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JKG Corporate Consultants LLP specializes in solving the complexities of corporate laws and company secretarial practice. We act as consultant to many companies dealing with all day-to-day corporate compliance matters and advising directors on their legal responsibilities. We act as consultant to many other companies applying our technical skills and expertise as and when they are required. In addition, most companies will, from time to time, be involved in more complex changes such as amendments to the Articles of Association, re-registrations, purchase of own shares, acquisitions or disposals etc. We handle all company secretarial matters whether routine or complex. Apart from the secretarial we offer the following services also:

  • Preparation of Powers of Attorney, Resolutions, Professional services contracts, Letters of wishes, Wills, etc.
  • Our Delhi office offers registered office and address for overseas companies
  • Assistance for the opening of bank accounts in major financial centers.
  • International courier services.
  • Document management and custody.
  • Trusts and Foundations. We prepare the trust deeds and regulations in compliance with trust and foundation legislation in the jurisdiction of choice.
  • One man operation professional secretariat support.
  • We will ensure that all your documents are properly maintained and in compliance with international requirements.
  • Management Consultancy
  • Wealth Management
  • Corporate Compliance Management
  • Liaison with Lead Manager, SEBI, Stock Exchange, Registrar of Companies, Reserve Bank of India Ministry of Corporate Affairs and other Government authorities.
  • Liaison and interaction with Company Advocates, Solicitors and Legal Consultants.
  • Preparation, Execution and Registration of all Legal documents.
  • Preparation, Execution and Registration of all Legal documents.
  • Dealing with matters related to Company Law, Central Excise, Customs, Consumer Protection, Mercantile, Property, other Civil and Economic Laws.
  • Expert advice on primary & Secondary Stock Market and share trading
  • We also offer family office services. 

 

We will ensure the proper governance of law and that each procedure is carried out properly and correctly. Allow JKG Corporate Consultants to take your burden. Please contact us for further details.

Start Up Companies Registration Service

The term ‘start-up’ or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 2013) or the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.”

As per the Notification of Department for Promotion of Industry and  Internal Trade

Any entity will be considered to be a start-up only when:

  • It is incorporated as a Private Limited company under the Companies Act, 2013, or 
  • it is registered as a Partnership Firm under the Partnership Act, or 
  • it is registered as a Limited Liability Partnership under the Limited Liability Partnership Act

Additionally, it should meet the following conditions:

  • It should not have exceeded operations for over 10 years from its date of incorporation to be counted as a startup. 
  • Turnover of the entity for any of the financial years since incorporation/registration has not exceeded 100 crore Rupees. 
  • The startup should not have been formed by either splitting up or by reconstructing an already existing business. 
  • The company should have a scalable business model through which it aims to create wealth and employment and should work towards the development/ improvement of a product, process or service.

An entity shall cease to be a start up on completion of ten years from the date of incorporation/registration or in case its turnover for any previous year exceeds Rs. 100 Crore Rupees.

TAX EXEMPTIONS AVAILABLE FOR A STARTUP COMPANY

Section Exemption
Section 80-IAC Exemption on profits: Startups can avail exemption from paying Income Tax for three consecutive years out of the first ten years since its incorporation if it manages to satisfy certain conditions.As per the provisions of this Section Eligible startup can claim up to 100% of profits and gains for 3 consecutive years in a block of 10 years provided the turnover of the company does not exceed 100 crores in any of the previous financial years.
Section 56 (2)(viib) Angel tax benefit: Eligible startups can also avail income tax exemption for the issue of shares that exceed their face value.A start up will be eligible for this benefit if it fulfills the following conditions:

(i) it has been recognised by DPIIT

(ii) aggregate amount of paid up share capital and share premium of start up after issue or proposed issue of share, if any, does not exceed Rs. 25 crores.
Section 54 EE Exemptions for tax on Long term Capital Gains: An eligible company can claim exemption on long-term capital gains under if such amount or part thereof is invested in a fund notified by the central government within a period of 6 months from the date of transfer of assets.

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance thoroughly before carrying out the Start up Process].

FEMA Registration and Consultancy

Foreign Exchange Management Act, 1999 (FEMA) is the legislation which has been entrusted with the governance of foreign currency in India. The major objective of FEMA is to regulate external trade, balance the payments, encourage the orderly development, and maintain or regulate the foreign exchange market in India.

In simple words, we can say that FEMA regulates or act as a watchdog for all the transactions involving foreign exchange.

