October 9, 2024

A private limited company is a privately held business entity held by private stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. Private limited company definition as per Section 2 (68) of the Companies Act, 2013 is A Company having a minimum paid-up share capital as may be prescribed  1. Restricts the right to transfer its shares 2. Except in case of One Person Company, limits the number of its members to two hundred 3. Prohibits any invitation to the public to subscribe for any securities of the company. With the startup ecosystem booming across the country and more and more people looking to do something on their own, there is a need to be well-acquainted with different business registration types, i.e. sole proprietorship, limited liability company, and private limited company. Private Limited Company A private limited company, also known as Pvt Ltd company, is an organisation that limits the owners’ liability and restricts the ability to transfer its shares. The maximum number of shareholders is 50. A private limited company is registered under the Companies Act 2013. Private limited companies are popular among small and medium-sized businesses (SMEs) due to their flexibility, limited liability protection, and simplicity of ownership control. Private limited companies have an advantage over public companies in terms of long-term investment, keeping data confidential, operational independence, and flexibility. Characteristics of a Private Limited Company 1. Members The act mandates that a minimum of two shareholders are required to start such a company, while the limit for maximum number of members is fixed at 200.  2. Directors The Act mandates that a private limited company must have a minimum of two directors, while the maximum number of directors is 15. 3. Limited Liability Structure In a private limited company, the liability of each member or shareholder is limited. Therefore, even in the case of loss under any circumstances, the shareholders are liable to sell their assets for repayment. However, the personal and individual assets of the shareholders are not at risk. 4. Separate Legal Entity This is a separate legal entity and continues in perpetual succession. This means that even if all the members die, or the company becomes insolvent or bankrupt, the company still exists in the eyes of the law. The life of the company will be perpetual, not affected by the lives of its shareholders or members unless dissolved by way of resolution. 5. Minimum Paid-Up Capital A private limited company is required to have and maintain a minimum paid-up capital of ₹1 lakh. It could go higher, as prescribed by MCA from time to time. Types of Private Limited Company 1. Company Limited by Shares In these companies, the members’ liability is limited to the nominal share amount as mentioned in the Memorandum of Association. The shareholder cannot be held liable or asked to pay more than his/her share capital invested in the company. 2. Company Limited by Guarantee In a private limited company limited by guarantee, the members’ liability is limited to the amount of liability each member undertakes in the Memorandum of Association. Consequently, members of a Private Limited Company Limited by Guarantee can not be held accountable for a sum greater than the amount of guarantee performed by the member in the Association Memorandum. Furthermore, the shareholder’s guarantee in a company Limited by Guarantee can be sought only in the case of the company winding-up. The guarantee of the members of a Company Limited by Guarantee can not be withdrawn when the company is a going concern. 3. Unlimited Companies Unlimited corporations are those types of businesses that have no restrictions on their members’ liability. Each member’s liability extends over the entire amount of the company’s debts and liabilities. Hence, an unlimited company’s creditors have the right, if wound up, to impose the company’s debt and liabilities on shareholders. Private Limited Company Examples Google India Pvt. Ltd. A subsidiary of Google LLC Amazon Retail India Private Limited: An online shopping platform Microsoft Corporation (India) Private Limited: An information technology company with its registered office in Delhi. Requirements to Start a Private Limited Company Name of the company Choose an original and legally appropriate name for your firm. Verify that the chosen name fulfils the naming requirements. If the name is accepted, it will be reserved for 20 days, during which the company must be established legally. Shareholders and directors A private limited company requires two shareholders, at the very least. The early shareholders of a company are collectively known as promoters. The promoters have complete control over the ownership ratio. At least two directors are necessary. They must qualify under Section 164 of the Companies Act. Registered office address A registered Office is where a company keeps its official documents and accounts. Under Section 12 of the Companies Act of 2013, companies must always maintain a registered office. Digital signature certificates The application process for company incorporation is entirely digital. To complete it, fill out a form and submit it online with the relevant documents. A digital signature is the computerised version of a physical signature but is encrypted for further protection, making it irreversible and unique. FAQs What is Pvt Ltd full form? The full form of PVT LTD is a private limited company. Is a private company better than a public? Private companies have the upper hand over public companies concerning investment in long-term strategies, keeping the values of their shares and financial figures discreet, freedom, and flexibility of operations.

