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Copyright, IP

Copyright is an asset celebrated by Copyright Certificate holders, this intellectual property protection right protects original work of authorship including software, books, articles, photographs and other creative works. As the copyright is a legal evidence and public notice of ownership, if this intellectual property is infringed, the remedies for copyright infringement will be covered briefly in this blog.

Note: without any agreement, no one can use any such property.

 

Civil Remedies for Copyright Infringement:

 

The civil remedies for copyright infringement are covered under Section 55 of the Copyright Act of 1957. The different civil remedies available are:

 

1)    Interlocutory Injunctions

 

The most important remedy is the grant of an interlocutory injunction.  In most case, the application filled is for interlocutory relief and the matter rarely goes beyond the interlocutory stage. There are three requirements for there to be a grant of interlocutory injunction – Firstly, a prima facie case. Secondly, there needs to be a balance of convenience. Finally, there needs to be an irreparable injury.

 

2)    Pecuniary Remedies

 

Copyright owners can also seek three pecuniary remedies under Section 55 and 58 of the Copyright Act of 1957. First, an account of profits which lets the owner seek the sum of money made equal to the profit made through unlawful conduct. Second, compensatory damages which let the copyright owner seek the damages he suffered due to the infringement. Third, conversion damages which are assessed according to the value of the article.

 

3)    Anton Pillar Orders

 

The Anton pillar order gets its name from the holding in Anton Pillar AG V. Manufacturing Processes. The following elements are present in an Anton Pillar Order – First, an injunction restraining the defendant from destroying or infringing goods. Second, an order permitting the plaintiff’s lawyer to search the defendant’s premises and take goods into their safe custody. Third, an order that the defendant is directed to disclose the names and addresses of suppliers and consumers.

 

4)    Mareva Injunction

 

The Mareva injunction comes into play when the court believes that the defendant is trying to delay or obstruct the execution of any decree being passed against him. The court has the power to direct him to place whole or any part of his property under the court’s disposal as may be sufficient to satisfy the decree. This is provided in Order XXXVIII, Rule 5 of The Civil Procedure Code, 1908.

 

5)    Norwich Pharmacal Order

 

The Norwich Pharmacal Order is usually passed when information needs to be discovered by a third party.

 

Criminal Remedies:

 

Under the Copyright Act, 1957 the following remedies are provided for infringement:

 

  1. Imprisonment up to 3 years but, not less than 6 months
  2. Fine which may not be less than 50,000 but, may extend up to 2,00,000
  3. Search and seizure of infringing goods
  4. Delivery of infringing goods to the copyright owner



Good to have factors that Wazzeer brings in while handling cases like this are: accessibility to right professionals, clarity in pricing, and simplicity in delivery. We call this smart way to run a business.  We would be happy to help you, let’s connect -> “Get your Wazzeer”


More interesting and relevant stuff to read:


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DSC, Secretarial Compliance

As you know Digital Signature Certificate is a very important document which facilitates one to sign documents digitally and the signature is considered valid under the law. All filings done by the companies/LLPs under MCA21 e-Governance programme are required to be filed using DSC. Apart from these, to create login credentials for companies in IT portal we need DSC of any one of the Directors. To obtain GST Registration and IEC Registration we will need DSC. 

 

Thanks to the Information Technology Act, 2000 which has established a provision for use of Digital Signatures on the documents submitted in an electronic form that ensures the security and authenticity of the documents filed electronically. This is a secure and authentic way to submit a document electronically. Though there are different classes of DSC’s available, most Govt. Offices have approved Class 2 DSC for Individuals and Class 3 DSC for Companies. As far as the validity is concerned – Validity of Class – 2 DSC is 2 years and validity of Class 3 DSC is 1 year.


In case you lose your DSC, one of the three options can be implemented:



Option 1: Apply for a new one; do Roll Check of the same on the MCA website. The old DSC will be automatically blocked.

Option 2: Revoke the DSC, in case you have DSC serial number.

Option 3: If at all the DSC is used in a fraudulent way, file an FIR complaint with the cyber crime department.

 

Note: In case you have registered the DSC once with PAN using the ‘Associate DSC’ service on MCA website, then new DSC can be updated with the same service. If you are having your DIN issued, then update the DSC under director role using same ‘Associate DSC’ service on the above website.