Foreign Exchange Management Act, 1999 regulates the foreign exchange market by enforcing restrictions and monitoring the transactions involving payments made/received to a person by any person outside India, forex, investments in foreign securities, etc. are some transactions which could be completed only after obtaining approval by the Reserve Bank of India under permitted route. The Reserve Bank of India (RBI) is the primary regulator for FEMA related matters. The ‘Enforcement Directorate’ (ED) is the enforcing authority along with RBI.

It is compulsory for each person to obtain registration by the person who is entering into any arrangement related to foreign exchange and failing to comply with FEMA requirements shall be an “offence” under FEMA provisions and shall invite penalties and prosecutions.

We, JKG Corporate Consultants LLP, offer a wide range of services related to FEMA compliances. Some of them are listed below:

  • Consultancy in relation to transactions involving Foreign Exchange.
  • Filing of Intimations and Reports to Reserve Bank of India.
  • Retainership services and consultancy on routine matters which requires interpretation of Foreign Exchange Management Act, Rules, Regulations, Master Circulars and other allied acts.
  • Assistance in obtaining approval from the Authorities.
  • Representation before Auhtorities.
  • Filing of various forms such as FCGPR, FCTRS etc.
  • Consultancy related to External Commercial Borrowings and assistance in periodical compliance of ECB
  • Advisory and Compliance related to FDI, Export, Import etc.
  • Preparation of statutory registers and records for foreign exchange transactions

Nominee Service

JKG Corporate Consultants LLP offers a network of Nominee Directors, Founders, Secretaries, and more to satisfy your needs for extreme confidentiality and when necessary, anonymity. Personal and professional directorships are available. Independent directorship is available and we are always ready to share the burden of all Company Secretarial compliances with you. Please contact us for our schedule of fees. Fees may vary depending on the level of responsibility, services required, transactions, and if personal appearances are required.

Due Deligence Service

Due diligence refers to the process of research and analysis that is done before an acquisition, investment, business partnership or bank loan in order to determine the value of the subject of the due diligence or whether there are any major issues or potential issues. It is a kind of investigation and enquiry which the person needs to consider before entering into some form of contract or agreement. Due diligence is carried out as a procedure where one party conducts a detailed investigation into the affairs of the business.

In the Banking sector the Diligence Report plays a vital role. With the passage of time it was observed that the relaxations meant for providing flexibility to the borrowing community also have contributed to various types of frauds, the incidence of frauds mainly to the lack of effective sharing of information about the credit history and the conduct of account of the borrowers among various banks. Accordingly, RBI has made it mandatory for the Banks to obtain regular certification of Diligence Report from a professional.

The purpose for which due diligence has been carried out may vary for everyone, depending on the specific object they want to enquire. There are various types of due diligence such as Tax Diligence, Financial Due Diligence, Legal & Compliance Due Diligence etc.

We can provide complete, consistent, high-quality services, solutions and insights while conducting due diligences with the sole objective to generate valuable and trustworthy due diligence reports for our clients.

INSOLVENCY AND BANKRUPTCY

The laws relating to insolvency and bankruptcy in the earlier centuries were framed for penalizing the defaulting debtors. Over the Years there has been improvising change in the global regulatory framework towards corporate insolvency. The principal focus of modern insolvency legislation is not liquidation and elimination of insolvent entities but on the renovation of the financial and organizational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of their business. If the rehabilitation is not possible it enables effective winding up of companies in time bound manner through single regulator i.e. “National Company Law Tribunal”.

Meaning of Insolvency

Insolvency is a term for when an individual or company can no longer meet their financial obligations to lenders as debts become due. Before an insolvent company or person gets involved in insolvency proceedings, they will likely be involved in informal arrangements with creditors, such as setting up alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in cash inflow, or an increase in expenses.

Meaning of Bankruptcy

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.

Difference Between Insolvency and Bankruptcy

  • Insolvency refers to a situation, whereas bankruptcy refers to a legal state.
  • If you’re insolvent you’re simply not in the state to pay off your debts.
  • Whereas, if you are declared bankrupt, then you have to pay off your debts by either selling off your assets, or by restructuring payment processes with governments’ help.
  • Insolvency is a state of being. Bankruptcy is the conclusion.
  • A bankrupt can become insolvent; but not all insolvencies lead to the declaration of bankruptcy.
  • While both the situations refer to the state of being unable to pay off debts, they are two contrasting scenarios. If untreated, insolvencies can lead to bankruptcies.

