Advoacte Amit Kumar Singh

Questions Answered by Advoacte Amit Kumar Singh

Q: Borrower has taken money and deposited security and their is guarantor

Borrower has borrowed money and deposited some security and there is guarantor also. So first security money will be realised or guarantor need to pay the debts?

Advoacte Amit Kumar Singh answered
Technically you are not allowed to engage in money lending unless you have a license. Your guarantor at best is a witness towards a friendly loan. So in case you have a blank cheque go ahead with 138 NI act, in case you have a executed document go for civil suit for recovery it will cost you 1%...Else only option left is civil suit for recovery on base amount

Q: Practical illustrations on limited liability and profit sharing of OPC

I wish to start a One Person Co. (OPC) to buy and sell shirts/footwear/wrist watches etc as a small business. My questions are:1. Can I trade in those goods only which I brought from TIN/VAT registered dealers/suppliers? Or I may sell goods bought from local/rural manufacturers/ flea market who do not have TIN no.?2. Can I start manufacturing garments/ purses/ shoes without factory license/manufacturing license/Excise registration, and sell them online on AMAZON/FLIPCART etc?3. If I start an OPC as small business, please illustrate and explain how I, as Director of the co., actually get money/be paid by the company?4. Can I withdraw all ‘profits’ for ‘personal use’?5. Please illustrate how beneficial will be limited liability protection in the above scenario in small business.6. How tax liabilities of my company and myself are are calculated separately?7. What if my business fails and I choose to wind up the company? Or I choose later to do business of different nature?

Advoacte Amit Kumar Singh answered
To begin with too many questions I wish to start a One Person Co. (OPC) to buy and sell shirts/footwear/wrist watches etc as a small business. My questions are: 1. Can I trade in those goods only which I brought from TIN/VAT registered dealers/suppliers? - You are advised not to as it involves propriety and without being a dealer you may be prosecuted for the same. Or I may sell goods bought from local/rural manufacturers/ flea market who do not have TIN no.?- This you can 2. Can I start manufacturing garments/ purses/ shoes without factory license/manufacturing license/Excise registration, and sell them online on AMAZON/FLIPCART etc?- You should not do this as well. You will land in a tax soup. It doesnt cost you much so go ahead with proper footing3. If I start an OPC as small business, please illustrate and explain how I, as Director of the co.- OPC begins with a director you will be at behest of the company but company will have a different identity than yours with a seal and name actually get money/be paid by the company? -Which company are you referring to? This will be created in your name. You will have to invest initially to get benefitted4. Can I withdraw all �profits� for �personal use�?- yes you can but being in the tax net. Your profit as a director will be different than that of a company. Both subject to different incidences of tax 5. Please illustrate how beneficial will be limited liability protection in the above scenario in small business.- it is beneficial but I will not be able to illustrate in limited context 6. How tax liabilities of my company and myself are are calculated separately?- Do you have aspirations of doing it all on your own? What will professional do for that matter advocate. yes they are calculated differently7. What if my business fails and I choose to wind up the company? There is a process for winding upOr I choose later to do business of different nature? -You will have to inform MCA in proper form for change of business and then you can do that if that is not covered in MOAFor more hire and then seek better advice. We have a team of lawyers, CA and CS to assist you but yes of-course there will be professional costs. None puts in effort to do free stuff. Cant survive that way. Everyone has to pay bills. Right? Get back to us for more

Q: What all Documents & agreements are required for seed funding round

Hi, what all agreements are reached & documentation is required between a founder & an investor before receiving a seed fund. Can any one please mention an exhaustive list.

Advoacte Amit Kumar Singh answered
Agreements- 1. Is the founder also developer in case not then you need to create non diaxlosutlre and contract for services with your developer 2- agreements- between partners 3-other documents associates with incorporation and function of the company 4-clearances and certificates depending on area of functionings of ur startup Between a founder & an investor-1-MoU on terms of agreement 2-Changes in base MoA and AoA of compny 3-share allotment and rights related docs For more assistante you will have to seek opinion with commitment You can get back to me in case you need further assistante We have the requisit team for such purpose

Q: Need information on partnership disputes and bank CC limit

I am a partner in a partnership firm. Firm has availed CC limit from a bank. My personal guarantee is also submitted with bank. I have given notice to other partners for separation from partnership. Now other partners are freely using the CC limit. The liability is also on me for this limit. What actions can I take to stop the use of this limit. Authorization of operation of account is also with other partners.

Advoacte Amit Kumar Singh answered
You will have to initiate 3 step porcedure1- File with MCA for exiting the partnership if that is an LLP2-Send a notice to other partners in postal medium on your letter head(if you have any) else just a normal letter with your credentials informing them of exit. There should be a time limit where you will ask them for exit3-Inform the bank and withdraw your guarantee and the exit from firm This was a basic advice as created on base of information you provided for more assistance get back to us. We will assist you as we have on board CA and CS

Q: Validity of a pending case after SC Judgement nullifying it.

As IT act section 66a has been struck down by SC . What to do in scenario of pending case in lower court and lower court is not taking note of it. Advice me with a suggestion which is low in cost

Advoacte Amit Kumar Singh answered
As IT act section 66A has been struck down by SC- it means that in that domain there exists no law and hence the matter cannot be adjudicated. Better is to withdraw the matter with liberty of re-filing it by using the existing provisions of IT act and re-filing the same. For more advise you can get back to us