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Rule 3 of Companies (Cost Audit and Records) Rules 2014 states that both domestic and foreign companies either in regulated or non-regulated sector engaged in production of goods or providing services with overall turnover from its all goods and services of 35 crore rupees or more is required to get the cost audit done compulsorily. Section 148 of the Companies Act, 2013 contains provisions relating to the cost records and cost audit applicability under the Companies Act. The salient feature of section 148 are summarized hereunder – Section 148 (1) empowers the Central Government to direct the companies specified in the production of goods or provisions of service to include particulars relating to utilization of material or labour or other items of cost in the books of accounts of the company; List of specified companies, which needs to maintain the cost records, is provided under Table A and Table B of rule 3 of the Companies (Cost Records and Audit) Rules, 2014; Section 148 (2) empowers the Central Government to direct, based on the net worth or turnover of the company, audit of cost records of the specified class of companies; Rule 4 of the Companies (Cost Records and Audit) Rules, 2014 contains the provisions relating to the companies which are liable to get their cost records audited; Cost audit shall be conducted by the cost accountant who is appointed by the Board; In case of any default on the part of the company, it shall be punishable with the fine of an amount not less than INR 25,000, however, such fine cannot be more than INR 5 Lakhs. Further, every officer, in default, of the company shall be punishable with imprisonment for a term up to 1 year or with the fine not less than INR 10,000, however, the same cannot be more than INR 1,00,000; In case the cost auditor is in default, he shall be punishable in the manner as provided under section 147 (2) to section 147 (4). Cost Audit Applicability Cost audit was first introduced for companies engaged in manufacturing but with time its need has arisen in specified industries providing such goods and services. Rule 4 of Companies (Cost Audit and Records) Rules 2014 states the applicability of cost audit. Cost Audit limits: For regulatory sector-Having overall annual turnover during immediately preceding financial year of Rs.50 crore or more for all goods and services and Rs.25 crore for individual goods and services. For non-regulatory sector- Having overall annual turnover during immediately preceding financial year of Rs.100 crore or more for all goods and services and Rs.35 crore for individual goods and services. The requirement for cost audit under these rules shall not apply to a company which is covered in rule 3; and  Whose revenue from exports, in foreign exchange, exceeds seventy five per cent of its total revenue; or which is operating from a special economic zone; which is engaged in generation of electricity for captive consumption through Captive Generating Plant. Meaning of the Term ‘Cost Records’ The definition of the word ‘cost records’ has been provided under rule 2 (e) of the Companies (Cost Records and Audit) Rules, 2014 which means books of account relating to the utilization of materials, labour and other items of cost as applicable to the production of the goods or provision of services as provided in section 148 of the Act and the Companies (Cost Records and Audit) Rules. Applicability of Cost Records Rule 3 of the Companies (Cost Records and Audit) Rules, 2014 contains two table namely Table A – regulated sectors and Table B – Non-regulated sectors. Cost records need to be included in the books of accounts of the companies being engaged in the production of goods or provision of service as covered under the table A or Table B and the total turnover from all its production or service in more than INR 35 crore during the preceding financial year. In a nutshell, cost records are mandatory in the case following conditions are satisfied – The company is engaged in manufacturing goods or provision of services which are listed in Table A or Table B; and Total aggregate turnover of the company from all its production or service is more than INR 35 Crore in the preceding financial year. Non-Applicability Of Cost Audit Requirement The companies which are covered under rule 3 are not required to get their cost records audited in case of the following situation – The company’s export revenue exceeds 75% of its total revenue. The export revenue needs to be in foreign exchange; or The company which is operating from the special economic zone; The company which is engaged in the generation of electricity for captive consumption through Captive Generating Plant. Cost Audit Procedure The category of companies specified in rule 3 and the thresholds limits laid down in rule 4, shall within one hundred and eighty days of the commencement of every financial year, appoint a cost auditor. The cost auditor so appointed shall submit a certificate that: (a) the individual or the firm so appointed is not disqualified for appointment under the Act (b) the individual or the firm satisfies the criteria provided in section 141 of the Act (c) the proposed appointment is within the limits laid down by or under the authority of the Act (d) the list of proceedings against the cost auditor or audit firm or any partner of the audit firm pending with respect to professional matters of conduct, as disclosed in the certificate, is true and correct. Every company shall inform the appointment of cost auditor to the Central Government within: a period of thirty days of the Board meeting in which such appointment is made or  within a period of one hundred and eighty days of the commencement of the financial year, whichever is earlier In form CRA-2, along with the fee. Every cost auditor appointed as such shall continue in such capacity till the expiry of one hundred and eighty days from the closure of the