 

EVOLUTION OF INSOLVENCY AND BANKRUPTCY CODE, 2016

The Insolvency and Bankruptcy Code, 2016 (IBC) is the law of India which seeks to consolidate the existing framework by creating a single law for Insolvency and Bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 5th May 2016. The Code received the assent of the President of India on 28th May 2016. 

The ecosystem of the Code is dependent on four pillars namely, the Insolvency and Bankruptcy Board of India (IBBI), Information Utilities (IUs), Insolvency Professional Agencies (IPAs) and Insolvency Professionals (IPs).

Objectives:

  • The Insolvency and Bankruptcy Code, 2016 (IBC) replaces a fragmented legal framework and a broken institutional set-up that has been delivering poor outcomes for years for creditors and distressed businesses. Almost all of these are now eligible to be initiated as new cases under the Insolvency and Bankruptcy Code (IBC).
  •  The Insolvency and Bankruptcy Code (IBC) offers a time-bound resolution process aimed at maximizing the value of a distressed business. This will benefit not just the creditor and debtor companies, but also the overall economy because capital and productive resources will get redeployed relatively quickly.
  •  The main objective of the new law is to promote entrepreneurship, availability of credit and balance the interests of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, proprietorship firms, personal guarantors and individuals in a time-bound manner and for maximization the value of assets of such persons.

NOW INSOLVENCY LAW IN INDIA IS BROADLY CATAGORISED IN BELOW MENTIONED PROCESSESCORPORATE RESOLUTION PROCESS

  • Filing of an Application to the Authority for the commencement of Corporate Resolution Process
  • Acting as an Interim Resolution Professional and Resolution Professional
  • Forensic Audit(s) and other Audit
  • Appearance before National Company Law Tribunal
  • Acting as Authorized Representative
  • Any other related Work

FAST TRACK CORPORATE INSOLVENCY RESOLUTION PROCESS

  • Filing of an Application to the Authority for the commencement of Corporate Resolution Process
  • Acting as an Interim Resolution Professional and Resolution Professional
  • Forensic Audit(s) and other Audit
  • Appearance before National Company Law Tribunal
  • Acting as Authorized

Representative PRE-PACKAGED INSOLVENCY RESOLUTION PROCESS

  • Filing of an Application to the Authority for the commencement of Corporate Resolution Process
  • Acting as an Interim Resolution Professional and Resolution Professional
  • Appearance before National Company Law Tribunal
  • Forensic Audit(s) and other Audit
  • Any other related Work

Our Partner Mr. Jitesh Gupta is a Registered Insolvency Professional with Insolvency and Bankruptcy Board of India. Mr. Jitesh Gupta is also on the Panel of Experts as Mediators & Conciliators established by Ministry of Corporate Affairs. He is the member of various core committees of ICSI and NIRC of ICSI and is on the panel of Peer Reviewers of ICSI. He was formerly the Board member of Auditing Standards of ICSI and was also a former member of Expert Advisory Board of ICSI. 

He is also Member of Corporate Governance Committee of PHD Chamber of Commerce. He is been working under Insolvency laws from the Enactment of this act . With his vast experience in all above mentioned sectors, above mentioned insolvency process will be a smooth operation for him.

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance thoroughly before carrying out the insolvency process].

We provide service for Corporate Insolvency Resolution Process, Fast Track Corporate Insolvency Resolution Process, Pre-Packaged Insolvency Resolution Process 

A Brief Introduction to the Liquidation Process under the IBC, 2016

Liquidation is the Last stage of any company’s Life, once the Liquidation Process of a Company is Completed, then such company ceased to exist. In India the Liquidation Process is governed by the “Insolvency and Bankruptcy Code, 2016, and Regulation made thereunder, i.e. Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The Prime duty of the Liquidator is to maximise the value of the stakeholder(s). The liquidation Process, shall be completed within one year form its commencement date. 

