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In India, from the business registration point of view, under profit generating business kind, there are 5 major business entity types.  There are quite a number of agreements that come into play based on entity type; on the other hand, there are agreements that will come to play as your business grows. This blog will enlighten you with the different kind of Corporate Agreements and contracts that the company would require during fundraising scenario.


#1: Shareholders’ Agreement:

Every shareholder, when they trade money for Shares in the company, enters a Shareholder’s agreement.  This contract confers the rights and imposes obligations over and above those provided by company law.

This contract defines rules like:

  • Restrictions on transfer of shares
  • Restrictions on forced transfers of shares
  • Nomination of directors for representation on boards
  • Quorum requirements
  • Veto or supermajority rights

#2: Agreement for underwriting shares of a company:

When the existing shareholders of the company or the public do not subscribe to the securities offered to them, and company decides to allot number of shares to the underwriter who subscribes to the securities.

Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission.

The underwriting agreement defines rules like:

  • Period during which the agreement is in force
  • The amount of underwriting obligations
  • The period within which the underwriter has to subscribe to the issue after being intimated by the issuer
  • The amount of commission if any


#3: Listing Agreement:

Listing means an admission of securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government, quasi-governmental and other financial institutions/corporations, municipalities, etc. Listing Agreement is between the company the listing platform.


The objectives of listing are mainly to:

  • provide liquidity to securities;
  • mobilize savings for economic development;
  • protect interest of investors by ensuring full disclosures.


#4: Share Purchase Agreement:


This Agreement comes into play when an individual (generally the equity investor) buys shares from the company.


This Agreement lays down rules like:

  • Terms and conditions
  • Rights exercisable
  • Disagreements resolutions criteria
  • Criteria under which sale of the Equity Investor’s shares can take place

Wazzeer has developed packages for startups that have plans to raise funds from internal and external sources, to discuss the same -> “Get Started!”




The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For ongoing projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id, and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years’ imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him. In this blog you will be unleashing the necessity and How to register as an Real Estate Developer under RERA Act


Impact on the Real Estate Developer:


  1. Major impact of RERA is on on-going projects. The builders who have not received completion certificate they have to register with RERA and have to give their status of the project at the time of the registration as well as they have to update the department from time to time about the project.. Projects at various stages got impacted because of new rules and regulations and in return there will be delay in project deliveries.
  2. The major delays and cost escalations are created not by developers but by various governmental authorities which sanction requisite projects and monitor during the course of development. Everybody is aware of the long drawn battle to firstly avail sanctions which now-a-days takes over 12-18 months and during the course of project, there are several challenges which affect projects.
  3. Cost for developers will increase as sales can only happen post registration which is possible only post approvals. So gone are the days of pre-launches where first set of buyers benefitted with a reasonable price during early stages of projects. With higher holding costs, these increases would eventually be transferred to consumers and hence prices are bound to increase.
  4. Refund in 60 days is unjustified as developers are not banks with liquidity. All the money is pumped into construction and incase of cancelations, there should be a re-allotment clause and not strict 60 day guideline for refund as it will be impossible for developers to do so in such circumstances. Infact, with RERA, there will be strict monitoring of monies via escrow account and this refund timeline is not relevant. If several buyers seek to cancel at one go, it may jeopardize the entire project.
  5. With RERA, there will be a consolidation in the market and hence only fewer players may exist. This is not good for market as prices for consumers are bound to increase with decrease in competition. Competition already keeps prices in check and small developers who were able to offer that additional buck might cease to exist and buyers will have limited choices to choose out of.


Some of the important compliance are:

  1. Informing allottees about any minor addition or alteration.
  2. Consent of 2/3rd allottees about any other addition or alteration.
  3. No launch or advertisement before registration with RERA
  4. Consent of 2/3rd allottees for transferring majority rights to 3rd party.
  5. Sharing information project plan, layout, government approvals, land title status, sub-contractors.
  6. Increased assertion on the timely completion of projects and delivery to the consumer.
  7. An increase in the quality of construction due to a defect liability period of five years.
  8. Formation of RWA within specified time or 3 months after majority of units have been sold.


Documents Required:

The registration process in some states is through online mode and in some state its offline, the documents required may differ from state to state. Following is the list of documents required:-


To register as a developer with RERA


  1. Brief details of his enterprise including its name, registered address, type of enterprise, proprietorship, societies, co-operative society, partnership, companies etc;
  2. Particulars of registration including the bye-laws, memorandum of association, articles of association etc. as the case may be;
  3. Name, address, contact details and photograph of the real estate agent if it is an individual and the photograph of the partners, directors etc. in case of other entities;
  4. Self-attested copy of the PAN card;
  5. Self-attested copy of the address proof of the place of business.