The film industry, known for its glitz and glamour, has become an unexpected stage for a much darker performance: money laundering. Criminals often exploit the complexity, vast sums of money, and international reach of the film business to clean illicit funds  Why the Film Industry is Vulnerable High Budget and Loose Oversight: Major film productions can cost hundreds of millions of dollars, making it easier to disguise illicit funds among legitimate investments. Complex Financing Structures: Film financing involves multiple layers, including private investors, studios, international partners, and government grants. This complexity can create opportunities for money launderers to obscure the source of funds. International Transactions: Films often have cross-border operations, such as international shooting locations, foreign sales rights, and overseas box office revenue. These international elements create an opportunity for criminals to move money across borders, often undetected. Inconsistent Profits: Film profitability is unpredictable, making it easier to justify financial losses or irregularities, which can serve as a cover for illegal activity. What Is Money Laundering? Money laundering is an illegal activity that makes large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The practise of money laundering involves three steps which include Placement The first phase is known as placement, and it is the actual transfer of cash or monetary fund’s obtained via legal or illegal operations into a less suspect form. This step is frequently as simple as taking paper currency and depositing it in an ordinary bank account or obtaining a loan at least on paper from a foreign source who has no interest whatsoever in the film making except for some commission on the deal and parting his name for the venture; alternatively, he could be paid through Hawala had he given the loan sincerely or request to act as the Distributor/ Exhibitor and promptly announce in the media that this movie was sold at an exorbitant rate of 5 Million USD and minted Double the amount in the Box Office, asking him to remit the money through Legal Channels or have some other Out of Account Quid pro quo basis of dealings which is very common and not known to the authorities, there is no authority in India to verify the accuracy of claims of the producer in a foreign country. Layering Layering is the next phase. The purpose of layering is to remove unlawful proceeds from their illegal source by taking the cash and executing a sequence of financial transactions designed to disguise any audit trail or attempt to track the funds. Money launderers can layer by exaggerating overall ticket sales even if the film is a dud. Cinemas can be classed based on Tier 1 cities have multiplexes and single-screen theatres. Tier 2 Cities are the same as Tier 1. Tier 3 cities primarily have single-screen theatres. We cannot rule out the idea of ripping up the tickets at the box office in both multiplexes and single-screen theatres, increasing overall collections so that Black money may be readily converted into White money and shown to be a genuine source of revenue. The money launderer will try to bring the money back to him by making it look as though it is genuine business revenues after it has been stacked and transferred to disassociate it from its original source. Even the programme may be tailored to their desired / budgeted collecting statistics. Integration The third phase is generally referred to as integration. If the money launderer owns a business, one method of regaining control of the “Cleaned” funds is to overvalue his assets or overstate his earnings. Money laundering is easily accomplished for the types of businesses that deal with large amounts of cash sales and keep only minimal sales records, such as having businesses in Restaurants, Shopping Complexes, Retail Stores, and Business Etc., because money from illegitimate sources can be combined with legitimate income to hide its original source with relative ease and little risk of detection. There is no definitive indicator of when money gets laundered. Two people we know who were total strangers to the movie-making business overnight became producers in Tulu & Kannada Films, now we are getting a clearer picture because our Relatively small Tulu film industry with a new release every 2 weeks had a Golden run until the Covid-19 hit them very hard and is now showing signs of recovery. Common Money Laundering Techniques in the Film Industry Inflated Budgets: Criminals can inflate the budget of a film, claiming it will cost more than it actually does. They then funnel illicit money into the project and retrieve clean money when the funds are spent. Phantom Productions: In