LE INTELLIGENSIA

A Legal Walkway
For
Business Success

ARIVAZHAGAN ARUL, Master of Law

Business Lawyer
What you are going to learn from this Book?

PHASE 1
Choose the Correct Business that is about to change your future

● Why Start your own business

● How to Choose a suitable business for you
● Steps you need to take before starting your business

PHASE 2
Choose the right business entity for your business (Company
Registration)
Types of Companies
● Proprietorship Firm
● Partnership Firm
● Private Limited Company
● One Person Company Private Limited
● Limited Liability Partnership
● Public Limited
Which Entity suits the best for your

PHASE 3
Know what are the basic licenses you need to obtain for your
business (Legal Licenses)
● MSME
 ● IEC
● Corporation License
● Drug License
● Food License

PHASE 4
Tax System
● Direct Tax and Indirect Tax
● Income Tax
● GST

PHASE 5
Protect your business rights by way of Intellectual Property Rights
Registration
● Trademark Registration
● Copyright Registration
● Patent Registration
● Design Registration

PHASE 6
Safeguard your business interest from your business vendors and
customer by way of Legal Drafting
● Business Agreements
● Personal agreement
● Foreign agreement
 OUR MOTTO

Our motto is that every business owner must have a Trouble-free business
by way of strengthening the legal requirements of the business entity
 SECTION 1
Choose the Correct Business that is about to change your future

A. WHY START YOUR OWN BUSINESS?

Starting your own business enables you to work for yourself and your
career. There is no need to depend on monthly wages and spend your
9.00 to 5.00 time for someone’s potential growth. Starting your own
business allows yourself, free from the materialistic and robotic life.
Many advantages are there, in this session we will see the top five
advantages,
● Take ownership of your profession
● Financial independence
● Control your way of living and schedule
● True job security
● Create a legacy
1. Take ownership of your profession:
Ownership is the pride word, especially in India. In case you work for
someone, he had ownership of your mind, attitude and also career. You
are pushed to act as what he expects it may or may not be your
career-oriented. Starting your own firm enables the ownership of yourself
and your profession.
2. Financial independence:
As an employee, we can obtain a minimum salary and at the end of the
month we eagerly wait for the salary, and then it repeats every month. To
escape from this cycle, establishing your own entity is the best choice
ever.
3. Control your way of living and schedule
In 9 to 5 work we forgot to enjoy and schedule our time to improve our
skills. Every day we run on the opposite track of our destiny, and the end
of our life becomes worse. Yes, we are working to earn money but we
forgot why we need money. Think about why you are going to work, is it
to lead your life happily? then now tell me when you spend your time for
yourself and your happiness. If you don’t remember, it is time to start
your own business and we are here to help you.
4. True job security
In this modern world, employee termination is a frequent occurrence.
Job security can not be expected in corporate companies and also
everyone can not get a government job. So, starting your own entity
offers real job security and gradually increases your wealth.
5. Creates a legacy
Starting your own business means you are the boss of yourself, your
mind, your time and your passion. If you establish a business and grow
the assets can transfer to your descendants. Transferring your passion
to your descendants is only possible in business.
B. HOW TO CHOOSE A SUITABLE BUSINESS FOR YOU?
The top five useful ways to select a suitable business for your growth,
1. Follow your passion:
The suitable example of this topic is Bill Gates, the founder of
Microsoft. He has the greatest passion for technology. His passion
and hard work towards his passion lead him to the pinnacle of
success. Choose a business which makes you forget about time
and make you mad through happiness.
2. Experience:
Interest makes you begin, only the experiences tell you how to
succeed in the business. First thing you obtain experience in your
passion by joining the company and learning about your passion
like Sundar Pichai, who worked as a Google employee for fifteen
years, has now ultimately become the CEO of Google or you can
start a business in the field in which you have experience.
3. Identify the pain point:
All we know about Reliance Jio the telecommunication company
analysis people's mentality and launches its Jio SIM with correct
predictions. Now they have become the largest network in India.
Every successful business needs consumer demand and
satisfaction. So, analyse the market and choose your business in
trend.

4. Expandability:
Expandability is a basic quality of the business, not all businesses
reach worldwide popularity and consume by a lot of people. Before
choosing a business, remember the proverb “look before you leap”.
Choose the business that is always in high demand even in future.
And also it has a nature of flexibility to trend such as garments,
technology, hotels, etc.
5. Estimate expenses:
Every startup needs capital, but the important thing is to start your
business with the capital you have. Yes, it may be small but will
lead you to the peak of success. Many successful people start their
careers even in their home garage. Even Steve Jobs and Steve
Wozniak start their business small but now it turns a big entity
called APPLE Company, Inc.
C. STEPS YOU NEED TO TAKE BEFORE STARTING YOUR BUSINESS:

1. Gain experience:
Gaining experience and improving your skills is important before
starting a business because "change is the only thing that never
changes". A few decades ago computers were not playing a vital role,
but now, without computer skills, you can't get a basic salary job, so
you have to learn how to use them. Like that, the world upgrades
itself every day. So you have to learn a new thing every day.
2. Close all your debts:
Lending is a crucial habit that can bring you down from the top.
Debit never takes you up. In the business, you have to use the
compound rules that will give you long-term success. The
compound rules mean that, invest your profit again in the business
constantly because it provides multiple interests of profit. But if
you have any debt, you have to pay it back so you cannot invest
your profit in the business. So, close all the debit before you start a
business.

