"> FAQ - Chartered Accountant



Trademark laws mandates trademark to be distinctive and non-descriptive in order to get registered. Rationale behind this provision is that non-distinctive or descriptive marks can’t be granted monopoly being generic to the trade and are open for public use without any exclusive rights over the same.

However, if a non-distinctive mark acquires a distinctive identity in the market due to prolonged use or business growth, then the restriction gets lifted on such mark.


Yes, a three-dimensional mark is registrable.


The registration of a trademark is valid for a period of 10 years. It can be renewed every 10 years, perpetually. In India, renewal request is to be filed in FORM TM-R within one year before the expiry of the last registration of trademark.


Yes, the filed mark is allowed to be amended as per the provision of Section 22 of the Trademarks Act, which allows the amendment of the mark provided it does not amount to a substantial change in the character of the mark as such. Any superficial or insignificant character or feature of the said mark, is allowed to be amended, if a request filed in the prescribed format along with 16 copies of the amended label mark.


No. Registration of a trademark is not compulsory. However, the registration is the prima facie evidence of the ownership of the trademark. No suit can be instituted for infringement of unregistered trademarks. For unregistered marks, action can be brought against any person for passing off goods or services as the goods of another person or as services provided by another person.



During the life of business, things are bound to change. For example, in the early stages of  business, you may have preferred to keep things simple with an LLP. But as your business and expectations grow, you may need to change your business structure. After all, what may have worked for your business during the first few years of its existence may not be optimal for you now.

If you’re considering changing your company from one business structure to another, there are a few things to keep in mind. The procedures themselves are not necessarily difficult or complex, but will typically involve some legal steps, such as a merger or the dissolution of one entity and the creation of a new one.

There can be significant tax implications involved with these moves, so seek the advice of an expert or tax advisor to determine what’s best for your business.

Choosing a business structure will depend on various factors like:

No. of partners-If you are a single person who owns the entire initial investment required for the business, a  One Person Company would be ideal for you. On the other hand, if your business has two or more owners and is actively seeking investment from other parties- a Limited Liability Partnership (LLP) or Private Limited Company would suit you best.  

Investment required- If you want to spend less initially, it would be wise to go in for a Sole Proprietor, or a HUF or a Partnership. But, if you are sure that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Company.

Liability of business- Business structures like sole proprietor, HUF, and partnership firm have unlimited liability. This means, in case of any default in loans, the entire money will be recovered from the members or partners in profit sharing ratio. The risk to personal assets is high in these cases.
Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the amount of contribution made by them or the value of shares each member holds.

Income Tax Rates-Income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. In case of a sole proprietorship, the business income is clubbed with the individual’s other income.
But in the case of other entities like partnership and LLP a tax rate of 30% is applicable. While in case of companies, tax rate is 25% s.t. a specified limit of turnover and other conditions.

Investors’ Funding-It is difficult to get investments when your business structure is unregistered. Entities like LLP and Private Limited Company are trusted when it comes to investment.

It is important to choose business structure depending on natures of business, financial condition, future prospects etc. Each business structure has different levels of compliances that need to be met with.

 For example, a sole proprietor has to file only an income tax return. However, a company has to file an income tax return as well as annual returns with the registrar of companies.

A company’s books of accounts are to be mandatorily audited every year. Abiding by these legal compliances requires spending money on auditors, accountants and tax filing experts. Therefore, it is important to select the right business structure when thinking of company registration. An entrepreneur must have a clear idea of the kind of the legal compliances he/she is willing to deal with. While some business structures are relatively investor-friendly than others, investors will always prefer a recognised and legal business structure. For example, an investor may hesitate to give money to a sole proprietor. On the other hand, if a good business idea is backed by a recognised legal structure (like LLP, Company, etc) the investors will be more comfortable making an investment.


The below table indicates the professional fees for various Services , The foreign Companies need the three types of Services for a complete setup in India as below :-

Private Company Setup

Basic and Mandatory Licenses

RBI & Foreign Investment Compliance

Areas Activity to be done Fees
Company Formation To get an Approved Directors Identification No.
To Get the Digital Signature of Directors
To Get the approval for the Desired Name of the
To Draft the Memorandum and Articles of
To formulate the desired Shareholding pattern.
To Get the Certificate of Incorporation for

Registrations under various Act

Income Tax registration PAN & TAN

Bank Account opening Support Shop Establishment Registration
Profession Tax Company & Employee VAT/Registration
Import Export Code

RBI & Foreign Investment Documentation Preparation and Submission
work (Automatic Route) Compliance certificate from CS
Valuation Certificate from CA

Complete Professional Fees

GST would be charged @ 18%

Payment of 50% of fees and government fees of signing contract



Professional Fees + GST @18%

Government Cost – for Company Setup

Government Cost – Other Licenses

*The Government Cost will Change according to Share Capital

Administrative suppor

As such there are not specific tax rates for foreign owned private limited Company , Once a Foreign Company has formed a Private Company in India it become an Indian Private Limited Company under the Companies Act 2003, and all the tax rates as applicable to Indian company would apply. Summary of the taxes are below:-

Type of Tax Rates Description

Income Tax 30% Paid on the net profit earned During the year.