some cases, money launderers create entirely fake productions, listing shell companies or front organisations as the production company. The film either never gets made or is a low-budget project that doesn’t require the large amount of funding it supposedly received. Creative Accounting: Money launderers often exploit the flexibility of film accounting. The common practice of back-end deals, profit-sharing, and the use of offshore accounts makes it easy to conceal financial transactions that have no legitimate basis. Overpaying for Services: Criminals sometimes overpay actors, directors, or service providers. These payments can be disguised as legitimate fees but, in reality, involve returning clean money to individuals who participated in the laundering process. Tax Incentive Fraud: Some countries offer tax incentives or credits for film production. Criminals take advantage of these incentives by inflating production costs or submitting fraudulent claims, further laundering illegal money. Case Studies of Money Laundering in the Film Industry The Malaysian 1MDB Scandal: One of the most high-profile cases of money laundering in the film industry involved the production of the 2013 film The Wolf of Wall Street. Funds embezzled from Malaysia’s 1MDB fund were allegedly funnelled through Red Granite Pictures, a production company linked to the scandal, to finance the film. Operation “Filo Rosso”: In 2017, Italian authorities uncovered a scheme in which the ‘Ndrangheta crime

All residents of the State of Andhra Pradesh who want to take a learner licence test now will have first to book an LLR slot based on their convenience. The payment for LLR slot booking can be made online either through a credit card or a net banking account or any e-Seva centre or any RTO office. Once an LLR slot is booked, the applicant can arrive at the time provided to complete the test formalities. Documents Required The applicant has to duly complete the Form 2 Age proof (ration card, passport, voter ID, etc. can be used) Medical Certificate stating the physical fitness of the person Address proof (Aadhaar card, voter ID, passport, ration card, etc.) Passport size photographs of the applicant If the candidate is applying for a Learner License for Transport vehicle, he or she has to furnish the original driving license for Light Motor Vehicle that has been used for at least one year Requisites for LLR Slot Booking The applicant has to have an Aadhaar card The applicant has to be above 16 years to apply for a license for Motor Cycle Without Gear (MCWG) The applicant should be above 18 years of age to apply for-Transport vehicles The applicant has to be above 20 years of age to apply for Transport vehicles. In addition to this, the applicant should also carry a Non-Transport License for more than one year In case, if the applicant is below 18 years of age, it requires the consent of the parent or guardian The form 1A has to be duly filled if the applicant is above 50 years of age The Form 1A should also be submitted by all applicants who apply for the Transport section of vehicles The applicant’s educational qualification should be 8th pass to apply for LLR Transport vehicles If the applicant already has an LLR or Driving Licence, there is no need to give computer LLR test To avail any LLR service, the applicant has to pay a certain fee amount If the applicant is differently-abled, he or she can only apply for Invalid Carriage vehicles and the Driving Ability Certificate and the Disability ID Card or Certificate has to be uploaded The applicant should be aware of the traffic rules and regulations The applicant must have a valid address proof document to upload if the present address is different from permanent address Steps to Book Slot for Driving Licence Visit https://parivahan.gov.in/parivahan/.  Under the ‘Online Services’ drop-down menu, click on ‘Driving License Related Services.’  Choose the state.  Click on the ‘Appointments’ option.  Under the ‘Slot Booking’ section, click on ‘DL Test Slot Booking.’  You can choose to enter your Application Number or Learner Licence Number.  Enter your date of birth and verification code.  Click on the ‘Submit’ option.  Choose the class of vehicle.  Click on ‘Proceed to Book.’  Choose a date and time as per your preference.  Click on the ‘Book Slot’ button.  You will receive an OTP on your registered mobile number/email id.  Enter the OTP and click on ‘Submit.’  Click on ‘Confirm to Slot Book.’  FAQs Do I have to book a slot for my driving licence test online? Yes, you have to book a slot for your driving licence test online by visiting https://parivahan.gov.in/. How many times can I cancel the appointment for a driving licence test? You can cancel the appointment only twice.

