Employees’ Enrolment Campaign, 2017 (Amnesty Scheme for Provident Fund)

About EPF:

Companies in which twenty or more persons are employed are liable to register for allotment of the PF Code number with Regional Provident Fund Commissioner. The employees whose salary is less than Rs. 15000 are to be mandatorily enrolled under EPF. The employer shall deduct the employee’s contribution from his wages and within fifteen days of the close of every month pay to the fund by separate bank drafts or cheques on account of contributions and administrative charge.

Employees’ Enrolment Campaign, 2017:

  • Companies who has not enrolled employees and deposited PF for period beginning from 01.04.2009 to 31.12.2016 can avail the scheme;
  • This scheme is effective from 01.01.2017 till 31.03.2017;
  • Company shall furnish Declaration Form for Employees’ Enrolment Campaign, 2017 to the Regional Provident Fund Commissioner (Online facility also available);
  • Company shall, within fifteen days of furnishing the declaration, remit the employer’s contribution payable in accordance with the provisions of the Scheme and the employee’s contribution deducted from the employee’s wages along with interest payable (@12% p.a) in accordance with section 7Q of the Act;
  • The following incentives are available to the employer:
    1. The employee’s share of contribution, if declared by the employer as not deducted, shall stand waived.
    2. The damages to be paid by the employer in respect of the employees for whom declaration has been made under this campaign shall be at the rate of Rupee 1(one) per annum.
    3. No administrative charges shall be collected from the employer in respect of the contribution made under the declaration.
  • After furnishing declaration and depositing the contribution, a return will have to be filed with the Regional Provident Fund Commissioner in such form as may be specified by the Central Provident Fund Commissioner.
  • This scheme is not available for companies against whom inquiries have been initiated by PF authorities under section 7A of the Employees Provident Fund & Miscellaneous Provisions Act, 1952. (http://www.epfindia.com/site_en/circulars.php?id=sm7_officeUse)

Know More :- Employees’ Enrolment Campaign, 2017

 

Impact of Revised GST Model Law

gst

With the issuance of revised model GST law, the countdown to implement much awaited Goods & Service Tax on 01.04.2017 has begun. It is required to recall here that on June 14th, this year, the aforesaid revised model was share for public feedback and now it is here with all the revisions based on the comments of public.

The major changes in the revised model include clear exclusion of securities from the definition of goods. Goods now means”every kind of movable property other than money & securities.” Another change is removal of ambiguity over taxation of supply to SEZ units, it is now clear that the same will avail all benefits available in the existing law.  Inclusion of new provisions regarding “place of supply”, “use of business assets & services for private or Non-Business use”, “supplies made by principal to agent & vice-versa” are some of the other remarkable revisions.

But the most significant one is the introduction of ANTI-PROFITEERING which ensures responsibility of companies to pass the benefits of GST to ultimate consumers. The clause is dedicated to the fair price chargeability & transparency in price mechanism.

Though all the above will surely come out with positive impacts but despite expected positive outcomes the law certainly has many complications & it will be worth watching what challenges will the current government face for  getting it pass from both houses & later by the ultimate consumers.

Disclaimer: This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.

Incorporation of A Public limited Company

Section 2 (71) states that a public company means a company which:

  1. is not a private company;
  1. has a minimum paid-up share capital , as may be prescribed:

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purpose of this act even where such subsidiary company continues to be a private company in its articles.

Points to be kept in mind before incorporation of a Public Limited Company:

Decide regarding the proposed name to be applied, objects to be carried by the Company, proposed registered office address, authorized capital, number of promoters, number of directors, number of shares to be subscribed by each promoter.

The name of the company should be in consonance with the principal objects of the company as set out in the memorandum of association. Every name need not be necessarily indicative of the objects of the company, but when there is some indication of objects in the name, then it shall be in conformity with the objects mentioned in the memorandum. [Rule 8(2)(b)(ii) of Companies (Incorporation) Rules, 2014]

The proposed name should not fall in the ambit of undesirable names specified in Rule 8 of Companies (Incorporation) Rules, 2014

The Company must have minimum Paid Up Share Capital as may be prescribed.

There must be at least 7 subscribers to the memorandum of Association of the company [Section 3(1)(a)]

Minimum number of Directors required is 3 Directors upto a maximum Limit of 15 Directors [Section 149(1) (a) & (b)]. A company can appoint more than 15 directors after passing a special Resolution in a general Meeting.

Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.[(Section 149(3)]

All Directors should have valid DIN. (In case the proposed directors don’t have a Director Identification number (DIN) allotted to them, Pl. Ref. procedure for DIN Application and allotment)

Digital Signature for any one of the Director is required to digitally sign the E-Forms to be submitted with the Registrar of Companies.

The Following Procedure to be followed for Incorporation of a Public Limited Company

Incorporation of A Private limited Company

lexcomplySection 2 (68) states that a private company means a company having a minimum paid up share capital as may be prescribed, and which by its articles:

  1. restricts the right to transfer its shares;
  1. limits the number of its members to two hundred;
  1. prohibits any invitation to the public to subscribe for any securities of the Company:

Points to be kept in mind before incorporation of a Private Limited Company:

Decide regarding the proposed name to be applied, objects to be carried by the Company, proposed registered office address, authorized capital, number of promoters, number of directors, and number of shares to be subscribed by each promoter.

The name of the company should be in consonance with the principal objects of the company as set out in the memorandum of association. Every name need not be necessarily indicative of the objects of the company, but when there is some indication of objects in the name, then it shall be in conformity with the objects mentioned in the memorandum. [Rule 8(2)(b)(ii) of Companies (Incorporation) Rules, 2014]

The proposed name should not fall in the ambit of undesirable names specified in Rule 8 of Companies (Incorporation)Rules, 2014

The Company must have a minimum Paid up Share Capital as may be prescribed. [Section 2 (68)]

There must be at least 2 subscribers to the memorandum. [Section 3(1)(b)]

Maximum number of members allowed is 200 members [ section 2(68)]

Minimum number of Directors required is 2 Directors with a maximum limit of up to 15 Directors. A Company may appoint more than 15 directors after passing a special Resolution in a general Meeting. [Section 149(1)(a) (b)]

Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.[(Section 149(3)]

Restrictive provisions given under definition of Private Company [Section 2(68)] should be taken care of and be included in the Drafting of Memorandum and Articles of Association of Company.

All the Directors should have valid DIN. (In case the proposed directors don’t have a Director Identification number (DIN) allotted to them, Pl. Ref. procedure for DIN Application.)

Digital Signature for any one of the Director is required to digitally sign the E-Forms to be submitted with the Registrar of Companies.

Know More: – Procedure for Incorporation of Private Limited Company