Author Archives: fireflieslegal2022

Unsure of Various Business Entities, Come Let’s Understand

Unsure of Various Business Entities, Come Let's Understand

Most of the time people want advice in which type of business organisation they can register their business like in Proprietorship, Partnership Firm, Private Limited Company or Public Company or in joint Venture. Most of the people still don’t know about One Person Company and Limited Liability Company (LLP).
 
Before registration of business under particular form of business organisation, they have to consider their type of business, investment in the business, how many people will be involve in the business.
 
It is always advisable to the businessmen take advice from the experts or from the business law Practitioner at the time of taking decision of the registration of the organisation because once you registered without having any knowledge about its Pros and cons, then it will be very difficult to sustain the business in the future.
 
Following are the some types in which you can register your business:
1. Proprietorship
2. Partnership Firm
3. Limited Liability Partnership Firm
4. Private Limited
5. One Person Company
6. Public Limited
 
Sole Proprietorship Firm
If a single person want to start a small business like, Grocery Shop, Art Studio, Small travel Agency, Real Estate Agency, Fast Food shop. Even other small trader and Manufacturer can run their business as Sole Proprietor. This type of business is managed and owned by the single man called a Sole Proprietor and can be called as One –Man Business Organisation. In Sole Proprietorship business, the only one person enjoy the whole profit of the business and in case of loss, he is only one person liable for the loss of the business.
 
There is no such specific legal registration under any law to set up a Sole Proprietorship. But, one can apply for a few registrations or licenses under various laws to avoid any complicated scenario.
 
These are some of the registrations/licenses that may be opted by the Sole Proprietorship Firm:
a) Registration under the Shop and Establishment Act: It is required with certain exception by the Local Laws prevailing in the area where Sole Proprietorship is located
 
b) Registration under MSMED (Micro, Small and Medium Enterprises Development) Act: Any Micro, Small and Medium business organization who fulfill the criteria of registration under MSME Act 2005(As Amended), can registered their Business under MSME Act 2005.
 
c) Registration under GST (Goods and Service Tax): Registration under GST is compulsory to every business organisation who are fulfill the condition of Registration according to GST Act 2017
 
d) Trademark Registration: It is required in case you want to trade your products or services with an exclusive name or brand. It is beneficial where there is a threat of some misuse of the name used in your business.
 
e) Licenses or Certificates required according to the nature of business:
• Drug License
• Labour license
• Regional Transport Office(RTO) permit
• Food Safety and Standards Authority of India(FSSAI) license
• Mandi License Act
• And List goes on as per specific business
(d and e, is applicable to all types of Business Entities)
 
Advantages of Sole Proprietorship:
• Easiest form of business
• Easier to start
• Lesser investment
• No sharing of Profits earned
• Lesser legal compliances
• Lesser income tax
• Confidentiality in the Business
• Self-decision making
• No specific audit requirement
 
What if someone wish to convert from sole proprietorship to private limited company or partnership?
You can always choose to do so. The procedure is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships and private limited companies at a later stage. Take an advice from the business law practitioner or from the expert who dealing in the matters related to business.
 
Unlimited Liability Partnership Firm
• When two or more person come together and want to start the business they can start their business as Partnership Firm/Business.
 
• Partnership is an agreement between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others. A partnership can be for a fixed period of time or it may be limited to a specific project or it may be dissolved at will.
 
• Registering a firm under the Partnership Act, 1932 is not mandatory as in case of setting up an Organization but it is always advisable to get your firm registered before Registrar of the Firm in which the Partnership firm situated. You can face the following problems if you have not registered Partnership Firm.
 
• A partner of an unregistered firm cannot file a suit in any court against the firm or other partners for the enforcement of their any right arising from the partnership business. An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party.
 
• Therefore, any partnership should be registered sooner or later.
 
Advantages of Partnership Firm
• Power to file case against Third Parties (if Partnership Firm Registered)
• Power to file case against Co-Partner (if Partnership Firm Registered)
• Ability to claim set-off if any third party file suit against the firm and partner. (if Partnership Firm Registered)
• Convert partnership firm into Private Limited Company or Limited Liability Partnership (LLP) (if Partnership Firm Registered)
• Sharing of risk (If any Losses)
• Capital for the business can be collect more than the proprietorship because number of partners involve in the business.
• Partnership firm cannot dissolve in case of any one partner leave the partnership firm. (It is only possible when there are more than two partners in the Partnership firm.)
 
Rights of Partner in Partnership Firm
• To take part in the business.
• To share the profit or loss of the business.
• To inspect and make copies of the books of the firm.
• To receive remuneration for taking part in the business if specified in the partnership deed.
• To receive interest on capital if specified in the partnership deed.
 
Duties as a Partner in a Firm:
• carry on the business
• Be just and faithful to each partner.
• Disclose true accounts of the firm.
• Furnish full information of all things affecting the firm.
 
Limitations on partner in the Partnership Firm: As a partner you cannot do the following without the consent of the other partners:
• Submit a dispute relating to the business to arbitration.
• Open a bank account on behalf of the firm in your own name.
• Compromise or relinquish any claim or portion of a claim of the firm.
• Withdraw a suit or proceeding filed on behalf of the firm.
• Enter into partnership with an outsider on behalf of the firm.
• Acquire or transfer immovable property belonging to the firm.
• Admit any liability in a suit or proceeding against the firm
 
Limited Liability Partnership
LLP is defined as partnership formed and registered under Limited Liability Partnership Act, 2008 is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
 
Feature of LLP
• The LLP and Partner are distinct from each other (Separate Legal Entity)
• Minimum two members required to form a Partnership firm. There is no limit on the maximum number of partners.
• Minimum contribution of Capital not required
• LLP can form by any type enterprises.
 
Advantages of Limited Liability Partnership
• Partner have limited liability in the LLP
• Partners are not liable for act of each other and can be held liable only for their own act
• Less compliance part than Private limited Company.
• The Partners are not liable to be sued for dues against LLP.
 
 
Conversion of firm, private company and unlisted company into LLP
A firm, private company or an unlisted public company is allowed to be converted into LLP in accordance with the provisions of the Act.
 
Winding up of LLP
The winding up of the LLP may be either voluntary or the Tribunal.
 
Circumstances in which the LLP may be wound up by Tribunal:
• If Partners want to wound up LLP through the Tribunal
• If for a period of more than six months, the number of partner reduce below two.
• If LLP unable to pay debts
• If LLP Act against the interest of sovereignty and interest of nation
• If LLP has made default in filling the annual returns and account statement with the registrar for any five consecutive financial year.
• If tribunal is of opinion that it is just and equitable that LLP be wound up.
The Indian Partnership Act, 1932 shall not be applicable to LLPs.
 