 

Wazzeer Professional Network is fully equipped with the expertise to serve you in this matter, Let’s Connect! 🙂

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TAXATION

Individuals or Businesses making a donation to an NGO are eligible to deduce the donation amount from the total income; thereby this amount will be exempted under section 80G of Income Tax Act.  This article is intended to explain you the scenarios under which the donation is considered as an exemption.


  1. The amount donated should not exceed 10% of gross total income after subtracting allowable deductions (other than the deduction under section 80G) for the purpose of a tax rebate.
  2. Donations made to various funds set up by the federal or the state government e.g. the National Defense Fund is eligible for 100% tax rebate
  3. Donors contributing towards the repair or renovation of the place of worship would be entitled to a 50% tax rebate when computing their income for tax purposes.
  4. Donations made to a project or scheme notified as an eligible project or scheme for the purpose of section 35AC of the Income Tax Act is eligible for a 100% Tax Rebate.
  5. Any donation done for contribution(s) made to organizations — such as a scientific research institute or a university, college or other institution — approved under section 35(1)(ii) is eligible for 100% rebate



Remember, Receipts of donation collected at NGOs should bear the number and date of the 80G certificate and indicate the period for which the certificate is valid.


We at Wazzeer are fully equipped with CAs who are very well experienced in these matters, we would be happy to help you -> Let’s talk!

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Agreements

E-commerce laws and regulations in Indian startup ecosystem are still evolving, but the general laws like – Company Law, IP Law etc., are applicable to these E-commerce businesses as well. In this blog one such secretarial compliance matter which is governed by Contract, Act is what we will be looking at- The top 12 Agreements and Contracts for an E-commerce startup.  Remember, disputes and differences are bound to occur in an online-commercial environment too. Contracts and norms are something pivotal that keeps your disputes and legal woes at bay.


A contract or an Agreement creates and defines obligations between two or more parties and is enforceable by law.  Contracts contain a proposal made by either of the parties to do or abstain from doing a particular action. Most of the contracts templates are available for free on the world wide web, but the unfortunate fact is entrepreneurs have little to no knowledge on validating a contract,  as in, if the contract is actually enforceable under law or not.  We at Wazzeer strongly believe contracts and Agreements are not something that can be taken as a toss but has to drafted with care and intelligence.  In order to make some of your lives simpler, in case you want to validate a contract by yourself, these are the essential elements a valid contract must consist:


  • Proposal and Acceptance.
  • Intention to create legal relationship
  • Lawful Consideration
  • Competent Parties
  • Free Consent
  • Legal Object
  • Not expressly declared void by law.
  • Certainty and possibility of performance
  • Compliance with legal formalities




Moving on, let’s look at the Top 12 Contracts and Agreements that are essential for an E-commerce startup:


  1. Founder’s Agreement: Apart from outlining the roles and responsibilities of the founding members of a company, it lets you know about the equity vested in them, the ownership of intellectual property created by them etc. It covers various aspects of the venture that the founders are about to undertake, even the consequences of their departure or death. 
  2. Website terms & Policies: Most users ignore the terms of service agreement and privacy policy prominently displayed on any website, but all entrepreneurs know their importance. It states that any information which is being gathered by any website will not be disclosed to the third party without any permission or legal action. According to the Information Technology Rule, 2011 in India there is a corporate body to provide a privacy policy for handling of or dealing with personal information, making the privacy policy a must-have for websites. [Disclaimer: A disclaimer is a statement/notice informing the user of any product or service of the possible consequences of the same. The law mandates the display of a disclaimer in certain cases, such as where there is an inherent risk of harm to one’s health] but used commonly in all product and service literature.  It is used in situations which involve an element of risk or uncertainty.
  3. Memorandum of Understanding (MOU): A Memorandum of Understanding is a document in which two or more parties declare that they agree on a common course of action or business. It is the first stage of the making of a contract. To be legally operative, a MoU must: 
  • identify the contracting parties
  • spell out the subject matter of the agreement and its objectives                            
  • summarize the essential terms and must be signed by the contracting parties
  1. Vendor Agreement: It is a comprehensive agreement covering various aspects of the vendor such as the quality of goods supplied or service provided, duration of the contract, terms, and mode of payment. This comes in handy when there are several sellers out in the picture.
  2. Non-solicitation Agreement: This contract is useful where an employee agrees not to solicit a company’s clients or customers, for his or her own benefit or for the benefit of a competitor, after leaving the company. It may also include not provoking other employees to leave when he/she quits or otherwise moves on.
  3. Joint Venture Agreement: This agreement is entered into by a group of persons or companies to do business together or to collaborate on a particular project without losing their individual legal identities. This is legally-binding in areas of profit sharing and operations. Before entering into this, you are supposed to sign the MoU along with the parties.
  4. Non-Disclosure Agreement: NDA is a legal contract stating that certain information is confidential, and the extent to which its disclosure is restricted to third parties. It can be entered into with a person or organization. Confidential information includes trade secrets, business plans, business methods and strategies, drawings, charts and more. Software programs and code are also confidential information. 
  5. Non-compete Agreement: A contract between two parties, where one party agrees not to compete with the other for a period of time. It lessens the possibility that knowledge gained by an employee or business partner will be used in the future to compete against them. In return, for not competing, the party is paid a fee. This agreement outlines the duration of the agreement, any geographical limitations, and what subjects or markets it covers.
  6. Contract of sale: This contract binds the seller and buyer on their duties – the duty of the seller to deliver the goods and of the buyer to accept and pay for them in accordance with the terms of the contract of sale. This contract cover clauses like: Rules regarding delivery.
  7. Return Policy: This Contract binds the buyer to follow a set of rules and guidelines to qualify a good for a return, as well the rules the buyer has to abide by when the return of product circumstance comes up.
  8. Master Service Agreement: This Agreement permits the buyer and seller to quickly negotiate future transactions or agreements because they can rely on the terms of the master agreement, so that the same terms need not be repetitively negotiated, and to negotiate only the deal-specific terms.
  9. Service-level agreement (SLA): Agreement that guarantees buyer that Particular aspects of the service – quality, availability, responsibilities – are agreed between the seller and the buyer.

