1. Joint Venture

‘Joint Venture’ (JV) means an Indian entity incorporated in accordance with the laws and regulations in India in whose capital a non-resident entity makes an investment.

For setting up a joint venture, a non-resident entity enters into a joint venture agreement with an Indian entity. The joint venture is only possible in sectors in which FDI is allowed.

Joint ventures can be set up in the form of a company or an LLP.

Investments by non-resident entities in joint ventures can be up to maximum FDI permitted in that sector.

2. Wholly Owned Subsidiary

The wholly-owned subsidiary can be set up by a foreign company that is engaged in a sector in which 100% FDI is allowed.

Wholly owned subsidiaries can only be set up in the form of a company registered under the Companies Act.

3. American Depository Receipts/Global Depository Receipts

ADRs/GDRs are issued by foreign banks in any foreign jurisdiction on the basis of underlying shares issued by an Indian company. Investment in ADRs/GDRs falls under the automatic route and does not require any approval.

4. REITs/INVITs/AIFs

REITs/INVITs are set up in the form of trusts and are registered with SEBI. They issue units to investors, whether Indian or foreign, and make investments in other companies or entities.

AIFs are investment vehicles that collect investments from investors on a private placement basis and invest them as per their schemes. Investment in AIFs is generally of a higher amount.

5. Foreign Portfolio Investment

‘Foreign Portfolio Investment’ means any investment made by a person resident outside India through capital instruments where such investment is less than ten percent of the post issue paid-up share capital on a fully diluted basis of a listed Indian company or less than ten percent of the paid-up value of each series of the capital instrument of a listed Indian company.

6. Foreign Venture Capital Investment

FVCI means an investment made through foreign venture capital investors registered with SEBI. They pool investment from foreign investors and invest them as per the SEBI regulations. So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

1) Investment in listed/unlisted companies under Foreign Direct Investment

A foreign individual can make investments in Indian companies under FDI policy up to the maximum FDI allowed in the sector in which the investee company is operating. FDI means investment in capital instruments. In the case of listed companies, FDI shall be 10% or more of the post-issue paid-up equity capital of the company.

2) Investment in LLPs under Foreign Direct Investment

LLPs can accept FDI only if they are operating in sectors in which 100% FDI under automatic route is allowed by the government.

3) Investment in partnership firms/sole proprietorships

Investments by NRIs in partnership firms/sole proprietorships can be either on a repatriable basis or on a non-repatriable basis. Investment on a repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated (sent back to their own country) out of India. Investment on a non-repatriation basis means its funds cannot be transferred back to the NRIs country of residence nor can they be converted to any foreign currency. Investment by non-residents other than NRIs can be done after taking approval of the RBI. 

4) Investment under Foreign Portfolio Investment

Investment under FPI can be done after getting registered with SEBI. FPI under SEBI regulations can be made in listed securities of a body corporate, mutual funds, CIS, derivatives traded on a recognized stock exchange, REITs, INVITs, category III AIFs, IDRs, debt securities permitted by RBI.

5) ADRs/GDRs

ADRs/GDRs are issued by foreign banks in any foreign jurisdiction on the basis of underlying shares issued by an Indian company. Investment in ADRs/GDRs falls under the automatic route and does not require any approval.

6) Foreign Venture Capital Investment

FVCI means an investment made through foreign venture capital investors registered with SEBI. They pool investment from foreign investors and invest them as per the SEBI regulations.

Investment by FVCI is done in venture capital funds, venture capital undertaking, and listed companies.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

India is a fast-growing economy with immense business opportunities. The government of India has also taken various steps to promote ease of doing business in India and also to attract foreign investments in various sectors. However, there are a number of challenges that a person needs to face to do business in India. Some of them are discussed below:

Infrastructure- Though progress has been made, India’s infrastructure of roads, railroads, airports, seaports, power grids, and telecommunications infrastructure present challenges to its growing economic status and ability to deliver public services. Massive population growth, growing urbanization, and rising incomes put pressure on the government to improve the country’s infrastructure.

Safeguarding intellectual property- It's important to understand intellectual property issues within India. Although local laws are thorough and generally compatible with EU and U.S. IP laws, there is some concern about the enforcement of these laws.

Regulatory approvals and licenses- An entity requires a large number of regulatory approvals and government licenses for doing business in India. Based on the type, an entity needs to get registered under the specific Act governing that entity. 