Requirements for Incorporation of LLP
First Obtain designated partner identification number (DPIN / DIN) for the designated partners and also obtain Digital Signature.
 
a) Reservation of LLP name (e-form 1)
• Address of Registered
• Office
• Description of proposed business activity
• Proposed monetary value of partner’s contribution (Minimum 1 Lac)
• Proposed name of the LLP (6 names in preference serial)
• Significance of the key or coined word(s), if any, in the proposed name(s) (in brief)
 
b) Incorporation Documents (e-form 2)
• Address of Registered Office
• Office Phone No.
• Email id of LLP
• Contribution of each partner
• Disclosure of partner towards:
 -Number of LLP(s) in which he is a partner
 -Number of company(s) in which he is a director
• Proof of Registered Office (Electricity Bill / Landline Bill etc.)
• Subscribers Sheet
 
 
c) Details to LLP Agreement (e-form 3)
 Profit sharing Ratio
 Form of Contribution
 Initial Agreement copy
 
 
d) Consent of Partners (e-form 4)
It contains information about appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner). Format of consent is given in Form -9 available.
 
Provided that in case of incorporation, the individual who has given his consent to act as Partner or designated Partner shall file consent in Form 2 along with fee.
 
After considering all difference between Partnership Firm and LLP you can take decision regarding in which form of organisation you are need to registered your business. Take an expert advice from the legal practitioners
 
Private Limited Company
Private Limited Company is a type of company which offers limited liability with restrictions on ownership. As per the definition, the minimum number of members to start the private limited company is 2 with a maximum of 200 members. A Company is considered a separate legal entity having perpetual succession, with the liability of shareholders limited to the capital being contributed by them.
 
Feature of Private Limited Company
 Name: The private limited company must use the word “PRIVATE LIMITED COMPANY” at the end.
 
 Members: To form a private limited company minimum of 2 members and a maximum of 200 members as per the provisions of Companies Act,2013.
 
 Limited Liability: The liability of the members is limited to the number of shares held by them. For example, if the company faces any losses under any circumstances the shareholders are liable only to the shares held by them. The personal assets owned by the shareholders are not at risk.
 
 Perpetual Succession: The Company exists in the eyes of the law even in case of death, insolvency or bankruptcy of any of its members. This means the life of the company keeps on existing forever.
 
 Register of Members: There is no compulsion for the private limited company to maintain the register of members as required by a public limited company.
 
 Directors Requirement: Required of Directors in the case of a Private Limited company is only 2. With a minimum of 2 directors, a company can carry on its operations.
 
 Paid-up Capital: A Private Limited Company must have a minimum capital of rupees one lakh or such higher amount prescribed as a time to time. However, as per the recent amendment in the year 2015, there is no such minimum capital requirement.
 
Advantages of Private Limited Company
 Limited Liability: the liability of each shareholder is limited to the contribution made by them.
 
 Easy Transferable Ownership: the share of private limited company is easily transferable to other. It is easier to subscribe or leave the membership of the Private limited company.
 
 Separate Property: Private limited company is separate legal entity hence, the company is capable to own fund and other property. Property of company is not a property of its shareholder.
 
 Raising Fund/Capital: The Private limited company can be involved more member or shareholder as than the partnership firm or proprietorship hence, they can raise more fund or capital.
 
 Capacity to Sue: As a legal entity, a Company can sue in its name and be sued by others.
 
 Perpetual Succession: An incorporated company never dies except its wound up as per law. Being a separate legal person is unaffected by death or departure of any member.
 
 Tax Advantages: The Private Limited companies pay corporation tax on their taxable profits and tend to be exempt from higher personal income tax rates.
 
One Person Company
From its name we come to know that in this type of company required one person to run the business. This type of company created when there is only one member or promoter to run the business. Earlier when one person wants to start the business, he had an option for the proprietorship and he was need to registered his business according to his type of business but after introduction of the One Person Company under the Companies Act 2013, Business man doesn’t need any other person to start the business and they can registered their business as one person company and can enjoy the benefit of the one person company.
 
Definition
Section 2(62) of Companies Act, 2013 defines a one-person company as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.
 
Feature of One Person Company
 Eligibility to act as member of an OPC
 Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. A Person can be member in only one OPC.
 For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
 An OPC can be formed under Company limited by guarantee or shares.
 
Name of the OCP: An OPC is required to give a legal identity by specifying a name under which the activities of the business could be carried on. The words ‘One Person Company’ should be mentioned below the name of the company, wherever the name is affixed, used or engraved.
 
Minimum Capital: An OPC can be started with a minimum authorized capital of Rs. 1 lakh. There is no mandatory requirement for a minimum paid up capital. Hence, person can start as an OPC with lowest capital contribution. However when the paid up capital exceeds Rs. 50 lakh, OPC must mandatorily convert to a private limited company. Also, when the average turnover for 3 consecutive years becomes Rs. 2 crore or more, there is a need to convert into a private limited company
 
Nominee:
 Only a natural person, who is an Indian citizen and resident in India, shall be a nominee in a One Person Company. By “Resident in India” mean that a person who has stayed in India for a period of not less than 182 days during the immediate preceding one year.
 
Advantages of One Person Company (OPC): The following are the most outstanding advantages associated with an OPC in India, over the private limited or public limited companies:
 To form an OPC, only one Director is needed.
 The Section 173 which dictates that a limited company should conduct at least four Board meetings every year is not applicable for OPCs.
 The provisions and regulations given in Section 98 and Sections from 100 to 111, which relate with general meetings, are also not applicable to OPCs.
 An OPC also enjoys relaxations and exceptions from many other legal, governance, ad regulatory compliances.
 The mandatory rotation of auditor after every five-year period, is also not applicable to an OPC. 
 
Public Limited Company
In simple terms, a public company is a company whose shares can be subscribed by members of the public. As per the Companies Act, 2013 a public company is:
 A company that is not a private company
 Has a minimum paid-up capital of five lacs, again there is no maximum limit. However, as per the recent amendment in the year 2015, there is no such minimum capital requirement.
 A private company that is a subsidiary of a public company will be considered a public company.
 
Feature of Public Limited Company
 Name: The Public Limited Company must use the word “LIMITED COMPANY” at the end.
 
