Copyright Registration

Copyright Registration

• Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work.
• Copyright Registration is necessary to protect the creators, creative work such as music, books, manuscripts, software's, films, fashion designs, website etc from being copied and used for commercial purposes without the creators permission thus causing tremendous loss to the creator. Copyrights operates against unauthorized copying, the taking of another's creation, without paying for it.
• Copyright is essentially a creation of statute, the copyright act makes it clear that no person shall be entitled to Copyright or any similar rights, in any work whether published or unpublished, otherwise than in accordance with the provisions of the Act.
• Copyright Registration of Creative work protects your Creativity from being Stolen or Duplicated, and gives you a Confirmed Legal Right over your creation.

Copyright Registration gives your Creative work a legal Status, thereby making it an Intellectual property, giving you exclusive legal right over your creation.

For Registration of Copyright

The Government fees is /-  Rs. 500

• For Literary Work,
• Dramatic Work,
• Musical Work,
• Artistic Work

The Government fees is /-  Rs. 2000

• For Literary Work-  which is used in relation to any good/trade
• Artistic Work-  which is used in relation to any good/trade
• Sound Recording

The Government fees is /-  Rs. 2500

• Cinematograph Film       

 The Professional fees is Rs. 5000/-   TIME MINIMUM 6 MONTHS

Documents Required

Company documents and

Personal documents and

work.

Time Duration

Time minimum 6 months.

What You Get

Copyright Receit and Certificate after 6 Months.

FAQ'S

Q. What is an artistic work?

An artistic work means-
 a painting, a sculpture, a drawing (including a diagram, map, chart or plan), an engraving or a photograph, whether or not any such work possesses artistic quality;
  -a work of architecture; and
  -any other work of artistic craftsmanship.

Q. What is a musical work?

"Musical work" means a work consisting of music and includes any graphical notation of such work but does not include any words or any action intended to be sung, spoken or performed with the music. A musical work need not be written down to enjoy copyright protection.

Q. What is a sound recording?

"Sound recording" means a recording of sounds from which sounds may be produced regardless of the medium on which such recording is made or the method by which the sounds are produced. A phonogram and a CD-ROM are sound recordings.

Q. What is a cinematograph film?

"Cinematograph film" means any work of visual recording on any medium produced through a process from which a moving image may be produced by any means and includes a sound recording accompanying such visual recording and "cinematograph" shall be construed as including any work produced by any process analogous to cinematography including video films.

Q. What is meant by classification in copyright?

Like in trademark the registration is obtained class wise, similarly a copyright is registered in either of the following classes depending upon the nature of work:

• Original literary, dramatic, musical and artistic works
• Cinematograph films; and
• Sound recordings

Q. Is a Copyright assignable?

Yes. The owner of the copyright in an existing work or the prospective owner of the copyright in a future work may assign to any person the copyright either wholly or partially and either generally or subject to limitations and either for the whole term of the copyright or any part thereof.

Q. Is it necessary to register a work to claim copyright?

No. Acquisition of copyright is automatic and it does not require any formality. However, certificate of registration of copyright and the entries made therein serve as prima facie evidence in a court of law with reference to dispute relating to ownership of copyright.

Q. What is the procedure for registration of a work?

Copyright comes into existence as soon as a work is created and no formality is required to be completed for acquiring copyright. However, facilities exist for having the work registered in the Register of Copyrights maintained in the Copyright Office of the Department of Education. We at The Online Consultants, help you to register your work hassle free while sitting.

Q. Is copyright protected in perpetuity?

No. It is protected for a limited period of time.

Q. What is the term of protection of copyright?

The general rule is that copyright lasts for 60 years. In the case of original literary, dramatic, musical and artistic works the 60-year period is counted from the year following the death of the author. In the case of cinematograph films, sound recordings, photographs, posthumous publications, anonymous and pseudonymous publications, works of government and works of international organizations, the 60-year period is counted from the date of publication.