The Trademarks Act, 1999, provides for the registration of a trademark in India. The owner of the trademark has to apply to the Registrar of Trademarks (‘Registrar’) for obtaining the trademark registration. Upon receiving the application for registration, the Registrar will advertise the trademark in the trademark journal. Any person can file an opposition for registration of the trademark published in the Trademark Journal. The opposition is to be filed to the Registry of Trademarks, where the trademark registration application is filed. When the trademark registry receives any kind of opposition to the trademark, it will conduct a hearing to decide the matter. The Trademark Act, 1999 and the Trade Marks Rules, 2017 provides the process of trademark opposition. What is a Trademark Opposition? Trademark Opposition in India comes at a stage after the registrar has approved the trademark application on the distinctiveness factor and publishes the trademark in the journal for the third-party opposition. Anyone can oppose the published trademark within a period of 3 months which can be extended for a month more (3+1); beginning from the day it was first published. If the mark is opposed, an opposition proceeding is initiated. After which, both the parties involved need to come to a conclusion and the decision is taken. The decision whether the mark can be registered or abandoned would be made. There is no restriction on filing an opposition. Anyone who believes that the published mark might create confusion among the public can file for the opposition while the onus of defending the trademark lies in the hands of trademark registrant. Grounds for Trademark Opposition The trademark is identical or similar to an already existing registered trademark. The trademark is descriptive in nature. The trademark is devoid of distinctive character. The trademark is customary in the present language or the established practices of business. The application for trademark registration is made with bad faith. The mark is prevented by law or contrary to the law. The trademark is likely to cause confusion or deceive the public.  The trademark contains matters likely to hurt the religious feelings of any section or class of people. The trademark is prohibited as per the Emblem and Names Act, 1950. Initiation of Trademark Opposition -Eligibility According to Section 21 of the Trademark Act, ‘any person’ can oppose a trademark, irrespective of their commercial or personal interest. A trademark can be countered by filed by a customer, member of the public or competitor, or any other person. Also, the person filing the trademark opposition needs to be a prior registered trademark owner. After a opposition of trademark is filed, both parties need to conclude whether the trademark should be abandoned or registered. Anyone who believes that the published mark might create confusion among the public can file for the Opposition while defending the trademark lies in the trademark registrant’s hands. Documents required to file a Trademark Opposition Details of applicant- Name, Address, Nationality, etc of the applicant.Body corporates/other categories need to provide with registration certificate Power of Attorney- It allows the attorney to file the trademark opposition on your behalf Affidavit- Affidavit with the basic information about the trademark and its user date and proof of use Details about the opposed mark- Detailed information about the mark against which the opposition is to be filed, i.e. name and basic grounds for filing the opposition Trademark Opposition Procedure Initiating a Trademark Opposition Suppose an individual wishes for an opposition of trademark. In that case, they can submit their concerns to the Registrar within four months from the date the registration application was advertised in the trademark journal. This is done using Form TM-O, accompanied by the necessary fee. This opposition notice should detail the trademark registration application, information about the opposing party, and the reasons for Opposition. Within three months of receiving this, the Registrar will forward the applicant a copy of the opposition notice. Stage One: Responding with a Counter statement Upon receiving the opposition notice, the applicant has a two-month window to submit a counterstatement using Form TM-O. This statement should clarify their stance. The Registrar will provide the opposing party with the applicant’s counter statement within two months. If the applicant doesn’t respond within the specified two months, their trademark registration application is deemed abandoned, halting the registration process. Stage two: Presenting Evidence in the Opposition Process The party opposing the trademark must present Evidence backing their Opposition to the Registrar within two months of receiving the applicant’s counterstatement. This Evidence should also be shared with the applicant. Subsequently, the applicant has two months to submit Evidence supporting their application after receiving the opposition evidence. This Evidence must be shared with both the Registrar and the opposing party. Optional Stage Three: If needed, the opposing party has another month to submit further Evidence after receiving the applicant’s Evidence. This, too, must be shared with the applicant and the Registrar. Trademark Opposition Hearing & Determining the Outcome of the Opposition The Registrar schedules a trademark opposition hearing after the evidence exchange, notifying both parties. Should the opposing party be absent, their Opposition is dismissed, leading to the trademark’s registration. Conversely, if the applicant is absent, their application is considered abandoned and is dismissed. All written arguments provided by both sides will be taken into account. Post deliberation, the Registrar determines whether to register the trademark or dismiss the application. This decision is then communicated in writing to both parties at their specified addresses. This is the specific process involved in the trademark opposition hearing. Conclusion & Final Steps in the Trademark Opposition Procedure If the Registrar rules in favor of the applicant, the trademark gets registered, and a certificate is issued. However, the trademark registration application is denied if the decision is in the opposing party’s favor. FAQs What is trademark opposition? Trademark opposition is a legal process where a third party can challenge the registration of a trademark after it has been published in the trademark journal but before it is officially

They rolled out FEMA in 1999, which is short for Foreign Exchange Management Act. It basically took over from the old Foreign Exchange Regulation Act (FERA) of 1973. This new rulebook is all about handling cross-border investments and external trade. It is mainly applied to ensure smooth international business payments. It includes a wide range of regulations and enhances measures against money laundering and terrorist financing. If your business does not comply with FEMA, it can result in penalties and fines. Therefore, businesses operating in India must have a thorough understanding of FEMA and its practical application.  