 Members: To form a Public Limited Company minimum of 7 members and no maximum limit is mentioned in the Companies Act, 2013.
 
 Limited Liability: The liability of the members is limited to the number of shares held by them.
 
 Register of Members: There is no compulsion for the public limited company to maintain the register of members.
 
 Directors Requirement: In Public limited company minimum 3 Director required.
 
 Paid-up Capital: A Public Limited Company must have a minimum capital of rupees Five lakh or such higher amount prescribed as a time to time. However, as per the recent amendment in the year 2015, there is no such minimum capital requirement.
 
 Prospectus: A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there is a requirement under the Act for public limited companies to issue a prospectus.
 
Advantages of Public Limited Company: 
 Transferable shares: Share of Public limited Company are bought and sold in a stock exchange market. They are freely transferable between its member and people trading in stock exchange.
 
 Perpetual Succession: A Public Company is not affected by death of the one of its shareholder. Even in case of death of director of the company, the election held to replace the deceased director.
 
 Large Capital: In a Public limited company the company can raised the capital from the public and there is no limitation on raising the amount of capital from the public. hence public limited company enjoy an increased ability to raise capital since they can issue share to the public through stock market.
 
 Growth and expansion in business: Public limited Company issues shares to the public at large hence more chances in growth of the business. Public limited company also get the benefits from the government though the various schemes therefore expansion in business easily possible in the public limited company than other types of company. Also scope to launch new products and project in the market.
 
 Structuring Equity : Different shares issued to different shareholders helps to raise more fund for business. Public company can raise fund by issuing Equity Shares Preference shares, Debenture share etc.
 
 Deposit from Public: Public company can also accept deposits from the public but only after compliance of provision for the same which is provided in the in Company Act, 2013.
 
 Lower Risk : A Risk of each shareholder is limited to the face value of shares held by him in the public limited company and in public company the number of share are quite higher than Private Limited company hence the shareholders risk is considerably low.

Are you an Accused in False Cheque Bounce Litigation? Do this

Are you an Accused in False Cheque Bounce Litigation? Do this

In India, the biggest problem with Laws is that anyone can file the case against anyone even with a small iota of evidence as procedure are not taken seriously in trial and lower courts. For ex., it is the onus on the Court to ensure all the facts of the case at the time of verification before issuance of any Summons under Section 138 criminal complaint but it just does not happens and summons are issued due to local bar lawyers appearance or for any reasons and hence there are many cases where the appeal is filed for quashing of summons and case and expenses are made even if you are falsely accused in the case. Section 138 is a very popular section amongst commercial traders and market and in law and in simple terms it deals with Cheque Dishonoured cases / Cheque Bounce case. This particular article only deals with the scenario where you are falsely accused in Section 138 proceedings either you are not at all relevant to the case or you are relevant but the cheque was not for the transactions for which the case is filed. In regard to former act, you can approach High Court for quashing and if you are able to show you non-relevance in the case, the mostly the case will be quashed against you. However, in later case, the chances of quashing is less as you have to face the trial and this is where you feel a burden and most of them comes under pressure. Well, it is always advisable to always have your Lawyer in your contact list and be ready to take their advice and don’t ignore this aspect to avoid any legal costs.
 
Under Section 138 the best part is that before any Court case is filed, it is mandatory that Notice is issued and assuming it is issued to you and you believe that this is false case, then it is always better to reply their legal notice with full facts and defence. Please note that replying notice is not a simple work but it requires the full length strategy against the case and hence do take the assistance of legal attorney. 
 
You being in business or else, it is always necessary that you give good costs and budget in making the legal system complying with “Pre-Litigation measures Compliance” and if you are able to complete and maintain the “Pre-Litigation measures Compliance”, there is no doubt that you will be saved for surely in such false case being filed. If you want to know in details the “Pre-Litigation measures Compliance”, You can refer to our Book named “Methods, Strategy, Solutions, Savings on Recovery of Dues” which is available at this link https://www.amazon.in/Methods-Strategy-Solutions-Savings-Recovery/dp/9387457451 to know more about the Book and its Author credentials you can read this link https://www.bloomsbury.com/in/methods-strategy-solutions-savings-on-recovery-of-dues-9789387457454/ and https://www.bloomsbury.com/author/lalit-jain/]
 
Tips you can do in false cases against you under Section 138: 
• You shall always avoid giving extra security cheques or payment cheques and shall always keep the records of cheques being given. Assuming the cheques are being replaced by you, then ensure you collecting the earlier cheque and possible put everything in writing
 
• It is almost mandatory that you must instruct your account department or relevant departments or all office personnels not to issue any email in regard to any acknowledgement of debt as this will then lead to weakening your case
 
• Please comply with all the “Pre-Litigation measures Compliance”
 
• Be ready with all the documents, agreements, correspondences, etc with you related to the transaction you had with the person issuing the notice
 
•In the case of you in receipt of any Demand notice under Section 138 or else, here assuming Section 138, then please take the opinion of Lawyer and ensure drafting of reply. I have in my article named “Received LEGAL NOTICE= Don’t Panic = Certain Tips to REPLY” have given the tips to reply to the legal notice. Ensure replying in very tactfully and carefully
 
• You shall be ready that if such person issue notice will or possibly chances are there of him filing the case and hence in this scenario, speak to your Lawyer and try possibly filing counter claim, if there is a claim or issue the Legal notice from your end warning him to not take such action else damages suit will be filed by you and also it is preferably good to inform your association if both are from same market or else.
 
• Assuming the case is filed, then you can try your hand at filing the quashing of summons and case and try informing the Court as to why this case shall be dismissed.
 
• Assuming the case is not dismissed but is ordered for trial, then nothing else choose a lawyer to defend the case and go for the fight in your favour and you can file the damage suit if you think so or other steps as that particular case calls for. In all aspects take the assistance of Lawyer who intends to avoid courts and use Courts as last resort
 
• Try talking to common friend and close the matter in amicable manner but not at the costs of you ending up paying or settling against you or else but in order to avoid any litigation. Please note that most of the time taking this route calls for EGO and is also termed as lowering your head and hence most of the Lawyers avoid this statement as then you may leave such lawyer and look for else which is not a good option. Lawyers with ethics and experience will always take care of yours and hence be ready for his opinion and if want you can take second opinion and then take a call.