Q. List of Creative Work Protected by the Copyright law in India?

1. Literary work Which includes computer program and computer databases apart from book.
2.  Sound recording or audio recorded files which could include songs, dialogues recorded etc.
3. Cinematograph film includes films, videos, cartoon films. It is advisable to include creative rights in the various agreements between parties in the initial stage itself.
4. Artistic work including a painting, a sculpture, a drawing such as a map, chart or diagram, an engraving, a photograph, architecture/ artistic craftsmanship and dramatic work.
5. Musical work meaning staff notations and written music.
   Q. What is the purpose of Copyright Registrar?
6. Copyright Registrar primarily serves as an office of record, a place where claims to copyright are registered and documents related to copyright are recorded. the purpose is to furnish information about the provisions of the copyright law and the procedures for making registration, to explain the operations and practices of the Copyright Office, and to report on facts found in the public records of the Office.

Marriage Registration

ABOUT MARRIAGE REGISTRATION CERTIFICATE  IN DELHI:

A Marriage Certificate is the legal proof of registration of a marriage. It is an important and valid document as it establishes the marital status of a couple. It can be said as an official statement that two people are married.

In India, Marriages can be registered either under:

• Hindu Marriage Act, 1955:

• Applicability: It is applicable only to the Hindus. It provides for registration of an already solemnised marriage.
• Special Marriage Act, 1954:
• Applicability: It is applicable to all citizens of India. It provides for solemnisation of a marriage as well as registration by a Marriage Officer.

Presently, it is mandatory for a couple to register their marriage irrespective of the religion they belong to.

ELIGIBILITY FOR MARRIAGE CERTIFICATE :

1. Under Hindu Marriage Act-

• For Males: Minimum age limit is 21 years.
• For Females: Minimum age limit is 18 years.
• The parties to a Hindu marriage should be unmarried or divorced, or if previously married, the spouse by that marriage should not be alive.

1. Under Special Marriage Act-

Minimum age of both i.e., male and female is 21 years at the time of registration. 

WHY YOU NEED TO REGISTER MARRIAGE:

• It is helpful in getting Passport/Visa.
• It is a legal evidence of marriage under law.
• It provides social security and protection to women.
• It is needed for changing your maiden name.
• It will be helpful in claiming Bank Deposits, Life Insurance or any other investments or property in case of sudden demise of spouse when you need to prove about your marriage.

DOCUMENTS REQUIRED FOR MARRIAGE REGISTRATION UNDER HINDU MARRIAGE ACT:

1. Completely filled application form signed by both husband and wife
2. Proof of Address (Voter ID/ Ration Card/ Passport/Driving License) of both husband and wife
3. Proof of Date of Birth (Matriculation Certificate / Passport / Birth Certificate) of both husband and wife
4. 2 passport size photographs of both husband and wife
5. 1 marriage photograph
6. Marriage Invitation Card
7. If marriage was solemnized in a religious place, a certificate from the priest is required who solemnized the marriage.
8. Separate affidavits by both husband and wife stating place and date of marriage, date of birth, marital status at the time of marriage and nationality.
9. Aadhaar Card
10. Affirmation that the parties are not related to each other within the degree of prohibited relationship defined in the Hindu Marriage Act.
11. In case of widow/ widower, attested copy of death certificate of spouse.
12. In case of divorcee, attested copy of divorce order.

All documents must be self-attested.

Time Duration

7-30 days in case of registration of marriage under Hindu Marriage Act and under Special Marriage Act depend of availability of date and officer.

What You Get

A marriage Registration Certificate.

FAQ'S

Q1. Which is the office where do I have to go for marriage registration certificate and during which hours?

Ans. For marriage Registration, one can go to the office of Sub-Divisional Magistrate in whose jurisdiction any of the husband or wife resides, during 9.30 a.m. to 1.00 p.m. on any working day.

Q2. How much time it takes place for response from department?

Ans. Normally it takes 15 days in case of registration of marriage under Hindu Marriage Act and 60 days under Special Marriage Act.