3. Conduct research:
An important step you should take before starting your business is
market research. It helps you to address the needs of local people.
You can establish a business that does not exist in a particular
area or start a business by understanding the habitat of the local
area.
4. Plans
“An idiot with a plan can beat a genius without a plan” - Warren
Buffett. This quote simply tells about the importance of planning.
 Before establishing your business, draw up a plan about all the
activities like the establishment date, product purchase, budget
and the next move for your progress or development. Because once
you get started, you can't control the flow of your path, at that
point, this plan serves as a checklist.
5. Arrange for financial needs
After preparing the plan, you know the needed capital. If you don't
have that much capital prepare the amount by getting a debit from
family members, friends or a bank or finding an investor to meet
your financial need.
6. Legal Requirements:
Many formalities are involved in setting up a business. If you forget
to fulfil any of these formalities, it can lead to the sealing of your
business. First and foremost is name selection and trademark
registration to protect your brand, followed by company
registration, business licenses, GST registration, contracts etc.

Through this book, we are going to teach all the legal requirements step
by step.
 SECTION 2
COMPANY REGISTRATION

If you are about to start your own business, the second thing that comes
to mind is the Company Registry. This is the basic legal requirement to
start a new business of your own. In this article, we are going to see the
different types of companies and the ways to register them.
A. Why register a Company?

The top reasons why Company Registration in Chennai is Compulsory

before starting your business are listed here.
1. Legal Requirement: For every business, it is a legal mandate to
Register it as a Company. So to legally start the new venture you need to
register it before the Government of India. There are various forms of
companies that are about to be discussed in this article.
2. To Open a Current Account: For every business transaction, whether
it may be an online transfer or issuance of a cheque, you need a current
account. To open a current account, you need to submit the KYC for
business existence. The primary proof of business existence is Company
Registration Certificate.
3. Licenses: To obtain any business-related License, it is mandatory to
give the company name and also supportive proof of business. The main
proof that needs to be submitted is the MSME certificate or Certificate of
Incorporation. So even for obtaining any business-related license, we
need to be a Registered Company
4. Business Billing/GST Billing: In the day-to-day activity of every
business, we need to issue bills and invoices to our clients and vendors.
The invoices should consist of the Company name, Registration number.
So even for the issuance of any bills and invoices, you need a legal
company registration for your business.

For the above-stated needs, your business is to be a registered Company

in Tamil Nadu. To know more about the registration process, watch our
Youtube Channel: https://www.youtube.com/c/LeIntelligensia
B. TYPES OF COMPANY:
There are 6 types of Companies/firms:
● Proprietorship Firm
● Partnership Firm
● Private Limited Company
● One Person Company Private Limited
● Limited Liability Partnership
● Public Limited
A. SOLE PROPRIETORSHIP FIRM

A proprietorship firm is a form of business entity that is owned and

controlled by a single owner who is named the Proprietor. This type of
ownership is the most common type of entity in Tamil Nadu and also the
entry country which is most suitable for a small startup. It is neither
considered a corporation nor a company and the business is owned by a
single person and the entity is legally called a Firm. You can start and
carry on the business activity with less legal compliance/formalities.
Further, there is no regulatory Act for Proprietorship Firms.
Eligibilities to register a Sole Proprietorship Firm:
To register as a sole proprietorship firm, only one person can be an
owner of the business entity. There is no need for minimum investment.
Even small businesses or work-from-home businesses such as catering
services, home bakeries, etc… can register their businesses to ripe the
advantages. The office location must be in India.
Needed documents for sole proprietorship registration:
● Aadhar card that is issued by the government
 ● PAN card(permanent account number) which shows your
individuality
● Bank account details of the Proprietor
● Office location proof or rent agreement or property document
● Electricity bills or other bills
● No objection certificate from a property owner
● Passport size photo of the proprietor
Procedure to register a sole proprietorship firm: (UDYAM
Registration)
There is no specific registration for a Proprietorship firm because there is
no specific act established to regulate the proprietorship firm. So we can
utilize UDYAM Registration as proof of the existence of the business. We
can use this Udyam Registration as proof for opening a current account
in a Bank in the name of our company. Furthermore, this certification
would also be used for availing of bank loans.
Other Registration that is mandatory for a Sole Proprietorship
Firm:
● MSME/UDYAM registration
● Shop and establishment act license
● GST registration (goods and services tax)
● Trademark Registration
Advantages of registering your business as a Proprietorship firm
are:
● Minimal legal regulations or formalities
● Fast to form and even easy to dissolve
● Easy decision-making process
● Tax benefits
● One-day registration procedure
● Easy to operate
● Individual recipient of profit
The disadvantages of registering your business as a Proprietorship
firm are:
● The proprietor is not only responsible for assets but also for liability
● ought not to proclaim tax expenses
● No protection on liability
● Hold up all kinds of responsibilities are unbearable
● Only suitable for small business
● We are unable to include any investors in our business
● Handling the workers and clients burdensome