Registration Process for Real Estate developer


  1. File an application form along with fee and documents to get registered with RERA.
  2. You will receive a registration number from the regulator. This need to be mentioned in every property sale.
  3. On a quarterly basis, you are required to maintain the books of account, records and documents related to the transactions.
  4. Share all the information and documents about the project with the buyer.
  5. Agent may be suspended for the misrepresentation or fraud during the registration process.


How can a builder be RERA compliant?


  • Project registration.
  • Withdrawal – POC method.
  • Website updation/ Disclosures.
  • Carpet area.
  • Alteration in project – approval of 2/3 allottees.
  • Project accounts – Audit.
  • 70% of the funds collected from allottees needs to be deposited in the project account. Withdrawals to cover construction and land cost.
  • Withdrawals to be in proportion to the percentage completion method.
  • Withdrawal to be certified by an engineer, architect, and CA.
  • Provision for RERA to freeze project bank accounts upon non-compliance.
  • Interest on delay will be same for customer and promoter.


What information does a builder need to provide under RERA


  • Number, type and carpet area of apartments.
  • Consent from affected allottees for any major addition or alteration.
  • Quarterly updating of RERA website with details such as unsold inventory and pending approvals.
  • Project completion time frame.
  • No false statements or commitments in advertisement.
  • No arbitrary cancellation of units by promoter.


We at Wazzeer believe that Real Estate Developers registering with RERA will enhance customer success, we will be glad to help you register under RERA Act seamlessly. Let’s connect to build a better relationship.


Contracts and Agreement, License, Uncategorized
  1. Music License: You can use a free public domain or CC 3.0 licensed music from the web, however, most of the time it’s tough to find good music suitable for your game there. You would also need to buy a license for the sound effects that have been copyrighted.
  2. Employee Contract: You will need this for hiring any full or part-time employees. Employee Contract can determine the pay schedule, when the employee will receive pay, any paid holidays, paid sick days or paid vacation days, and other various things. It helps you and your employee understand what you are offering him or her.
  3. General Contract: It is somewhat similar but can be used for contract hires and freelancers who work for you.
  4. Confidentiality Agreement: It is for anyone working with you on your game. This one is important as it states that anything created for the game is owned by your company, and not the creator. This protects your company from your employees or your contract hires from stealing your intellectual property and claiming it is their own.
  5. User Agreement: It is also known as a software license or end user license agreement?. Through this, the user agrees to the privilege of using or purchasing your software and promise to comply with all the restrictions stated in the user agreement.
  6. Privacy Policy: This is for the purpose of telling how you use any information that your users give to you, either on your website or your game/app. It also states that you will protect your users information and it publically states what information is required in order to use your service.
  7. All Rights Reserved: It tells that everything that is within your website or game/app is yours, you hold the right to use it, and unless otherwise stated people require your permission to use your stuff. It is for the purpose of protecting your stuff from theft and other claims on your stuff.
  8. Terms of Service: These are the rules you declare in order for someone to comment on your website, purchase a product from you or other services that you might offer. If someone were to break your rules, your Terms of Service would actually come into play and you can handle it accordingly.
  9. Unity License: You need to have any valid Unity license (either personal or pro) to submit your app. The license can be free one or a paid one, though pirated licenses will not work at all.
  10. Other Licenses: You also need to buy the license for the trademark stuff, like, if you want to use a specific car model in your car racing game you need to buy the license from the company, or if you want to buy a specific gun model it also requires a license.
  11. Adobe license: This one is important as you need Photoshop or Illustrator license. You can use Creative Cloud as one of the most potential solutions.
  12. Autodesk license: Autodesk license for 3D Max and/or Maya should also be taken in order to create 3D content. One can buy a monthly subscription instead of the perpetual license.
  13. Tax Registration: Indirect tax registration and Direct tax registration is something that is applicable to all businesses in India.
  14. IP protection: It’s the endearing competitive touch that you can give to your product.
  15. Funding Compliance: Raising funds involves multiple legal compliances that not just investor wants, but also you need to protect your relationship with investors.
We have been helping businesses like yours to get in touch with best lawyers and Accountants for years now, we would be glad to help you, let us know. Thanks!