Following is table explaining the brief flow of liquidation Process:

Initiation of Liquidation Process: Where the Adjudicating Authority, -before the expiry of the insolvency resolution process period, does not receive a resolution plan or(b) rejects the resolution plan under section 31 for the non-compliance of the requirements specified therein,Where the resolution professional, at any time during the corporate insolvency resolution process but before confirmation of resolution plan, intimates the Adjudicating Authority of the decision of the committee of creditors to liquidate the corporate debtor, Where the resolution plan approved by the Adjudicating Authority is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii), (iii) of clause (b) sub-section (1).In occurrence of any of the above circumstance, the Adjudicating Authority passes liquidation order.
Appointment of liquidator Eligibility for appointment as liquidator:An insolvency professional shall be eligible to be appointed as a liquidator if he, and every partner or director of the insolvency professional entity of which he is a partner or director, is independent of the corporate debtor.Where the Adjudicating Authority passes an order for liquidation of the corporate debtor, the resolution professional appointed for the corporate insolvency resolution process shall, subject to submission of his written consent to the Adjudicatory Authority shall act as the liquidator for the purposes of liquidation unless replaced by the Adjudicating Authority.Replacement of the Resolution ProfessionalThe Adjudicating Authority shall by order replace the resolution professional, ifthe resolution plan submitted by the resolution professional was rejected for failure to meet the requirements mentioned in sub-section (2) of section 30; or the Board recommends the replacement of a resolution professional to the Adjudicating Authority for reasons to be recorded, orThe resolution professional fails to submit written consent, In any of the abovementioned events the Adjudicating Authority may direct the Board to propose name of another insolvency professional, to be appointed as a liquidator.
Public Announcement by Liquidator The liquidator shall make a public announcement in Form B of Schedule II within five days from his appointment, to call upon stakeholders to submit their claims or update their claims submitted during the corporate insolvency resolution process, as on the liquidation commencement date and provide the last date for submission or updation of claims, which shall be thirty days from the liquidation commencement date.]The announcement shall be published-(a) in one English and one regional language newspaper at the location of the registered office and principal office, if any, of the corporate debtor and any other location where in the opinion of the liquidator, the corporate debtor conducts material business operations;(b) on the website, if any, of the corporate debtor; and(c) on the website, if any, designated by the Board for this purpose.
Submission of claim. A person, who claims to be a stakeholder, shall submit its claim, or update its claim submitted during the corporate insolvency resolution process, including interest, if any, on or before the last date mentioned in the public announcement, in the following forms.01.Claims by operational creditors.Form C02.Claims by financial creditors.Form D03.Claims by workmen and employeesForm E04.Claims by other stakeholdersForm G
Verification of claims The liquidator shall verify the claims submitted within thirty days from the last date for receipt of claims and may either admit or reject the claim, in whole or in part, as the case may be.  The liquidator may call for such other evidence or clarification as he deems fit from a claimant for substantiating the whole or part of its claim.  
List of stakeholders The liquidator shall prepare a list of stakeholders, category-wise, on the basis of proofs of claims submitted and accepted under these Regulations, with-(a) the amounts of claim admitted, if applicable,(b) the extent to which the debts or dues are secured or unsecured, if applicable,(c) the details of the stakeholders, and(d) the proofs admitted or rejected in part, and the proofs wholly rejected.The liquidator shall file the list of stakeholders with the Adjudicating Authority within forty-five days from the last date for receipt of claims, and the filing of the list shall be announced to the public in the manner specified in Regulation 12(3).
Stakeholders’ consultation committee and its meeting. The liquidator shall constitute a consultation committee within sixty days from the liquidation commencement date, based on the list of stakeholders to advise him on the matters relating to sale of Assets the Corporate Debtor.
The liquidator shall convene a meeting of the consultation committee when he considers it necessary and shall convene a meeting of the consultation committee when a request is received from at least fifty-one percent of representatives in the consultation committee
REALISATION OF ASSETS[Sale of Assets]. The liquidator may sell- (a) an asset on a standalone basis; (b) the assets in a slump sale;               (c) a set of assets collectively; (d) the assets in parcels; (e) the corporate debtor as a going concern; or (f) the business(s) of the corporate debtor as a going concern:Provided that where an asset is subject to security interest, it shall not be sold under any of the clauses (a) to (f) unless the security interest therein has been relinquished to the liquidation estate.]
Mode of sale. The liquidator shall ordinarily sell the assets of the corporate debtor through an auction in the manner specified in Schedule I.
The liquidator may sell the assets of the corporate debtor by means of private sale in the manner specified in Schedule I when-(a) the asset is perishable;(b) the asset is likely to deteriorate in value significantly if not sold immediately;(c) the asset is sold at a price higher than the reserve price of a failed auction; or(d) the prior permission of the Adjudicating Authority has been obtained for such sale:
Distribution of unsold assets. The liquidator may, with the permission of the Adjudicating Authority, distribute amongst the stakeholders, an asset that cannot be readily or advantageously sold due to its peculiar nature or other special circumstances.
The application seeking permission of the Adjudicating Authority shall-identify the asset;provide a value of the asset;detail the efforts made to sell the asset, if any; andprovide reasons for such distribution
Liquidator to realize uncalled capital or unpaid capital contribution. The liquidator shall realize any amount due from any contributory to the corporate debtor.No distribution shall be made to a contributory, unless he makes his contribution to the uncalled or unpaid capital as required in the constitutional documents of the corporatedebtor.
Proceeds of Liquidation and Distribution of Proceeds All money to be paid in to bank account.
The liquidator shall open a bank account in the name of the corporate debtor followed by the words ‘in liquidation’, in a scheduled bank, for the receipt of all moneys due to the corporate debtor.
Distribution Subject to the provisions of section 53, the liquidator shall not commence distribution before the list of stakeholders and the asset memorandum has been filed with the Adjudicating Authority.(2) The liquidator shall distribute the proceeds from realization within 22[ninety days] from the receipt of the amount to the stakeholders.(3) The insolvency resolution process costs, if any, and the liquidation costs shall be deducted before such distribution is made.
Completion of liquidation. The liquidator shall liquidate the corporate debtor within a period of one year from the liquidation commencement date.
Provided that where the sale is attempted under sub- Regulation (1) of regulation 32A, the liquidation process may take an additional period up to ninety days.]If the liquidator fails to liquidate the corporate debtor within one year, he shall make an application to the Adjudicating Authority to continue such liquidation, along with a report explaining why the liquidation has not been completed and specifying the additional time that shall be required for liquidation.
Final report prior to dissolution When the corporate debtor is liquidated, the liquidator shall make an account of the liquidation, showing how it has been conducted and how the corporate debtor’s assets have been liquidated.If the liquidation cost exceeds the estimated liquidation cost provided in the Preliminary Report, the liquidator shall explain the reasons for the same.The liquidator shall submit an application along with the final report and the compliance certificate in form H to the Adjudicating Authority for –(a) closure of the liquidation process of the corporate debtor where the corporate debtor is sold as a going concern; or(b) for the dissolution of the corporate debtor, in cases not covered under clause (a).]
Post Dissolution After filing the Dissolution Application, Once the hon’ble tribunal passed the Dissolution order of the CD, a copy of the order shall be forwarded to authority with which the Corporate Debtor is registered within 7 days, from the receipt of the order.    