Q3. Is it mandatory to register marriage?

Ans. In 2006, the Supreme Court made it compulsory to register the marriage for the women protection.

Q4. Within how many days after marriage do I need to apply for marriage registration?

Ans. The parties to a marriage shall apply for marriage certificate within a period of 30 days from the date of marriage.

Q5. What are the laws under which marriages can be registered?

Ans. There are two laws under which marriage registration can be done:

1. Hindu Marriage Act
2. Special Marriage Act

Q6. To whom does the Hindu Marriage Act applies?

Ans. It applies to Hindu, Sikh, Jain, Buddhist, Brahma and all other who follow Hindu religious customs.

Q7. To whom does the Special Marriages Act applies?

Ans. It applies to all, irrespective of religion, caste and language.

Q8. What is the time limit for the registration of Marriage?

Ans. Marriage under Hindu Marriage Act can be registered at any time after marriage. There is no time limit.

Q9. What is Tatkal Marriage Certificate?

Ans. Tatkal Marriage Certificate ensures a single-day authorization of the marriage under which the registration process will be undertaken on priority. It enables citizens to register their marriage and get a certificate issued within 24 hours on payment of Rs.10, 000 as a fee.

Q10. Can a marriage performed already according to religious customs be registered under Special Marriage Act?

Ans. Yes a marriage performed already according to religious customs can be registered under Special Marriage Act.

Society Registration

Society Registration

Any seven or more persons associated for any social and political pupose like literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Joint-stock Companies from themselves into a society under this Act.

Advantages:

1. Easy Formation:

Compared to the formation of a company, formation of a cooperative society is easy. Any ten adult persons can voluntarily form themselves into an association and get it registered with the Registrar of Co-operatives. Formation of a cooperative society also does not involve long and complicated legal formalities.

2. Limited Liability:

Like company form of ownership, the liability of members is limited to the extent of their capital in the cooperative societies.

3. Perpetual Existence:

A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.

4. Social Service:

The basic philosophy of cooperatives is self-help and mutual help. Thus, cooperatives foster fellow feeling among their members and inculcate moral values in them for a better living.

5. Open Membership:

The membership of cooperative societies is open to all irrespective of caste, colour, creed and economic status. There is no limit on maximum members.

6. Tax Advantage:

Unlike other three forms of business ownership, a co­operative society is exempted from income-tax and surcharge on its earnings up to a certain limit. Besides, it is also exempted from stamp duty and registration fee.

7. State Assistance:

Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies – to make their working more effective.

8. Democratic Management:

The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ irrespective of the number of shares held by them. The proxy is not allowed in cooperative societies. Thus, the management in cooperatives is democratic.

Document Required

1. Memorandum of association in duplicate

2. Rules and regulations in duplicate

3. Affidavit no. 1 regarding ownership and noc for the registered office of the society (attested by notary with proper registration no. Of notary)

4. Affidavit no. 2 regarding desirous persons not related to each other and name of society is not identical or reassembles to any other registered/non registered society (attested by notary with proper registration no. Of notary)

5. Residential cum id proofs of all desirous persons of society (attested by a gazetted officer with proper seal)

6. Ownership proof of registered office of the society with id proof of owner.
 (i) electricity bill  or

(ii) water bill   or

(iii) house tax receipt  or

(iv) property registerd document

7. In case of govt.body/semi govt. Body/undertaking, noc from the employer.

8. Application form

Time Duration

1-2 MONTHS

What You Get

SOCIETY REGISTRATION CERTIFICATE

Trust Registration

Trust Registration

A trust of immoveable property can be created by two ways, one by a non-testamentary document and another by a testamentary document such as a will.

A Trust of Movable Property cannot be created orally but it must be by a document duly registered. A trust of a moveable property can be created either by a document or delivering the property to the trustee with necessary oral directions. If the directions are given in writing it would amount to a trust by a non-testamentary document which may or may not be registered.