B. PARTNERSHIP FIRM

This type of entity is the most popular and common type of business
ownership in India. A partnership firm is a legal entity where two or more
individuals join together to carry on a business for profit. The
partnership firm in India is governed by the Indian Partnership Act,
1932, as per this act, a partnership firm can either be registered or
unregistered. This type of business entity comes into existence as soon
as a partnership deed is signed by all the partners in front of two
witnesses. A partnership deed is a legal document that is created for
acceptance of all the terms which are discussed and finalized by all the
partners and it acts as proof of the agreed terms. The major advantage of
this Partnership firm is that the process of registration and maintenance
of the partnership firm is easier as compared with the other entities
Eligibilities to register a Partnership Firm:
1. Two Partners
2. The minimum sum of money as capital
3. The object of the business
Needed documents for Partnership Firm Registration:
● Name and address of the partners
 ● ID proof of the partners such as Aadhar card, Voter ID, Driving
License, or government-approved documents.
● Rental agreement or ownership document
● No Objection Certificate (NOC) certificate ( if the land is rented )
Procedure to register a Partnership Firm
Step 1: Draft a partnership deed
A partnership deed is nothing but a legal agreement signed by
partners with mutual understanding. It was familiarly called
Partnership Agreement which includes prime terms and conditions
among the partners, asset and liability sharing percentage, etc….
This agreement needed to be printed on Rs.300 stamp paper.
The significant points have to include in the agreement:
● Name and address of all the partners
● Name and location of the firm
● Purpose of the business (such as software or medicine or food
or garments etc…)
● Have to salary and asset percentage of the partners
● Liability responsibilities
● Date of commencement
● Standards that are to be followed in case of any admission,
retirement, if the partner passed away
● The managing partner or signing authority should be
mentioned
Step 2: Submit the details online
By using the government’s registration portal (tnreginet.gov.in) the
documents and details of a firm to be uploaded
Photocopy documents of the partners needed to register the firm
● Partners photocopy of address and ID proof
 ● If the office was rented that rental agreement
● No objection certificate that is given by the landlord
● Allowance letter
Procedure to upload the details
1. Go to the above-mentioned portal and create a new ID
2. Fill up the Form-1 application form and submit
3. Upload the required documents and sign the Form-1
After submitting the document, partners needed to pay a fee of Rs.200 in
the Register of Firm portal. For the acknowledgement print of the
payment needed.
Step 3: Register before the Registrar of Firm
To complete the registration, partners have to submit the document
manually in front of the Register of Firm. After the document verification,
the Registrar of the Firm will intimate the status of the firm together with
the Firm registration number through email. A firm registration
certificate can be obtained within a day.
PAN CARD
Through the online how to get PAN Card for Firm
● Go to the “New PAN for Indian Citizen” ( Form 49A )
● Fill in all the details correctly and also follow the instructions
● “Firm object” of the business
● Once again check the given details
● At end of the process, you will pay a fee with your desired mode
(cheque, demand draft, credit card, debit card, and net banking)
Through the online how to get PAN Card for Firm
By visiting the tax information network facilitation centre we can apply
for PAN Card offline
 ● The offline form will be issued
● Only through the black ballpoint pen, the form must be filled
● The managing partner or signing authority signs the form ( if
necessary we can use a rubber stamp)
● Submit the form and pay the fee to proceed further
Advantages of registering your business as a partnership firm are:
● This type of entity is easy to start or register
● Minimal legal compliance to run or maintain the partnership
activities
● Sharing of capital contribution among members
Disadvantages of registering your business as a partnership firm
are:
● No production on liability
● May leads to a misunderstanding on sharing assets and liability
● Wholeness of decision-making is exhausting

C.PRIVATE LIMITED COMPANY

A private limited company which is shortly termed Pvt Ltd. is a type of

business entity most suitable for small businesses. Section 2 (68) of The
Companies Act, 2013 defines a private limited company as a separate
entity that is held privately and provides limited liability. It does not
freely transfer its shares to the public like other public companies. In a
private limited company, all business profits and liabilities belong to the
company itself and stakeholders may not be responsible for debts
incurred by the company. The most important advantage of a Private
Limited Company is Limited Liability.
A Private Limited Company is a separate Legal Entity, which means a
change of the director or the shareholder will not affect the existence of
the company. These types of entities have the liberty to acquire foreign
direct investments without any legal requirements. Furthermore, the
transferability of shares by the shareholder to any third party is also
restricted.
Eligibilities to register a Private Limited Firm:
● Two Shareholders
● Two Directors
● One Lakh of Share capital
● Office space in India
Needed documents for Private Limited firm registration:
Partners Document
● Xerox of
1. PAN Card
2. Passport ( if Nonresidential of India )
3. ID proof issued by the government ( such as a Voter ID
Passport or Driving License )
4. Current Bank Statement
5. Bills ( such as telephone, electricity, gas, etc…)
6. Passport size photo
7. Signature of the Directors
● Office Document
● Xerox of
1. Rent deed ( must be in English )
2. No Objection Certificate ( NOC is needed if it is a rental
property )
3. The ownership document ( if it is own property )
4. Current Bank Statement of the Firm
5. Bills ( such as telephone, electricity, gas, etc…)
Procedure to register a Private Limited Firm:
● Apply for
1. Digital Signature Certificate (DSC)
2. Director identification number (DIN)
3. Permanent Account Number (PAN)
4. Tax deduction Account Number (TAN)
● Name availability of the firm
● Submission of
1. Memorandum Of Association (MOA)
2. Article of Association (AOA)
Advantages of registering your business as a Private Limited Firm
are:
● Limited Liability
● Tax Benefits
● Attracts Investors
Disadvantages of registering your business as a Private Limited
Firm are:
● Registration fee
● Many compliances needed
● Lack of Transparency

D. ONE PERSON COMPANY (OPC)

If a Proprietor wants to change the entity type to a Private Limited

company, the best suitable option is One Person Company which is
shortly called OPC because this type of entity can be formed just with
one shareholder and a Director. According to Section 2(62) of the
Companies Act, a one-person company is a business entity that has only
one individual as its member. This type of entity was introduced by the
Union Government in the year of 2013 by way of amending the Indian
Companies Act. Forming a one-person company involves fewer
formalities than other types of companies. This is relatively hassle-free. It
combines the features of a sole proprietor and a company.
Eligibilities to register a Person Company:
● One Shareholder
● One Director
● Office space should be in India
● One nominee
● One lakh minimum capital needed
Needed documents for One Person Company registration:
● Personal documents
1. Address proof ( such as Aadhar Card, Passport, Driving
license, or other proofs given by the government )
2. PAN Card
3. Current Account statement
4. Passport size photo
● Office documents
1. Name of the Firm
2. Rental deed ( if the office is rented )
3. No Objection Certificate (NOC) ( if the office is rented )
4. Land document ( if the office is owned )
5. Bills ( Electricity bill, Telephone bill, etc…)
Procedure to register a Person Company:
● Name approval
● Digital Signature
● Director Identification Number (DIN)
● Memorandum Of Association (MOA)
 ● Article Of Association (AOA)
● Document submission
After the registration ROC, PAN Card, etc… will be provided by the
government
Advantages of registering your business as a Person Company are:
● Protection on liability
● The continuous existence of the Firm (in case the owner of the firm
passed away their descendants can run the company )
● Separate legal entity
Disadvantages of registering your business as a Person Company
are:
● This kind of firm can't register as a Non-Banking Financial
Company (NBFC)
● The nominee must be Indian
Relaxation is given by Government in 2021:
● The minimum turnover will be 20 crores
● Maximum capital will be 2 crores
● Non- resident of India ( NRI ) can start a Company
● OPC can be changed into Private Limited within 2 to 3 months
E. LIMITED LIABILITY PARTNERSHIP (LLP)

