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The process of SPICe (Simplified Proforma for Incorporating Company Electronically) Private Limited Company Incorporation Filing Process is required to be done. SPICe is a single form that integrates the applications for Reservation of Company Name, Allotment of DIN for Directors and Incorporation of a New Company along with allotment of Permanent Account Number (PAN) and Tax Collection and Deduction Account Number (TAN) to the New Company.

Procedure followed

The essential paperwork needs to be filed on the official MCA website (www.mca.gov.in), which ensures a quick and uncomplicated process. With the "Make in India" initiative, the Indian government currently supports the incorporation of businesses in India. It is only after following the procedures outlined in the Act that the company can be formed and started. The steps that are followed to register a private limited company are as below. It takes around 15 to 18 days to complete the entire procedure.

1. The very first step to register a private limited company is to obtain the DSC (Digital Signature Certificate) of the Directors and Subscribers to Memorandum of Association. An e-form is filed with the Ministry after attaching the DSC of the Authorized Signatory for incorporation of the Company. Also, it is required for the application of DIN of the directors. Further, DSC of the subscriber is needed to file Memorandum of Association and Articles of Association.
2. The next step is to obtain the Director Identification Number (DIN). Under this registration step, the Ministry allots the DIN to the Individual for acting as Director in a company. It is basically a unique number such as PAN Card allotted to any person and which is applied and allotted once in the lifetime.
3. The next stage in the company registration process is to submit an application for the proposed firm's name reservation. The application must be submitted on Form INC-1, which allows for a maximum of six names to be submitted in order of preference. It is important to note that the names chosen are not identical to or substantially equivalent to any existing Company, LLP, or Registered Trademark. Once the name is approved, it is reserved for the applicant for a period of 60 days, during which time the applicant must apply for company incorporation; failure to do so will result in the name being revoked by the Ministry.
4. Once the prospective company's name has been reserved, fill out the Application for Certificate of Incorporation in SPICe form and attach the SPICe MOA and SPICe AOA. The application is submitted by paying the required Stamp Duty on the portal, as applicable in the concerned state. Once the application is filed, an online form for the company's PAN and TAN is generated, which must be completed and sent along with the DSC and MCA. The concerned Registrar of Companies may give the Certificate of Incorporation after thorough examination of the application and supporting papers (COI). It is a conclusive confirmation of the company's existence, containing the date of incorporation, Company Identification Number (CIN), and Permanent Account Number (PAN), as well as the Registrar's signature and seal. As soon as the Certificate of Incorporation is issued, the firm can begin operating as soon as the Incorporation procedure is completed.

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Documents Required

Ensuring proper documentation is an integral aspect of the registration process of the Private Limited Company. The documents thus required for the registration of a private limited company are as follows:

• Directors and Shareholders’ Identity Proofs such as PAN card, Aadhaar Card / Passport / Driving License / Voter Identity Card; Address Proofs such as Telephone Bill / Mobile Bill / Electricity Bill / Water Bill; Bank Statement; Passport size Photographs. All the Copies of documents being self-attested by the applicant.
• Documents are to be signed by the Directors include the Consent to Act as Director: Form DIR-2, Details for DIN, Declaration of DIN.
• Documents to be signed by Shareholders include the Application for Digital Signature Certificate; Declaration by Subscribers & Director: INC-9 4. A no-objection letter from the Owner of Address to use the address of the registered office of the Company.

Costs incurred

India has a diverse range of business types, businesses, and services. Regardless of the sort of business, all of them require some form of government registration. For example, GST registration, VAT registration, IEC registration if you are in the import export business, Professional Tax registration, EPF registration if you are in some type of profession, MSME registration if you are a small and medium firm, and so on. Professional fees, as well as government fees, are associated with several types of registration. Registration fees might range from INR 1500 to INR 15000, depending on the complexity of the activities, state taxes, and other factors. The fees for forming a Private Limited Company vary depending on a variety of parameters such as the amount of capital, the number of shareholders, and the number of directors, among others. The cost of forming a Private Limited Company in India (Pvt Ltd Company Registration) ranges from INR 6,000 to INR 30,000, depending on the number of directors, members, authorised share capital, and professional expenses. The cost of a professional may be determined by the task's complexity. A minimum paid-up capital of Rs. 1 lakh is required for a private limited company. It could go even higher, as MCA may prescribe from time to time.