Apart of the aforesaid Liquidation Process, the Liquidator is also required prepare and file several Reports, Applications and Documents, from time to time, into the spam of Liquidation. 

Following the table explaining the brief Reporting requirement of the Liquidator and their respective Timeline:

Name of the Report Content Timeline
Preliminary report The liquidator shall submit a Preliminary Report to the Adjudicating Authority date, having the following details-(a) the capital structure of the corporate debtor;(b) the estimates of its assets and liabilities as on the liquidation commencement datebased on the books of the corporate debtor: within seventy five days from the liquidation commencement
Asset memorandum; The asset memorandum shall provide the following details in respect of the assets which are intended to be realized by way of sale-(a)value of the asset, (b) intended manner of sale (c) expected amount of realization from sale; and(d) any other information that may be relevant for the sale of the asset within seventy five days from the liquidation commencement
Progress report(s); A Progress Report shall provide all information relevant to liquidation for the quarter,including-(a) appointment, tenure of appointment and cessation of appointment of professionals;(b) a statement indicating progress in liquidation, including (i) settlement of list of stakeholders,(ii) details of any property that remain to be sold and realized,(iii) distribution made to the stakeholders, and(iv) distribution of unsold property made to the stakeholders; (a) first Progress Report within fifteen days after the end of the quarter in whichhe is appointed;(b) subsequent Progress Report(s) within fifteen days after the end of every quarterduring which he acts as liquidator; and
Sale report(s); Assets Sale report consist the following:the realized value;cost of realization, if any;the manner and mode of sale;if the value realized is less than the value in the asset memorandum, the reasons for the same;the person to whom the sale is made; andany other details of the sale. On sale of an asset
Final report prior to dissolution account of the liquidation, showing how it has been conducted and how the corporate debtor’s assetshave been liquidated Along with the Dissolution Application on the Completion of the Liquidation.

 

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance thoroughly before carrying out the Liquidation Process].

We  at JKG Corporate Consultants LLP provides services relating to above mentioned liquidation Procedure.