Think, Ensure, Assure and then confirm your Business Name

Think, Ensure, Assure and then confirm your Business Name

India has known to be an Entrepreneurs country and in fact, there is no hidden fact that Entrepreneurs are born in India. However, with changing times and laws and its impact, the Traditional Entrepreneurs are not getting themselves upgraded or changed with the system and this has affected them a lot in many ways. I have in another article named “Traditional Business = Are we not personally responsible for the decline in Business?” have given a brief description of how Traditional Businesses are getting lost in this fast-changing business race.

Here the intent of the Topic is Business Name and its relevance to its growth. The majority of the Business Owners have now started giving importance to have their own brand especially in the Manufacturing Sector and also in the Service sector. The online sales companies providing the platform to sell their goods/services have almost made it mandatory of proving that the brand is either owned by them or Trademark Registration Application has been filed which is a good sign and a way to promote their brand.

The term “Business name” means the name of the business entity which is being chosen by the Entrepreneur which most of the time either becomes their brand entity in the market and or just a compliance name. For ex., CCD is a brand but the name of the business entity is different. It is of utmost importance for every business owner to understand the difference between a business name and brand name and this calls for an initial discussion of long term planning in small ways. Once there is clarity on the business name and brand name and way of doing the business, necessary steps can be taken.

The brand name is normally called as Brands. The term Brands means “Brands create trust, provide orientation, influence purchasing decisions and bind customers. Brands suggest quality and create identity. A good brand increases the value of business entities and at the same time sharpens the business’s profile, as it helps you to differentiate yourself from your competitors”.

Once the idea becomes a concrete plan, the second stage comes is the Business set-up and once that is decided, here comes the major decision step i.e., Business Name and Brand name. In today’s era, Brand is a reputation that decides the goodwill of your products or services and hence it shall not be taken lightly or to say be taken seriously. There are many business entities who have hired consultants to decide on the name of the business, brand, color to be used, pattern to be used, sound to be used and else and else and this is nothing but a part of marketing strategy to create the brand and then to sell the products or services

I invite your attention that under the provisions of Companies Act, 2013, one cannot get the name if the same is either registered or is being filed under Trademark Act and also if the mark falls under Section 9 and 11 of Trademark Act and in fact, even the Partnership Firm is not getting the name which is already on their database but since there is no online system as with ROC, it is not sure how they work. Most of the times, Entrepreneurs start their business as Sole Proprietorship and start using the name and then they find it difficult to convert into another entity with ROC for not getting the name as per the criteria laid down by ROC in regard to name approval and hence it is always better to see if the same is available with ROC and then apply for Trademark Registration and then either you can get the name approval done and if You intend to do the business as Sole Proprietorship or Partnership, you can get the same file with TM Office and start advertising so that you can then claim its prior ownership and this will safeguard from other who intend to use similar names.

It is relevant to note that in India, brands and nowadays business names are governed by the Trademark Act, 1999, and also under the Common Law. Statutory protection of a trademark is administered by the Controller General of Patents, Designs, and Trade Marks, a government agency that reports to the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry. It is important to understand that Trademark Registration is not mandatory but the prior usage is and hence even if you are using the mark for a long time and is found similar to already registered mark which is prior to you, then your name or mark will be canceled. There are provisions under the Companies Act wherein if any company is formed with names similar to names which are being used by another business entity, then such business entity can make an application for rectification of names and there are many matters where the name change is ordered and if failed, then further coercive action is also being ordered.

In this era, brand name/business name if similar to brand name performs four functions:
· It identifies the product and its origin
· It guarantees its unchanged quality
· It advertises the product
· It creates an image for the product

In, Mahendra and Mahendra Paper Mills Vs Mahindra and Mahindra Ltd (09.11.2001), Mahindra & Mahindra Ltd., the respondent herein, instituted a suit before the Bombay High Court seeking a decree of permanent injunction against Mahendra & Mahendra Paper Mills Ltd., the appellant herein, restraining it from using in any manner as a part of its corporate name or trading style the words “Mahendra & Mahendra” or any word which is deceptively similar to “Mahindra” and/or ‘Mahindra & Mahindra’. In the said suit the plaintiff filed an application seeking an interim order of injunction against the defendant on similar terms. The Hon’ble Court after perusal of the records passed the interim order by stopping the Defendant from using the name ‘Mahendra & Mahendra’ in his business establishment, which order was confirmed by the Division Bench of the court, is under challenge in this appeal filed by the defendant.

The reading of the above paras gives the clear picture that choosing the business name is of utmost importance as any name in which you invest money and there is goodwill being created amongst the public at the large, sudden change of name may result in slowing down the business and or may result in winding up. We are in the era of Trademarks and hence the Business name is the most important decision for any Entrepreneurs or Startups.

The best way to chose the business name, in my view, is as under:
· Figure out many names on a priority basis
· Search Trademark Database in alternative Classes
· Check Google
· If possible, check US Trademark Database (Paid one)
· Check ROC Database (from all consonants view)
· If the name is available, then at the very earliest time, file the Trademark Application and get the TM Number and if time permits, get the Registration done else move ahead
· File RUN Application and get the name reserved with ROC
· Once the Bank Account is opened, if possible put in all social websites to prove its usage

Is it Risk-Free to do Business on Trust and no Written Contracts?

Is it Risk-Free to do Business on Trust and no Written Contracts?

Majority of the SME business entities do not give any attention nor are intended keenly in executing any written contract forget about executing legal documents and most of the business is just done on a Trust basis or you can say by keeping it simple by minimizing documents at least. Well, trust was earlier had a great role to play in doing business and in fact, was a great way to deal with but with the change in time, the nature of doing business have also changed and also the factor which runs the market. It is also a fact that it is not wrong to say that executing legal document does call for complicated paperwork and most of the SME business entities avoids getting into this complication of the legal process. But is this the way to do the business and there is no risk? Well, it is very certain to say that it is a huge risk in doing the business with no written contract and some of the risks which can be discussed are as under:

  • Conflict between two business parties regarding payment method, product specification, service SLA, etc and this basically becomes the majority of times in relationship breakdowns and thereby customers and thereby goodwill and reputation in the market and devalue of the brand image;
  • A business done without invoice comes with a major risk of non-payment

There is no doubt that business done on Trust and no written contracts are good and simple but in an increasingly complex legal environment, it’s not worth taking these kinds of risks.


An experienced and skilled lawyer will any time provide the business entities with the right kinds of documents and in fact can be of huge assistance in taking his guidance to develop the business templates which can be used in business on regular basis. The contracts if used properly can help business entities to minimize risk and maximize profit and also help in anticipating the risk in any business deal. The aim of any good law firm is to allow the business entities to just get on with business, rather than wasting time sorting out messes?