A vast and fragmented market- The sheer size and fragmented nature of the Indian market can also present a challenge for investors and businesses. Indian states are often compared to individual nations, given their size and diversity in language, culture, talent, and infrastructure. This creates a considerable variance in business landscapes.

Different law structures of states- The governmental framework in India is imposing hurdles in the way of effective business due to different law structures in different states. 

Ease of doing business- Though progress has been made, India still lags behind many larger nations in critical metrics such as starting a business, enforcing contracts, registering property, and getting electricity. 

Taxation systems in India- India’s tax structure is highly complex taking on average 214 hours a year to prepare and pay taxes according to the World Bank.  Laws, rules, and practices can be confusing, and foreign companies who don’t seek specialized help may overpay some taxes and underpay others. 

Trading Across Borders- Despite India opening its borders to international trade, there are still several hurdles to overcome when importing and exporting goods. 

Recruitment in India- Accessing the right skills, staff retention, and high levels of employee turnover can be a challenge in India. Employment laws in India are complex.

Risk of bribery and corruption- Companies operating or planning to invest in India face high corruption risks. India slipped from 79th to 81st position in the most recent Transparency International’s Global Corruption Perception Index.    

Dispute Resolution System- The dispute resolution system of India leads to the drainage of ample time and money and also causes mental harassment to the parties involved in the dispute.

Investment Climate of India

With regard to the foreign investments in doing business in India, investors can now invest directly in India without prior approval of the Indian Government in most sectors, but there are few sectors where prior approval is still required. Convincing the government about the usefulness of the project is still a big hurdle in foreign investments.So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

Registration of Trust

A Trust is formed when an owner of a property (trustor) transfers it to a person known as a trustee, for the benefit of a third party known as the beneficiary. There are two types of trust- Public Trust and Private Trust. Trust is governed by and registered under the Indian Trust Act, 1882.

Eligibility/Requirements of Trust Incorporation

· Minimum of two trustees.

· Forming Trust Deed.

Documents required for Trust Incorporation

1.Proof of identity of the trustors and trustees. Such documents include Aadhaar, PAN, Passport, Driving license or any other   Government-issued identity document would be required. (Self-attested copy)

2.Proof of address of the trustors and trustees. Such documents include bank statements, electricity bills, water bills, gas bills, and telephone bills. (Self-attested copy)

3.No Objection Certificate from the owner of the Address to   be used as a Registered Office address

4.In the case of leased property, the copy of the lease deed and copy of the Electricity bill   / Water bill / Gas Bill / Telephone Bill for registered office property   (should not be older than 2 months).

5.In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill for registered office property (should not be older than 2   months).

6.Trust deed on Non Judicial stamp paper.

7. Passport Sized Photograph of all the members.

Advantages of Trust

· Management continues even after the disability of the member.

· Better control over assets.

· Investment management remains uninterrupted.

· Flexibility of using funds.

Disadvantages of Trust

· High incorporation cost.

· Cash can be accessed by creditors.

· Not so responsive to changes.

· Property has to be re-registered in the name of trust which involves cost.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

Nidhi Company is incorporated with the sole object of encouraging the habit of thrift and saving among its members, receiving deposits, and also lending the same to its members only. All its transactions lie with its members only. The Company is registered under the Companies Act 2013 and managed as per RBI’s Guidelines. The capital is raised from its members only.

Eligibility/requirements for registering Nidhi Company

· Minimum of 3 directors.

· Minimum of 7 shareholders/members.

· Minimum capital requirement of Rs.5 lakhs.

· Business for the mutual benefit of members only.

· Business objective of saving and lending money.

Requirements after registration of Nidhi Company

· No. Of members must 200+at the end of 1st year.

· NOF should be Rs.10 lakh or more

· NOF to deposit ratio should not be exceeding 1:20. (i.e. NOF:Deposits = 1:20)

· Unencumbered deposits should be not less than 10 % of outstanding deposits.

Documents required to register Nidhi Company

1. Passport-sized photographs of directors.

2.Proof of identity of all the shareholders and directors.   Such documents include Passport, Driving license, Voter Id (Self-attested copy)

3.

Proof of address of all the directors and the shareholders. Such documents include bank statements, electricity bill, water   bill, gas bill and telephone (should not be older than 2 months) (Self-attested copy)

4. · No   Objection Certificate from the owner of the Address to be used as a   Registered Office address.

· In the case of leased property, the copy of the lease deed and copy of the Electricity bill / Water bill / Gas Bill / Telephone Bill (should not be older than 2 months) for   registered office property.