 

We at Wazzeer are fully equipped to provide you all the required assistance to run a fully compliant E-commerce startup in India, feel free to contact us. We are just a click away ->”Get your Wazzeer” 🙂

 

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Business Formation, Secretarial Compliance

OPC an entity dedicated to single entrepreneurs with an objective to facilitate a viable ecosystem such that single entrepreneurs can start their own business having a separate legal entity. OPC is chosen when: entrepreneur does not find the right co-founder; entrepreneur decides to own the business wholly; entrepreneur decides to incorporate this company form for a short period – the early stage of startup journey. As the company scales up, plans of expansion come into play, and fundraising plans come into the picture, especially external investors come into play, the general scenario is the investor would want himself or his connect to be a member of the board of directors, all for the vision of the startup. That is when entrepreneurs decide to convert the OPC into other favorable entity options.  On the same note, this blog intends to answer – How to convert OPC into other entity forms?


Convert OPC to Private Limited Company:

Automatic
– OPC is automatically converted if:

  • Paid up capital exceeds INR 50L, or
  • Turnover for 3 previous years is > INR 2C


Manual
– OPC can be converted if:

  • Age of company is more at least 2 years


Procedure to convert:

  • Obtain ‘No Objection’ in writing from creditors
  • Pass a resolution
  • Affidavit Sign
  • File Copy of resolution with RoC within 30 days
  • File Form No.INC.6

 
Documents required:

  • MOA and AOA
  • Copy of latest audited balance sheet
  • Copy of board resolution
  • Copy of no objection letter


Convert OPC to LLP:

OPC cannot be converted into LLP, but you can incorporate Private Limited Company and then convert the Private Limited Company into LLP. When you decide to so, the shareholders will become the partners of the LLP.


Procedure to convert:

  • Board meeting
  • Apply for name availability
  • LLP Agreement
  • Filing of Forms
  • Apply for incorporation
  • Obtain certificate of incorporation of LLP
  • Filing Form No.14 to intimate RoC


Documents required:

  • DSC and DIN of directors
  • Incorporation certificate of Private Limited entity


Convert OPC to Sole Proprietorship:

As such there are no legal formalities. You need to wind up the OPC and start a new venture as a Sole proprietorship. But the sole proprietorship can be in the name of OPC. Generally, entrepreneurs do not prefer this entity type, the reason being the defeats the main objective of enjoying limited liability.


Wazzeer Professional Network is built on a strong foundation of expertise, we would be very happy to assist you. Let’s connect! 🙂

 

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Funding Compliance

Fact is, a private company limited by shares can issue debentures and preference shares to raise capital. There are a quite a number of ventures that happen use this route to raise funds, but the catch is the compliance that follows the two routes. Regulations and compliance for each of these routes are what we would be having a glance at. Please note, these are sensitive compliance works, and we strongly suggest you to hire a well-qualified Lawyer for this work, We can help you 🙂 


Situation 1: Raising funds in exchange for debentures.