A Trust may be private and public.

Private Trust - When the purpose of the trust is to benefit an individual or a group of individuals or his or their descendants for any legal person and who is capable of holding property, it is a private trust.

Public Trust- When the purpose of the trust is to the benefit the public or any section of the public, it is public trust.

A registered Trust Deed has the following advantages;

1. A registered Trust Deed becomes an official document which carries support and force of law.
2. A registered Trust Deed effectuates transmutation of possession
3. A conveyance of trust property to the trustee under a registered deed is generally not open to challenge.
4. However, in case of a charitable or religious trust, in relation to an immovable property, for claiming exemption U/s. 11of the Income Tax Act, it is essential that the instrument of trust is duly registered.

Before you register your trust you will need to decide the following:

1. Name of the trust
2. Address of the trust
3. Objects of the trust (charitable or Religious)
4. One settler of the trust
5. Two trustees of the trust
6. Property of the trust-movable or immovable property (normally a small amount of cash/cheque is given to be the initial property of the trust, in order to save on the stamp duty).
7. Prepare a Trust Deed on stamp paper of the requisite value (8% of the
   value of property of the trust in Delhi. The rate varies from state to state)

Documents Required for Trust Registration :

1. Minimum two members identity proof  and Photographs required. (Voter ID | Driving License | Passport | Adhaar Card.)
2. One passport size photograph & copy of the proof of identity of the settler
3. One passport size photograph & copy of the proof of identity of each of the two witnesses.
4. One electricity or water bill of registered address.

Requirement for registration of Trust Deed with the Local Registrar under
the Indian Trusts Act, 1882:

1.  Schedule 2 which is the Application for Registration [with Rs. 100 Court Fee Stamp stuck on]
2. Trust Deed on stamp paper of requisite value.
3. Consent Letter signed by all Trustees.
4. Affidavit signed by the Settler (this is to be handed over on the day of the Hearing, after completion of the Hearing) [with Rs. 10/- Court Fee Stamp]
5. One passport size photograph & copy of the proof of identity of the settler
6. One passport size photograph & copy of the proof of identity  (Voter ID | Driving License | Passport | Adhaar Card.) of each of the two trustees. (Minimum two members identity proof required)
7. One passport size photograph & copy of the proof of identity of each of the two witnesses.
8. One electricity or water bill of registered address
9. NOC from the owner of the property that is proposed as the Registered Address for the Trust, for the use of this address as the registered address of the Trust, Signature of settler on all the pages of the Trust Deed
10. Witness by two persons on the Trust Deed.
11. Founder / Settler have to come to Delhi for presentation in the registrar office
12. At the time of registration, the settler & two witnesses are required to be personally present, alongwith their identity proof in the original.

 It may be observed that three types of persons are involved in the creation of a trust—

(i) Author/ settlor of the trust i.e. the person who reposes or declares the confidence;
(ii) Trustees i.e., the persons who accept the confidence;
(iii) Beneficiary i.e., the person(s) for whose benefit the confidence is accepted.

A trust is created when a settlor transfers property to a trustee to hold it for the benefit of one or more beneficiaries.  A settlor and a trustee are two distinct roles, although one person can serve in both capacities. A settlor creates the trust and can reserve important powers with respect to the trust. The trustee is obligated to manage the trust, in accordance with state law, after its creation and until the termination of the trust.

Time Duration

10-30 DAYS

What You Get

Trust deed and trustcertificate

Partnership Firm Registration

PARTNERSHIP FIRM REGISTRATION

Partnership is an agreement/deed between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others. A partnership can be for a fixed period of time or it may be limited to a specific project or it may be dissolved at will.

Basic Requirement to start Partnership Firm :

1. Partnership Deed

2. Firm Pan Card

3. GST Registration

4. Opening of Current Account

5. MSME Registration

Advantages

Easy to form: Like sole proprietorships, partnership businesses can be formed easily without any compulsory legal formalities. It is not necessary to get the firm registered. A simple agreement or partnership deed, either oral or in writing, is sufficient to create a partnership.