About Importing is the process of bringing commodities into a certain country. Importation can take place by land, air, or water. The Government of India, Customs Officers, and Border Forces impose many limitations on importing products into the nation. Goods brought into the nation would be permitted as long as they complied with the appropriate import rules. Several limitations apply to items imported into a nation. Certain types of items are restricted from entering the nation. As a result, it is critical for the importer and seller to comply with the regulations governing the import of commodities into the country. Compliance with FEMA legislation for the import of products must be maintained by the importer and the parties involved. Importing Institutions dealing with Import of Goods and Service under FEMA Under FEMA Law, many entities handle the import of products. The Directorate General of Foreign Trade is the key entity in charge of goods imports (DGFT). This organization is part of the Ministry of Commerce & Industry, the Department of Commerce, and the Government of India. This nodal institution regulates the import of products under FEMA legislation. This authority’s regulations are distributed to authorized dealers and importers. The Indian government has issued the Foreign Trade Policy (FTP), which applies to all approved dealers and importers. Goods imported into India must adhere to the Foreign Trade Policy (FTP) (the ‘Policy’). The Indian government modifies its international trade strategy on a regular basis.  Foreign Trade Policy amendments must be followed by authorized dealers and importers. This strategy was implemented by the Indian government in 1992. The policy is in effect for five years. The government would explore future changes to this policy every five years. Before engaging in import-related operations in India, authorized banks must confirm that importers are in compliance with the Foreign Trade Policy. The Foreign Exchange Management Act, 1999 governs the entry of products into India (FEMA). Aside from that, products imported under FEMA regulations would be subject to the Foreign Exchange Management (Current Account Transactions) Rules, 2000. The Reserve Bank of India oversees the country’s foreign exchange management. As a result, the Authorized Dealer must likewise follow the RBI’s foreign exchange requirements. Mode of Payment under FEMA Law for Import of Goods and Services An individual in India might be a products importer. The following requirements must be met in order for the payment to be made: Individual holds an international debit/credit card in rupees. Payments made by credit/debit card through an Indian service bank; The importer must provide the bank with a charge slip; and Transactions must adhere to the appropriate Foreign Trade Policy. Individuals may also make payments in rupees: For boarding and lodging expenses, as well as travel expenditures for an individual residing outside of India. These costs will also cover travel to and from India for the individual residing outside of India. A crossed cheque or a draught can be used to make payment. These ways of payment are available for gold or silver acquired outside of India. The Foreign Trade (Development and Regulations) Act, 1992 governs the acquisition of gold and silver. A company can make a payment in rupees to a non-full-time director who is located outside of India. The payment might be paid while the director is in India on business. However, the corporation must pay the director sitting fees, commissions, and salaries, which includes travel expenses to and from India. These ways of payment must be in accordance with the company’s Memorandum of Association or Articles of Association, as well as any agreement or resolution made by the shareholders. Import Transactions Procedure/Process- Import of Goods and Services under FEMA Outward Remittances for Imports- FEMA Import of Goods and Services: When items are brought into the nation, authorized dealers/banks allow remittances to be made. However, before proceeding with the transaction, the importer must ensure that all compliances have been met. Remittances must be made for legitimate transactions. FEMA Import License- Import of Goods and Services: Under FEMA Law, import licenses would be necessary for the import of products. According to the Foreign Trade Policy, many kinds of items are restricted. Goods with no limitations would be permitted to be brought into the nation. Authorized merchants can do this by opening letter of credit (LOC) and allowing remittances for imports. When the approved bank prepares a letter of credit, copies of the import license should be included. This is necessary for the purposes of exchange control. The approved bank must keep a copy of the letter of credit and the import license on file for inspections and internal audits. Foreign Exchange Requirements- FEMA Import of Goods and Services: Individuals who purchase foreign exchange must comply with the rules of the Foreign Exchange Management Act, 1999. The individual’s foreign exchange can be utilized in accordance with the statement made in the declaration form given by the Authorized dealer. Aside from that, the individual may only utilize the foreign exchange for legitimate purposes.If the individual uses foreign currency to import items into the nation, the approved bank must ensure that the importer publishes some receipts or documentation of the transaction. The importer must provide this information in the Import Data Processing and Monitoring System (IDPMS), Postal Appraisal Form, and Customs Assessment Certificate. The importer and the approved bank must both agree that the remittance is equal to the amount of the imported items. System for Import Data Processing and Monitoring (IDPMS): The RBI, in collaboration with other organizations, simplified and developed this system. This

All the tax professionals are very familiar with the terms, contributions to various funds (i.e., provident fund, Employee state insurance, superannuation funds, gratuity fund or any other fund etc.) by employees as well as employers as per defined percentage in accordance with the respective law. However, this seems as a mandatory requirement by Statue for the below mentioned cases concerning welfare of employees after retirement. But still there are so many people who are in dilemma as to the proper treatment that in which cases these contributions are allowable as business expenditure and in which cases these are not allowed as per Income tax Act. Provident Fund The Provident Fund (PF)​ is an investment fund that is jointly established by the employer and employee to serve as a long-term savings to support an employee upon retirement. It also represents job welfare benefits offered to the employee. Sources of money invested in the provident fund: One is “Employee’s Contribution” – An amount will be deducted from the employee’s monthly salary. Another is “Employer’s Contribution” – Just like a deduction from employee’s salary employer also contributes a fixed percentage of amount besides the usual salary payment made to the employee. Employees’ State Insurance (ESI) The Employees’ State Insurance (ESI) Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and it is designed to accomplish the task of protecting ’employees’ as defined in the Employees’ State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.  