S. 26 of Special Economic Zones Act, 2005 (SEZ Act) exempts units/ developers in SEZ from payment of any duties or taxes on goods/ services procured from Domestic Tariff Area (DTA) for authorised operations. S. 16 of Integrated Goods and Services Tax Act, 2017 (IGST Act) provides for the facility of zero-rated supply of goods/ services to SEZ units for authorised operations. Rule 30 of Special Economic Zones Rules, 2006 (SEZ Rules) prescribes the requirement to obtain endorsement for goods/ services. Further, as per Rule 89 of Central Goods and Services Tax Rules, 2017 (CGST Rules), the application of refund for supplies made to SEZ unit/ developer shall be filed by: supplier of goods after such goods have been admitted in full in SEZ for authorised operations, as endorsed by the specified officer of the Zone. supplier of services along with evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone. The Industry, in the past, had been facing lot of issues in obtaining endorsement for services procured in SEZs. In this regard, the Ministry of Commerce and Industry (MoCI) introduced the SEZ Online system which enables electronic filing and processing of SEZ related transactions that SEZ developers, co-developers and units have with SEZ administration. Data Service Procurement Form (DSPF) The “DTA Services Procurement Form (DSPF)” has been added to the SEZ Online System to ease the recording, review, and approval of all Service Invoices for Services obtained by SEZ Units / Developers from DTA Suppliers as “Zero Rated Supply for Authorized Operations.” Significant features of this DSPF form Multiple invoices produced by multiple/different DTA vendors over a month can be uploaded at once and sent to DC Office for assessment and approval. The entire process of uploading DSPF, approval/endorsement by SEZ officers, and the acknowledgment to DTA that the services supplied by SEZ unit are approved is completed online and delivered to the DTA service provider’s registered email address. The essential details must be filled out on an Excel template, which must be attached to the DSPF form. Important mandatory information is shown below for your convenience: Invoice Specifications (Type/Date/Number/Amount) The SAC (Service Accounting Code) must be chosen from the dropdown menu, and the service description will appear immediately. DTA Supplier Email-ID SEZ must specify if the supply is subject to a bond/Letter of Undertaking (LUT) or is subject to IGST payment. Without a payment option, the Bond/ LUT details must be recorded. The dropdown menu must be picked from the approved list of services (66 approved lists). Management Consultancy Services that have recently been approved are not featured in the dropdown menu. If UAC has expressly accepted service as a good service for exemption, the service description can also be specified under the heading “Any additional services as approved by DC offices. The Online functionality of the DSPF The SEZ web portal created the DSPF to address the issue of obtaining an endorsement from an authorized or specified authority for services received by an SEZ unit or developer. The “DTA Service’s Procurement Form (DSPF)” is a new module for recording and submitting details of all invoices about services obtained by SEZ Units / Developers from DTA Suppliers as “Zero Rated Supply for Authorised Operations.” SEZ Units, Developers, and Co-developers will be able to submit service invoices for DTA services used in the previous month. During a month, details of various invoices generated by multiple distinct DTA vendors can be entered in a single transaction and sent to DC Office for assessment and approval. Prescribed Authority for Approving DSPF SEZ Online system issued a notice on the 5th of September 2019 directing the deployment of the DSPF above form, stating that “Details of all service procurements online through this form” may be adopted as an obligatory process for service procurement beginning in October 2019. The notice further detailed the approval hierarchy, stating that DSPF can be approved by an Authorized officer or validated by an Authorized officer before being sent to a Specified officer for approval. FAQs What is a Data Service Procurement Form? A Data Service Procurement Form is a document used by organizations to formally request and procure data services from external vendors or service providers. It outlines the requirements, scope, terms, and conditions for obtaining data-related services such as analytics, storage, or management Why is a Data Service Procurement Form needed This form is essential to ensure clarity and transparency between the service provider and the organization. It helps outline expectations, service requirements, pricing, and delivery timelines, ensuring that both parties are aligned on the terms of the agreement.

If a property is purchased by availing a mortgage or if it has been pledged, the lender will add a “Lien” or a charge to the property. This will ensure that the borrower/property owner does not sell the property until the mortgage is paid in full. An Encumbrance Certificate is a legal document which will help you find out if there are any charges made on the property – financial or legal. You can avail an EC by visiting the respective Sub-Registrar’s Office. Encumbrance Certificate Meaning An encumbrance certificate shows that a particular property is free of legal and financial conflict, can help settle any claims. The certificate shows property ownership and contains a history of recorded transactions (dating back up to 30 years), changes in inheritance, and, if applicable, fraud and litigation information. Types of encumbrance certificates There are two types of encumbrance certificates. They are: Form 15 Form 16 Form 15: If a property has any transaction relating to inheritance, sale, purchase, lease, loan, gifting, relinquishment, or partition, the SRO issues an encumbrance on Form 15. Form 16: If a property has not registered any encumbrances or transactions when the applicant has applied for a certificate, the SRO grants an encumbrance on Form 16. A nil-encumbrance certificate is another name for Form 16. Why is an Encumbrance Certificate Required? Before buying a property, you must ensure that the property has a clear title. Getting an Encumbrance Certificate will assure you that the property you wish to buy is free from such financial or legal liability. If you notice a charge on the EC, it is important to rectify it before you make the purchase. It will also help you find out if there are any existing owners who can legally claim the property. Documents Required to Get the EC Encumbrance Certificat Application Form. Address verification document (attested copy). A photocopy of any previously executed property deeds, such as sale deeds, gift deeds, partition deeds, and release deeds. Property Details and Title Deed. Aadhar card. Registered deed number, date, book number, volume/CD number, and the applicant’s signature. How to Apply for an Encumbrance Certificate Online Visit the respective State’s official land registration website and select the option to apply for an EC. Enter all the required fields on the application for encumbrance certificate window, then click save/update. Enter the search period for which you require the EC and then click on ‘Calculate Fee’. Upon paying the required application fee is paid and is filed, you’ll be directed to the ‘Acknowledgment’ window. Click ‘View Acknowledgement’ and you’ll be able to take a print of the acknowledgement. An inspection will be carried out by an inspector from the land records department and check for all information of the said property for a period. Post the completion of the inspection, an Encumbrance Certificate will be issued will all transactions occurred during the specified period. If there were no transaction during the period, then a nil EC will be issued. FAQs Can I get an encumbrance certificate after I buy the house? It is recommended to get your encumbrance certificate before purchasing a house to determine the presence of any owner(s) who may subsequently claim the legal title of the property. However, you can also apply for an EC after purchasing the house to ensure that your name has been recorded by the SRO. Which information is not included in the encumbrance certificate? The encumbrance certificate will not include any documents, such as house loan information and family settlements, that are not presented to the SRO.