It is Risk-Free to do Business as Sole Proprietorship and traditional Partnership

It is Risk-Free to do Business as Sole Proprietorship and traditional Partnership

A Big “NO”

Businesses in India can be done by various different methods. There is no doubt that due to increase innovation and technology, the world market has become closer and closer and in fact, it hardly takes time to close the deal across the Globe due to technology and innovation. In today’s competitive business market, the most important decision for any entrepreneur to choose the best method of doing business so that there are no issues in the future. Choosing the right type of business structure is the first step towards achieving success. At present, in India, following are the types of Business Entities under the laws of India:
a) Sole Proprietorship Firm
b) Partnership Firm (Registered or Unregistered)
c) Company (Private or Public (Listed or Unlisted)
d) One Person Company (OPC) Pvt Ltd
e) Limited Liability Partnership
f) Hindu Undivided Family (HUF)
g) Body of Individuals
h) Association of Persons
i) Trust (Private or Public)

Governing Laws:
· Sole Proprietorship Firm: No specific law governing this business entity but other laws are applicable as for other entities
· Partnership Firm: Indian Partnership Act, 1932

There is no doubt that the easiest and best method to start any business is Sole Proprietorship and thereafter Partnership Firm. The legal process in starting the Sole Proprietorship business is very easy and in fact, it can be started in a day or two without GST and with GST within three days. Sole Proprietorship suits when there is one Owner or it is a family business. The best benefit of Sole Proprietorship is that there cannot be any delay in taking decision for any kind of business commitment and in fact this has since many years worked well and there are many still operating Sole Proprietorship business which has reaped good benefits but due to change in time and new laws and in fact strict laws with a higher penalty and with daily change of technology, Sole Proprietorship may not work as good as it was earlier. Even in regard to Partnership business entity, many of the partnership business dealing in huge turnover is still unregistered as many of them are still not aware that the negatives of not getting their partnership unregistered and they face the problem only when issues come for approaching Court as an unregistered partnership firm cannot approach the court. There are many other disadvantages for unregistered partnership firm and hence it is important that all partnership business shall be registered. I shall not cover the advantages and disadvantages of unregistered and registered partnership business hereby but the main reason for this article is to share the point as to why the time has come to stop the business under as Sole Proprietor and Partnership Firm.

In today’s competitive business market and regularly changing market, it is always dangerous if there is no CAP (it means limitation/maximum limit) on liability and not having this benefit in today’s times and that too under the era of Insolvency and Bankruptcy Code laws is too dangerous. For me, the most important aspect of not doing the business as Sole Proprietorship and Partnership is not having Limited Liability concept and this is enough to shift to another mode of doing the business. Most of the jewelry business (mostly by Jains) was used to be Sole Proprietorship and Partnership but now are changing to Pvt Ltd for reasons not only attributable to this but the good thing is they are changing their business type.

The One Person Company (OPC) or Limited Liability Partnership (LLP) is nothing but a new form of Sole Proprietorship and Partnership. The monetary liability in this method is always limited. As stated the risk extends to any liabilities incurred as a result of acts committed by employees of the Sole Proprietorship and/or Partnership Firm.

There are provisions under the Laws of India to convert from one business type to another and an experienced professional will guide perfectly from legal as well as accounting perspective.


Why not a Directory of Sole Proprietorship Firm and Registrar of Firm is made online unlike and similar to ROC?

We are in the era where Technology is ruling the world and in fact who are adapting to the changes with Technology are surviving and in this Lockdown period, the importance of Technology is being understood by a majority of the population. There are many judgments even by the Courts of India to accept the Technology. Even summons can be issued via Whatsapp though not statutorily accepted as the only mode but at least importance is being given and in certain cases, the Linkedin profile is being used as part of the evidence, in a matter where it adds to evidence value. There is no reason to understand why there is no online database being created for Sole Proprietorship Firm, Partnership, Hindu Undivided Family (HUF), Body of Individuals and Association of Persons so that it makes easy for the public to do it search and found its validities and thereby creating faith in such business entities and business being done at more ease. I am of the strong view that all the details of such business shall be made online like ROC is operating (www.mca.gov.in) so that there is transparency and also works smoothly in courts for claims. All the details are available as all business having bank account has Pan Card so this can be done easily.

MSME: Poorly Paid, Poorly Heard – Where to Go?

MSME: Poorly Paid, Poorly Heard - Where to Go?

On 08.05.2020, Supreme Court has denied any relief to MSME against Payment of Wages during Lockdown

Facts of the Case:

The Petition was filed by MSMEs challenging the Advisory Issues by the Union Ministry of Labour and Employment on March 20 and the order issued by the ministry of home affairs (MHA) on March 20 wherein it has specified that the “employers, be it in the industry or in the shops and commercial establishments,” will have to pay the wages of their workers without any delay and deductions for the period the establishments are under closure during the lockdown and any failure by them in implementation, action will be taken.


Status as on date:

The Supreme Court on 08.05.2020 turned down the plea of MSMEs (11 Haryana-based MSMEs) to provide interim protection against the order which required them to pay full salaries to its employees.


Concern:

There is no doubt that whatever steps were taken by the Respected Chaired Prime Minister, Shri Narendra D Modi in regard to COVID 19 is commendable and no doubt he has been working as a Strong Leader always since many years now and sure many more years to come. However, their minister sometimes takes such steps which results in a not bad but horrible situation, and in fact, the decision are so bad that it really gives a bad signal to business entities. There is no doubt that MSME is the backbone of Commerce which is often poorly heard and very poorly paid and is also the backbone of Industry in contributing to country s employment and various Taxes. One has to understand that to save the Indian economy one needs to save MSME and small business houses. There is also no doubt that prior to Lockdown, the economy was not in good shape but nothing taking away from the present Government of its brilliant intention of doing for future India. Post Demonetization along with many laws being enacted such as RERA, IBC, GST being a major one, the business has been at a low level in India and was waiting to see the change very soon and no doubt that MSME adapted to the new system and it was a matter of time that economy was coming to good shape and then came this Lockdown which has totally put an almost stop signal to MSME especially. There is no doubt of the contribution made and will always be made by MSME but at the same time, MSME does not find any support from at present Government or Courts.

