Case Studies
Attention - Partnership Firms!!
The Partnership is a form of legal entity that can be formed under the Partnership Act, 1932. As per the Partnership Act, 1932 “Partnership is the relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all”. The formation of partnership can be either oral or written.
If the formation of partnership is in written form, a partnership deed is created. A Partnership deed, also called a partnership agreement, is a legal document which deals with the matters pertaining to the duties, liabilities and mutual rights of the partners.
Partnership deed is mandatory, if the firm wants to be legally recognized under various acts like Income Tax Act etc.. Preparation of a Partnership deed is advisable in order to establish the existence of partnership. Partnership deed will contain the name of the partnership firm, name and address of the partners, date of commencement of partnership etc..
With respect to the above, we encountered a recent case, details of which are summarized below:
Client:
Confidential
Situation:
One of our clients, who initially started the partnership form of business with an oral agreement and a year later made a written agreement (i.e. a partnership deed was created). A partnership deed is to be executed on a stamp paper of the appropriate value.. In the partnership deed the date of commencement of partnership firm was given as a prior date, as opposed to the date of creation of partnership deed.
Later on, the client applied for PF registration for his partnership firm for which he was asked to furnish the partnership deed as documentary evidence. The PF department rejected the application by stating the partnership deed is a void document. It was in this situation when the client approached us for help
We explained the client that the partnership deed was declared as a void document since the date mentioned as date of commencement in the partnership deed was a date prior to the date of creation of partnership deed (date of stamp paper). Since the deed evidences the existence of a partnership firm, it is legally void for the deed to be dated after the commencement of the partnership firm.. The very existence of the partnership firm was held under question
Conclusion:
It is always advisable to prepare a partnership deed at the time of commencing the partnership firm and it is also better to register the firm with the Registrar of Firms in order to avoid such complications at future dates.. Any kind of a statutory registration would require a valid partnership agreement apart from the assessment of Income Tax and other tax liabilities..
For any assistance in preparation of partnership deed and registration of partnership firms, please do contact us at info@cogzidel.in
Registration-cum-Membership Certificate (RCMC)
According to the Foreign Trade Policy, a Registration-cum-Membership Certificate (RCMC) is required for exporters in order to avail benefits under the policy. Holding the certificate can also help exporters in availing benefits with respect to Customs and Excise. This certificate can be obtained from the Federation of Indian Export Organisations (FIEO) which has been recognized as an Export Promotion Council (EPC) for the purpose of RCMC issuance
Effects Of Improper Accounting
We, at Cogzidel have always been stressing on the importance of accounting for startups and small enterprises. Entrepreneurs, in the beginning, tend to concentrate on growing and stabilizing their businesses and they in turn give lesser importance to following a proper accounting system. Despite the fact that most of them maintain a track of their expenses, income, receivable and payables, unless a system of proper accounting is followed, it is very difficult to ascertain whether the business is progressing in the right direction or not
Protect your brand name!! Trademark it before someone else does it!!
Many of us would have come across articles on trademark infringement. We recently heard from one of our clients that he had to forego his brand name that was established a couple of decades ago, just because someone else had it registered as a trademark.
Professional Tax Registration
Client:
Confidential
Situation:
We were approached by two companies for Professional Tax Registration.
Magazine Registration
Client:
Confidential
Situation:
The Client approached us (after reading the blog on our website with respect to Magazine Registration) for registering their magazine.
Difficulties handled in PF and ESI Registration for a manpower contractor
Client:
The Client is a contractor who supplies manpower to large corporations in the construction industry in Tamilnadu.
Situation:
The workers he was supplying on contract were from outside Tamilnadu. Most of the principal employers prefer to employ contract labour from contractors who are registered under the PF and ESI Acts.
Problem faced while remitting the filing fee to bank for the credit of Government Account
Confidential
Situation:
- One of our clients wanted to increase the Authorised Share Capital of their company.
- Cogzidel prepared all the relevant documents and uploaded the respective form online on the web site of Ministry of Corporate Affairs.
Unable to take a loan? No worries, you already have your own monies:
Confidential
Situation:
One of our clients works as a director of a multi-national company. He has been in the industry for more than Ten years and has been a successful entrepreneur.
Foreigner's Registration & PAN Application challenges
Confidential.
Situation:
Recently, one of our clients (British National) came to India on Employment Visa. He had to register for a Foreigner License with Foreigners Regional Registration Office (FRRO) within 14 days.
Notice from Employee State Insurance Office and how it was solved
Client:
It is an in-house issue.
Situation:
We got a letter from ESI Chennai office that we have not remitted monthly ESI contribution from June 2009 to September 2009. ESI officials made their own calculation and asked us to remit the amount specified by them.
Electricity Board meter fault – you are the loser !!
Client:
It is an in-house issue
This article explains how the administration department of an organisation has to be careful in monitoring the electricity consumption and what will be the consequence if carelessness happens – be it deliberate or ignorance.
Payment issue on PAN Application
Situation:
We applied for Income Tax Permanent Account Number (PAN) for Client Name online through NSDL website. After thorough scrutiny, we filled in all the relevant details and opted for payment through credit card since it makes the process easy.
Problem faced with Registrar of Companies
Cogizu Media Solutions Pvt. Ltd.
Situation:
We applied for the availability of proposed name for Cogizu Media Solutions P Ltd. Their core area of business is on Web Design, Web Development and Web 2.0 services. The Registrar rejected the application citing the postfix name "Media Solutions" doesn't match with the services offered by the company.