  • A company may issue debentures with the option to convert such debentures into shares, either wholly or partly at the time of redemption. Section 71 of the Companies Act, 2013 would apply.
  • Provisions of a private placement of securities (Section 42) need to be complied with if debenture proposed to be issued through a private placement.
  • In addition to above, provisions Section 62 needs to be complied with if Issues of convertible debenture are through Preferential allotment.
  • Issue of debenture with the option to convert into shares (wholly or partially) shall be approved by a special resolution passed at the general meeting.
  • Debenture cannot be issued carrying voting rights.


Situation 2: Raising funds in exchange for Preference Shares



  • Preference shares, on the other hand, can be issued subject to the conditions stipulated in Section 55 of the Companies Act, 2013. The procedure of issuance and increase of capital would, however, be governed by Section 62 of the Companies Act, 2013.
  • The requirements/conditions include:
  1. The company not eligible to issue preference shares which are irredeemable.
  2. The issue of preference shares to be authorized by AOA of the Company.
  3. The company can issue only those pref. shares which are redeemable not exceeding 20 years from the date of its issue.
  4. The issue of preference shares to be authorized by a special resolution in the general meeting.
  5. There should not be subsisting default in the payment of dividend on existing preference shares.
  6. Resolution authoring the issue of preference shares to set out matter as prescribed under rules
  7. Price of such shares to be determined by the valuation report of a registered valuer.
  8. Price of a listed company shall not be required to be determined by the valuation report of a registered valuer.


Wazzeer
is vouched by entrepreneurs as reliable legal, accounting, and compliance partner for years now. We would be happy to help you create success stories, without any delay, let’s connect!
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IP, Patent

Entrepreneurs before filing for patent registration – highly honored intellectual property rights, go through a critical step – Patent search. Patent search helps the applicant to be sure of whether his content is an invention or a discovery. In this blog, we will be looking into how patent search is done in India.

Most entrepreneurs while dealing with patent search, are with an assumption that doing a manual search on sites like www.sciencedirect.com or www.google.com would be sufficient, come to a conclusion that the process is easy peasy. Well, the fact is, on those websites you would find only 25% information, whereas 75% of information is available as patent documents and are never published. Now, I hope we have a come to a conclusion why this procedure is important. Moving on,

Patent search is the process by which prior inventions or ideas are examined, with an objective to find information that bears a close similarity to a given patent or proposed invention. The documents searched during a patent search may include granted Indian, U.S. and foreign patents, published patent applications, and non-patent literature, such as the Web, product literature, and scientific journals and databases.


Patent search is an extensive data mining, a detailed search on:

  • Previous patents
  • Trade journal articles
  • Publications (including data books and catalogs)
  • Public discussions (conference and seminar)
  • Trade shows
  • Brochures
  • Products, devices, and equipment.

Types of patent search:

  1. Patentability Search – Done to determine if:
    1. Patentability
    2. Originality
    3. Explanatory
  2. Validity Search –
    1. Examiners on patent claims (Granted patent & Published patents)
    2. Technical publications (like journals)
    3. Non-Technical publications (like brochures)
  3. Infringement Search –
    1. Infringement check
    2. Territorial search – since patent enforces in one country, does not protect your right in other countries.
  4. Clearance Search –
    1. Combination of Patentability Search + Infringement search
    2. Full text specification and claims of granted patents and published patents with a special emphasis on enforceable patent claims.
    3. Search of Expired patents, technical publications (like journals) and non-technical publications.
  5. State of – the – art – searches:
    1. Full-text specification and claims of granted patents and published patents from all major patent offices of the world (Worldwide database)
    2. Technical publications (like journals) and non-technical publications (like product brochures)
    3. Search is carried out for whole technical field or a part of technical field according to the requirement of person concerned
    4. It is not limited to unexpired patent like in case of Infringement search
    5. It is not limited to one inventive concept like in case of Patentability search
  6. Patent Landscape search –
    1. To monitor markets of interest
    2. To identify gaps in and improve your research and development
    3. To determine which of your prospective patents will have significant commercial value
    4. To confirm which inventions are now in the public domain
    5. To give a better understanding of current competitors and identify future ones.
    6. It involves all features of State-of-the-art search
    7. It involves the different types of analysis on data generated by State-of-the-art search
    8. In short, it is nothing but the analysis of large data set, both patent and non-patent documents, generated by State-of-the-art search.

