Operate in the food business with Food License

A food license is one of the keys and mandatory registrations that need to be procured by all kinds of food business operator (FBO) in India. An FBO is defined as any kind of public or private business entity that is involved in any stage of manufacturing, packaging, processing, storing, transporting, distributing, importing, selling of food services or raw materials, marketing, retailing etc.s

Why Food License?

FSSAI (Food Safety and Standards Authority of India) is the apex body that certifies an entity with the Food safety license. The FSSAI was set up in accordance with the Food Safety and Standards Act, 2006. The primary objective of the organization is to ensure the availability of safe and wholesome food that is meant for consumption by human beings. The license is also an effective method to make FBOs accountable and responsible for the food quality. Other than safety, the FSSAI also is entrusted with the task of overseeing that sub-standard food is not sold in the country and that all articles of food available for consumption are free from adulteration.

The penalty of operating any of the above-mentioned business without the food license is enough to attract punishment including imprisonment of up to six months and payment of fine up to Rs. 10 lakh.

Types of FSSAI Food License

Depending upon the annual turnover of the business entity and/or size of the operations of the entity, the following types of license are given:-

1.    Central license – EOUs, all importers, entities with an annual turnover of more than Rs. 20 crores, FBOs with operations in more than one state, manufacturers with large-scale operations, for example, a meat processing unit with more than 500 kg meat every day or 150 MT per annum.

2.    State license – is applicable for a business that has annual turnover more than Rs. 12 lakh but less than Rs. 20 crore, medium-sized manufacturing units like a meat processing unit with a capacity to process up to 500 kg meat every day or 150 MT per annum.

3.    FSSAI registration is meant for smaller scale business that has less than Rs. 12 lakh turnover in a year. For example, a slaughtering house that slaughters 2 or less than 2 large animals or 10 or less than 10 small animals or up to 50 poultry birds every day are eligible for the basic registration.

4.    Railway license applicable for Konkan Railways

All the above types of FSSAI license have a maximum validity of five years and minimum validity of one year.

Procedure for obtaining Food Safety License in India

1.    In order to apply for the Central food safety license and the state food license Form, B needs to be filled up. For the basic FSSAI registration, Form-A needs to be filed.

2.    In order to obtain the basic registration and state license, the food license application needs to be made to the regional FSSAI office of the state government where the operation is based. The Central license needs to be obtained from the central government.

3.    The documents that are required differ for all the three types. The common documents required are –

·         Detailed list of partners, promoters, members with contact details

·         List of equipment and machinery, the capacity and the horsepower being used.

·         Government Identity and address proof of the directors, proprietors, partners

·         A complete list of all food categories being manufactured

·         Ownership proof of the premises.

·         Rental agreement and NOC from the owner in case of rented property.

·         Utility bills

·         Certificate of Incorporation, Memorandum and Articles of Association, Partnership Deed.

For Food license online, the FBO needs to register at the Food Licensing & Registration System (FLRS). After registration, the operator needs to log in, fill up the requisite Form online, upload the documents required and make the payment.

The concerned authorities will review all documents and the application form. If satisfied the relevant license is issued. The FSSAI license is a 14-digit number that needs to be printed on the packaging at all times.

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Get NBFC Registration in India Expert help

Non-Banking Financial Companies (NBFC) are primarily companies that are involved in financial activities like giving loans, providing advances, some NBFC’s can receive deposits, acquiring of stocks and shares, lease, hire-purchase, insurance business and chit business. Though an NBFC and a bank appear similar, there are few notable differences between the two –

·         An NBFC cannot issue cheques on itself

·         An NBFC is not covered under facilities like Deposit Insurance and Credit Guarantee Corporation.

·         An NBFC cannot function as a normal bank in terms of accepting demand deposits.

The Reserve Bank of India has complete jurisdiction over NBFC’s in India. Hence it is mandatory for an NBFC to acquire the NBFC registration or RBI license before the start of operations except for ones that are regulated by other bodies like the National Housing Bank, Insurance Regulatory and Development Authority of India, Securities, and Exchange Board of India, MCA or state governments.

NBFC Registration procedure            

In order to obtain NBFC registration from RBI, the company needs to fulfill certain criteria:-

·         The said NBFC needs to be mandatorily registered with the Ministry of Corporate Affairs as a private limited company or a public limited company, under the Companies Act 2013.