Secretarial Compliance, Uncategorized, Winding up of Company
It is better to abandon a sinking and damaged ship than to sink with it. A business may need to be closed for many reasons that may be due to business failure or any other unavoidable circumstances. This article will help you understand different ways to close a company in India.

Under Companies Act 2013, a Company can be closed in two ways.

    1. Winding Up
Winding up is a tedious process and can be done either voluntary by calling up a meeting of all stakeholders and passing a special resolution or can be done on the order of Court or Tribunal. Strike Off mode was introduced by the MCA to give the opportunity to the defunct companies to get their names struck off from the Register of Companies. On 27th December 2016, MCA has notified new rules i.e. Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 prescribing rule for winding up or closure of the private limited company under companies act 2013. By releasing the form STK 2, the ministry of Corporate Affairs has brought the Section 248- 252 of 2013 act into force.

    1. Fast track Exit
This is the most awaited procedure, that got active again on 5th April 2017. This procedure was introduced in Section 248 of Companies Act 2013.
Fast Track exit can be done in two ways:
    • Suo Moto by Registrar
The registrar may strike off the name of Company on its own if:
    • Company has failed to commence any business in a year of its incorporation
    • The company is not carrying out any business or Activity for preceding 2 financial years and has not sought the status of Dormant Company.
The Registrar sends a notice (STK-1) of his intention to remove the name and seeks the representation of Company in 30 days. Note: Liability on the Directors of the company still exists. ROC can invoke penalty clauses anytime, and the penalty may range from INR 50K to INR 5Lakhs per director.
    • Voluntary Removal of Name using Form STK 2
The company can also move an application to Registrar of Companies for striking off the name by filing form STK-2 along with a fee of Rs 5000/-. Once the form is filed, the Registrar has power and duty to satisfy him that all amount due by the company for the discharge of its liabilities and obligations has been realized. ROC can also issue a show cause notice in case of default in filing returns or other obligations. After above formalities, ROC issues a public notice and strike off the name of Company after its expiry. Note: The form is in approval route. Therefore, concerned ROC can ask for the completion of the fillings.

Details Required
    • Incorporation Certificate
    • Director Identification Number
    • Pending Litigation Proceedings if any
Documents Required:
    • Application in form STK-2
    • Government filing fees: INR 5,000/-
    • Copy of Board resolution authorizing the filing of this application;
    • A statement of accounts showing the assets and liabilities of the Company made up to a day, not more than thirty days before the date of application and certified by a Chartered Accountant
    • The shareholder’s approval by way of Special Resolution
    • In the case of a company regulated by any other authority, approval of such authority shall also be required.
    • Copy of relevant order for delisting, if any, from the concerned Stock Exchange;
    • Indemnity bond in Form No. STK-3;
    • Affidavit in Form No. STK-4
Note: This form must be signed by a practicing CA or CS

Companies that cannot file for voluntary strike-off:

A company cannot fill the form STK 2 at any time in the previous 3 months if the company has
    1. Has changed its name or shifted its registered office from one State to another;
    2. Has made a disposal for value of property or rights held by it, immediately
    3. Before cesser of trade or otherwise carrying on of business, for the purpose of disposal for gain in the normal course of trading or otherwise carrying on of business;
    4. Has engaged in any other activity except the one which is necessary or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company or complying with any statutory requirement;
    5. Has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or
    6. Is being wound up under Chapter XX of Companies Act or under the Insolvency and Bankruptcy code, 2016

Companies that cannot use Fast Track Exit option:
    • Companies Registered Under Section 8
    • Listed companies
    • Companies that have been delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws;
    • Vanishing companies;
    • Companies where inspection or investigation is ordered and being carried out or actions on such order are yet to be taken up or were completed but prosecutions arising out of such inspection or investigation are pending in the Court;
    • Companies where notices have been issued by the Registrar or Inspector (under Section 234 of the Companies Act, 1956 (old Act) or section 206 or section 207 of the Act)and reply thereto is pending;
    • Companies against which any prosecution for an offense is pending in any court;
    • Companies whose application for compounding is pending;
    • Companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
    • Companies having charges which are pending for satisfaction.

After you Strike off your company:

As soon as the name of the company is removed from Register, from the date mentioned in the notice under sub-section (5) of section 248 cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been canceled from such date except for the purpose of realizing the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.