Intellectual Property Rights

As we all know in today’s competing era, each business wants to be identified in a unique and different way amongst all other, either by its own work, Symbol, discoveries, or invention which it also wants to reserve on its name or want to have ownership rights over them. These kinds of special rights are known as “Intellectual Property Rights”. Intellectual property refers to “creations of mind” and intellectual property rights are the rights provided by law for the exclusive use of creations of the mind. Examples of intellectual property include music, literature, and other artistic works; discoveries and inventions; and words, phrases, symbols, designs, names, and images used in commerce. 

Further, in present time the recognition and value of Intellectual Property Rights is growing day by day, protecting and managing intellectual property rights (IPR) is the first step for any business seeking to establish its presence in India and must be incorporated as an integral part of the business asset growth strategy. Moreover, a business can sell or license these rights to others and can have a good source of revenue.

There are various intellectual property rights such as trademark, copyright, patent, Industrial Designs, Geographical Indications. In India, the intellectual property rights pertaining to trademarks and patents are controlled by the Controller General of Patents Designs and Trademarks, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry. Copyrights are handled by the Copyright Office, Copyright Societies, Government of India. Based on the type of intellectual property right to be registered, application must be made to the concerned authorities in the prescribed form. Some of the intellectual property rights are briefed as follows:

TRADEMARK

In India Trademark is governed under the Trademark Act, 1999. A trademark means a mark capable of being represented graphically and capable of distinguishing the goods and services from others may include shape of goods, their packaging and combination of colours. However, the most popular form of trademark registration that prevails in India is trademark registration for a business name or logo. Once the trademark registration application is filed with the Registrar of Trademarks, the TM symbol can be used next to the logo. Once, the trademark is registered, the R symbol is placed next to the logo for indicating that the mark is a registered.

COPYRIGHT

The Copyright Act, 1957, as modified from time to time governs the law pertaining to copyright in India. The Copyright (Amendment) Act 2012, which was passed in 2012, was the most recent amendment. Copyright is a type of intellectual property right. Authors who have original works such as works of literature (including computer programs, tables, collections, computer datasets, expressed in words, codes, schemes, or in any other context, along with a device readable medium), dramatic, musical, and artistic works, cinematographic films, and audio recordings are all awarded copyright safeguards under Indian law.

PATENT

A patent is an exclusive right granted for an invention or which protects an invention. In India patent is governed by the Patents Act, 1970. The word invention refers to a new product or process involving an inventive step and capable of industrial application. By getting the patent registered the inventor can protect its rights and prevents others to use that registered patent without permission. To get a patent, technical information about the invention must be disclosed to the public in a patent application. The Office of the Controller General of Patents, Designs and Trademarks or CGPDTM under the Department for promotion of Industry and Internal Trade, Ministry of Trade & Industry. is the body responsible for the Indian Patent Act. A patent is granted for a term of 20 (twenty) years from the date of filling of the application.

INDUSTRIAL DESIGNS

A “design” means only the features of shape, configuration, pattern, ornament or composition of lines or colours applied to any article whether in two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye; but does not include any mode or principle of construction or anything which is in substance a mere mechanical device, and does not include any trade mark. The registration of Designs is a good option to get your articles specifications registered. It is governed under the Design Act, 2000.

GEOGRAPHICAL INDICATIONS

Geographical indications and appellations of origin are signs used on goods that have a specific geographical origin and possess qualities, a reputation or characteristics that are essentially attributable to that place of origin. Most commonly, a geographical indication includes the name of the place of origin of the goods. GI registration is valid for a period of ten years, and may be renewed thereafter from time to time.

The registration of all these intellectual properties mentioned above involves complex legalities and submitting numerous documents. This requires expertise and familiarity with procedural norms to ensure fast and effective registration. We JKG Corporate Consultants LLP help you to get rid of all those complexities and getting your right registered effectively.

ESI, EPF Registration and Consultancy

There are two major two social security schemes available to employees working in India, one is ESI which stands for Employees’ State Insurance and another is Provident Fund.

Employee State Insurance Scheme is a scheme launched by the Government of India to offer various benefits to workers. The benefit under this scheme includes medical, cash, maternity, disability and dependent benefits etc. to the insured employees. The contributions made by employers and employees fund these benefits. In other words, it provides certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. 

APPLICABILITY

  • (Whole of India
  •  Applicable to all factories other than seasonal factories and other establishments as the Central Government or the State Government with approval of the Central Government notify after giving one month’s notice of its intention of so doing by notification in the Official Gazette.
  • *Applicable on non-seasonal factories having 10 or more employees.