· In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill (should not be older than 2   months) for registered office property.

5. Indian nationals are mandatorily required to provide an attested copy of PAN

6. Foreign nationals must submit attested passport copies.

7. Memorandum of Association (MOA) and Articles of association (AOA)

Advantages of Nidhi Company

· Limited liability of members.

· More credible.

· Access to public funds is permitted.

· Ease of registering and processing the business.

· Limited RBI Regulations

Disadvantages of Nidhi Company

· Cannot issue shares and debentures.

· Cannot accept deposits from the Public.

· Filing of annual financial statements is compulsory.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

A producer company is formed by primary goods producers for mutual benefits from the production done in the company. This company also accepts deposits from its members and provides them loans. It is registered under and governed by the Companies Act, 2013.

Eligibility/Requirements for opening a Producer Company

· Minimum of 10 members who are producers (individual).

· Or, Minimum of 2 institutions as members who are involved in production activity.

· Minimum capital of Rs.5 lakh.

· Minimum 5 persons to be acting as directors.

Documents required for registration of Producer Company

1. Proof of identity of all the members and directors. Such documents include   Passport, Driving license, Voter Id (Self-attested copy)

2.Proof of address of all the directors and members. Such documents include bank   statements, electricity bill, water bill, gas bill, and telephone (should not   be older than 2 months) (Self-attested copy)

3. Indian   nationals are mandatorily required to provide an attested copy of PAN

4. Foreign nationals must submit attested passport copies.

5. · No   Objection Certificate from the owner of the Address to be used as a Registered Office address.

· In the case of leased property, the copy of the lease deed and copy of Electricity bill / Water bill / Gas Bill / Telephone Bill (should not be older than 2 months) for registered office property.

· In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill (should not be older than 2   months) for registered office property.

Advantages of Producer Company

· Members receive bonus shares.

· Members receives patronage bonus out of surplus income.

· Certain tax benefits are available subject to the company’s agricultural activities.

· Members can get the credit facility easily.

Disadvantages of Producer Company

· Lack of capital available.

· Less competitive ability of members leads to lack of efficiency in running a business.

· Transparency of business leads to a lack of secrecy.

· Extreme government regulations.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

HUF business is done by joint families in India where they pool resources from ancestral property. It is headed by Karta of the family who is generally the oldest male member of the family.

Eligibility/Requirements for registration of HUF

· Presence of Joint family.

· Hindus, Buddhists, Jain’s, and Sikhs can form Hindu Undivided Family.

· Presence of ancestral property.

Documents required for registration of HUF

1. PAN of   the Karta

2. Driving   License/Passport/Voter ID

3. Electricity   Bill or any other utility bill for the address proof

4. HUF deed

Advantages of HUF

· Tax benefits.

· Minor can be a member.

· It is recognized in the whole of India except Kerala.

Disadvantages of HUF

· Dissolution on the partition of family.

· All members have equal rights irrespective of anything.

· Any addition to family becomes a member.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

NBFC are those companies that provide various financial and non-financial services. NBFC is a Private or Public Limited Company registered under the Companies Act, 2013, and also has to obtain a Certificate of Registration from RBI. They work differently from commercial banks and cooperatives and do not need to hold a banking license.

Eligibility/Requirements for registering NBFC

· Good credit stores with no defaults.

· Minimum Net Owned Fund (NOF) of Rs.2 crores.

· Business plan for next five years.

· 1/3rd of the total number of directors must possess finance experience

· Registration is compulsory.

· If foreign investment involved, then the company must comply with FEMA Act.

Documents required for registration of NBFC

1. Proof of identity of all the shareholders and directors. Such documents include   Passport, Driving license, Voter Id (Self   attested copy)

2. Proof of address of all the directors and the shareholders. Such documents include   bank statements, electricity bill, water bill, gas bill and telephone (should   not be older than 2 months) (Self-attested copy)

3. Certificate   of Incorporation, MOA, and AOA of the company

4. Proof of address of the company.

5. Company’s GST number and PAN card copy.

6. Net worth certificate of Directors Shareholders and company.

7. Educational qualification proof of Directors.

8. Resolution from the company’s member of the Board for approval of its formation.

9. Bank account details of the company with NOF deposited in it and well audited for the last 3 years.

10. Report from the bank with no lien remark on the initial NOF.

11. Organizational structure's plan and Information Technology Policy of the company.

Advantages of NBFC

· Largest source of ushering finance into the country.