AS 17, or Accounting Standard 17, mandates how enterprises should disclose financial information about their operating segments and geographical segments in their financial statements. The standard aims to provide transparency and clarity regarding an enterprise’s business activities and economic environment. DEFINITION A BUSINESS SEGMENT, is defined as a distinguishable component of an enterprise that is engaged in providing products or services (or a group of related products or services) and that is subject to risks and returns that are different from those of other business segments. In simpler terms, it’s a part of an enterprise that operates in a distinct business environment and is separately identifiable in terms of its activities and profitability. This standard establishes requirements for the disclosure of: a)    Related party relationshipsb)   Transactions between a reporting enterprise and its related parties. The requirements of this Standard apply to the financial statements of each reporting enterprise as also to consolidated financial statements presented by a holding company. What is the meaning of Related party As per AS 18, Related party means “at any time during the year, one party has an ability to: Control* the other party Exercise significant influence over the other party in making financial and/or operating decisions Who is covered under Related party relationships Holding companies, subsidiaries and fellow subsidiaries; Associates and joint ventures of the reporting enterprise; Investors in respect of which reporting enterprise is an associate or a joint venture; Individuals owing direct or indirect interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual; Key management personnel and his relatives; and Enterprises over which any person, who is a key management personnel or has direct and indirect interest in voting power, can exercise significant influence Why do we need Related party disclosures Requirement of statutes: The statutes governing an enterprise often require disclosure of related party transactions in the financial statements. To reflect that transaction may not be at arm’s length price: Without related party disclosures, there is a general presumption that transactions reflected in the financial statements are on an arm’s length basis i.e. the transaction occurs between two unrelated parties and is not affected by any relationship. Effect on Financial position and operating results: The operating results and financial position of an enterprise may be affected by a related party relationship even if related party transactions do not occur. The mere existence of the relationship may be sufficient to affect the transactions of the reporting enterprise with other parties Recording of all possible transactions: Related party transactions needs to be disclosed as sometimes, transactions would not have taken place if the related party relationship had not existed. What needs to be disclosed under AS 18 The name of the transacting related party; A description of the relationship between the parties; A description of the nature of transactions; Volume of the transactions either as an amount or a part thereof; Any elements of the related party transactions which is necessary for an understanding of the financial statements; Outstanding amount from related parties at the balance sheet date; Provisions for doubtful debts due from related parties at the balance sheet date; and Amounts written off or written back of debts due from or to related parties. Cases when disclosure is not required Intra-group transactions Enterprises who have statutory requirement of confidentiality Related party relationships of State-controlled enterprises with other state-controlled enterprises FAQs What is AS 17? AS 17, or Accounting Standard 17, pertains to segment reporting in financial statements. It provides guidelines on how entities should report financial information for different segments of their business, allowing users of financial statements to better understand the financial performance and position of various segments. Why is segment reporting important? egment reporting is important because it provides insights into the different areas of a business, helping stakeholders assess its performance and risks. It enhances transparency, enabling investors, analysts, and management to make informed decisions based on the performance of various segments.