Factory: means any premises including the precincts thereof 

  •  whereon ten or more persons are employed or were employed on any day of the preceding twelve months,  And in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed 
  •  Number of employees: 10 or more
  • The wage limit for coverage of an employee under the Act, is Rs. 21000/-, Further, the wage limit of an employee who is a person with disability is Rs. 25000/- (The employees below these limits are covered under this Act)
  •  All employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act.

ESTABLISHMENTS: Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 10* or more persons. Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 10* or more persons in certain States/UTs.
*Note: However, the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh. 

REGISTRATION OF FACTORIES AND ESTABLISHMENTS

The employer in respect of a factory or an establishment to which the Act applies for the first time and to which an Employer’s Code Number is not yet allotted, and the employer in respect of a factory or an establishment to which the Act previously applied but has ceased to apply for the time being, shall furnish to the appropriate Regional Office not later than 15 days after the Act becomes applicable, as the case may be, to the factory or establishment, a declaration of registration in writing in Form-01 and Form-01-A (hereinafter referred to as Employer’s Registration Form).

Whereas Provident Fund is a social security system that helps employees to save a short portion of their salary every month to build their retirement corpus. These monthly savings get accumulated every month and can be accessed as a lump sum amount at the time of retirement, or end of employment. 

Employees Provident Fund is a scheme for the Indian Employees that is regulated under the Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 and managed by the Employee’s Provident Fund Organization (EPFO). The EPFO is controlled by Ministry of Labour and Employment, Government of India.

APPLICABILITY

The provisions of Provident Fund are extended to the Whole of India and are applicable to every establishment which is a factory engaged in any industry as specified in the Act, in which 20 or more persons are employed to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf.

Further, an establishment to which this Act applies shall continue to be governed by the said Act unless the number of persons employed at any time falls below twenty.

In other words, all establishments that have employed 20 or more than 20 employees can apply for PF registration in India. In some cases, subject to the circumstances and the exemption establishments employing less than 20 are still eligible for PF registration. The Employee gets an amount that includes the self and employer’s contribution with interest on retirement or resignation.

Under the concerned Act, the employees are entitled to receive a pension, insurance or special benefits at specific occasions by contributing a nominal amount towards this fund. The contribution is being deposited from both employee and employer.

We, JKG Corporate Consultants LLP, help our clients to get themselves registered under the aforesaid acts, and also help them to comply with all the provisions mentioned therein the acts.

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance].

Shops and Establishment Registration and Consultancy

Shops and Establishment Registration and Consultancy

Every State has their own Act, Rules and Regulations regarding Shop and Establishment. However, the general provisions are mostly same in all states. So, in case if you want to start your business and want to have a shop or any other commercial establishment, then you must obtain the license/registration for such shop or establishment under the Concerned State Act. State Government Labour Departments under the Ministry of Labour & Employment regulate these Shop and Establishment Acts. The Act regulates all the shops and commercial establishments operating within the state.

The Act regulates numerous aspects of employment such as the payment of wages, fixation of hours of work, terms of service, maintenance of shops and establishments wages for holidays, leave policy, work conditions, overtime work, interval for meals and rest, prohibition for employment of children, employment of young persons or women, maternity leave and benefits thereof, cleanliness, lighting and ventilation, fire safety and precautions, accidents, record maintenance etc.

All shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act. Shops are defined as premises where any wholesale or retail trade or business is carried on or where services are rendered to customers and includes all offices, store-room, godowns, warehouse or workhouse or workplace. Establishments are defined as shop, a commercial establishment, residential hotel, restaurant, eating-house, theatre or other places of public amusement or entertainment. Further, establishments, as defined by the act, may also include such other establishments as defined by the Government by notification in the Official Gazette. However, factories are not covered by the shops & establishments act and are regulated by the Factories Act, 1948.

There are various benefits that one can get by registering their shops or establishment under the Act such as Shops & Establishment Registration Certificate acts as a legal entity proof, apart from this it helps to easily open a current account for the business as well. The Shops & Establishment Registration Certificate also enables easy availment of various government benefits.

The registration process is quite simple and requires only submission of some documents as a proof. Some states have initiated online process to make the registration easy and hassle free, however some states are still following manual procedure. Since, Shops and Establishment is a state matter therefore, the documents required and fees criteria  may differ from state to state.

We, JKG Corporate Consultants LLP, assist you with registering your business, shop or establishment in an easier manner. We make the whole process simple and hassle free.

We along with the registration process also provide the services related to amendment and Renewal of the Registration Certificate.

