LEXIS AND COMPANY

 What are the legal compliances required for a Start-up? Startups & Law Entities incorporated under the Companies Act, 2013 as a private limited company or registered as a partnership firm under section 59 of the Partnership Act, 1932 or a limited liability partnership under the Limited Liability Partnership Act, 2008 in India are regarded as start-ups ten years from their incorporation. These start-ups are expected to follow certain legal requirements. Various legal, regulatory, and annual compliance deadlines, laid down by the Acts which govern start-ups, must be complied to. Non-compliance may lead to start-ups facing penalties, closer inspections and may even lead to disciplinary actions against its directors. Additional fees may be imposed if there is a delay in any submissions; these costs keep going up as long as they are delayed. To avoid these complications all compliances must be adhered to. Annual Compliances required by a start-up: One of the foremost legal requirem...

 Startup Due Diligence Explained Due diligence in the context of startups refers to the audit/evaluation of the business that angel and Venture Capitalist investors conduct before determining whether to invest. Effective due diligence is, therefore, essential for startup fundraising. Due diligence is a concept everyone who has ever watched Shark Tank, Dragon's Den, or any other program where billionaire investors test startup entrepreneurs would be familiar with. Investors are introduced to several businesses throughout the programs, along with their financials and expected growth. The presentation is polished and assured, and suddenly it ends because the entrepreneur left out a crucial detail. A concealed debt, litigation with a former business partner, or some other ethical problem with the proposed product is frequently discovered by investors. What is due diligence? An informal introduction to due diligence can be seen in the banter between startup founders and investors on Sha...

 Legal Compliances Checklist for Startups in India The growth of start-ups in India has been impressive over the past years, making the Indian ecosystem conducive to them. The government of India announced an initiative – Start Up India - with regard to the same, which aimed at focussing on simplification and handling, funding support and incentives, and industry-academia partnership and incubation. The Nasscom Tech Start-up Report 2020–21 states that India has 38 unicorn companies or businesses valued at more than $1 billion. The start-ups in the Indian ecosystem have to meet with the set compliances to establish themselves. Out of this, there are certain legal requirements that start-ups are bound to comply with. These compliances are discussed below briefly:   Identification of business organisation structure: When starting a business, one should create a separate legal entity under which they will operate. It is the most important item on the legal checklist for start-ups ...

Tax Exemptions for Startups Explained: Eligibility and Incentives The Government of India launched the Startup Scheme with the primary objectives of fostering new business ventures, generating jobs, and generating income. The network of interactions between individuals, groups, and their surroundings is often covered by this startup ecosystem. These connections not only boost the current companies but also aid to develop new ones that have the potential to become successful businesses. However, businesses that receive a Startup Recognition Certificate from the Department for Promotion of Industry and Internal Trade (DPIIT) are entitled to various benefits, the biggest of which are tax exemption and incentives.   Shri Narendra Modi, the Prime Minister of India, unveiled some ambitious plans to improve the startup ecosystem in his nation. The PM mentioned the Startup India initiative while promoting the startup philosophy. The initiative is designed to meet the needs of struggling bu...

 How to defend a Negotiable Instruments Act case Table of Contents Introduction Overview of the Act What is a Cheque Bounce Reasons for Cheque Bounce Section 138 of the Negotiable Instruments Act Conditions for constituting the offence under Section 138 Jurisdiction Strategies to Defend a case under Section 138 Cheque bounced given as a security  Joseph Vilangadan v. Phenomenal Health Care Services Friendly loan concerning unaccounted money Sanjay Mishra v. Ms. Kanishka Kapoor Accused disputing signature on the cheque “Stop payment”, as instructed by the Drawer Section 139 of the Negotiable Instruments Act Virender Kumar v. Sumit Conclusion  Introduction Cheques are widely used payment methods nowadays, and the post-dated cheques are used in many transactions. When this mode of payment gained popularity, then at the same time, there were cases, in which the cheques were dishonoured or bounced and the payee was not receiving the cash for delivering services or goods. The...

Cheque Dishonoured: A Step-By-Step Guide For Legal Recourse Cheques are used in almost all transactions such as re-payment of loan, payment of salary, bills, fees, etc. A vast majority of cheques are processed and cleared by banks on daily basis. Cheques are issued for the reason of securing proof of payment. Nevertheless, cheques remain a reliable method of payment for many people. On the other hand, it is always advisable to issue crossed Account Payee Only cheque in order to avoid its misuse. A cheque is a negotiable instrument. Crossed and account payee cheques are not negotiable by any person other than the payee. The cheques have to be deposited into the payee's bank account. Legally, the author of the cheque is called ‘drawer’, the person in whose favour, the cheque is drawn is called ‘payee’, and the bank who is directed to pay the amount is known as ‘drawer€™. However, cases of cheque bounce are common these days. Sometimes cheques bearing large amounts remain un...

What is a Possession Certificate? You can have a lot of rights to something. The person who owns a piece of property has all the rights that can be had over that property. OWNERSHIP is how a person feels about the property they own. The possessor is just one step down from the owner. The person who is in charge of a property has the most rights over it after the owner. POSSESSION is the relationship between a person who owns something and that thing. In general, the owner of a property is the person who lives there and uses it without sharing it with anyone else. When more than one person does the same thing, they all own that property. So, if you live in a house and use it exclusively, meaning that no one else can use it unless you give them permission to, you are the owner of that house. 1. What is an Occupancy Certificate? An occupancy certificate certifies that the building has been constructed according to permissible norms and is fit for occupation. A builder obtains the occupanc...