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The Information Technology Act of 2000 includes provisions for the use of digital signatures on documents submitted in electronic form to assure the security and authenticity of those documents. This is a safe and secure method of submitting a document electronically. As a result, all filings made by companies/LLPs must be signed using Digital Signatures by the person whose signature is requested.

Only the valid Digital Signatures issued to them can be used. It is against the law to use Digital Signatures that belong to someone other than the person to whom they were issued.

Procedure to obtain and costs of obtaining a DSC?

One needs to understand the procedure to obtain the Digital Signature Certificate in order to receive it. When applying for a Digital Signature Certificate, one needs to complete the Application form which is available online and personal information then needs to be verified with photo ID proof and address proofs.

The following are the steps to receive a DSC:

1. Visit the Certifying Authority’s online page. Select the Digital Certificate Services section post which the type of entity needs to be chosen for which the Digital Signature Certificate is sought for: whether a person or an organization.
2. After finding the appropriate form, the required information needs to be filled in the form such as the class required, the period of validity of the certificate, name of the applicant and his contact details, business GSTIN, payment details.

After filling out all of the required information, a recent photograph needs to be attached and the statement needs to be signed. An attesting officer must certify the supporting document presented as confirmation of identity and address. It must be ensured that the attesting officer's signature and seal are clearly visible on the accompanying proof documents.

1. A demand draft or cheque in the name of the Local Registration Authority where you will submit your application for verification must be obtained for payment of the DSC application.
2. Put the following items in an envelope:

• Filled-up Registration Form including the documents for Proof of Identity and Proof of Address attested by the authorized officer
• Payment made via demand draught or cheque.'

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The cost of obtaining the DSC includes the cost of the medium (a UBS token, which is a one-time payment), the cost of DSC issuance, and the cost of renewal once the validity term has expired. DSCs can be obtained from any of the recognised Certification Agencies listed on the MCA portal by corporate representatives and professionals who need them. The issuing costs for each Agency vary and are determined by the market.

DSC Renewal

The Certifying Authorities are entitled to issue a certificate with a validity of one or two years. The validity of the certificate needs to be known to the applicant well in advance. After the expiry of the validity period, the digital signature certificate can be renewed within seven days’ time. However it needs to be checked that the renewal is being made in the previos name only. And if the name is changed then the whole application procedure shall be considered as a new one. It is permitted to change the postal address and contact information. Also after the expiry of the Certificate if the renewal process is not completed within seven days’ time as stated above then the individual shall be required to apply from the start afresh.

 What is a DSC token?

USB Token for DSC or Digital Signature Certificate for Digital Signing have risen to prominence in recent years owing to its charcateristic of providing significant measures of protection. The Controller of Certifying Authority requires users to have a USB token in addition to their Digital Signature Certificates, users can use these Plug and Play tokens to download and install DSCs on them. People can now complete their signing operations from remote places owing to the two-factor authentication method for validation and secure local and remote desktop login. The best part about utilising USB tokens to sign desired documents and files is that they are easy to carry and can be placed on any device. Furthermore, the signed documents can never be changed and cannot be changed without the consent of the signer. The usage of password-protected tokens provides the token users or signers with a high level of protection. Proxkey, mToken, ePass 2003 are few of the types of USB tokens To utilise a digital signature, you must first get a Digital Signature Certificate by submitting an application to one of the registered Certifying Authorities. When the DSC and USB Token are received, it is simple to use them to sign any PDF document online. The most secure way to digitally sign a document is with a USB Token containing your DSC.

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Apart from knowing about the eligibility, one also needs to know about the various types of GST registrations. For instance, GST filings for small taxpayers are different from those mandated for big companies.

Hence, it is always better to engage a professional to register GST and obtain the GSTIN for you. The process does not stop here, as a GST-registered business, you will have to do certain form filings and you would require professional assistance for this as well.

One can register for GST free of cost if done on their own. Online GST registration is available at the online GST portal. If you wish to obtain professional assistance, there are various websites that provide GST registration at a fixed cost. The prices may range from INR 1500-3000 one-time fee.

Cost of Registering TAN & PAN

All persons in charge of deducting or collecting taxes must get a TAN. The TAN must be quoted on all TDS statements as required by Section 203A of the Income Tax Act, 1961.

One can obtain TAN by submitting Form 49B to any TIN Facilitation Centre. TAN applications can be submitted online through the NSDL-TIN website.

The current fee for filing a TAN application is INR 55/- plus applicable GST (the application fees may change from time to time).