Sources of money invested in the Employee State Insurance: One is “Employee’s Contribution” – An amount will be deducted from the employee’s monthly salary. Another is “Employer’s Contribution” – Just like a deduction from employee’s salary employer also contributes a fixed percentage of amount besides the usual salary payment made to the employee. Mandatory requirement The Provident Scheme applies to every establishment where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment, which comprises of employees 20 or more persons and every such employer shall be required to be registered under the EPF on the government website known as “Employee Provident Fund Organization”. The Employee State Insurance Scheme applies to all factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some States threshold limit for coverage of establishments is still 20. Employees of the aforesaid categories of factories and establishments, drawing wages not more than Rs. 21,000/- a month and every such employer shall be required to be registered under the EPF on the government website known as “Employees’ State Insurance Corporation” Rate of Percentage to be deducted and deposited Provident Fund: Employee’s contribution to EPF is 12% of salary whereas Employer’s contribution to EPF is 12% of salary. The definition of salary in respect of calculation of PF is Basic pay plus Dearness Allowance, and any other allowance (like House Rent Allowance, City Compensatory Allowance, Meal Allowance etc.) shall not be included. Employee State Insurance: Employee’s contribution to ESI is 0.75% of salary whereas Employer’s contribution to ESI is 3.25% of salary. For ESI calculation, the salary comprises of all the monthly payable amounts such as Basic pay, Dearness Allowance, City Compensatory Allowance, House Rent Allowance, Incentives (including sales commission), Attendance and overtime payments, Meal Allowance, Uniform Allowance and Any Other Special Allowances. List of documents required for registration Provident Fund/ Employee State Insurance: For registration under both funds, almost same documents are required.So, following is an illustrative list of documents for your reference: 1. Shop and establishment Certificate/ GST Certificate/ License issued by the Government for factory/Articles of Association or Memorandum of Association 2. Company incorporation certificate/LLP registration certificate/ Partnership Deed 3. PAN Card of Proprietor/Partner/Director 4. Digital Signature Certificate of Proprietor/Partner/Director etc. 5. Aadhar Card of Proprietor/Partner/Director etc. 6. Cancelled Cheque/Bank Statements of the entity 7. PAN Card of the entity 8. Lease or rent agreement (if applicable) 9. Electricity Bill of the Registered Office (not older than 2 months) 10. Contact number and e-mail address of the entity. Besides the above requirements, any other specific documents can also be demanded by the authority as per the status of the organization or the situation of the case. Registration process -The process of PF/ESIC registration has become an easy task since it has shifted from manual registration to online registration. By following a few steps and verifying the testimonials, one can easily get registered in almost negligible time. Provident Fund: Now try to understand the process of PF registration Step 1: The first step is registering an entity on EPFO portal. Visit the EPFO web portal for registering your entity. Select the option stating ‘Establishment Registration’ present on the home page of this unified portal. Step 2: On clicking the ‘Establishment Registration’ option, the page will be redirected to the link https://registration.shramsuvidha.gov.in/user/register. Here on this link, there is a user manual available which you must download. This manual should be read thoroughly before registration if you are new to this process. Step 3: After thoroughly reviewing this user manual, sign up on Unified Shram Suvidha Portal (USSP) of EPFO. The sign-up page of USSP will open when you click on the ‘Establishment Registration’ tab present on the home page. Then, click on the tab ‘Sign Up.’ On clicking the ‘Sign up button, you will be asked for your name, mobile number verification code, and email. Input all required details to create an account. Step 4: Login to USSP and locate a tab stating ‘Registration For EPFO-ESIC v1.1’ situated on the screen’s left side. After this, choose an option displayed as ‘Apply for New Registration’ on the screen’s right side. You will find two options on clicking, namely, ‘Employees’ Provident Fund

MSME industries are the backbone of the economy. They are also known as Small Scale Industries (SSIs). The government of India provides an MSME registration to the industries classified by the government as Micro, Small and Medium Enterprises (MSME) in India. The MSME registration helps MSMEs to obtain various benefits provided by the government for their establishment and growth.  MSME registration: Key highlights Your business must meet the new MSME classification criteria based on investment and annual turnover to be eligible for the registration process MSME registration is not mandatory but beneficial for businesses as it enables the business to avail specific tax exemptions, subsidies, credit facilities etc.  This is an online process via the Udyam portal with basic documentation (PAN and Aadhaar) There are no MSME registration fees, i.e., it’s free registration for all eligible MSME businesses Synopsis of MSME Notification The Ministry of Micro, Small & Medium Enterprises has received several representations from MSMEs stakeholders concerning the selection of the financial year of data in respect of Investment and Turnover and the export value for the MSME classification while registering on Udyam Portal. MSME now clarified that details of Investment, Turnover, and Export would be taken from Income Tax Department and GSTN from the relevant Financial Year for the MSME classification. For filing on the Udyam Portal for the Financial Year 2020-21, the data (Investment, Turnover, and Export) for Financial Year 2018-2019 was taken from the I.T. Department and GSTN. MSME Classification and Udyam Registration The ministry has classified the entity as Micro, Small, and Medium based on the investment in plant, machinery, or equipment. This new method of categorizing MSME was announced vide notification No. S.O. (E) dated 26.06.2020. Any person who intends to establish an MSME must file Udyam Registration online in the Udyam Registration portal. The notification also deals with the following procedures: Composite criteria of investment and Turnover for classification Calculation of investment in plant and machinery or equipment Calculation of Turnover Udyam MSME Registration