· It can underwrite stocks and shares.

· It can do wealth management activities.

· It can provide loans and credit facilities.

· Easy recovery of the loan.

Disadvantages of NBFC

· It cannot accept demand deposits.

· It is having a stringent regulative mechanism.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

A society is a business done to serve society by a group of members and not to earn profits. It is registered as a legal entity under The Societies Registration Act, 1860. It is generally formed for charitable activities.

Eligibility/Registration for registration of HUF

· The objective shall be legal and for charitable, scientific, and literary purposes.

· Minimum of 7 members.

Documents required for registration of Society

1.· No   Objection Certificate from the owner of the Address to be used as a Registered Office address.

· In the case of leased property, the copy of the lease deed and copy of Electricity bill / Water bill / Gas Bill / Telephone Bill (should not be older than 2 months) for registered office property.

· In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill (should not be older than 2   months) for registered office property.

2. Proof of identity of all the members. Such documents include Aadhaar, Passport,   Driving license or any other Government-issued identity document would be required. (Self-attested copy)

3. Proof of address of all the members.   Such documents include bank statements, electricity bill, water bill, gas bill, and telephone (should not be older than 2 months) (Self-attested copy)

4. PAN of all the members.

5. Affidavit no. 1 for NOC of registered office and its ownership.

6. Affidavit no. 2 for the name of the society and members not being related to each other.

7. MOA

Process of registration of HUF

It includes-

1.  Selection of name.

2. Creation of MoA and signing MoA by all members after required document submission.

Advantages of Society

· Having contractual rights being a separate legal entity.

· Exempted from income tax.

· Limited liability of members.

· Having secured assets.

Disadvantages of Society

· Transparency leads to a lack of secrecy.

· Undue government interventions.

So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker

Section 2 (62) of the Companies Act, 2013 defines “One Person Company means a company which has only one person as a member. The One Person Company is an advancement of sole proprietorship form of business. There is only one person who acts as a promoter and director who have full control over the company. It is registered under the provision of the Ministry of Corporate Affairs (MCA).

Eligibility/Requirements for registering One Person Company

· Only a natural person who is an Indian Citizen whether a resident of India or not is eligible. So NRI’s are also eligible to incorporate OPC’s.

· Any company or LLP or business with financial activities cannot register an OPC.

· A natural person shall not be a member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company

· Nominee (a natural person who is an Indian Citizen whether a resident of India or not) must be appointed during registration.

Documents required for registering a One Person Company.

1. Proof of identity of the shareholder. Such documents include a Passport /Driving license / Voter   ID Card.

2. Proof of address of the shareholder. Such documents include bank statements /electricity bill /gas bill/telephone bill.

3. Memorandum of Association (MOA) and Articles of association (AOA).

4. Passport   size photograph of Shareholder

5. Consent   of the Nominee of the OPC in INC 3

6.No Objection Certificate from the owner of the Address to be used as a Registered Office address.

7. In the case of leased property, the copy of lease deed and copy of Electricity bill / Water bill / Gas Bill / Telephone Bill for registered office property.

8. In case of owned property, copy of sale deed and copy of  Electricity bill / Water bill /Gas Bill / Telephone Bill for registered office property.    

Advantages of One Person Company

· Less compliances to be maintained.

· Status of separate legal entity.

· Perpetual existence.

· Great opportunity for small business to expand.

· Having contractual rights.

· Full Control over the Company with a Single Owner

· Easy to raise funds and loans

· NRI’s can also incorporate OPC

· OPC can be converted into Private Limited Company / Public Limited Company by following the provision of Companies (Incorporation) Rules, 2014 and Private Limited Company can be converted into OPC by following the provision of Companies (Incorporation) Rules without meeting any of the criteria’s as to paid-up share capital beyond 50 lakh rupees and average annual turnover during the relevant period exceeds 2 crores.

· The requirement of compulsory conversion on exceeding the specified turnover or paid-up capital is done away with and now the One Person Company can grow without any restriction.

Drawbacks of One Person Company

· A foreign national, minor, or any corporate entity cannot participate in One Person Company.

· OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates. So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

We are Listed on the Below mentioned Platforms, you may subscribe to anyone to get instant updates :

Listen on Spotify  | Apple Podcasts | Google Podcasts | Castbox | Radio Public | Pocket Casts | Overcast  | Breaker