PAN is to be obtained by every person carrying on any business or profession whose total sale, turnover, or gross receipts is likely to exceed five lakh rupees in any previous year.

Indian citizens can obtain a PAN by submitting Form 49A. PAN applications can be submitted online through the NSDL website or at any of the NSDL TIN-Facilitation Centres.

The application for allotment of a TAN or PAN must be made in Form No. SPICe-INC-32 if the applicant is a company that has not been registered under the Companies Act, 2013.

Per PAN application, the applicant must pay a cost of INR 93 plus applicable GST. The fee for processing the PAN application is INR 864 (INR 93 application fees and INR 771 dispatch charges)/- if the PAN card is to be delivered outside India. (Plus, GST as applicable)​​.

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DIN and its Cost

The Central Government issues a DIN to anyone who wishes to become or is already a director of a company. It is valid for a lifetime. One can apply for DIN by filling out the relevant forms, such as the SPICe Form, DIR-3 Form, and DIR-6 Form, along with supporting documentation.

The forms are submitted electronically. It must be digitally signed before being uploaded to the MCA21 website.

If a DIN application is filed at the time of incorporation, no separate fees have to be submitted to obtain DIN. In the case of an existing company, INR 500 fee is to be paid online.

There are various websites that file DIN applications on one’s behalf at a fixed cost. The prices may range from INR 600-1500 one-time fee.

Franking Charges

Franking is another mechanism that involves the stamping of a document by an authorized franking agent. A franking machine is used to stamp documents, indicating to the payor that the taxes have been duly paid to the government.

Franking fees are usually a small percentage of stamp duty fees, and they are often adjusted only in the stamp duty fees.  The franking procedure in each state has a set minimum amount. Franking charges might range around 0.1 percent of the overall purchase price.

LUT Bond & Its charges

To make exports without paying IGST, all registered taxpayers who export goods or services must submit a Letter of Undertaking (LUT) in the GST RFD-11 form on the GST portal. Before exporting goods or services, a LUT must be filed online. For each new financial year, a new LUT should be filed. GST registered person can only submit a LUT if they have not been prosecuted for tax evasion of more than INR 2.5 crore, or for any other offense under the CGST Act, the IGST Act 2017, or any other law.

Login to the GST Portal and select LUT from the services tab. Choose the financial year for which the LUT is needed. Fill in the details, then save, sign, and file the form. A message of confirmation appears. The GST Portal sends this ARN to the Taxpayer's registered email and mobile phone.  Now one can download the acknowledgment, by clicking the download button.

There are various websites that provide LUT related services at a fixed cost. The prices may range from INR 1500-3000 one-time fee.

What is Notary? & Its charges

A Notary, also known as Notary Public, is a person who is authorized to perform certain legal formalities. This includes the drafting, and validation of contracts, deeds, and other legal documents. A Notary Public's primary role is to serve as an impartial witness while carrying out fraud-prevention activities involving legal documents. This is usually referred to as notarization.

Rule 10 of the Notaries Rules, 1956, mandates the following fee:

1. Notarization of instruments
   • You need to pay INR 35/- if the value of the instrument does not exceed INR 10,000/-
   • You need to pay INR 75/- if the value ranges between INR 10,000/- and INR 25,000/-
   • You need to pay INR 110/- if the value ranges between between INR 25,000/- and INR 50,000/-
   • INR 150/- if the amount exceeds INR 50,000/-
2. INR 15/- for verifying, certifying, and attesting the execution of any instrument
3. INR 15/- for administering/witnessing oaths or to take affidavits from deponents
4. INR 150/- towards the preparation of documents or instruments to be used outside the country
5. INR 10/- per page for attesting a document as a true copy

How much does CA charge for company registration?

The ICAI has revised the minimum fees paid for professional assignments completed by CA in Practice. A CA charges INR 35,000/- for incorporation of a Private Limited Company and INR 65,000/- for incorporation of a Public Limited Company in Class A cities such as Delhi, Mumbai, Kolkata, Chennai, etc.

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A master service agreement's purpose is to speed up the contracting process. It should also make future contract negotiations easier. A service level agreement (SLA) is another name for a master service agreement (MSA) (SLA). It reads as follows:

The Constituents Of MSA

• Confidentiality: Both parties agree that they will not reveal any company secrets to third parties.

• Requirements for delivery: Businesses determine who will deliver what and when.

• Dispute resolution: The MSA defines how to resolve disputes if they arise.