process Registration of existing enterprises Updating of information and transition period in Udyam Portal Facilitation and grievance redressal of enterprises What is MSME Classification? Revised MSME Classification Criteria Micro Small Medium* Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore GSTIN Not Mandatory for MSME Udyam Registration The government has earlier provided that PAN and GSTIN are mandatory for MSME Udyam Registration. Vide a Notification S.O. 1055(E) dated 5th March 2021 has relaxed the condition. Subsequently, the Notification No. S.O. (E) dated 26.06.2020 has been amended on 05.03.2021 to facilitate the exemption from the requirement of having GSTIN as per the CGST Act, 2017. In case of any proprietorship firm not registered under any Act or rules of the Central Government or the State Government, the proprietor may use their PAN to register the firm in the Udyam Registration portal. MSME also clarified that PAN is mandatory for all other types of enterprises for Udyam Registration. What is MSME Udyam Registration? MSME registration is also called Udyam registration. The entities that fulfil the MSME classification can apply for MSME registration from the government portal, the Udyam portal. The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. MSME Registration Eligibility All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities are eligible for MSME registration: Individuals, startups, business owners, and entrepreneurs Private and public limited companies Sole proprietorship Partnership firm Limited Liability Partnerships (LLPs) Self Help Groups (SHGs) Co-operative societies Trusts FAQs What is the difference between Udyam and MSME? Udyam registration is also known as MSME registration. Initially the government had launched the Udyog Aadhaar portal for all MSMEs. However, since 2020, Udyam is the single portal for all businesses to register for MSME recognition. As such, to answer is Udyam and MSME registration the same? Udyam and MSME registration is the same today, that is, instead of registering on Udyog Aadhar (non-existent today), businesses will need to migrate or register new on Udyam portal for MSME certificate. How to check status on Udyam portal? If you have completed the process on Udyam registration portal, you may want to check the status of your registration. To check the status and download certificate , simply: Visit the Udyam homepage Login to your account using your 19 digit URN number and mobile number Validate using the OTP received View the status of your application on the new page displayed  

An Occupancy Certificate is an essential document certifying the construction of the building and that it complies with the local laws, and according to permissible plans. The local municipal authority issues the Occupancy Certificate upon the completion of the construction of the building and is ready to be occupied. Introduction Occupancy certificates are issued by the agencies and authorities of local government, which declares that the building is constructed as per the plans that were approved by the concerned authorities. Occupancy certificate is issued when a property is ready to be occupied. This certificate indicates that the building is equipped with civic needs such as sanitation, water, and electricity. This is a very important document, and the prospective buyers of an upcoming apartment should necessarily ask for this. If the builder is not able to obtain this document from the concerned department, then it means that building is not equipped with the civic amenities and is probably not constructed in accordance with the plans that were approved by the concerned departments. Need for Occupancy Certificate The building can be demolished anytime, considering it to be an unauthorised structure, if there is no occupancy certificate. It is mandatory to have an occupancy certificate at the time of resale of flat. The civic infrastructures disengage anytime without an occupancy certificate. If there is no occupancy certificate, no person can occupy the house. The occupancy certificate serves as the final pass certificate of a project or a building. An occupancy certificate confirms that the building has satisfied all the building norm and local laws, and hence safe to occupy. Who are Eligible to get this Service? Any owner of the property in the jurisdiction of the local municipal area who has obtained the plan sanction is eligible to get the service of Occupancy Certificate, that includes you, the property owner. Documents Required Commencement Certificate Completion Certificate Built and Section plan NOC for fire and pollution Area calculation sheet of floor signed by an authorised architect Photographs of the completed building Tax assessment with tax paid receipt Photographs of rain harvesting and solar panels Copy of the sanctioned plan Application Procedure Step 1: Visit the Local Corporation or Municipality The flat owner has to approach the nearest local corporation or municipality. Step 2: Enter the Details Collect the form from the concerned officer and enter all the necessary details. Step 3: Submission of the form Along with the required documents, the application form has to be submitted. Once submitting the form, the certificate will be issued within 30 days from the date of submission. How Important is the Occupancy Certificate? Occupancy Certificate is an important document which is required before you occupy the purchased house of the project. It certifies that the building construction is complete and adheres to local bye-laws and regulations. The builder/developer is responsible for obtaining the Occupancy Certificate upon the completion of the project. The certificate is proof that the building is safe to occupy, and it is required while applying for water, electricity, and sanitation connections from the local municipal body. As a homeowner, the Occupancy Certificate is a legal document of the property. Without this certificate, the local authority has the right to initiate legal action as the project is deemed an illegal structure. Also, an Occupancy Certificate is one of the mandatory documents to be submitted while availing a housing loan. Additionally, this certificate is required if you would like to sell the property. FAQs What if the builder/developer doesn’t give the Occupation Certificate? A homebuyer should accept the possession letter only after the developer obtains the Occupation Certificate. Can the builder claim 100% payment from you without an Occupation Certificate? Under the RERA Act, provisions are made to make milestone-based payments to the builder or developer. A certain portion of the payment from the total amount payable can be paid to the builder; however, the builder or developer cannot claim 100% payment without obtaining the Occupation Certificate.