This type of entity was formed by combining the benefits of a Partnership

firm and a Private Limited Company. The Union Government introduced
LLP in the year of 2008 by way of the Limited Liability Partnership Act,
2009. LLP was introduced to provide a form of business that is easy to
maintain and to help owners by providing them with limited liability.
With a minimum of two partners, an LLP can be formed. Further, all the
rights and duties concerning the designated partners are governed and
administered by the LLP Agreement.
Eligibilities to register a Limited Liability Partnership Firm:
● Minimum 2 Partners
● Minimum 2 Designated Partners
● Office space should be in India
● No minimum capital
Needed documents for Limited Liability Partnership Firm:
● Personal Documents

1. Aadhar card
2. PAN Card
3. Passport size photo
4. Current Bank Statement
● Office Document
1. Rental Deed
2. No Objection Certificate (NOC) given by the landlord
3. Electricity Bill
Procedure to register a Limited Liability Partnership Firm:
● Digital Signature
● Designated Partner Identification Number (DPIN)
● Name Approval
● Incorporation of LLP
● LLP Agreement has to submit within 30 days to Registrars of the
company (ROC)

Advantages of registering your business as a Limited Liability

Partnership Firm are:
There are many advantages of being an LLP as compared with the other
forms of entities. Few of them are
● Limited Liability
● Less legal Compliance as compared with Private Limited Company
● No higher limit of members
● Easy to incorporate
● No minimum amount of Paid up capital

Disadvantages of registering your business as a Limited Liability

Partnership Firm are:
● Non-compliance penalty is high
● Non-Indian Residents (NOC) can’t establish the LLP
● Lack of Tax benefits
F.PUBLIC LIMITED COMPANY
A suitable type of business entity for Large scale businesses where huge
investment would be required. Because these types of companies can
generate capital by way of inviting deposits from the public. These
Companies can be listed or unlisted. To establish a Public Limited
Company, a minimum of three Directors are required and there is no cap
on the maximum number of members. Importantly, it has more strict
regulatory requirements when compared to a Private Limited Company.
Eligibilities to register a Public Limited Company:
● 7 Shareholders
● 3 Directors
● Capital of 5 lakh
Needed documents for Public Limited Company Registration:
● Shareholders Document
 1. PAN Card ( Directors and Shareholders )
2. ID proof issued by the government such as Voter ID Passport
or Driving License ( Directors and Shareholders )
3. Bills ( such as telephone, electricity, gas, etc…)
4. Passport size photo
5. Current Bank Statement
● Office Document
1. No Objection Certificate ( NOC is needed if it is a rental
property )
2. Rental deed
3. Digital Signature Certificate (DSC of Directors )
4. Director identification number (DIN of Directors )
5. Memorandum Of Association (MOA)
6. Article of Association (AOA)
Procedure to register a Public Limited Company
This type of Firm comes under the Registrars Of Companies.
1. Name Approval
2. Disclose Directors and Shareholders
3. Submit all the above-mentioned certificates
After registering the company we will get the PAN Card for our entity.
Advantages of registering your business as a Public Limited
Company are:
● Most suitable for large-scale companies
● Uninterrupted Existence
● Easy transfer of shares
● Eligibility for listing in the stock exchange
Disadvantages of registering your business as a Public Limited
Company are:
● Transparency of the company
● Difficulty in management
● Require high capital
● The problem in sharing assets and liability
SECTION 3
Know what are the basic licenses you need to obtain for your
business (Legal Licenses)

TYPES OF LICENSES
There are five types of License/Permits
● MSME
● IEC
● Corporation License
● Drug License
● Food License
A. MSME (UDYAM REGISTRATION)
What is MSME / UDYAM Registration
The rich form of MSME is Micro, Small, Medium, and Enterprises.
Manufacturing enterprises come under the development act of micro,
small, and medium enterprises. The Office of the Development
Commissioner regulated the Micro, Small, and Medium Enterprises
registration. MSME is the backbone of Indian Economic growth. To avail
of the benefits given by the government, it is mandatory to register the
firm/company under the MSME registration. MSME also acts as the
address proof for opening a Current Account in Banks.
How to Register
Needed documents for MSME Registration:
● ID proof of the applicant (Aadhar card, PAN Card)
● Personal details of the applicant
● Address of the entity
 ● PAN Card of the entity
● Goods and Service Tax (GST)
● Employee details
● Establishment Date
● Current Bank Account details
● The object of the entity
● NIC
● Memorandum of Association (MOA)
● Article of Association (AOA)
● Bills
Procedure for MSME/UDYAM registration:
● Go to the official website for MSME/UDYAM registration
● Fill up the application form with the correct details
● Apply after checking the details
● After the approval, you will receive the certificate in the mail
as a soft copy
MSME Table