 

Remember, patent search is an extensive process, and it is done in all three stages of filing patent:

  1. Before Patent Application
  2. During Patent Execution
  3. After Patent Granting



Free online databases:

Source Name

Website

Scope of Search

Google

www.gogole.com

General search

Google’s Patent search

http://www.google.com/patents

US patents only       

USPTO

http://patft.uspto.gov/

US patents only

EPO

http://www.worldwide.espacenet.com/

EP patents, WIPO patents, Worldwide patents

WIPO

http://www.wipo.int/pctdb/en/

WIPO Patents

Free Patents Online

http://www.freepatentsonline.com/

US Patents, EP Patents, JP Patents, WIPO Patents

Patent Facilitation Centre (PFC)

http://www.indianpatents.org.in/db/db.htm

Indian Patents (Abstract only)

Indian Patent

Office

http://ipindia.nic.in/patent/patents.htm

Indian Patents (Granted as well as 18 months Published

Patents)

BigPatent India

http://india.bigpatents.org/

Indian Patents (Granted as well as 18 months Published

Patents)

 

Paid databases:

Source Name

Website

Scope of Search

Micropatent

http://www.micropat.com/static/index.htm

Worldwide

patents

Derwent

http://www.thomsonreuters.com/products_services/scientific/DWPI

Worldwide

patents

Aureka

http://www.thomsonreuters.com/products_services/scientific/Aureka

Worldwide

patents

Delphion

http://www.delphion.com/

Worldwide

patents

LexisNexis

http://www.lexisnexis.com/patentservices/priorart/

Worldwide

patents

Dialog

http://www.dialog.com/

Worldwide

patents

Hoover

http://www.hoovers.com/free/

Worldwide

patents

Patent

Search

Express

http://www.patentsearchexpress.com/

Worldwide

patents

Patent

Insight Pro

http://www.patentinsightpro.com

Worldwide

patents

 

We at Wazzeer are fully equipped to provide affordable Patent search support, the Wazzeer platform enables efficient and productive project delivery, we would be happy to help you, let’s connect! 🙂

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Funding Compliance

So you have an idea for a company? Have been playing around with it for months? You’ve done the deep soul searching and now it’s time to take the plunge and go all in, turning your idea into a business. Going about the obvious things of picking a name, mapping out the business plans have been keeping you busy off late. But then, even at the slightest thought of the capital, your mind goes blank!

The process is full of mystery and the worst part is that you probably have no idea where to even begin. Raising a seed around can get pretty simple, provided you are following the right steps from day one. Some points to demystify this entire process are :

  1. Track Everyone and Everything: Track 

You will be meeting hundreds of people about your company in the early days before you decide to raise money, and it is likely that your first investors will be people from that time period. Tracking every point of contact with potential future investors will give you a database of people to reach out to when it is the time to focus on your seed round.

 

  1. Analyze the Market. Thoroughly:

Interpreting the existing market scenario is primarily important. Take a call and wait for the market to develop patiently according to your perspective.

 

  1. Stay Connected :

It is unlikely that someone is going to invest right after the first meeting, by just seeing a snapshot of what you have done. Remember, Investors, like to invest in lines, not dots.

You performing over time in a series of dots (follow-up emails, meetings, calls) can help them get connected with you to paint a clearer picture of your team and company. If you are following point 1 correctly, potential investors will feel like they already know you when it’s time to ask for the check.

 

  1. Too many cooks spoil the broth:

Never have more than 2-3 founders. In case you need more experts, you can always hire them. Having one founder is not always the best option. Different outlooks and divided risks is always a favorable position to be in.

 

  1. Keep an eye on your accounts:

Expenses, bills of the previous and upcoming months need to be maintained. This will help you to keep a track of the loopholes in your capital. While going to an investor, show them the accounts and logistically present the number of funds required. This shall give you an upper hand.

 

  1. A Compelling Story sounds good:

Let not your pitch-deck sound like a robot. Use it to show your team’s strengths and why you are taking on this particular challenge. It’s simply about getting the potential investor excited enough to put their money on the line to be a part of the story with you.