Business Registration, Uncategorized
In Limited Liability Partnership or LLP under LLP Act 2008, where all or some of the partners have limited liability as per the shares and offers them protection from misdeeds, negligence, and incompetence of other partners. However, the liability of partners is unlimited in case of fraud committed by LLP. The LLP Agreement regulates the conduct of business. Section 56 of LLP Act 2008 provides that Private Companies convert into LLP. Due to the benefits listed down, Companies are converting themselves into LLP because of:
  1. Tax benefits:
by converting into LLP, the company saves Dividend Distribution Tax, Minimum Alternative Tax, and Income Tax because interest and remuneration are paid to partners as a salary that is payable to directors.
Earlier there was no capital gains tax when existing entity converted into LLP but after the amendment of 2016, a company having assets in excess of Rs 5 crore in any of three preceding years has to pay capital gains tax.
  1. Less Statutory Compliance:
compared to statutory compliance of a private limited company as per Companies Act 2013 an LLP gets relief in the form of
  • No requirement to maintain statutory record registers.
  • No requirement to pass resolutions for addition or deletion of Directors, increasing capital.
  • No such requirement to hold a Compulsory annual meeting.
  • No conditions or cap for loans except what is stated in LLP Agreement.
  • Compulsory Audit only if Turnover is above 40 lakhs.

One of the areas where the company had an upper hand over the LLP was that the LLP was not an eligible entity for claiming tax incentives (100% deduction for 3 years) offered to startups as provided by the draft Finance Bill, 2016. However, the Finance Act, 2016 has eliminated this disparity by extending this benefit to LLPs. Thus, where startups do not intend to raise funds from the public, LLP seems a good start for the initial setup.

Conditions for conversion of Private Companies into Limited Liability Partnership:

A company is converted into LLP by complying with the provision of Schedule 3 of LLP Act 2008 and can do so only if (a) There is no security interest in its assets subsisting or in force at the time of application; and (b) The partners of the limited liability partnership to which it converts comprise all the shareholders of the company and no one else.

The procedure of conversion:
  • In order to get converted into LLP, every designated partner must possess Director Identification Number. A meeting of Board of Directors must pass a resolution for conversion of Company into LLP as well as to authorize a director to apply for the name of LLP. A copy of this resolution is to be attached with e-form LLP-1 with Registrar of Companies (ROC).
  • Once registrar issues name approval Certificate, Incorporation Documents as the address of registered office of LLP, notice of consent of Designated Partners, Details of LLP(s) or companies in which designated partner is a director are filed using E-form 2 with ROC.
  • E- Form 18 is filed with ROC for application of Conversion along with certain attachments as a statement of shareholders, assets and liabilities of the company, NOC from IT authorities and list of all secured creditor along with their consent.
  • Registrar of LLP issues a Certificate of Registration as per the provisions of this act and may refuse if not satisfied with the particulars or other information.
  • After all above formalities are complied with and approved by Ministry, LLP Agreement is to be submitted within 30 days of incorporation using E- form 3
  • Once Registration Certificate is issued, information of conversion is to be intimated to concerned Registrar of Companies with which it was registered under the provisions of Companies Act 2013 within 15 days of such conversion using E-form 14.
Should You Really Go for Conversion?

In case you are a small entrepreneur and want your business to be internally driven, LLP is the best option to run your business. But the company surely provides much better opportunities for large business as evolved laws are there for bringing capital and diluting or liquidating stakes.

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to see your startup kick starts seamlessly. Let’s Connect!

You would agree with me that most startups are under the categories of Micro Enterprise that is having an investment of less than Rs 25 lakhs. Considering the total share of MSMEs being 37% of the GDP, one cannot ignore the importance of this sector. Thus, Government of India wants to ensure that MSMEs gets maximum benefits of the current fiscal and trade policies. However, to avail the benefit of any such existing policies, it is required that your Enterprise must be a registered one. Prior to October 2016, to get yourself registered as MSMEs you need to carry out a lot of paperwork and fill Employment Memorandum I and II. However, Kamath Committee on Financial Structure of MSME sector recommended a single window clearance system. Hence, Policy of Udyog Aadhar came into force. This blog walks quickly through the Incentives for MSMEs under Udyog Aadhar.

What is Udyog Aadhar?