Entity type Minimum Minimum turn

capital over
Micro 1 crore 5 crores
Small 10 crores 50 crores
Medium 50 crores 250 crores
Advantages of MSME/UDYAM registration
● Paperless process
● Permanent registration
● After the registration, no renewal is needed
● Eligible for bank loans
B. IE CODE
What is IEC?
IEC is the short form for Importer and Exporter Code. The import and
Export Code is the ten-digit number allotted by the Director General of
Foreign Trade (DGFT) to every importer and exporter. Importer and
Exporter code is also called IE Code. Without the IE Code, no one can
import and export from India.
Who can Apply for IE Code:
Any ‘Person’ or ‘entity’ that is involved in Import or Export activity is
allowed to apply for IEC. Proprietorship, Partnership, Limited Liability
Partnership, Limited Company, Hindu Undivided Family, Society also
Can apply for IE Code.
Documents Required
● Individual
1. Address proof
2. PAN Card
3. Passport size photo
4. Rental deed
5. Current bank account cancelled cheque
● Business entity
1. Incorporation proof was given by ROC/Proprietorship deed
2. PAN Card of entity
3. Applicant PAN card and Address proof
4. Rental deed
5. The cancelled bank cheque of the entity
6. Digital signature
Registration process
● Fill out the online application with the correct details
● Submit all the required documents
● Pay the fee online
● Submit the form
● After the approval, you will receive the certificate in the mail as a
soft copy
C. CORPORATION LICENSE
Shop and Establishment Act
The Tamilnadu Shop and Establishment Act 1947 regulates the
protection of the employee. It includes the work time, salary, breaks,
leaves, overtime work and payment, safety, etc. Most of the shops like
supermarkets, stationery shops, hardware shops, cloth shops, etc.
Required documents
● Passport size photo
● Identification proof (such as aadhar card, driving license, etc.)
● PAN Card
● Employee details
● Rental deed
● Bills (such as electricity bills, telephone bills, etc.)
● Purchasing invoice
Procedure
● Go to the government’s official website
● Fill up all the detail correctly
● Submit the document
● Pay the fee online
● State Labor Department inspect the shop
After all the process completes successfully, the State Labor Department
issues the license.
D. Trade license
A trade license is necessary to commerce the goods in a particular
location. The Municipal Corporation Act under the state government
regulates the trade license. This license ensures that the traded goods
don’t harm the health of the living beings.
Required documents
● Passport size photo
● Identification proof (such as aadhar card, driving license, etc.)
● PAN Card
● Employee details
● Shop details such as layout, square feet
● Rental deed (if the property is rented)
● Property tax of the shop (if the property is owned)
● Bills (such as electricity bills, telephone bills, etc.)
● Purchasing invoice
● An incorporation certificate is given by ROC
● NOC
Procedure
● Go to the government’s official website
● Fill up all the detail correctly
● Sign the form
● Submit the document
● Pay the fee online
● Assistant Revenue Officer (ARO) inspects the shop and moves the
file to the trade license committee
After the approval, we obtain the license through email or post.
E. DRUG LICENSE
What is a Drug License?
The drug is nothing but all kinds of medicines. Under the Drugs and
Cosmetic Act of 1940, the Drugs Control Department issued the Drug
License after the probe. Both drug manufacturers and drug sellers need
this Drug License. A drug License is nothing but permission given by the
state government to sell the drug containing products such as medicines,
cosmetics, etc.
Types of Drug License:
● Manufacturing License
● Sales License
1. Wholesale License
2. Retail License
● Loan License
● Import License
● Multi-Drug License
Eligibility to obtain Drug License:
● Competent person (pharmacist) with experience
● Sufficient space
● Storage space
Needed documents for obtaining Drug License:
● Incorporation certificate or rental deed
● PAN Card of the entity
● Rental deed
● Electricity Bill
● Directors or Partners Aadhar and PAN Card
● Competent degree and experience certificate
Procedure to obtain Drug License:
On the government portal, we can apply for the Drug License (online
only)
● First, we have to create a login id in the government online
portal
● In that portal, select Form 19 and fill up the details of the
company
● Fill up directors and competent details
● Submit all the required documents of directors and
competent
After finishing the formalities, the application number will be allotted
and the acknowledgement of the application number will be sent through
email, then the authority will inspect the company and also verify the
pharmacist, then only we obtain a Drug License.
F. FOOD LICENSE
The food license is generally known as FSSAI. The full form of FSSAI is
the Food Safety and Standard Authority of India. By The Food Safety &
Standards Act 2006, FSSAI is regulated. This license talks about your
product quality. That's why it is necessary to obtain this food license.
There are three types of FSSAI licenses. they are,
● FSSAI Basic Registration
● FSSAI State Registration
● FSSAI central Registration
FSSAI Basic Registration
The entity which acquires a turnover of less than ten lakh come
under this, FSSAI Basic Registration.
FSSAI State registration
The entity which acquires a turnover of ten lakh to twenty crores
comes under this, FSSAI State Registration.
FSSAI central registration
The entity which acquires a turnover of more than twenty crores
comes under this, FSSAI State Registration.
Needed documents for FSSAI Registration:
● Address proof
● ID proof
● PAN Card
● Proprietorship deed/Incorporation proof given by ROC
● Rental/lease deed
● Food safety management plans
● Equipment list
Procedure for FSSAI Registration:
● Fill out an offline form and signature of the applicant
● Submit all the above-mentioned documents
● Within two to three days you can obtain the license
 SECTION 4
TAXATION

TAX SYSTEM
● Direct Tax and Indirect Tax
● Income Tax
● GST
The government introduces many schemes and services for the goodness
of the common people so they collect affordable taxes from the public
directly or indirectly.