·         The minimum net owned fund of the company needs to be Rs. 200 lakh (2 crores)

·         One of the full-time directors of the said company needs to be from NBFC or banking background

·         The CBIL records of Directors need to be absolutely clean.

·         The principal business of the company needs to be a financial activity which means that the financial assets of the company are more than 50% of the total assets of the company and the income so derived from these assets should be more than 50% of the total income of the company.

NBFC Registration process constitutes of the following key steps:-

a.    The process starts with the approval of the company name from MCA. Post name approval, the NBFC needs to be registered with the Registrar of Companies. The Memorandum of Association and Articles of Association need to be drawn up before Incorporation. The object of the NBFC needs to be clearly mentioned in INC-1 as financing.

b.    The newly formed NBFC now is required to open a company bank account and the subscription amount needs to be deposited in the new account.

c.    To meet the criteria of Rs. 2 crores as net owned funds, the newly formed NBFC attain this amount by issuing shares to existing shareholders or new shareholders.

d.    The net owned fund of Rs. 2 crores once achieved needs to be deposited with the bank as a fixed deposit.

e.    An application form in the prescribed format needs to be now submitted online at RBI Website (COSMOS) or offline at the regional office of RBI. For applicants applying online, the hardcopy of the application form along with the required documents needs to be submitted at the regional office of RBI.

f.     The documents that need to be submitted are:-

·         Copies of the Incorporation certificate

·         Copies of Memorandum and Articles of Association highlighting the principle business clause.

·         Individual director profiles

·         PAN card copy of the NBFC

·         The fixed deposit certificate and bankers certificate copies

·         Banker’s report

·         Board resolution to the effect of the authorized signatory; absence of public deposit; no NBFC activity is being carried out; formulation of the code of Fair Practises.

·         Statutory auditors certification with respect to the NBFC not holding public deposit; not carrying out NBFC operations and confirming Net owned funds;

·         Complete details of the bank and company account

·         Audited balance sheet and P&L statement of last three years or for period available.

·         Detailed information on the Management

The requisite NBFC registration fee also needs to be deposited online for processing of the application. All the above documents and other related documents are scrutinized closely by RBI before the NBFC registration or RBI license is granted.

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Process for changing a Company Name

After company registration and during the course of business the members can decide to change the legal name of the Company due to many reasons. In this article, we are going to discuss in detail what could be a reason for such change in name of the company and are the procedure defined for implementing such change under Companies Act, 2013.

Reasons to Change Company Name

There can be various factors influencing the decision to change the company name.  We have listed out a few possible factors which can be a reason behind the decision of changing the name of the organization:

1.     Change in Business activity

If you are planning to change the main objects of your company entirely or even adding a different business vertical you can decide to change the company name. This change can be done with a view to making sure that the name is in reference to the new or changed the main objects of the organization.

2.     Name is outdated

If your company has been in operation from a number of years and you feel that the name with which it is operating is outdated then you can change the name of the organization after discussion among all the members. This is done in cases where the name either does not have a recall value or is old fashioned.

3.     Change in ownership

If there is any kind of changes happening in the ownership of the organization as a result of the transfer of business then it can also lead to a change in company name. The new owners can choose a name more preferred by them.

4.     Acquisition, Merger or Takeover

Apart from the above-mentioned reasons the change in company name can also happen as a result of acquisition, merger or takeover of the business.

Company Name Change Procedure

In order to change the name of a company following steps are required to be followed by the company:

STEP 1: Pass Board resolution

The very step is to conduct a board meeting and pass a BR to appoint an authorized representative for filing an application with MCA for name availability and also to issue notice for conducting an EGM for change company name.

STEP 2: File Name reservation Application

The second step is to apply for name reservation through Reserve Unique Name facility available on the MCA portal. You have an option to apply with a maximum of two names. While filing RUN chooses the name change option and enters your Corporate Identification Number (CIN). After verification, the authorities will approve a name and issue name allotment letter

STEP 3: Pass Special Resolution

Call an Extraordinary General Meeting (EGM) to discuss the issue of the company’s name change and incorporating such changes in AOA and MOA of the company. After discussion passes a Special Resolution of the effect.