Udyog Aadhar is a facility by which your company gets a 12 digit unique ID and becomes a legal entity. Any micro, small or medium enterprise to start out any business needs to get itself registered under Udyog Aadhar. Process of getting your own Udyog Aadhar Id
  1. To do registration, owner of the enterprise needs to fill a single form online or offline available at the site of ministry. This form is free of cost.
  2. The document required for the registration are Personal Aadhar number, Industry name, Address, bank account details, PAN number in case of Cooperatives, private or public limited and LLP and details of major activity carried out by the enterprise.
Why get your Udyog Aadhar?

The government of India announces various incentives time to time to promote MSMEs through MSMED Act 2006. Once registered you get:
  1. Easy sanction of Bank loans at lower rates of interest
  2. Credit Guarantee scheme
  3. Excise exemption
  4. Exemption under direct tax laws
  5. Interest on Delayed Payments Act which is thrice of the rate stipulated by RBI for the time being
  6. Other Subsidies from State Governments as extended credit facilities, Industrial extension support, and services, Assistance in marketing( both within the country and outside) Assistance for construction of industries in underdeveloped areas,
  7. Technical consultancy, assistance in capital, and so on, for enhancement of technology in MSMEs

  Apart from it Government in a phase wise manner enhances the list of reserved products to be brought from MSMEs only. Moreover, as per Trademark Rules 2017, special provision has been carved out for micro and small industries. As per schedule A of the rules, the fees for filing a trademark application for MSMEs is only 50% as compared to another form of business.

Understanding the nature of Your Enterprise

Since for the time being, Udyog AAdhar is available to MSMEs only, it is important to understand What an MSME is. MSME standing for MICRO, SMALL and MEDIUM enterprise are divided on the basis of Investment which is different for manufacturing or service sector.

Manufacturing Sector
EnterprisesInvestment in plant & machinery
Micro EnterprisesDoes not exceed 25 lakh rupees
Small EnterprisesMore than 25 lakh rupees but does not exceed five crore rupees
Medium EnterprisesMore than five crore rupees but does not exceed ten crore rupees
Service Sector
EnterprisesInvestment in equipment
Micro EnterprisesDoes not exceed 10 lakh rupees:
Small EnterprisesMore than 10 lakh rupees but does not exceed two crore rupees
Medium EnterprisesMore than 2 crore rupees but does not exceed five crore rupees

These are just the top a few Incentives for MSMEs under Udyog Aadhar, there is more for MSMEs depending on the type of business the firm is engaged in.

Wazzeer is vouched by Entrepreneurs as the reliable Legal and Accounting partner, we would be happy to help you in MSME Registration. Let’s connect!

Trademark, Uncategorized
The Government on March 6, 2017 notified a new set of trademark rules which have replaced the old rules constituted way back in the year 2002. The main idea behind the change is to help expedite the approval process and increase filings, both of which have shown positive trends over the past few months. While the examination time for an application has been brought down from 13 months to just 1 month in January 2017, official figures suggest that filings have jumped 35 per cent in 2015-16 against the previous year. Here are a few important things you should know that have changed in the Trademark rule:
  1. Ease of doing business: One of the most important things is that the total number of forms that an applicant had to fill out has been reduced from a monumental 74 to a quite reasonable 8.

  1. Slashing of cost: The new rules have hiked fee for Trademark application to Rs. 9,000 but application fee for individuals, start-ups and small enterprises has been kept to Rs. 4,500 only (Government fee)

  1. Clarity in the approval process: To make a business doing easier, the method to determinate well-known trademarks has been clarified for the very first time. Provisions relating to the expedited processing of an application for registration of trademark have been extended up to the registration stage. Until now, they were only till the examination stage.

  1. Quick disposal: Concept of video conferencing has been introduced in the new rule and the number of adjournments in opposition proceedings has been limited to two by each party, these measures are surely going to help in disposal of cases on time.

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂

FSSAI, Uncategorized
FSSAI license is mandatory to carry any business activity which deals with production, manufacture, processing, distribution, selling, import, export, the stock of any food article or beverage and it includes Dairy Business, Meat processing, Hotels.  

Benefits of FSSAI license
FSSAI license certifies that food is tested and the hygiene, sanitary and safety requirements as set by government of India have been followed by the business entity.

Punishment for carrying on business without FSSAI license
The Food Safety and Standards Act, 2006 strictly prohibits any person or food business operator to engage into manufacturing, selling, distribution or imports of any food product without FSSAI license, punishment with imprisonment for 6 months and also with a fine upto Rs. 5,00,000.