The term “startup” refers to a company in the early stages of its operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. These companies generally launch with high costs and limited revenue, which is why they look for capital from a variety of sources such as angel investors and venture capitalists. Startups typically require several years to make a profit, so significant, high-risk investments typically are needed to get one off the ground. What Is A Startup? The answer to the question, “What is a startup?” is that it is a new business venture providing services or products to an existing and growing market. A startup is in the first stage of operations and comprises one or more entrepreneurs. The primary aim is to answer market demand by creating new and innovative products or services. While most small businesses might intend to stay small, a startup focuses on fast growth in a designated market. Usually, such companies start as an idea and gradually grow into a viable product, service or platform.Startups begin with high costs and have limited revenue. Also, they do not have a developed business model and lacks adequate capital to move to the next phase. As a result, these companies seek funding from various sources, such as venture capitalists, angel investors and banks. Investors or lenders might offer additional funds for a share of future profits and partial ownership. Often, these companies use seed capital for investing in research and developing business plans. Research helps them determine the demand for a specific product and a business plan outlines the company’s goals and marketing strategies. Types Of Startups Scalable startups- Often, companies working in the technology domain belong to the scalable startup group and these companies work hard to rapidly grow and achieve a high return on investment (ROI). This type of startup requires extensive market research to determine untapped market opportunities. Some examples of this type of startup are consumer and business apps. This startup model requires external capital to generate demand and ensure company expansion. Scalable startups do this by raising capital from external investors.With the investment they receive, a startup can support growth initiatives and focus on grabbing the target market’s attention. A scalable startup is a right choice if a business product or service has an untapped market and offers vast growth potential. Small business startups-The purpose of a small business startup is longevity rather than scalability. While these businesses have an interest in growth, they grow at their own pace. Business owners usually bootstraps and self-finance these startups. This means that they have less pressure to scale. Some examples of small business startups include hairdressers, grocery stores, travel agents and bakers. Also, many of these startups are family-owned. A small business startup is a right choice if a business plans to hire locals and family members to operate a business or create a sustainable and long-lasting business. Social entrepreneurship startups- Unlike other types of startups, a social entrepreneurship startup does not focus on wealth generation for the founders. Instead, they build such a business to change the environment and society positively. Some examples of these companies include charities and non-profit organisations. These companies usually scale for doing philanthropy activities. Though they operate like other startups, they do it through donations and grants. A social startup is a right choice if a business plans to create a positive environmental or social impact or if the company has an idea of solving a widespread social problem. Large company startups-A large company or offshoot startup includes large companies that have been in operation for a long time. Companies that fit into this category start with revolutionary products and quickly become famous. As big businesses are self-sufficient, they grow along with new market demands and trends. For this reason, it is essential for these companies to keep up with changes to sustain themselves.Backed by support and capital, these offshoot startups focus on diversifying product offerings and plans to reach new audiences. An offshoot startup is a right choice if a business owns a large company or wants to penetrate a new market that is not the business’s primary focus. Lifestyle startups- People who have hobbies and want to pursue their passion can build a lifestyle startup. Often, these business owners desire independence and spend their energy, money and time building a startup. These business owners earn money by pursuing their favourite hobby or activity. Some examples of lifestyle startups include a dancer opening a dance school, an avid traveller starting a touring company or a software developer starting online coding classes.A lifestyle startup is a right choice if a business owner has a hobby they can pursue or is passionate and creative about starting a new business on their hobby. Buyable startups- Unlike other startups on this list, buyable startups do not aim to become large and successful. A business owner builds such a company from scratch to sell it to a big company. Usually, you are likely to find such companies in the technology and software industry. Many of these startup industries are in the mobile application development industry. A buyable startup is a right choice if a business owner wants to develop a company but do not want to operate it long term or if the business idea has tremendous growth potential. Main characteristics of a startup company Innovation – Startups are usually founded on a unique idea High Growth Potential – Startups are designed to proliferate, Scalability – Scalability refers to the ability of a company to overgrow while maintaining or increasing its efficiency and profitability. Problem-solving – startups are often focused on solving problems. Customer Focus – Startups are focused on creating value for their customers Pros and cons of a startup business Pros: Innovation: Startups are often founded with a new idea, technology, or product that disrupts an existing market. This innovative mindset often sets startups apart and can create a significant competitive advantage.

