheme, Gujarat Government of Gujarat Scholarships to SC Students for ITI/Professional Studies, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Post Matric Scholarship for SC Students, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Post Matric Scholarship for ST Students, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Fellowship Scheme, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Research Scholarship, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Swami Vivekanand Stipend Scheme for ITI Courses, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Scholarship for the Students of Government Colleges, Gujarat Department of Social Justice and Empowerment, Government of Gujarat War Concession Scheme, Gujarat Department of Social Justice and Empowerment, Government of Gujarat EBC Fees Exemption Scheme, Gujarat Department of Social Justice and Empowerment, Government of Gujarat Instrumental Help to SC Students (Medical, Engineering, Diploma Courses), Gujarat Department of Social Justice and Empowerment, Gujarat Post Matric Scholarship for OBC students, Gujarat Department of Social Justice and Empowerment, Gujarat Fellowship Scheme for M.Phil & Ph.D. (SC) Students, Gujarat Department of Social Justice and Empowerment, Gujarat Post Matric Scholarship for ST Girl Students, Gujarat Department of Social Justice and Empowerment, Gujarat Scholarship for Students Studying at Dr. Ambedkar or Indira Gandhi Open University (SEBC), Gujarat Department of Social Justice and Empowerment, Gujarat Food Bill Assistance in College Attached Hostels, Gujarat Department of Social Justice and Empowerment, Gujarat Higher Secondary Scholarship (SEBC), Gujarat Department of Social Justice and Empowerment, Gujarat Instrumental Assistance for First-year Students of Medical/Engineering/Diploma Courses, Gujarat Department of Social Justice and Empowerment, Gujarat Special Scholarship for Boys and Girls Students, Gujarat Department of Social Justice and Empowerment, Gujarat Digital Gujarat Registration – Other Services Offered Removal of Name from Ration Card Domicile Certificate Senior Citizen Certificate Religious Minority Certificate (Panchayat) (Rural) Widow Certificate (Panchayat) (Rural) Character Certificate Religious Minority Certificate Widow Certificate ST Caste Certificate ST Caste Certificate (Panchayat) (Rural) SC Certificate SC Certificate (Panchayat) (Rural) Income Certificate Income Certificate (Panchayat) (Rural) and others FAQs Can I apply for the scholarships on the Digital Gujarat portal? Yes, you can apply for the scholarships on the Digital Gujarat portal if you fulfill the eligibility criteria of the respective scholarship. To begin with, you have to proceed with the Digital Gujarat registration How much scholarship can I get from Digital Gujarat? The benefits depend on the scholarship scheme you are applying for. For detailed information on the scholarship, visit the official website of Digital Gujarat and browse the details under the ‘Scholarship Services’ section. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR

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Registration of mutual fund

learn / CA Bhuvnesh Goyal / April 21, 2024

Mutual funds are a challenging concept for most people to grasp, but they are unquestionably a successful business strategy. Establishing a mutual fund company in India is not straightforward, but if you understand the entire procedure, you may simply do it and earn handsomely. A Mutual fund company involves a collection of money from its investors put together to make the highest profit returns from the invested money. It is a pool of money that is invested at different places to lower the risk of loss in case a single channel fails to give expected results and thus increasing the likelihood of booking profits. All the funds are managed by professional managers. What are Mutual Fund Companies? Mutual fund company is a type of financial firm. It collects the money from the different investors in the market. That is how such companies get their funds and they further pool these funds to buy various types of stocks, bonds, or other assets. These companies manage the investments on behalf of the investors. Each investor in a company of mutual funds must be owning a portion of the holdings proportionate to the amount they’ve invested. The companies have professional managers who make decisions on where to invest the pooled money in different financial instruments. The aim is to grow the investors’ money over time and offer them returns based on the fund’s performance in the market. Registration of mutual fund company in India Because of the huge profit margins, it draws a lot of con artists and those that engage in unethical behavior. As a result, the SEBI (Securities Exchange Board of India) 1996 makes it essential to register a mutual fund company. Mutual fund companies are governed by the SEBI. To get a certificate of registration of Mutual Fund, the applicant must meet the following necessary requirements: In his previous experiences and commercial dealings, the sponsor should have a track record of fairness and honesty. It must have at least 5 years of experience running a business and providing financial services. And throughout the course of those five years, the net worth will be positive. The sponsor must provide at least 40% of the Asset Management Company’s net value. The sponsor should be free of fraud and have never been convicted of a crime involving moral turpitude. A mutual fund company trustee must be appointed by the sponsor. Appointment of an Asset Management Company to administer the Mutual Fund’s money and activities. A net worth of INR 5 crore is required for such an asset management business. Appointment of a custodian for the safekeeping of securities Under the Indian Trust Act of 1882, the mutual fund company must be registered as a trust. The memorandum must include the objects that permit the sponsoring business to conduct the mutual fund company’s operations. Steps to start a mutual fund company in India 1. SEBI approval is required.- If you want to form your own private mutual fund company, the first step is to apply for SEBI permission and obtain a certificate of registration. After that, the Securities and Exchange Commission must approve the application. Following approval, the person must have sufficient operational cash to keep the business afloat. 2. Look at Investment Firms- Investment businesses that are registered with the Securities and Exchange Commission are known as mutual funds. For mutual funds, the SEC has tight requirements and provisions, such as maintaining adequate capital to compensate investors for cashing in shares and making relevant information publicly available. To start a mutual fund company, an individual must incorporate a company in the form of a Limited Liability Partnership (LLP). 3. A financial advisor-Obtain clearance from the Securities and Exchange Commission (SEC) for institutional investment management in order to manage the mutual fund company. Form ADV, which is also used for various state registration requirements, can be utilized to get registration. The size of portfolios an applicant wishes to manage must be disclosed on Form ADV. Institutional investment managers with portfolios worth more than $1 million must submit a Form 13F, which provides information on the fund’s transactions and value. 4. Arrangements for Funding- Fees and operational expenditures are included in the mutual fund’s operating expenses. The most expensive expenditure of every mutual fund company is attracting the investor’s money to construct a portfolio. A tiny startup cost might be extremely low, but to be a lucrative corporation, a person requires a large portfolio. 5. Find a partner with whom you can have a mutually beneficial relationship.- Any shared trust can partner with a mutual fund to offer a board of directors, insurance, and regulatory compliance. These firms assist small and new mutual fund companies to become more competitive, and mutual fund managers are free to make their own decisions. Registration process of Mutual Funds with SEBI An applicant must submit Form A and a non-refundable fee of INR 5 lakh in accordance with Schedule I of the SEBI (Mutual Fund) Regulations 1996. A person who owns 40% or more of an asset management company’s net worth is considered a sponsor and must submit an application. When a sponsor firm files for mutual fund company registration, it must ensure that its memorandum of agreement (MOA) has an object clause allowing the mutual fund company to carry out its operations. An application must include a full list of all group firms or linked entities that are registered with SEBI in whatever manner. Details of the sponsor firm or its affiliate business, if it is publicly traded, must also be included. A declaration that no director or executive of the sponsor firm has been found guilty of fraud or has been convicted of a crime involving moral turpitude. The information of the sponsor company’s registration with RBI as a Banking Company or Non-Banking Company must also be appended. The trust deed must be signed, coupled with the formation of a board of trustees that includes two-thirds of independent directors. The Asset Management Company and the Trustee Company should both be incorporated.

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April 2024