Who does not require FSSAI?
Any small food business operator who manufactures or sells any food item himself or a petty retailer, hawker, itinerant vendor or temporary stall holder or distributes foods including in any religious or social gathering except a caterer are exempted from FSSAI license, but it is mandatory for them to register with Food Authority. The annual turnover of these Food Business Operator is less than Rs. 12 lakhs. Once these Petty food business operators register with Food Authority, Certificate of Registration and a photo identity card.

Categories of FSSAI license: 2 types, Central and State, depending upon the turnover /output or storage capacity of Food business operator. 

1. State Fsssai license is mandatory for food Business operator(FBO) if:
  • Its Annual turnover of FBO is above 12 lakhs, or
  • It is 3 star hotels and above, or
  • If Transporter having 100 vehicles or turn over up to 30 crore
2. Central FSSAI license is mandatory for food Business operator (FBO) if:
  • Its annual turnover is above Rs. 20 crores, or
  • Its business operations in more than one state, or
  • Any FBO is engaged in import or export of food products, or
  • It is Five-star Hotels and above
Note: Eligibility for state and Central FSSAI license varies from business to business.

Documents Required for FSSAI State and Central License:
  1. Blueprint or layout plan of the processing unit
  2. List of Directors or partners with full address and contact details
  3. Photo ID and address proof issued by Government authority of Proprietor or Partner or Director(s)
  4. Name and List of Equipment and Machinery along with their number, installed capacity
  5. List of food category desired to be manufactured. (In case of manufacturers).
  6. Authority letter with name and address of responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz assisting the officers in inspections, a collection of samples, packing & dispatch. (Mandatory for manufacturing and processors).
  7. Analysis report (Chemical & Bacteriological) of water to be used as an ingredient in food from a recognized or public health laboratory to confirm the portability (mandatory only for manufacturing and processing units only).
  8. A Copy of sale deed or Rent agreement or electricity bill
  9. A copy of Partnership Deed or Affidavit or AOA & MOA towards the constitution of the firm.
  10. A copy of certificate obtained under Co-Op Act 1861/Multi State Co-Op Act 2002 for Co-Operatives. (if applicable).
  11. Food Safety Management System plan or certificate (if any).
  12. Source of raw material for meat and meat processing plants. (if applicable).
  13. Pesticide residues report of water (for packaged drinking water business),
  14. NOCs from Municipality or local body. (optional)
  15. Supporting document proof for turnover
  16. Import Export?Code document issued by DGFT(dealing with import and export of food products)
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  🙂

Business Formation, Uncategorized
Research says the bigger the firm the less likely it is to be headed by a woman. The ILO estimates that while 22 per cent of men’s productive potential is underutilized, women’s is as high as 50 per cent. This blog will help you identify the different sectors where women entrepreneurs traditionally have ventured in, also the pain points in running the shebusiness. This blog will talk about Strategies that Women Entrepreneurs should consider following like “Starting from Now”