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance].

POSH

THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

This Act has been implemented to provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment and for matters connected therewith or incidental thereto. It extends to Whole of India.

ORGANISATION HAVING 10 OR MORE WORKERS

Every employer of a workplace shall, by an order in writing, constitute a Committee to be known as “Internal Complaints Committee”. A senior level woman officer is to head the ICC.

Internal Committees shall consist of

  • Presiding Officer
  • not less than two Members from amongst employees preferably committed to the cause of women or who have had experience in social work or have legal knowledge
  • one member from amongst non-governmental organizations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment

Provided that at least one-half of the total Members so nominated shall be women.

If there is no senior level woman officer presiding ICC, then actions of the Committee is to be disregarded or liable to be set aside. If senior woman officer is not available. In the organization then same will be nominated from other work units or department of the organization

Please note that: ICC is required to be constituted at every office /branch/site office of an organization having 10 or more workers. 

Any aggrieved woman may make, in writing, a complaint of sexual Harassment at workplace to the ICC, if so constituted.

ORGANISATIONS HAVING LESS THAN 10 EMPLOYEES

Every District Officer shall constitute in the district concerned, a committee to be known as the Local Committee to receive complaints of sexual harassment from establishments where the Internal Committee has not been constituted due to having less than ten workers or if the complaint is against the employer himself.

The Local Committee shall consist of the following members to be nominated by the District Officer, namely: —

  • (a) a Chairperson to be nominated from amongst the eminent women in the field of social work and committed to the cause of women;
  •  (b) one Member to be nominated from amongst the women working in block, taluka or tehsil or ward or municipality in the district; 
  • (c) two Members, of whom at least one shall be a woman, to be nominated from amongst such non-governmental organizations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment. 
  • Provided that at least one of the nominees should, preferably, have a background in law or legal knowledge: Provided further that at least one of the nominees shall be a woman belonging to the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes or minority community notified by the Central Government, from time to time;
  • (d) the concerned officer dealing with the social welfare or women and child development in the district, shall be a member ex officio.

Powers of ICC or Local Committees;

The ICC or Local Committee , as the case may be, shall have the same powers as are vested in a Civil Court, under the Code of Civil Procedure,1908 ,when trying a suit in respect of the following matters, namely—

(i) Summoning and enforcing the attendance of a person and examining him on oath;

(ii) Requiring the discovery and production of documents; and

(iii) Any other matters as may be prescribed

COMMITTEE TO SUBMIT ANNUAL REPORT:

 The Internal Committee or the Local Committee, as the case may be, shall in each calendar year prepare an annual report and submit the same to the employer and the District Officer.  The District Officer shall forward a brief report on the annual reports received to the State Government.

The Annual Report shall have below mentioned details;

  •  Number of complains of. Sexual harassment received during the year;
  •  Number of complaints disposed off during the year;
  • Number of cases pending for more than 90 days;
  • Number of workshops or awareness programs have been conducted during the year;
  • Nature of action taken by the employer/District Officer ;
  • Such other information as may be prescribed and required

TIME FOR FILLING:  Since there is no time limit prescribed under POSH and the rules thereunder for such filing, the report should be filed within a reasonable time period, after the end of the calendar year. The local District Officers are generally of the view that the reports must be submitted within 30 days of the year end.

It may be noted that the Committee report is required to be prepared and filed, even if no complaints of sexual harassment have been received in an organisation.

Subject to the provisions of section 19, every employer shall-

  •  formulate and widely disseminate an internal policy or charter or resolution or declaration for prohibition, prevention and redressal of sexual harassment at the workplace intended to promote gender sensitive safe spaces and remove underlying factors that contribute towards a hostile work environment against women;
  • carry out orientation programmes and seminars for the Members of the Internal Committee ;
  • carry out employees awareness programmes and create forum for dialogues which may involve Panchayati Raj Institutions, Gram Sabha, women’s groups, mothers’ committee, adolescent groups, urban local bodies and any other body as may be considered necessary;
  • conduct capacity building and skill building programmes for the Members of the Internal Committee;
  • declare the names and contact details of all the Members of the Internal Committee;
  • use modules developed by the State Governments to conduct workshops and awareness programmes for sensitizing the employees with the provisions of the Act.

We, JKG Corporate Consultants LLP, render assistance in Conducting POSH Compliances including the preparation of Annual report for your organisation.

Disclaimer: [This article has been prepared on the basis of information available till date. But professionals are advised to study the laws and compliance].