- 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.
- 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.
- General Contract: It is somewhat similar but can be used for contract hires and freelancers who work for you.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Tax Registration: Indirect tax registration and Direct tax registration is something that is applicable to all businesses in India.
- IP protection: It’s the endearing competitive touch that you can give to your product.
- Funding Compliance: Raising funds involves multiple legal compliances that not just investor wants, but also you need to protect your relationship with investors.
Under Companies Act 2013, a Company can be closed in two ways.
- Winding Up
- Fast track Exit
Fast Track exit can be done in two ways:
- Suo Moto by Registrar
- 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.
- Voluntary Removal of Name using Form STK 2
- Incorporation Certificate
- Director Identification Number
- Pending Litigation Proceedings if any
- 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
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
- Has changed its name or shifted its registered office from one State to another;
- Has made a disposal for value of property or rights held by it, immediately
- 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;
- 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;
- Has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded; or
- 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.
- The proposed names must not be similar or resemble the name of any other already registered company, or
- Proposed name should not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950), or
- Proposed name(s) should not constitute an offense under any law.
- Last word ?Limited? need to be used in the case of a public limited Company, or ?Private Limited? in the case of a private limited Company and ?LLP? needs to be used for ?Limited liability Partnerships?
- Authorized capital for the proposed company
- Main objectives of the proposed company
- State (location) of the proposed company
- Personal details of all Promoter?s
- Copy of trademark application/certificate (if applicable)
- In case, there is a logo associated with trademark then image of logo
- Balance sheet (if applicable) and Income tax returns for last 2 years
- Tax benefits: by converting into LLP, the company saves Dividend Distribution Tax, Minimum Alternative Tax, and Income Tax because interest and remuneration is paid to partners as salary that is payable to directors.
- Less Statutory Compliances: compared to statutory compliances 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.
- 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.
- 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.
- 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.
- Easy sanction of Bank loans at lower rates of interest
- Credit Guarantee scheme
- Excise exemption
- Exemption under direct tax laws
- Interest on Delayed Payments Act which is thrice of the rate stipulated by RBI for the time being
- 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, Technical consultancy, assistance in capital, and so on, for enhancement of technology in MSME?s
|????Enterprises||?Investment in plant & machinery|
|????Micro Enterprises||?Does not exceed 25 lakh rupees|
|????Small Enterprises||?More than 25 lakh rupees but does not exceed five crore rupees|
|????Medium Enterprises||?More than five crore rupees but does not exceed ten? crore rupees|
|????Enterprises||?Investment in equipment|
|????Micro Enterprises||?Does not exceed 10 lakh rupees:|
|????Small Enterprises||?More than 10 lakh rupees but does not exceed two crore rupees|
|????Medium Enterprises||?More than 2 crore rupees but does not exceed five crore rupees|
- 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.
- 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)
- 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.
- 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.
For a Cofounder to withdraw salary from his Private Limited Company, there are basically 3 situations:
1. you decide to act as the employee of the company, then the way you can be paid is a salary. Here you would, like any other employee, need to enter an employment contract with the company and receive remuneration. In addition to this remuneration, based on this Employment Contract, and a specific clause for bonuses, you may be paid a bonus at either regular intervals or on the achievement of certain goals.
2. You act as a consultant; Consultancy fees are paid for your expertise in management and your time.
3. Shares are a good way of driving remuneration in the form of dividends.
The partners (co-owners) share the profit or loss. Based on each partner’s individual share of the results, a standard deduction is made to calculate the surplus. The Partners can share the surplus as their salary, Rather, the partners do pay income tax on the money withdrawn. Profits and liabilities are split evenly between partners or, if partners have differing investment percentages, per what was agreed in the initial legal partnership agreement.
Options are similar to that of Pvt Ltd Company. Dependent upon their percentage of investment, partners will receive a salary.
As a sole proprietor, how much money you take out of your business is entirely up to you. You are still liable for taxes and, because the government does not distinguish between you and your business, you are also liable for all business losses, liabilities and debts. You can draw everything that you are making out he company, but you will be liable for taxations on the whole amount.
One Person Company
One Person Company is a separate Legal Entity and OPC will have a separate PAN. Hence the Director of OPC can get the salary from the company. This salary is taxed under Income Tax rules for a salaried individual.
We at Wazzeer have helped quite a number of startups in Contracts and Agreement drafting for the same purpose, why not we jump on a call to discuss the details?