Availability of large resources:
Since two or more partners join hands to start a partnership business, it may be possible to pool together more resources as compared to a sole proprietorship. The partners can contribute more capital, more effort and more time for the business.

Better decisions:
The partners are the owners of the business. Each of them has equal right to participate in the management of the business. In case of any conflict, they can sit together to solve the problem. Since all partners participate in the decision-making process, there is less scope for reckless and hasty decisions.

Flexibility in operations:
A partnership firm is a flexible organization. At any time, the partners can decide to change the size or nature of the business or area of it’s operation. There is no need to follow any legal procedure. Only the consent of all the partners is required.

Sharing risks:
In a partnership firm all the partners “share” the business risks. For example, if there are three partners and the firm makes a loss of Rs.12,000 in a particular period, then all partners may share it and the individual burden will be Rs.4000 only. Because of this, the partners may be encouraged to take up more risk and hence expand their business more.

Protection of interest of each partner:
In a partnership firm, every partner has an equal say in decision making and the management of the business. If any decision goes against the interest of any partner, he can prevent the decision from being taken. In extreme cases an unsatisfied partner may withdraw from the business and can dissolve it. In such extreme cases the “partnership deed” is required. In absence of the partnership deed, no legal protection is given to the partners.

Benefits of specialization:
Since all the partners are owners of the business, they can actively participate in every aspect of business as per their specialization, knowledge and experience. If you want to start a firm to provide legal consultancy to people, then one partner may deal with civil cases, one in criminal cases, and another in labor cases and so on as per the individual specialization. Similarly, two or more doctors of different specialization may start a clinic in partnership.

Documents Required for start Partnership Firm :

• Copy of All Partner’s PAN Card, Address & Identity Proof & Residential Proof & Photographs.
• If the signing person is authorized person then his/her Name, Address, Designation & Telephone number.
• Address Proof of the proposed Office Premises. (Latest Electricity or Telephone Bills or Municipal Taxes)
• If address is rented then, Rent Agreement along with the address proof of the owner.

INFORMATION REQUIRED

• Name and address of the firm.
• Detailed Business Activities.
• Capital contribution by each partner.
• Duration.
• Profit sharing ratio among the partners.
• Routine Rights, responsibilities of each partner.
• Method of operating Bank Account.
• Time to time info sharing among partners. 
• Latest Mobile & Email ID Required.    

Time Duration

5-10 days after receipt of all the necessary Documents.

What You Get

Package 1 : Basic

• Pan card
• Partnership Deed
• GST Registration Certificate

Package 2 : Standard

• Pan card
• Partnership Deed
• GST Registartion Certificate
• MSME Registartion Certificate

Package 3 : Premium

• Pan card
• Partnership Deed
• GST Registartion Certificate
• MSME Registartion Certificate
• Trademark Receipt
• Trademark Certificate

FAQ'S

Q1.      What is a Partnership?

Partnership is an agreement between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others. A partnership can be for a fixed period of time or it may be limited to a specific project or it may be dissolved at will.

Q2.      What are the necessary elements that are required to form a partnership?

1. There must be an agreement between two or more persons.

2. The agreement must be to share the profits of the business.

3. All partners together, or any one, on behalf of the others must carry on the   business.

Q3.      What is the capital of a partnership firm?

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties.

Q4.      Is a deed of partnership necessary?

It is not compulsory for a partnership deed to be in writing. Partnerships can also be oral.

Q5.      Who can be partners?

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

Q6.      If i am partner in a firm, what are my rights?

1. To take part in the business.
2. To share the profit or loss of the business.
3. To inspect and make copies of the books of the firm.
4. To receive remuneration for taking part in the business if specified in the partnership deed.
5. To receive interest on capital if specified in the partnership deed.

Q7.      What are the duties as a partner in a firm?

1. Carry on the business.

2. be just and faithful to each partner.