A. DIRECT TAX AND INDIRECT TAX

What are Direct and Indirect Tax
Direct tax is a kind of tax that is collected directly from the income or
assets of an individual. The commonly known direct tax is property tax
or water tax. The direct tax is collected on an annual basis.
The tax which is not collected directly from the income of the person is
called an indirect tax. The commonly known indirect tax is service tax
which is paid from every purchase of the consumer.
The Direct Tax includes
● Earning of an individual
● Profit of an entity
● Income tax
● Transfer tax
● Property tax
● Corporate tax
The Indirect Tax includes
● Every product purchased by the people
● Service tax
● Entertainment tax
● Value added tax
● Stamp duty
● Customs duty
B. GST
What is called GST?
GST is named as the biggest tax reform in India after Independence. The
full form of GST is Goods and Service Tax. This is a type of Indirect tax
which was introduced in 2017 for the purpose to amalgamate all the
indirect taxes. The entire GST System is operated online only. The saline
feature of the GST is that it’s a destination-based tax system.
Who should register for GST?
● Annual turnover crosses forty lakhs
● Who involves in inter-state trade
● Who supplies through E-Commerce
● Casual Taxable Person
Required documents
The documents vary based on their constitution.
● Proprietorship Firm
● Passport size photo of the proprietor
● PAN Card and address proof
● Rental deed for commercial property
● EB Card or electricity bill
● Partnership Firm
● Address proof of the partners
● EB Card or Electricity bill
● Passport size photo of the partners
● Rental deed for commercial property
● Partnership deed and PAN Card of the firm
● Authorization letter and one partner
 ● Private limited company
● MOA and AOA
● Board of Directors resolution
● EB Card or Electricity bill
● Incorporation certificate and PAN Card of the firm
● ID proof and address proof of the Director
● Digital signature of the Directors
● Rental deed for commercial property
Procedure to obtain GST?
● Submit your PAN Number and other basic details
● Generate TRN Number
● Login using TRN with OTP
● Submit your business & Personal Information
● Upload the documents
● Submit the forms
● If any deviation, comply with the same
● Generate GST Number.
C. INCOME TAX
What is Income Tax?
The term income tax refers to the tax collected from the wages of an
individual or an entity. It is a kind of direct tax. These taxes act as
revenue for the government.
Who all should pay Income Tax?
All citizens of the country, above 18 years of age and below 60 years of
age have to pay tax if their income exceeds 2.5 lakhs. If a 60 years old
person earns more than 3 lakhs per annum they should pay income tax.
Income tax slabs

INCOME TAX PERCENTAGE

up to 2.5 lakhs No need to pay tax
2.5lakhs to 5 lakhs 5%
5 lakhs to 7.5 lakhs 10%
7.5 lakhs to 10 lakhs 15%
10 lakhs to 12.5 lakhs 20%
12.5 lakhs to 15 lakhs 25%
Above 15 lakhs 30%

How to pay Income Tax?

We can pay Income Tax in both offline and offline modes.
● Online method:
● Open official portal
● Click “Pay Tax Online”
● Select 280 challan
● Fill the challan with correct details
● Select payment mode
● Enter captcha correctly
● Click “proceed”
● Following that new page open
● Check the details
● Click “Submit to the Bank”
● You redirect to the bank website
● Login to the bank and give the correct bank details
● After the payment, the receipt will generate
 SECTION 5
INTELLECTUAL PROPERTY RIGHTS REGISTRATION

WHAT ARE CALLED IPR

● Trademark Registration
● Copyright Registration
● Patent Registration
● Design Registration

A. TRADEMARK REGISTRATION:
What is a Trademark?
The word Trademark includes and means
● Company Name
● Brand Name
● Logo
● Brand Slogans
● Labels,
In other words, it may be the name of the brand or its logo or the
combination of name and logo. As per section 2 (zb) of The Trade Marks
Act, 1999, “trade mark” means a mark capable of being represented
graphically and which is capable of distinguishing the goods or services
of one person from those of others and may include the shape of goods,
their packaging, and combination of colours.
What is Trademark Registration?
A Company Name or a Brand name is to be registered before the
Registrar of Trademarks. A trademark registration gives exclusive
ownership over the brand name to the owner of the mark to use the
same. This means that no third party can use the said mark without the
permission of the registered proprietor. Furthermore, this registration
grants the registered owner a right to use any third party before a court
of law against misuse of the registered trademark.
Who can apply for trademark registration?
It is not that only a person who owns a business alone can register a
Trademark. Even a person who is about to start a future business can
also register for the name that he likes. So, the following people can
apply for Trademark registration.
● Individual
● Proprietorship firm
● Partnership Firm
● Limited Liability Partnership (LLP)
● Private Limited Company
● One Person Company (OPC)
● Public Limited Company
● Society
● Trust
● Non-profitable Company