Running a business in India with so many compliances, day to day change in laws, inspection by an officer already a big concern at any time, corruption (at least it has been reduced to good extend due to Prime Minister brilliant efforts but there are corruption still floating in the market in other ways) and Labour Laws which is very difficult to comply with at all the time is not at all easy and more on that nowadays, MNC and dominant positioned companies are avoiding making a deal with MSME (for the reasons of speedy Recovery Forum and ROC Compliance) and if made, then payments are not on time and on that no judicial reforms have been done for recovery of money as recovering the money via Court or Arbitration in India is a very much costly and lengthy process in India and even if MSME wins the case and opposite party uses his all right of appeal, Execution of Decree is the next step which itself is a lengthy process and this lenghty process and costly legal process has literally choked the money in a huge volume and for MSME this has been hampering a lot in many ways.

There is no doubt that during this Lockdown, the employees are at risk as they don’t have any other mode of earning and have to survive, but pressuring the employers and forcing them to make the payment via such draconian circular does discourage the faith amongst MSME’s and this will give a bad impact in future. Till date there is no encouragement or relief of any kind has been given to MSME to keep their confidence at top and there are many MSME in the market who are struggling to make the payment to their employees due to their already financial mess due to non-cooperation of Bank as Banks are only darling to big companies and political references and hence this circular of MHA of directing mandatory to pay is more of a penalty on them.

Even more, the concern is that nowadays the Apex Courts are taking a decision in Business related matters in a manner that is badly affecting the Indian economy as it has done in Telecom sector and more concern is not taking into consideration the other side realty and even if the Supreme Court is aware then also such decision only affects the business community.

The intention of the present Government and especially of Respected Shri Narendra Modi cannot be doubted ever but there happen many times that certain decision does affect badly and in this case of pressuring the payment of wage it is badly affecting small business/MSME.

Saving MSME:

Saving MSME means urgent and quick incentives for “Man, Machine, Money, Material, Market, and Method”

I myself belong to a Business family where Business is taught first and being myself an Entrepreneur since many years now can understand the many pains, problems an Entrepreneur has to suffer even during good economy and now in an almost closed market, MSME/Entrepreneur is not finding any support from anywhere and this will only lead to bad morale of MSME and hence it is more relevant now and very soon to take them into confidence and do whatever it can to revive MSME soon as there is no doubt that the Year 2020 at least till December is no-business period unless there is a sudden change in the market.

Do Standard Documents Templates make doing Business easy?

Do Standard Documents Templates make doing Business easy?

Doing Business in today’s ever-changing scenario compels the business entities to ensure they are well within the coverage of being able to beat their competitors and if not then they fade from the market very soon. For e.g., Shopping Malls have been duly replaced by online shopping and in fact Refund policy offered by online shopping has just added armour to ensure that customers first choice has become online shopping and Shopping Malls though not the third choice of customers but cannot be also said as the first choice and in fact, the only place in Shopping Malls which are not empty most of the times mostly in the evening time is Food Zone and maybe sometime Gaming Zone if the monetary budget of Gaming Zone is not higher. There is no doubt that each passing day a new technology is coming in the market and this brings the competitiveness amongst players to remain in the market and to remain in the market it is more relevant to be in a position to at least take a stable stand of not losing the place of doing the business and this is where most of the business starts well but lose its stream in the stage when the business starts. Most of the time, post months of starting the business via Partnership Model, partners fight, and then that itself is the end of business which was started after long planning. There are many grey areas as to why the small business or new business in today’s age comes with force and goes with no noise and in fact, is dead even before the news comes. One of the reasons is that a businessperson shall understand that the only work is to do Marketing and Innovate its business and have a system in place for else work. Another reason which can be attributed is of not taking proper legal guidance and understanding the role the Lawyers have in their business. The main reason for avoiding and not taking the experience lawyers’ assistance is to avoid paying fees of such experienced lawyers and most of the time either they end up taking assistance from lawyers who are not well equipped or suitable for this area or they end up taking the legal opinion from Google or else search engine without understanding its relevance to its business. There is nothing as such that Lawyers who charge less are not good lawyers but the question is business entities sacrifice taking the help of Lawyers which are most suitable for their work. Having a lawyer as a legal advisor and especially Court practicing lawyer helps not only in resolving the issue but also act as guidance to give the best referrals of such experience attorneys or counsels who can be reached any time in urgency for its business issues.

There are many points which the Business entities have to take care to ensure having a proper system in place for the smooth functioning of its Business and certain points are as under: (a) Ensuring it has all the Licenses which are mandatory for conducting the Business; (b) Ensuring it has executed safe Lease Agreement for using the premises for its business operations if the place of business is not owned by the Owners of the Business entities; (c) Ensuring it has a financial back-up plan to ensure there is continuity in business sales and so on and on. One of the major points which are missed by the Business Entities while starting its new venture or business is not taking the help of the lawyers for reasons to avoid legal costs or nowadays using the templates which are available online without understanding as to how the templates will work for its business. I shall give my thoughts on how to use the online templates for your business in another article but I always prefer any templates used shall always be seen and verified by experienced lawyers at least once if not regular. Having a Lawyer on Retainership is always better but since it comes with a regular monthly cost, most of the business entities avoid availing services of Lawyers on a monthly Retainership basis. It is very common that any business venture to start the business will require certain documentation and the basic template which may be called is of Invoice Draft. Templates are nothing but a document that is once verified are used by respective departments and no changes are being allowed except if required and that too only by the Management of the Business entities or Owners and that too if there is approval from Lawyer. Any business shall understand that before venturing into any business shall ensure that it has got drafted all the agreements/contracts/Purchase Order/Work Order/SLA, etc and the same shall be numbered as Template No. 1 or be numbered in Standard Operating Procedure in Business and this act as the Standard Templates for the respective requirement and no change is to be allowed majorly except commercial and little here and there. Having all Templates in place only ensures that the Legal System of documentation is in place which thereby results in the smooth functioning of the business. Most of the successful business today has its own standard Non-Disclosure Agreement, Employment Engagement Letter, etc which are used by its employees as and when the need arises rather than calling for a new agreement with new points for same work and purpose at all the time and this creates confusion during any legal claims is made or one has to make.

In my view, Standard Templates is though not mandatory from a legal point of view, but from a business and management point of view, it is advisable and can be said mandatory to ensure that the documentation is being taken care of in the manner as agreed and approved by Lawyers. It not only saves time but also ensure safety and security of not getting into any monetary losses for the wrong act by employees.

An experienced and skilled lawyer will any time provide the business entities with the right kinds of documents and in fact, can be of huge assistance in taking his guidance to develop the business templates which can be used in business on regular basis. The contracts if used properly can help business entities to minimize risk and maximize profit and also help in anticipating the risk in any business deal. The aim of any good law firm is to allow the business entities to just get on with business, rather than wasting time sorting out messes?