3. Disclose true accounts of the firm.

4. Furnish full information of all things affecting the firm.

 Q8.      What are the limitations as a partner?

1. Submit a dispute relating to the business to arbitration.

2. Open a bank account on behalf of the firm in your own name.

3. Compromise or relinquish any claim or portion of a claim of the firm.

4. Withdraw a suit or proceeding filed on behalf of the firm.

5. Enter into partnership with an outsider on behalf of the firm.

6. Acquire or transfer immovable property belonging to the firm.

7. Admit any liability in a suit or proceeding against the firm.

Q9.      What is Partnership at will?

If a partnership deed does not provide for duration or for dissolving the partnership in any manner, it is a Partnership at will.

Q10.    What are the requirements for registration of a partnership firm?

1. Name of the partnership firm.

2. Place of business of the firm.

3. Names of any other places where the firm carries on business.

4. Date of joining of each partner.

5. Name and permanent address of the partners.

6. Duration of the firm. The statement must be signed by all partners or by their agents specially authorised in this behalf.

Q11.    Can a new partner be admitted into the partnership firm?

A partner can nominate a successor to take his place in the event of death or retirement of the partner. The mode of introducing a new partner or successor is based on provisions in the partnership deed. A new partnership deed is required once the new partner is admitted into the firm.

Q12.    Can a firm become a partner in another firm?

A partnership firm cannot become a partner of another firm because it is not a legal person. However the partners may be partners in another firm in their individual capacity.

Proprietorship Firm Registration

A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the startup phase, proprietorship's do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business. Therefore, proprietorship's are suited for unorganized, small businesses that will have a limited existence.

Proprietorship Firm Registration in many way:

1. Registration under Labour Department in State.

2. One Person Company Registration under MCA Department ( Registered as Private Limited Company)

3. GST Registration

PROCESS

·        Collection of Documents.

·        Prepare of the documents.

·        Filing of Registration Form with the Concerned Department.

·        Assistance in Opening Bank account of Proprietorship Firm.

DOCUMENTS REQUIRED FOR PROPRIETORSHIP FIRM

• Copy of PAN Card OF Proprietor.
• Address Proof OF Proprietor
• Address proof of Proposed Office Premises (Latest Electricity or Telephone Bills or Municipal Taxes)
• If address is rented then, Rent Agreement along with the address proof of the owner.
• Copy of Bank Statement of the proprietor.

INFORMATION REQUIRED FOR PROPRIETORSHIP FIRM

• Name and address of the firm.
• Detailed Business Activities.
• Number of Employees/proposed employees.
• Details of all the Employees with Designations.

Time Duration

3-4 days after receipt of all the necessary Documents.

What You Get

Certificate of Registration.

FAQ'S

Q1.      What are the requirements to be a proprietorship?

Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter.

Q2.      What are the documents required to start a Proprietorship?

PAN Card for the Proprietor along with identity and address proof is sufficient to start a Proprietorship and obtain other registration, as applicable or required.

Q3.      What is the capital required to start a proprietorship?

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

Q4.      How to open a bank account for a proprietorship?

To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor provide two forms of registration for the Proprietorship along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, shop & establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.

Q5.      Will my proprietorship firm have a separate legal identity?

No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business. Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.

Q6.      Will my proprietorship firm have a certificate or incorporation or registration ?

Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.

Q7.      How to register the name of proprietorship?

There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there are no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.

Q8.      How can I transfer my proprietorship?

A business operated by proprietorship firm cannot be transferred to another person, unlike a Limited Liability Partnership or a Private Limited Company. Only the assets in the Proprietorship can be transferred to another person through sale. Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person.

Q9.      Can I have partners in a proprietorship?

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Proprietorship firm.

Q10.   Can other peoples invest in a proprietorship?

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors

Q11.   What are the annual compliances requirements for a proprietorship?

Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Q12.   Is Audit required for a proprietorship?

It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

Q13.   Can I later convert my proprietorship into a company or LLP?

Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.