Documents for trademark registration

Proof of usage of the Trademark
If your trademark has been used for a long time, the following proofs can
be submitted supporting the proof of the disclosed date of usage.
● Registration Certificate of the company
● Other licenses
● Payment receipts
● Bills and invoices
 ● News Paper Advertisements
● Domain Registration Proof
● Client communication letters
● Rental Agreement in the name of the company
● Bank Statement
The above proofs need not be submitted if the mark is a proposed to be
used mark.
Procedure for Trademark Registration
● Trademark search
● Fill up the Form TM - A
● Submit the above-mentioned documents along with the form
● After submitting the form registry will provide the Trademark
Number (TM Number) to us
● Examination of the trademark form
● Publication of the journal
After all the process is done successively, the registry provides a
Trademark certificate. The trademark certificate is valid for ten years
then we will renew it.
B. COPYRIGHT REGISTRATION:
What is Copyright?
Copyright is a special right given to the creator of original work for a
stipulated period of time. In India, Copyright registration is in effect after
the enactment of The Copyright Act, 1957 with five amendments till
1999. The Copyright Act in India is drafted in compliance with many
international treaties and conventions, especially “The Berne
Convention”
What is Copyright Registration?
Copyright is named as Creator's right. Copyright is a special right given
to the creator of original work for a stipulated period of time. Everything
that is created through the human intellectual brain is named copyright.
The most advantages of copyright are that you can earn money through
your copyrights smartly by way of assigning or licensing the rights to
others.
Who can apply for Copyright Registration?
The person invents some product on his own, they claim the copyright
for his product. Even small inventions can obtain copyright registration.
For example,
● Logos
● Dramatic work
● Photographs
● Motion pictures
● Computer programs
● Literary work
● Artistic work
● Cinematography
● Sound recordings
Documents for Copyright registration
● Two photos of the work
● Draft
● NOC
These are the basic required documents for copyright registration and
the documents vary based on their inventions.
Procedure for Copyright Registration
● Fill up the form with the correct detail
● Pay the fee
● Examination
● There is no objection, the form was moved to the registration
C. PATENT REGISTRATION
What is a Patent?
A patent is a right that is awarded to a person for a new invention or
technology which had never been in existence before. Every nation’s
growth rests on the number of significant patents granted. In legal
language, a patent is a set of special privileges approved to a person for
his invention for a stipulated period of time. A new Invention or
technology which brings a significant change in the scientific and
industrial world is considered a Patent. Not only in technology companies
but also in medicines, the process of preparation of medicines is
included under the purview of a patent.
What is Patent Registration?
Patent registration is a right that is awarded to a person for a new
invention or technology which had never existed before. Every nation’s
growth rests on the number of significant patents granted. In legal
language, patent registration is a set of special privileges approved to a
person for his invention for a stipulated period of time.
Types of Patent registration
1. Provisional Patent Application
2. Regular / Ordinary Application for patent
3. Convention Patent application
4. PCT Application
5. Patent of Addition
6. Divisional Application
What cannot be patented?
● Any idea which is frivolous or contrary to the natural laws
● Any invention which is related to Traditional Knowledge cannot be
patented.
 ● An Artistic work, Cinematographic Musical, or literary in Nature
cannot be patented
● A mere mixture of two substances that result in mere aggregation
of properties.
● Mere Ideas cannot be patented
● Any process for the medicinal treatment or surgical process
● Any process relating to agriculture and horticulture.
● Grants are not given for patents relating to Atomic energy
Procedure for Patent Registration
● Fill up the form with the correct detail
● Pay the fee
● draft
● Examination
● There is no objection, the form was moved to the registration
D. DESIGN REGISTRATION
What is Design Registration?
Design registration means registering a shape or design of a product
which has particular uniqueness. But before that, we need to
understand what is the scope of design under this Design Act. As per the
Design Act, Design means the following are there of applied to any article
in ‘finished article’ appeal to & judged solely by ‘eye’.
How long is the design registration valid?
The total period of validity of a Registered Design is 15 years from the
date of applying for Registration. The registration is initially valid for a
term of 10 years and can be renewed for an additional period of 5 years.
Procedure for Design Registration
● Search
● Documentation
● File the application with the image of the product
● Examination
● Publication
● certificate
Design cannot be registered
● Clothing or labels
● Buildings and construction structures
● Part of articles
● Flags and symbols
● Layout design
● The shape of the existing design
 SECTION 6
AGREEMENTS AND CONTRACTS

AGREEMENTS

What is an Agreement?
An agreement is nothing but a legal document, drafted with mutual
understanding between two individuals or two entities. The agreement
includes rules and regulations, roles of the partners, the time period of
the agreement, etc. are mentioned.
Types of Agreement:
● Business Agreement
A business agreement is frequently called a Business to Business
(B2B) Agreement. It is a kind of agreement between two businesses.
The purpose of the agreement is to secure your business. It
includes the name of the partners, details of the agreement, terms
and conditions, payment details, warranties, etc.
● Personal Agreement
The personal agreement is a kind of agreement made by two
persons. Sale of property, lease, loan agreement, etc. is the some of
the agreements.
● Foreign Agreement
Foreign agreement is an agreement that was drafted between an
Indian firm and a foreign firm. The term bilateral refers to the
agreement between two companies and multilateral refers to the
 agreement between two more foreign firms. Writing a foreign
agreement in English is better.

Why should you sign a written agreement?

● Prevent misunderstanding between two parties
● Avoid expensive court proceedings
● Provides proof of what was agreed between two parties
● Reduce the risk of the dispute with vendors
● It sets how to resolve the dispute
● Written contracts can be enforced more effectively than an oral
contract
● Gives you security and peace of mind

TYPES OF B2B AGREEMENT:

● Memorandum of Understanding
● Service Agreement
● Supplier Agreement
● Franchise Agreement
● Joint Venture Agreement
● Non Disclosure Agreement
● Distributor Agreement
A. MEMORANDUM OF UNDERSTANDING
What is MOU?

MOU is generally a preliminary understanding between the parties to a

proposed contract. It is a formal piece of document that expresses the
intention of two or more parties to collaborate together and it is also
called a Letter of intent. MOU is usually carried out for building
consensus between the parties for future agreement and is typically not
intended to have created any obligations upon the parties.

Enforceability of MOA:

In India, the Indian Contract Act, 1972 governs the Memorandum of

understanding. The Memorandum of Understanding is enforceability
considered and enforced under the Specific Relief Act.

But the enforceability comes only when the terms fulfil the conditions for
a contract under the Indian Contract Act 1972.

In specific to say, there should be an offer and the other party should
have accepted the offer for consideration. When an MOU does not fulfil
the conditions of a contract under the Indian Contract Act 1972 then, in
that case, the Court may hold the Memorandum of Understanding as
invalid.
 B. SERVICE AGREEMENT

What is a service agreement?

The service agreement is a contract between the service provider and a

client; where the service provider agrees to render a service to a client
towards a monetary benefit. This Service not only connotes the Repair
Service (Mobile phone or vehicle), it has got a wide meaning and it
includes all types of services rendered to any business activity.