A power of attorney (POA) is a legal authorization that gives the agent or attorney-in-fact the authority to act on behalf of an individual referred to as the principal. The agent may be given broad or limited authority to make decisions about the principal’s property, finances, investments, or medical care. POAs can be financial or they can pertain to health care. Both provide the attorney-in-fact with general or limited powers. What is Power of Attorney? Power of Attorney (PoA) is more than just a legal document. It’s a lifeline that allows one person to act on behalf of another, especially in their absence. Governed by the Powers of Attorney Act 1882, this legal instrument is often misunderstood but incredibly vital for various transactions, be it property management or medical decisions. Types of Power of Attorney Forms General Power of Attorney: This grants the Agent broad powers to handle a wide range of the Principal’s affairs. The authority under a General POA typically includes buying or selling property, managing business transactions, and handling banking matters. However, this type of POA becomes invalid if the Principal becomes incapacitated. Durable Power of Attorney: Similar to a General POA, it allows the Agent to manage the Principal’s affairs, but it remains in effect even if the Principal becomes incapacitated. This feature makes it particularly important for long-term planning. Special or Limited Power of Attorney: This grants the Agent authority to conduct specific acts or make decisions in specific situations, such as selling a property, managing certain financial transactions, or handling legal claims. It does not grant broad authority across all areas of the Principal’s life. Medical Power of Attorney: A Healthcare Proxy authorizes the Agent to make medical decisions on the Principal’s behalf if they cannot do so themselves. A living often accompanies it will that outlines the Principal’s wishes regarding life-sustaining treatment. Springing Power of Attorney: This POA “springs” into effect under specific conditions, typically when the Principal becomes incapacitated. It allows the Principal to retain control over their affairs until a certain event triggers the transfer of authority to the Agent. Stamp Duty for Power of Attorney If a General Power of Attorney is conferred to father, mother, brother, sister, wife, husband, son, daughter, grandson, granddaughter or any near relative, without any consideration, then Stamp Duty of Rs. 500/- is only applicable for registration. In case General Power of Attorney is conferred to someone other than a close relative and/or for consideration. Stamp duty is payable as per the property’s market value or the consideration, whichever is higher. In addition to the stamp duty, a registration fee of Rs.100 is applicable if the Power of Attorney is conferred without consideration in the name of the father, mother, brother, sister, wife, husband, son, daughter, grandson granddaughter or a near relative. In any other case, a registration fee is payable at Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/- and a maximum fee of Rs. 30,000/- on the market value of property or consideration, whichever is higher. How a Power of Attorney (POA) Works A power of attorney is a legal document that binds the agent or attorney-in-fact and the principal. It’s used in the event of a principal’s temporary or permanent illness or disability or when they can’t sign necessary documents.1 Both parties must sign the document and a third party is usually required to witness it. Most POA documents authorize the agent to represent the principal in all property and financial matters as long as the principal’s mental state of mind is good. The agreement automatically ends if the principal becomes incapable of making decisions for themself. A power of attorney can end for several reasons, such as when the principal revokes the agreement or dies, when a court invalidates it, or when the agent can no longer carry out the responsibilities outlined in the agreement. In the case of a married couple, the authorization may be invalidated if the principal and the agent divorce. General Power of Attorney vs Special Power of Attorney General Power of Attorney A General Power of Attorney provides broad powers to the agent or attorney-in-fact to manage a wide array of the principal’s affairs. This type of POA is comprehensive and allows the agent to make decisions and perform actions as if they were the principals themselves. The authority typically includes handling financial transactions, buying or selling real estate, managing business dealings, and dealing with legal claims and litigation. Key aspects of a General Power of Attorney include: Broad Authority: The agent can perform almost any act the principal could, from managing finances to handling business transactions. Convenience: Ideal for individuals who need someone to manage all their affairs due to absence or incapacity. Termination: Generally ceases if the principal becomes incapacitated unless it’s specified as “durable.” Special Power of Attorney In contrast, a Special (or Limited) Power of Attorney grants the agent authority to act on the principal’s behalf in specific matters or events. This type of POA is used for particular tasks, such as selling a property, managing a specific legal action, or handling financial transactions in a certain account. The document clearly outlines the agent’s powers, limiting their authority to those actions. Key aspects of a Special Power of Attorney include: Limited Scope: The agent’s powers are narrowly defined and restricted to specific tasks. Precision: This POA is useful for principals who need an agent to handle specific duties without granting broad access to all affairs. Flexibility: Can be tailored to suit the principal’s precise needs for a particular transaction or period. Key Differences Scope of Authority: General POA offers wide-ranging powers, while Special POA is limited to specific tasks. Purpose: A General POA is suitable for the comprehensive management of one’s affairs, whereas a Special POA is ideal for particular transactions or events. Duration and Revocation: Both types can be revoked by the principal at any time, but the General POA often ceases if the principal becomes incapacitated, unlike the Special POA, which is typically task or time-bound. Choosing Between General and Special

As mandated by Indian law, each state has its own authorized body that collects property taxes. Property Tax AP is no exception. The Property Tax of Andhra Pradesh will vary based on the type of property as well as the jurisdiction. The taxes collected from one area are used to improve the public infrastructure of that particular area. Some of the places where this revenue is usually spent include improving education, sewer services, road constructions, fire services, and other public services that will be of great use to the public.  What are the Taxable Properties Under the AP House Tax? All commercial and residential buildings within the authorization of the Urban Local Bodies (ULBs) Any residential building with an Annual Rental Value of more than Rs 600. Kindly note that residential properties with an annual rental value of less than Rs 600 are exempted from AP House Tax payment. It is the responsibility of promoters and developers to register any changes in the property details with immediate effect so that the Town Planning Department can make the necessary changes in the Property Tax Assessment. Purpose Property Tax acts as one of the main sources of revenue for the Urban Local Bodies (ULB) in Andhra Pradesh.  The local governing body will assess the property and collects the property tax. The collected taxes are used for the jurisdiction in which the property is situated.  