Dividend 20% Paid by companies in case of Distribution of profits as
Distribution Tax dividend.

Value added Tax 0% – On sale & purchase done within state, rate depends
(VAT) 12.5% on product.

Central Sales Tax 2% On the sale & Purchase done between two states..rate
(CST) depends on product.

Central Excise 1% – 14% Paid on Manufacturing of Goods, or any process does
Duty which amounts to emerging of new product.

Service Tax 14% For services sector or providing services to customers

Custom Duties Wide Custom duty is charges when the goods are imported
range in India, The tax rates varies from product to product

A foreign company operating in India and registered in India is treated as a Local Indian company. Following are the basic information for your information:-

Subsidiary of Foreign Company need to take RBI Approval for investment made in India.

Company need to Maintain its books of Accounts.

Company need to get its accounts audited every year. Company need to file its tax return annually.

Company need to file annual account with authorities annually.

Income tax rates applicable to Companies on Net profit @30%.

Company need to have various Business registration with authorities like PAN, TAN, VAT, CST, Services Tax, Profession Tax, Central Excise, Import Export Code , Shop Act etc depending on the applicability.

Regular Monthly/Quarterly/Six Monthly Return shall be filled for above registration as per applicability.

Company should have a board meeting every quarter.

Every year one meeting of shareholders shall be kept i.e Annual General Meeting.

Foreign companies setting up a subsidiary in India and investing in the Indian Company is called FDI i.e Foreign Direct Investment in India. The Company has to carry out Post investment Compliance with Reserve Bank of India (RBI) if the Investment is allowed under the Automatic route in India.

In case of investment in certain sector government has asked to take prior approval before investing in India, most of the sectors are covered under automatic.

To get various government registration for Private Limited company in India, the Company need to have the above registration , These registration have government
& Liaison fees involved Following are the details

Type of Tax Registration Government Cost


Bank Account Opening

Professional Tax Registration

Shop Establishment Registration

GST Registration

Import Export Code


* May differ from state to state

The additional Business Registration shall be taken once the Company is registered. Generally following Registration are taken by companies in India depending on their nature of business as above

Type of Tax No. of Days Why Required

PAN & TAN 12 – 15 Days Registration Under Income Tax ,
Mandatory for All

Bank Account Opening 12 – 15 Days Necessary to carry out transactions

Service Tax 07 – 10 Days* For providing all types of Services in India

Shop Establishment 07 – 10 Days* For having office in municipal limits

Professional Tax 07 – 10 Days* For doing business in the Maharashtra
Registration state

These registrations can be taken done simultaneously after getting PAN & TAN and Opening Bank Account.

The Cost of formation of Private limited depends on the Authorized Capital of the Company; Following is the breakup of Cost for the formation of the Company with a Minimum required authorized Capital of INR 1 Lac.

Activity Amount

Taking Digital Signature of Directors INR 5000/- Each Director*2

Filling fees of government * *INR 9200/- (Depends on Capital)

Total Cost INR 19200/-

* Fees Changes with the amount of Capital of Company

The formation of the above Entity in India takes Approximate 15-20 Days after receipt of all the necessary Documents.

No, the directors need not be present to perform the formation of the Company;they can provide the documents first through scanned copy and then courier to our office. The presence might be required for other registration post incorporation of the Company; hence the other company cannot become director in an Indian company.

As per the new Companies Act 2003, least one director shall be in India for 182 Days.

As per the Basic requirement for the Company formation we need minimum 2 Shareholders and 2 Directors hence we need minimum two shareholders and directors.

In order to fulfill your requirement we can form Company by giving just one share to the second shareholders. The second shareholder will hold the shares on behalf of the Company itself hence the ownership will be 100% with the Company. In respect of the directorship we need minimum two individual to be acting as directors of the Company.

Yes, The Directors and Shareholder can be some person, only for Individual. Any body corporate is not allowed to be Director in an Indian Company.

The basic Conditions for a private Limited Company in India is as follows:-

Minimum Two Directors of The Company Minimum Two Shareholders of the Company

Generally it depends on the Requirement of the Client, but the most suitable form of entity for carrying out business in India with a long term objective would be to form a Private Limited Company, by making investment through the equity shares in the Company.

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