 

 

  1. Funds = Bonus:

Raising a startup on the basis of bootstrapping is considered to be an ideal one. Consider the funds as the bonus. This will help you control the company completely without any pressure from the outside investors. Also, it lets you focus on your business more rather than always being in the hunt for an investor.

 

  1. Make sure you are financially stable:

Giving up an existing job to start a venture is not quite a good thing to do. Knowing about the highs and lows of the business, ensure that all your debts are cleared. Also, make sure that the medical insurance, family savings, and credit cards are in place. Moreover, keep a minimum runway of 9-12 months. Once you have got this sorted, it will be easier for you to concentrate on your venture.

 

  1. Gulp down that bitter pill:

It is good to accept that a startup is not working. Knowing that 80-90% of the startups get tossed over, you should not hesitate to make your call and well, move on. As a risk taker, this has to be your last resort but keep in mind that at times you need to let things go

 

  1. Do your own research:

Talk to the alum companies if you are applying to an accelerator. Talk to the portfolio companies if you are planning to raise capital from an angel investor or probably a venture fund. Those are the best source of references you won’t read the news.

 

 

Setting up a startup involves hefty procedures and complex hurdles. We at Wazzeer can vouch for being your most reliable Legal & Accounting Partner; letting your plans align smoothly. Let’s Connect!:)

 

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Start up Lessons

Irrespective of the type of business type there are certain business laws that would be applicable to all business types. Here is the checklist of 7 Laws applicable to all business type in India:

  1. Companies 2013 Act – governs the incorporation management, restructuring, and dissolution of companies.
  2. Indian Contracts Act – governs the grounds on which contracts are valid, relating to the formation and enforceability of contracts, consideration, the various types of contracts including those of indemnity and guarantee, bailment and pledge, agency, and breach of a contract.
  3. FEMA – governs India’s foreign exchange and regulates the inflow and outflow of foreign exchange and investment into/from India.
  4. SEBI Act – governs India’s securities market regulator, public offers of securities, offers of securities by listed companies, the terms of mandatory and voluntary tender offers for shares of listed companies, and the process for delisting of a listed company);
  5. SCRA – governs listing and trading of securities on stock exchanges in India and the Listing Agreement with stock exchanges;
  6. Competition Act – governs the fair competition in the market.
  7. Income Tax Act – governs the tax treatment of dividend, capital gains, mergers, demergers and slump sales.



In addition to the top 7 laws there are sector-specific legislation (e.g. the Indian Telegraph Act, Drugs and Cosmetics Act, Press Council Act, the Banking Regulation Act, the Insurance Act, and various labor legislation (Industrial Disputes Act etc.) which are to be considered depending on the nature and type of the transaction.


Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you, let us talk! 🙂

 

 

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Subsidiary Company

Foreign companies setting up branch offices and liaison offices require prior approval of the Reserve Bank. In India, branch offices must be registered with the RoC of the respective Indian state. No approval of the Reserve Bank is required for foreign companies to establish branch offices/ units in SEZs to undertake manufacturing and service activities, subject to satisfaction of certain conditions.

A branch office may enter into contracts on behalf of the non-resident parent company and may generate income. However, the activities of a branch office is restricted to representing the parent company, exporting/ importing goods, rendering professional or  Guide on Doing Business in India.

Following works can be carried by the branch office or Liaison office:

  • Consultancy services,
  • Carrying on research work in which the parent company is engaged,
  • Promoting technical or financial collaborations between Indian companies and the parent or overseas group company,
  • Representing the parent company in India and acting as buying/ selling agent in India,
  • Rendering services in information technology and development of software in India,
  • Rendering technical support to the products supplied by parent/group companies and foreign airlines/ shipping companies.

 

Following works cannot be carried by a branch office:

  • Retail trading activities of any nature,
  • Manufacturing or processing activities in India, whether directly or indirectly.
  • The scope of the activities may be further curtailed by conditions in the approval granted by the Reserve Bank.

Following works can be carried out by a liaison office:

  • Restricted to representing the parent company/group companies,
  • Promoting export from/to India,
  • Promoting technical/financial collaborations between parent/group companies and companies in India,
  • Gathering information for the parent company and acting as a
  • Communication-channel between the parent company and Indian companies.

 

The expenses of liaison offices are to be met entirely through inward remittances from the Head Office outside India. A project office is usually set up for execution of large projects such as major construction, civil engineering, and infrastructure projects.

 

 

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