Protective Laws @ Purchasing Immoveable Assets

Protective Laws @ Purchasing Immoveable Assets

Purchasing Home and especially in a Complex is nothing short of a nightmare and there are hardly any Developers or I can say there are no Developers who have given 100 percent correct details about the proposed home and their Brochure is just an advertising kit to advertise but it just remains in the Brochure. One of the best example of how brochure advertising just a way to promote and sell the flats is of at Palava where their brochure said Cricket Ground and School of sizes mention but by the time the building was completed all was changed and left with the proposed home buyer is to fight and fight in the Courts and Forum and Developers used this Legal fight as the way to delay the time. However, times are changing with post RERA but there also in RERA there are loopholes where the builders are just manipulating the facts and are selling their flats which have the completion years of more than 4 years. There is no doubt that due to an increase in technology, the buyers form the Whatsapp group and develop a unity in fighting the case against the Developers united and this gives a strong hand against the Developers. However, there are times where the unity is not there and this is aware most of them find it difficult to know their rights against the Developers. In this article, I am stating the remedies, in brief, to make them aware:

Remedies against the Developers are there under the following laws:

1. Real Estate Regulation Act, 2016 (popularly called as “RERA”)
2. Consumer Protection Act, 1986 (as amended)
3. Insolvency and Bankruptcy Code, 2016 (as amended)
4. Arbitration & Conciliation Act, 1996 (as amended)
5. Civil and Criminal Remedy
6. Competition Commission of India

Remedy under Consumer Protection Act, 1986:

The best legislation for any home buyer prior to RERA, IBC, and Arbitration was Consumer Protection Act and in fact, this Forum has been used extensively and also more successfully against the Builders for their negligence and unfair trade activities and also at times the Forum has come strongly against the Unilateral Terms of Builder in the agreement which are being signed at the time of selling the immovable property. Please note that under this the person filing shall fit the criteria of being called Consumer and here I will suggest before filing any Consumer Case, to ensure of being fitting under the Consumer to avoid any bad result against you. This legislation has done a lot in favor of buyers and against bad developers but somewhat has failed to provide the justice on time and also the penalty and damages are not easy to recover and in fact, the Execution of Decree under Laws of India is just not only complex but seems not good at all as this Decree Execution itself becomes a fresh case and hence the time has come to change the provisions pertaining to the Execution of Decree and I am of the firm view that posts Decree, the matter shall be taken as Criminal and no appeal shall be taken on ex-parte proceedings. One has to understand the meaning of Consumer, Deficiency of Service, Unfair Trade practice and in fact the new amendment has been made to the Consumer Protection Act whereby many great changes have been made and also the Monetary Jurisdiction have been made but sadly the Forum are not well equipped to handle such high-value matters and hence there is no doubt that all matters will go as appeal as in India under Laws of India, the appeal is nothing but delay tactics by big builders and thereby trying best to keep money pressure and thereby reduce their payment claims to a minimum which is the most negative part of any remedial laws in India. Just for information, under the Consumer Protection Act, there are three Forums, District Forum, State Commission and National Consumer Dispute Redressal Commission

The Laws and provisions for filing are simple but it is always better to have Legal assistance as even in Consumer Court, the interpretations come in drafting and argument and hence the whole purpose of stating that a complaint person can appear for himself without an advocate is of no use as if so, then no law or professional background be called for against another party for fair battle.

Needless to say, this Act is a good act and in fact, is rated high for good judgment over the years and still in force and the mode and manner are simple.

Remedy under Real Estate Regulation Act, 2016 (popularly called as “RERA”)

RERA is considered as one of the specialized legislation passed by the Indian Parliament taking care of the Real Estate Sector and RERA imposes the Builders to ensure the objective of transparency and accountability and ensure safe interest for the Home Buyers. RERA is nice legislation and in fact, this as on date is the best legislation for a fair trial and this holds good for upholding the doctrine of Let the Seller beware rather than Buyer beware. The biggest achievement of RERA is having one portal for all Builders and time essence which has made many builders ensure of able to run the business but at the same time have also created a monopoly for the limited developers which are surely not good and hence here comes the CCI Act which has a good say. The negative point which I feel is that most of the Brochure does not contain the RERA number and assuming it contains, getting the details online is difficult as there is a mandate to put all the details rather than a number and hence RERA has to change the same. Coming to the RERA Act, provides for the penal provision which may extend up to 5% of the estimated cost of the building project as determined by the concerned RERA Authority. RERA ensures of completion of building projects in time else if delayed then the Builder has to bear strict penalties and damages. RERA has made the assurance to buyers of knowing by when the property will be delivered as the legal provisions are there to back-up against the Builder if failed on time. As per the intention and provisions of RERA, Builder is mandated to keep 70% of the money collected from the buyers in a separate Escrow Account to meet the construction cost of the project and this ensures a deterrent to the builder to complete the project in time.

Remedy under Insolvency and Bankruptcy Code:

Indian Laws can be said as “prior to IBC” and “post IBC” and the reasons being is that IBC Legislation has brought a whole lot of changes the way laws used to be and in fact, the IBC provisions are so stringent that the deficiency in other laws i.e., of trials, delayed justice, etc has been covered and due to its faster process and stringent, it has almost become the first choice for any aggrieved party to approach IBC, subject to certain passing of criteria to fall the case under IBC. The popular name given to IBC is NCLT (National Company Law Tribunal). There is no doubt that IBC has become a nightmare for unscrupulous builders and a boon for the Home Buyers. IBC provides recognition to Home-Buyers as Financial Creditors and has been recognized to initiate the Corporate Insolvency Resolution Process (CIRP) against the Builder under the provisions of IBC.

Remedy under Arbitration & Conciliation Act, 1996

I have always likened the Arbitration & Conciliation Act, 1996 and in fact I prefer Indian Government make all disputes to be resolved by and under the provisions of Arbitration & Conciliation Act, 1996 as this Arbitration & Conciliation Act, 1996 has such a faster provisions and time limit provisions for the closure of any dispute and in fact provisions of Arbitration & Conciliation Act, 1996 has been taken from the UNICTRAL which is international norms. Most of the buyers are not aware that nowadays the Agreement contains the clause of referring the matter to Arbitration and hence if possible choose the Arbitration tribunal to resolve your matter. Please note that the Consumer Remedy and Arbitration Remedy can go hand-in-hand. However, due to the enactment of IBC, there is little doubt of any aggrieved party going to Arbitration or Consumer as IBC has achieved a good name for a faster process and stringent orders.