• Geographical locations: Both sides agree on the location of the employees' work.

• Intellectual property rights: The parties decide how all patents and other intellectual property will be owned and regulated. In rare cases, the client will receive all of the IP addresses. In others, the seller grants permanent rights while retaining ownership of his or her intellectual property and patents.

• Liability Limitations: The MSA identifies who is liable in the event of a lawsuit.

• Payment terms: These terms specify the projected cost as well as the payment plan.

• Venue of law: The MSA specifies the location where a legal dispute will be resolved. Arbitration or a specific state or federal court could be used.

• Warranties: The parties agree on the scope and coverage of the warranties.

• Work standards: In this section of the MSA, each party determines what constitutes acceptable work. Disputes frequently arise as a result of failure to meet work standards.

In addition to business ethics, network and property access, and social obligations, an MSA may include a few more topics. The idea is to hammer out as many specifics in broad strokes as feasible. Corporations will not squander as much time and money in discussions as a result of this. Purchase orders are agreements that are similar to MSAs but are less important.

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What Does A MSA Do?

MSAs are frequently used by businesses to make contract negotiations easier. This agreement allows both companies to spend time considering the deal's parameters. Then they can start working on the tasks mentioned in the contract. Customers and the company can still work together if you don't have an MSA.

Customers and the company can still work out difficulties if an MSA isn't in place, but there are major concerns that the contract will be jeopardized. Having an MSA in place prior to entering into a contract allows businesses to concentrate on their specific contractual difficulties, such as the time frame and price, for when the contract is actually entered into.

The majority of the time, master service agreements are complicated contracts. Companies will not have to cope with the pressure of time if there isn't a specific contract being discussed. They will be able to identify and address any difficulties that may arise in this manner.

Once a company has gone through the MSA negotiating process once, it will be aware of the types of concerns and issues that may arise. This is advantageous since the corporation will be aware of future issues and will be able to solve them when drafting the next MSA.

An MSA can also be utilised when two parties need to avoid negotiating rates every time a new work order is issued, such as when two parties need to avoid negotiating rates every time a new work order is generated. Instead of having to pause and impede their efforts to negotiate new terms, the companies may quickly move forward and finish the job. The parties will save time and money as a result of this.

Why Is a Master Service Agreement Necessary?

When moving quickly from one contract to the next, many small businesses use cut-and-paste clauses, sometimes known as contractual templates. There may be an unexpected chance for cooperation, or a potential consumer wants to see an out-of-the-box solution right soon. Companies do not have to deal with any issues arising from poorly written contracts when using an MSA. As a result, MSAs assist businesses in reducing their risk of litigation and avoiding contractual conflicts. Because technology, operating environments, and markets are always changing, businesses must keep an eye on their MSAs and make changes as needed.

When two businesses make a deal, one party does not want to be held accountable for the other's mistakes. The MSA ensures that if one party makes a mistake, the other will be held accountable.

The Provision Of Clarity In MSA

In such cases, one person will assume complete responsibility. It will sign an MSA that holds the party fully responsible for any mistakes, even if they are made by the other party. This party will also cover the legal fees for its MSA partner. It also pledges not to sue its business associate.

The other factor is risk allocation. When businesses agree to a Memorandum of Understanding, the new agreement may have an influence on existing contracts. Insurance contracts are particularly crucial. An MSA protects the parties by laying forth the risks that each company assumes. It will also determine who will be in charge of each group during the project's lifespan. Dispute resolution is easier with an MSA. The parties are already familiar with the phrases and can swiftly decide who is at fault.

What Are the Advantages of a Master Service Agreement?

A contract between two businesses is a time-consuming and costly process. A company pays for time spent and legal fees. It is in everyone's best interest to get a deal done sooner rather than later. An MSA is a contract in which two parties agree on the major points. The bargaining process will speed up as a result. An MSA can be written in weeks, if not days, by a motivated organisation. That's a lot faster than negotiating a normal contract.

An MSA still protects both parties because an agreement is in place. When a disagreement emerges, the MSA determines who is to blame. The two businesses are less likely to sue because examining the paperwork is simple. This saves both time and money.

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The MSA also has the benefit of being an excellent blueprint. It's straightforward to duplicate an MSA that a corporation likes. Each contract will be unique, but a solid MSA can serve as a model for future discussions. The parties have more time to focus on the most crucial aspects of the debate, such as the project's cost and timeline.