STEP 4: File MGT-14

MGT-14 is required to be filed within 30 days of passing special Resolution. Following documents must be submitted as attachments:

·         Copy of notice of EGM along with explanatory statement

·         certified Copy of special Resolution

·         Altered copies of AOA and MOA

STEP 5: File e-Form INC-24

Once MGT-14 is approved by the authorities the next step is to apply for central Government approval for the same. As central government approval is essential for changing the name of an already registered company. For this purpose, an application is required to be filed in e-Form INC-24 (Application for approval of Central Government for a change of name). This form is required to be submitted along with the applicable fees of Rs. 2500/-. Information relating to the Extraordinary General Meeting along with reasons of this name change is to be mentioned in the e-Form INC-24.

STEP 6: Issuance of Amended COI

After proper analysis of the documents if the registrar is satisfied with the reasons for such a change in company name, then a fresh Certificate of Incorporation is issued to the applicant. With this, the change in the company name is completed.

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Sole proprietorship registration How with Expert Help

Sole proprietorship:

A sole proprietorship is a single person firm registration. The owner is inseparable from the sole proprietorship which makes him liable for any business debts. Technically speaking although it is not a legal entity the setup, still, it is the universally accepted format. There is no formal requirement of the Sole proprietorship registration in India.

The owner is not required to pay the income tax separately for the company. The income is basically reported as the business income or losses by the owner in his /her individual income tax return.

However technically although you are not required to submit any sort of official paperwork for sole proprietorship registration, still to do business on ground level and depending on your state, county, or city, you may require rather have to obtain certain business license or permit, the kind of license or permit to be obtained will depend on the type of business you run. 

Before you establish your business by sole proprietorship registration, do browse about the following:

1.      Do not forget to inquire with your state secretary of state to know about the rules in your location for sole proprietorship registration,

2.      Be aware of different terms given and used in that state where you are willing to establish your business, as certain states use different terms for this department.

3.      You might also require to check with the business division or another similar department to see if the type of business you want to form is operating there or not?

4.      Understand this that all states do allow corporations, partnerships, but with some variations on these basic business types.

Procedure for sole proprietorship Registration:

1.      To start a business via sole proprietorship registration is the easiest form of business, only for the sake of necessity required to run a business certain registration are required to obtain as given below:

2.      Decide your business name and if needed go for DBA

3.      Open a business current account to facilitate the transaction, this constitutes very important part of the  sole proprietorship registration.

4.      To form a platform, it is advised to open a website, and

5.      Yes, finally hold on for some customers after Sole proprietorship registration.

The status of the sole proprietorship registration can be checked online at the MCA portal. 

Legal Regulations after a sole proprietorship registration:

Taxes

All the revenues earned by the sole proprietorship is considered as the personal income, and personal taxes are to be paid under self-employment taxes and estimated taxes.  

Accounts

No legal filing requirement is imposed on sole proprietorship; still it is strongly recommended that after sole proprietorship registration one must definitely get the accounts properly maintained for traceability and better accountability.

Audits for a sole proprietorship in India

Audits for LLP are not mandatory, but we suggest you conduct your own internal audits, so as to know your defaults and loopholes if any.

MSME registration for sole proprietorship in India

Again it is not compulsory to register as an MSME; however, in your own interest, it is highly beneficial. The various scheme launched by the government for SMEs, and one can avail its benefits when MSME registraion is done.

Shop and Establishment Act License for Sole proprietorship in India

This license is to be obtained in accordance with the local laws. It is issued by the municipal party.

The business license apart from a sole proprietorship registration

On the basis of the type of business certain state or local permits and/or licenses are required to be obtained to operate your business via sole proprietorship registration.

DBA’s for a sole proprietorship in India

While proceeding fro sole proprietorship registration , sole proprietorship name is quite important and  in case is not in your own name in such cases, you require to obtain DBA.DBA form is required to be filled in such cases. However, not all states require DBA or “fictitious name” forms in that case.

Keep in mind about the following:

1.      Do avail the business license as applicable in your locality after Sole proprietorship registration.

2.      Apply to the state for applicable sales tax permits and pay property tax on any real property (land and buildings) of yours.

