Frequently Asked Questions

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• What is SPICe- process of company incorporation?

  Simplified Proforma for Incorporating Company electronically (SPICe) is a fast track registration procedure initiated by Ministry of Corporate Affairs which enables a single form application process of company registration.

  The normal registration route can take up to thirty days but if SPICe is followed the whole process can be closed within 7 days.

  ClearTax aims at rendering premium services and delivering it in a speedy manner. The incorporation services shall be delivered following the SPICe route.

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• How can I become eligible to get benefits under the Startup India Initiative?

           Only the below stated entities qualify as a “Startup” for the purpose of Government schemes

           Private Limited Company

Registered Partnership Firm

Limited Liability Partnership Further conditions are:

Not more than 5 years have passed from the date of its incorporation/ registration

Turnover for any of the financial years has not exceeded INR 25 crore

It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property

Our experts shall guide you on how you can get registered under the Startup India Initiative and avail the benefits.

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• I want to start a business in app development. What other registrations will apply to me?

Apart from getting your service tax registration, you must also consider protecting your brand by registering the trademark for your brand. Also, if you are building any proprietary software or any other intellectual property, you must secure a copyright. Our experts can assist you with trademark and copyright registration

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• I need to raise capital from external sources. I am considering approaching Investors. Do i get any advantage on getting registered as a private limited company over other forms?

The capital structure of a private limited company can easily accommodate equity funding. So Venture Capitalists prefer pvt. Ltd. over any other structure

Being a regulations compliant entity, it becomes easy to attract capital infusion from financial institutions like banks, NBFCs etc.

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• Do I need to be physically present during this process?

No, your physical presence is not required during the process.

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• Is stamp duty payable during incorporation process?

Yes, Stamp duty charges are imposed by the state in which the registered office is proposed to be located. The charges are on MOA, AOA & form INC 32. These charges are covered under the plan for all the states except Punjab & Madhya Pradesh. Our experts will guide you on additional charges if any for Punjab & Madhya Pradesh.

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• How much time is needed to set up a private limited company?

The registration process gets completed when you get a certificate of incorporation(COI) issued by the registrar. ClearTax follows the fastest registration route i.e SPICe and ideally the application can processed within 10 working days.

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• I already have my digital signature certificate and DIN. Will the package value remain the same?

In case, you already have a DSC and DIN, our experts will offer you some concession accordingly on the above package.

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• What is the government fee applicable for a Plc incorporation?

Below are the charges applicable for DIN and other government forms:

• DIN (2 Nos): Rs.1000

• INC-1 Form: Rs.1000

• AoA: Rs.200 (up to Rs.1 lakh of authorized capital)

• MoA: Rs.2000

• Form 32: Rs.500

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• What is the stamp duty payable for company incorporation?

Below is the stamp duty payable depends on the state you incorporate and your authorized share capital: These are the charges in Karnataka:

• AoA: Rs.1000

• Moa: Rs.1000

• Form 32: Rs.20

      Apart from this, notary charges of Rs.340 will apply for two director affidavits and related stamp duty.

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• Can an NRI also become a director in company? And what additional documents will be required to be submitted?

Yes, an NRI or any foriegn national can become a director in a private limited company. But such person can be taken as a director only when there is one director who is a Resident of India. Additional documents required:

• Copy of Passport Copy Which is attested by Consulate of Indian Embassy or Foreign Public Notary.

• Copy of Driving License/ Bank Statement or Electricity Bills copy or Any Property Tax Payment Receipt which is attested by Consulate of Indian Embassy or Foreign Public Notary.

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RBI approval is required for foreign capital contribution. Additional charges will be applicable for RBI approval. Our experts will advise you on the applicable charges.