The remedy under Competition Commission Of India

Under the provisions of Companies Act, 2002, if the Builder is in a Dominant Position and is misusing then this Law comes into the picture. As stated in above paras, that if any monopoly is created or group of Builders is trying to enter into any engagement which may give rise to the single market price, then one can file a complaint before CCI against the builder for the abuse of the dominant position and if found guilty of any anti-competitive practice, huge penalties may be given by CCI.

Remedy under Civil Case for Recovery of Money under the Civil Procedure Code (CPC):

CPC has always been the procedural code for recovery of money and the aggrieved party can file. However, I always suggest trying this method last as to get the result in this remedy is just not less than depression. You have to take the help of the Lawyer to get this remedy due to its lengthy procedure. I always prefer avoiding this method.

Remedy under Indian Penal Code r/w Cr. P C

Aggrieved Party can avail this remedy for Cheating, Fraud, etc if the Builder has done and this comes under Indian Penal Code, 1860. A Buyer can file a criminal case as a private complaint or can lodge FIR

Know how to see Your Court Cases filed in District and Session Courts?

Know how to see Your Court Cases filed in District and Session Courts?

The Indian Courts have been using online methods to ensure more transparency and at the same time the Litigant to know and get an update of their matters as and when they want in an independent manner as there are cases where the Litigant are not able to get their cases to update regularly and hence to bring more transparency, the Indian Court have even started sending SMS and emails. As of now in this I shall inform you how to check your Cases filed at District and Session Court on a regular basis and take further steps:

Step 1: Go to “https://services.ecourts.gov.in/ecourtindia_v6/”

Step 2: Click on “District Court District Court” on Right Hand Side, if the matter is at District Court and or High Court or Supreme Court. Here we are only talking about District Court matters

Step 3: Upon clicking as stated in Step 2 “District Courts”, the following link will come “https://districts.ecourts.gov.in/” wherein the India Map will be shown

Step 4: Click on State your matter is there. For Ex., here is the State of Maharashtra and the link will be shown as “https://districts.ecourts.gov.in/maharashtra”

Step 5: Click on the District where your matter is filed. For ex, here it is shown as clicked on Thane District and hence the link shown is as “https://districts.ecourts.gov.in/thane”

Step 6: Go to Right Hand Side and Click “Case Status” and chose the method of viewing the case, better you always Click “Party Name” and if this does not work (chances are very less) then “Advocate Name”. Always click on “Party Name” for easy use. The following link will come once “Party Name” is clicked “https://services.ecourts.gov.in/ecourtindia_v4_bilingual/cases/ki_petres.php?state=D&state_cd=1&dist_cd=21”

Step 7: Select “Court Complex” and do the following:
Court Complex: Click, where you matter, is posted, either at Vashi, etc. Here is an example, taken as Ulhasnagar
Petitioner/Respondent: Put the name of Yours or against whom you have filed a case
Year: Which Year you filed the case
Pending / Disposed / Both: Click on the same what the status of your case. If you are not aware, then Click on “Both”

Once Clicked, the list of all cases with similar names or nearby will come. You go to your case and select “View”. Once Selected your case will appear with all details and if you click on dates which are Blue in Colour, it will show the status of each date and you will get to know what has happened in Court. This way you can be updated at all times.

Online Business = Start taking an active role to stay relevant in the market

Online Business = Start taking an Active Role to stay Relevant in the market

Traditional Business/Retailers have long enjoyed their running of the business in the same manner as there was no competition to them and in fact, one of the negative sides of this is the way Traditional Business/Retailers long back avoided giving any importance to its customer or its grievances and in fact by making Union / Association, it was almost like no chance for the customer even though the laws were and are there to protect them but all know the time takes in India for completion of one simple case. Coming to the present scenario about the market and way of doing the business, today the goods are being sold by malls and online and it is online which has affected the traditional business a lot. The positive aspect of the online way of working is the way of their delivery and refund and this has been creating a lot of discomfort to traditional business and in fact, the online sale of medicine at the initial stage created a lot of concern and many associations started taking action against such sale but today as on 09.05.2020 the medicines are being delivered to doorsteps and via online and hence it is easy to say that future is online and there is no way that online can be stopped in any manner as there is nothing wrong doing business online as from one end it is the right of the customer to get the best deals and services. There is no doubt that India is one of the rising economies in the global market and this has been accepted by all the associations all over the world and rating agencies and also countries all over. Here to appreciate the brilliant way as to how our current Respected Prime Minister, Shri. Narendra D Modi has taken India to the next level and it feels great when we see that our Respected Prime Minister, Shri. Narendra D Modi has been promoting the business and India all over the global stage and there is no doubt if not today but very soon India will get a lot of opportunities to expand its market to all companies and the results are being shown at various levels. India also is getting its technology usage at a good speed and in fact, the Lockdown period has somewhat given the MSME business to know the importance of getting into the knowledge of the use of technology in business and in fact this is also a truth that most of the business have started giving importance to marketing and innovation. I firmly believe that Businessperson has only two works to do “Marketing and Innovations”. Today India has got all the technology it wants and there are retailers who have been selling their products online and online means via the usage of various social mediums. It is worth noting that with the growth of usage of the Internet there is a huge possibility that more than 78% of businesses will be using the Internet by 2022 to enhance the customer experience.

With Technology coming into the role, even the Traditional Business can grab the opportunities, which in brief is as under:

· Costs Reduction
· Operating costs reduction
· Importance given to long customer service hours
· Better in terms of Finance Management
· Aware of Target Buyers

However, with Opportunities, Threats will be there and most relevant Threat in my view will be as under:

· IT Security
· Ready for Huge Budget for IT
· Proper IT Set-up to ensure no Blackout Day
· 24 x 7 open business for an increase in competition

Time has come for the Traders to seriously consider the advantages and disadvantages of the online marketplace and how they might apply to their current business goals and where they would want to see their retail business in the future. Please note that it is all about what they intend to do and if Traders want to have their say in the future, there is a requirement of them changing the way of doing the business else someone will take-over the same business with new change and no innovative in business. I shall discuss in a separate article as to why some business grows, while others remain small throughout their life. Certain reasons, which I think is as under:

· Just put yourself out there
· Unaware or Unsure where to go
· Using valuable time on Trivial Tasks
· Not able to give the best price/ fear pricing
· Work, work to death
· Taking an irrelevant risk