Why is a service agreement important?

The preliminary meeting of the client & service provider to discuss

conditions, negotiations, etc… But after some time, we face a dilemma
with the service provider or client and the problem starts now.

When a relationship starts bitter, an oral enforcement contract becomes

harder. This is why a written agreement is always required.

Service agreements are useful to the following industries:

● Website Designer
● Software Developer
● Auditors
● Share Brokers
● Business/General Consultants
● Architects
C. SUPPLIER AGREEMENT
What is a Supplier agreement?

A supplier agreement is an agreement between the manufacturer (buyer)

and the supplier for the supply of material. This supplier agreement
makes the buyer and seller understand the terms and conditions for the
supply of material. The supplier agreement ensures the quality of the
product, time of delivery, quantity, and pricing. This helps to have a
tension-free business. This is also called a vendor contract.

When do you need a supplier agreement?

Whenever you need to purchase a product from an external seller

(supplier), you need to sign a properly drafted legal agreement. The
agreement will make your relationship with your vendor stronger. An oral
agreement will create unnecessary legal consequences.

Why do you need a Supplier Agreement?

● To execute the project plan one time

● To achieve the desired quality
● This avoids unnecessary Court Litigations
● Legal binding agreement as proof over law
● This will make you, move to the next level in business as you put
yourself into the commitment
● The last and most important factor is money. A strong supplier
agreement provides outstanding one-time.
D. FRANCHISE AGREEMENT
What is a Franchise?

If you are an Entrepreneur and got an option to choose either to work

hard or work smart, what option do you prefer? If you opt for Smart
work, then the best way of expanding your business is the ‘Franchise
Module’. But to have a strong legal relationship a stringent agreement
needs to be signed between Franchisor and Franchisee.

What is a Franchise Agreement?

It is a contract between two parties, the first party shall be the franchisor
and the second party shall be the franchisee. The first party authorizes
the second party to do business in the name of the first party’s brand or
trademark.

In consideration, the second party enjoys the franchise fee and share of
the revenue. A Franchise Agreement is the most important document in
the franchise relationship. The franchise agreement speaks about the
Terms and Conditions between both the franchisor and franchisee.

Parties to Agreement:

The Franchisor: A first party is a Person or organization which grants the

right to another person to use its business, business modules, products,
etc. for some consideration in return.
Franchisee: The second party is the one who receives the right and also
runs the business of the franchisor.

Common Problems in Franchise business

● To avoid many common problems arising out of the franchise

business, the only solution is not to use Poorly drafted agreements.
Have a clearly drafted agreement with the assistance of a Corporate
lawyer who has sufficient knowledge of Franchise issues.
● The most common issues will usually be non-payment, crossing the
territorial jurisdiction, and intellectual property violation.
E. JOINT VENTURE
What is a Joint Venture?

A Joint venture is where two or more Companies join (or) two or more
individuals join together and form a separate legal entity or carry out a
Project. In simple words, if your company has a unique concept or
business idea and another company is interested in collaboration for
promotions and sales, this is a form of Joint Venture.

What is a Joint venture Agreement?

Joint venture agreements bring two strong organisations together for a

common purpose and clearly define every term and condition to start a
new venture to achieve their common goals.

What are the advantages of a Joint venture?

● Risk sharing
● Collaboration of resources
● More technical knowledge
F. NON DISCLOSURE AGREEMENT
What is NDA:
Presently Information is everyone’s precious property. so people take
high measures to save from harm. If your unprotected information goes
to an off-beam hand, it may generate a superior loss. Here
Non-Disclosure Agreement plays a vital role in protecting valuable
information passed on to other parties for some process.

Why is NDA important?

In our daily business activity, we are supposed to pass on some of our

valuable information to our staff, service provider, or third party. Hence
there is always a threat that it may be steeled. Hence having a strong
Non-Disclosure Agreement comes to the role of protecting your valuable
data from mishandling.

NDA Obligations:

There are two main obligations on the receiving party's Confidential Info:
1. The receiving party should keep the confidential information secret.
2. The received information should be used only for the purpose that
is assigned for.

So if the NDA is good, and strong enough, on the breach, the disclosure
can sue against the receiving party for damages.
 G. DISTRIBUTOR AGREEMENT
What is the distributor agreement?

A Distributor Agreement is a form of contract where the Manufacturer

(Distributor) is granting a right to the vendor (Distributor) to distribute
his goods to the wholesaler or retailer.
Types of Distributor Agreement:

● Exclusive Distributor Agreement: This is the most common form

of Distributorship. The Manufacturer allocates an exclusive
territory to a specific distributor & the distributor is the sole
authority to distribute the products.

● Non-Exclusive Distributor agreement: The distributorship is not

granted on an exclusive basis, that is to say, in one single location,
the manufacturer can appoint many distributors.

Importance of having a written distributor agreement:

● Proof of terms: Always a written agreement will act as proof of proving

the terms between both the parties at the time of dispute or confusion.
● Avoid Litigation expenses: Where there is clarity on terms, both parties
will carry on their responsibilities and duties. hence this will avoid any
litigation.
● Avoids misapprehension: When the agreement is very crystal clear on
terms, this will avoid misunderstanding and give clarity on the terms
between both.
● Avoids risk: The indemnification clause always avoids risk and makes
the parties indemnify the loss which arises out of misrepresentation or
falsification of either party.
 ● Clarity on duties and responsibilities: The written agreement always
makes the duties and responsibilities of the parties clearly.

Elements of distributor agreement:

● Exclusive territory
● Indemnity clause
● Commitment to a volume of sale
● Consequence of termination
● Payment terms: the price of the document, and other terms
● Warranty and guaranty and distributorship period
 THANK YOU
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