Categories of Women Entrepreneurs:
  • Women in organized & unorganized sector
  • Women in traditional & modern industries
  • Women in urban & rural areas
  • Women in large scale and small scale industries.
  • Single women and joint venture.
Many small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which are few examples of unorganized sectors. Unorganized retailers normally do not pay taxes and most of them are not even registered for sales tax, VAT, or income tax. Demonetization was a big blow for people or labours belonging to this sector. Organized sector has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized stores. Many semirural areas have also witnessed entry of such organized retail outlets. It is called organized for the players in this sector have the necessary compliance done. Top 10 strategies to do business in organized sector:
  1. Business Incorporation: This must be done according to the Companies Act, 1956 and Companies Act, 2013 (collectively the Companies Act) and the regulations laid down by the Securities and Exchanges Board of India (SEBI) for listed companies in India. Entity options: LLP, Pvt Ltd, OPC, Sole proprietorship, Partnership
  2. Taxation Laws: This compliance will be done based on Income Tax Act, 1961, indirect tax laws including laws relating to value added tax, service tax, customs, excise etc. Also, International Taxes
  3. Investing in India by non-residents: Requires conformity with India’s foreign exchange regulations, specifically, the regulations governing FDI
  4. Foreign company to do business in India: You can do business via offices, the options are as follows: Liaison office, Project office, Branch office, Partnership, Trust
  5. Post Incorporation: The company must apply for its PAN and Tax Deduction Account Number (TAN); Shop and establishment registration; Register with employment law authorities; open bank account; Board meetings; Contracts and Agreements.
  6. Auditing and Accounting: The first auditor should be appointed by the Board within 30 days from the date of its incorporation. It is a good practice to maintain the books so that financial statements are updated.
  7. Issuing securities: Indian companies may issue numerous types of securities. However, companies are required to comply with the Companies (Share Capital and Debentures) Rules, 2014. Options that you have: Equity shares, Preference shares, Debentures.
  8. Fundraising Compliance: Compliance like share transfer and increasing authorized share capital that comes following raising funds.
  9. Tax Returns Filing: Like VAT refund is an integral component of a modern VAT system.
  10. Employee Stock Options: Giving employees the right to purchase a certain number of the company’s shares instead of salary.
The 15 Pain points that women entrepreneurs face:
  1. Differences in endowments, preferences and barriers to entry and exit
  2. Overrepresentation in traditional sectors that have low start-up costs and limited barriers to entry
  3. Female entrepreneurs, especially those in unorganized enterprises, operate home-based businesses
  4. Lack or limited access to technology due to affordability, lack of knowledge, and/or social norms
  5. Women more likely to start enterprise in sectors with low effective demand leading to lower profits
  6. Less favourable profile with investors since women own small businesses and do not have adequate collateral
  7. Financial institutions may require higher collateral from female entrepreneurs. Some banks may also require women to have a male co-signer to open accounts
  8. Low financial market participation
  9. Preference for own savings to finance enterprises instead of credit from financial institutions
  10. Informality and home-based enterprises are mainly the result of a need to combine work and family responsibilities
  11. Limited vocational and technical skills may be caused by women’s lower educational attainment or social norms that limit their physical mobility
  12. Limited knowledge of government legislation and less experience on starting a business than men and compliance thus discouraged.
  13. Denial or limited ability to own assets and inheritance due to laws
  14. Lack of awareness of different financing programs by government
  15. Lack of awareness of IP protection
Startup 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.

License, Uncategorized
Baam! got an idea, incorporated my food startup, but what are the post incorporation compliance that I need to know to start my operations? Well, that’s a question that we at Wazzeer hope to solve. A quick checklist of license for Restaurants and Food Joints.

Food Safety License FSSAI:
Having this license in the restaurant, identifies your restaurant as one that meets the standards and guidelines under FSS act. Which means you are providing food safety and nutrition with your serving. This license is mandatory.

Trade License: You must take this license from municipal Corporation or health department of the state. This license provides you permission to trade the food products. Situations of food delivery is a common example.

Eating House License: You can acquire this license from police Commissioner of the location which is mandatory. ?This license guarantees the public visiting your restaurant, that the ambience is in good shape.

Liquor License: You can acquire this one from excise Commissioner, this would be a mandatory one for those of you who serve alcoholic beverages in the restaurant.

Approval or Re-Approval of Restaurants: This one is to be taken from department of Tourism of Government of India / Delhi Government, this grants you permission to acquire L-4 license.

Playing of Music in restaurants: You need to take this license from License Phonographic Performance Limited or Indian Performing Right Society. This is applicable if you have music playing in your restaurant.

Environment Clearance: This one is acquired from State Pollution Control Committee, this one is mandatory too.? This is more like guaranteeing the government that you are not doing anything that violates pollution norms.

NOC from Fire Department: You need to acquire this one from fire Department this is mandatory.

Weights and Measures: This one is acquired from legal Metrology Department, this one establishes standards of weights and measures, to regulate trade or commerce in weights, measures and other goods which are sold or distributed by weight, measure or number.

Lift License Concerned authority: This one can be acquired from Electrical Inspector, Office of the Labour Commissioner, this one is mandatory If lift is to be installed.

Employees State Insurance: You can get this one from Labour Commissioner which is again mandatory. Employee?s State Insurance (ESI) is a social security and health insurance for the employees of a firm. During his course of work, he along with his employer contributes towards ESI which provides him with security by protecting the employee during sickness, accidents, injury or disability.

Insurance: Insurance for Public Liability, Product Liability, Fire Policy Building & Asset can be acquired from Any insurance company and yes this is again mandatory.

Shop and Establishment Registration: You need to do this registration with the state government in labour department. This is to regulate conditions of work, and to provide for regulation of the employers and rights of the employees in un-organized sector of employment and other establishments.

Signage License Municipal Committee: This one is mandatory in some states and this one can be procured from state government. This one is applicable when restaurants use signage.

Startup 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