3.      Collect and pay the GST on taxable goods and services sold.

4.      If your sole proprietorship employs certain employees pay employment taxes. 

Source url - https://swaritadvisorsindia.wordpress.com/2018/10/17/sole-proprietorship-registration-how-with-expert-help/

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Know All About Producer Company Registration In India

Producer Company is a legal entity which includes agricultural produce, forest produce and where members are primary producers. Producer company registration comes under the Companies Act, 2013. It was enacted in 2003 under the Section IX-A of Indian Companies Ac, 1956. Producer Company can be created by 2 or more producer institutions, or 10 or more producers (those who are involved in farming activities). It possess only equity capital and requires minimum 5 directors & an authorized capital of Rs. 5 Lakh only. The procedure for the Producer Company Registration is very much similar to that of a private limited company.

What are the Documents Required for Producer Company Registration?

·         KYC of directors & Shareholders of the Producer Company.

·         Scanned copy of PAN card or passport,

·         Voter ID’s scanned copy,

·         Latest bank statement scanned copy,

·         Passport sized photograph,

·         Specimen signature (directors only).

Know the Basic Type of the Producer Company Registration?

·         When a business is involved in the manufacture, procurement, or production of the primary produce for its members for further sale, comes under the category of Producer Company.

·         If a business is simply involved in the promotion or marketing of primary produce or in the provision of educational services to its members or others comes under the category of Marketing Businesses Producer Company.

·         Any business which offers technical assistance to the farmers, producers, training providers, or educational service providers or conducting research and development in terms of agriculture can register as a Technical Service Businesses Producer Company.

·         Any company who is involved in the financial producer activities for the production, marketing, and development, of primary produce can register itself as Financial Businesses Producer Company.

·         Those businesses who are involved in providing infrastructure to producers either in the form of water resources, electricity, irrigation techniques, land utilization or consultation regarding the same may register them as Infrastructure Service Businesses Producer Company.

What is the Share Capital & Voting Rights in Producer Company?

The share capital of the producer company contains equity shares only. The minimum required paid-up share capital is Rs 5 lakhs only. The equity of members is not allowed to be traded publically but can be transferred.

When the membership is of only individuals then the voting rights will be based upon the single vote for every member. And when the membership is only of the producers then the voting rights will be based upon their participation only.

The process of Producer Company registration is tedious and time-consuming. You may take assistance from Swarit Advisors to start your own Producer Company. Once you reach us through our phone number or email, our experts will surely assist you with step-by-step solutions and guidance. So, what are you waiting for, make a call to us, we will prove to be one stop solution to us.

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Basic Requirements to Apply for Private Limited Company Registration In India

There are many reasons that influence the choice of the type of the business one is planning to register in India. The size and nature of the business, scale, fund raising must be taken into account while choosing the type of the business entity. Have a look at the basic requirements that you must be aware of for applying for the private limited company registration in India. People hire specialists for the online registration procedure in order to avoid technical hurdles. You may anytime get in touch with us at Swarit Advisors.

1. At least two investors or shareholders are required to consolidate a Private Limited Company in India. The investors can either be a Foreign individual or from foreign country.
2. Minimum of two directors are required out of which, one ought to be an occupant in India. Take a note of the prerequisite which says that the individual must be of Indian resident, which implies that an outside national who is an Indian inhabitant is eligible. Indian Resident means any individual who has remained in India for over 182 days in the past year.
3. Foreign Investment ought to be permitted in that Industry.

Documents that are required to Register a Private Limited Company

In the case that you need to enlist an entirely claimed subsidiary, at that point we require the holding organization’s documents.

• Foreign Company Documents:-

The registration certificate of the foreign company,

The Board resolution authorizes the foreign company to invest in India,

Memorandum & Articles of the foreign company,

• Foreign Director:-

Passport, Utility Bill and the Driving License with the passport size photographs of each director is required. And all these documents must be self-attested.

• Indian Resident Director:-

For Indian resident directors the copies of the Pan Card, ID Proof such as driving license or voter id, or Passport is required and address proof as well such as telephone bill or the bank statement.

• Documents for the registered office:-

Address proof of the place of the business such as electricity bill or water bill,

No objection letter from the property owner of the office,

Source by: https://swaritadvisorsindia.wordpress.com/2018/10/06/basic-requirements-to-apply-for-private-limited-company-registration-in-india/

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