Some of the services for which the funds are used include education, sewer improvements, road and highway constructions, fire service and other services that highly benefit the community. Components of Property Tax As per section 85 of Municipal Corporation Act, the tax determined by the council will be levied on all buildings and lands within the limits of the Municipal that includes the following components. tax for general purpose water and drainage tax lighting tax scavenging tax. Assessment of Property Tax Serial Number Name of the owner Door No. Locality Zone Number Type of construction Nature of usage Plinth area in sq. meters As per Form A notification, Monthly rental value fixed per sq. meter. of plinth area Monthly rental value fixed on the property Half-yearly property tax Date of service of special notice Date of receipt of revision petition Date of hearing Orders of the Commissioner in brief Property tax fixed after disposal of revision petition Initials of the Commissioner Property Tax Andhra Pradesh- Various Rates Range of Annual Rental Value (Residential) Property Tax Rate Up to Rs 600 Exemption from Property Tax payment Rs 601- Rs 1200 17% Rs 1201-Rs 2400 19% Rs 2401-Rs 3600 22% >Rs 3600 30% Other than these, for all commercial buildings, the property tax is fixed at 30%.  Andhra Pradesh Property Tax Calculation In Andhra Pradesh, property tax is calculated based on the Annual Rental Value (ARV) and the Tax Rate as may be fixed by the Corporation for each property in the limits of the Urban Local Bodies. Annual Rental Value Annual rental value of buildings and lands is the basis for levy of property tax in Municipalities. The Annual Rental Value of a property is calculated based on the following parameters. Zonal location of the property Residential/Non-residential status Plinth area Age of the property Type of construction Other parameters applicable to specific situations. Property Tax Payment Online Step 1: Visit the official website of the Commissioner and the Directorate of Municipal Administration online portal to pay the property tax online. Step 2: Under online Payment tab on the home page, click Property tax. Step 3: The online payment section appears. Select the District, Municipality where the property is located and select the payment type as property tax from the drop-down list. Step 4: On clicking submit, the ‘property search’ dialog box appears. Enter the required details such as owner name, mobile number etc. and click search that redirects to the Payment section. Step 5: Click ‘Pay Tax’. The amount to be paid will be displayed. Make necessary payment through internet banking or credit/debit card. Check-list the terms and conditions and click submit. Step 6: The acknowledgement receipt on successful payment will be generated. FAQs What services does the CDMA website provide? Other than Property Tax, this website provides a bevvy of other vital services like Trade licensing, AP panchayat property tax payment, door number search in Andhra Pradesh, marriage and birth registration, land tax etc. What is the Property Tax for commercial buildings? It is fixed at 30% annually for all non-residential buildings.

The Companies Act, 2013 differentiates companies based on the number of members. The Micro, Small and Medium Enterprises (MSME) Act classifies companies into micro, small and medium companies to grant them MSME benefits. Companies can also be classified based on the liability of their members, company ownership and listing status. According to Section 2(20) of the Companies Act, 2013, a “company” means a company incorporated under the Companies Act, 2013 or under any previous company law. The Companies Act of 2013 replaced the Companies Act, 1956. The Companies Act, 2013 makes provisions to govern all listed and unlisted companies in the country. The Companies Act 2013 implemented many new sections and repealed the relevant corresponding sections of the Companies Act 1956. This is landmark legislation with far-reaching consequences for all companies incorporated in India. Classification of Companies Companies on the Basis of Liabilities Companies Limited by Shares: In companies limited by shares, sometimes, shareholders of some firms may not always pay the full value of their shares at once. The responsibilities of members in these firms are limited to the number of unpaid dividends on their shares. Companies Limited by Guarantee: In certain businesses, the memorandum of association specifies monetary amounts that some members agree to pay. They will only be obliged to pay the guaranteed sum if the company is liquidated. They cannot be forced to pay additional money by the company or its creditors. Unlimited Companies: The liabilities of members of unlimited companies have zero limits. As a result, the corporation can use all of the shareholders’ personal assets to pay off its debts while it is winding up. Their responsibilities will include the entire company’s debt. Companies on the Basis of Members One-Person Companies (OPCs): As the name suggests, the shareholder in these businesses is only one person. Since OPCs are legal entities apart from their sole members, they are distinct from sole proprietorships. Unlike other companies, a one-person company does not need a minimum share capital. Private Companies: The articles of association of private corporations limit the transferability of shares for free. Private corporations must consist of a minimum of 2 to a maximum of 200 members. These members consist of both current and previous employees who even own shares. Public Companies: Unlike private organisations, public companies allow their members to transfer shares to others for free. Secondly, they must consist of a minimum of 7 members, with no limit on the max number of members they can have. Companies on the Basis of Control Holding and Subsidiary Companies: There are cases where a company’s shares may be held entirely or partially by another company. The company that owns these shares is now known as the holding or parent company. Similarly, a subsidiary is a company whose shares are owned by the parent company. Associate Companies: Associate companies are those types of companies where other companies have a significant influence. This ” significant influence ” entails owning at least 20% of the associate company’s shares. Other Types of Companies Government Companies: Government companies can be referred to as companies with more than 50% of share capital held by the central government, by state governments, or jointly owned by both kinds of governments. Foreign Companies: Foreign companies can be referred to as companies present outside India. These companies also conduct business in India, either on their own or by collaborating with other companies. Charitable Companies (Section 8): Companies with charitable goals, often referred to as NPOs, are termed charitable companies. These companies are also known as Section 8 companies as they are registered under Section 8 of the Companies Act, 2013. The primary goal of charitable companies is to promote religion, arts, culture, science, education, commerce, and many more. They do not pay money to their members because they don’t make any. Dormant Companies: These companies are usually set up to work on future projects. They do not have large accounting transactions and are not required to comply with all the regulations that apply to regular companies. FAQs What Is a Holding Company? A holding company is a company that doesn’t create its own products or services, but instead holds a controlling interest in other companies.6 Holding companies are also known as umbrella or parent companies. Investor Warren Buffett’s Berkshire Hathaway is one well-known example of a holding company. Can a Private Limited Company convert to a Public Limited Company? Yes, a Private Limited Company can convert to a Public Limited Company by meeting the necessary regulatory requirements, including increasing the number of shareholders and complying with securities regulations.