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Tera kya hoga ‘kirana’? A Perspective on Multi-Brand Retail FDI
A bugbear from the beginning of the 1990′s in the Indian political arena has been the issue of FDI in retail. It is a very, very prickly issue because India as a nation has failed in creating any...
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How valid is your online contract?
With the proliferation of broadband and mobile internet in India, it is becoming more and more lucrative to jump on the e-commerce bandwagon. By its very nature, e-commerce is a rebellion against...
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How novel does my invention have to be?
When most people create something that they think is valuable – they think they must get a patent on it. Nothing wrong with that of course, but the problem is that the law is very strict on what you...
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Startups: Have you paid your Advance Tax? [Legal Resources for Startups]
What is advance tax? Tax collection is one of the major tasks for the Government every year. In order to make its life easier, the government has devised several mechanisms. One of them is TDS (tax...
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Dream Come True for Solopreneurs: “One Person Companies” Under the Companies...
The concept of a One Person Company has been included in Clause 262 of the Companies Bill, 2011. Moving away from traditional practice As traditionally understood, a company is an association of...
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Signing a Contract with a Party Overseas? Sign it in ‘Counter-parts’
One of the common conundrums facing an e-commerce entrepreneur in India today is that of signing contracts with parties overseas. Typically, two issues crop up – the first relates to the drafting of...
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E-Commerce Startups: Here is what you need to know about VAT and Service Tax...
Arguably the most exciting sector of the Indian economy is e-commerce. With more than 11.47 million broadband users (and rapidly growing), the Internet is penetrating the Indian marketplace and the...
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Explained: How is advertising expense taxed?
[Editorial Notes: Now that a lot of startups take the online advertising route, it is important to understand how is advertising expense taxed. Read on.] Introducing Capital and Revenue Expenditure In...
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The Cruel Irony of Tax Exemption
Since the “open door policy” was implemented in India in the early ‘90s, many liberal trade policies were introduced. Probably the most needed was an exemption of duties on goods produced for exports...
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LLP vs. Private Limited: How to Choose Company Incorporation
[LLP or Pvt Ltd.? – well, that’s a common question a lot of early stage startups have. So here is Vakilsearch team helping you answer the query with few case studies. ] A classic dilemma which an...
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Problem of Plenty– Choosing How to Startup [PART 2]
A classic dilemma which an entrepreneur faces today is whether to choose between a Pvt. Ltd. Company and an LLP. In addition to Partnerships and Proprietorships, these two have become popular options...
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What if things go south? How to shutdown Pvt Limited or a LLP Business in India
[Editorial Notes: As part of our series on LLP vs. Private Limited, here is an important area to know while you are deciding on company legal incorporation. Earlier in this series: Problem of Plenty–...
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Explained: How to Design Terms of Service for Your Website?
A Google Search for “Terms of Service” [ToS] would throw up several templates to help people create their Terms of Service and Privacy Policy. Many people take their Terms of Service lightly; so much...
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How to Get Your Trademark Registered in India [Step-by-Step Guide]
Trademark Search Since this is a question we get asked very frequently, we thought we could simplify things for you a little bit by explaining, step-by-step, how to get your Trademark Registered in...
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How to terminate a contract? [Legally speaking]
A contract termination usually happens for two reasons: a. If the work you contracted for is over, OR b. If the parties decide not to work with each other, for whatever reason Terminating a contract...
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Google has a new privacy policy. Should you be worried?
Last week, Google revised its privacy policy with a new one which it claims is simpler, shorter and better than the one it replaces. Google had warning messages on its pages saying “This stuff is...
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Should I form a Private Limited Company now or after April 1st?
At the end of the financial year, the question on everyone’s mind is – Should I form my Private Limited Company / LLP / Partnership now? We all know that as the accounting year draws to a close, any...
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Answered: What should be the authorized capital for my company?
As April 1st nears, a lot of people are gearing up to get their Companies incorporated. And a question we get asked a lot is what the authorized capital of your company must be. But first, what is...
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Startups and ESOPs: Giving your employees a sense of ownership by employee...
Separation of ownership from management has been one of the principal foundations of corporate law. In this context, the idea of granting your employees stock options aims at bridging the gap between...
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Qn: Do I need to have 1 lakh in the bank to form a Private Limited Company?...
While incorporating a private limited company, most people falter at the sight of the Rs. 1 lakh authorized capital which every company must have in accordance with the requirements under the Companies...
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Choosing an LLP over a Private Limited Company? Not such a no-brainer, really
Many people speak to us today asking us to start their LLPs – it’s much easier, far less compliance, easier to manage etc. etc. We’ve heard these and other reasons for choosing the LLP route over the...
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How to: Issue shares with differential voting rights (the Mark Zuckerberg way)
The initial public offering of Facebook is talked about among different people for different reasons. For members of the legal profession, the most interesting aspect of the saga was the issue of...
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Understanding Termsheet: Right of First Refusal
The Right of First Refusal clause (RoFR) is actually an amalgamation of rights which are usually demanded by investors. The logic of having a right of first refusal is to retain the ability (for the...
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Term Sheet Demystified: Drag Along Right De-Constructed
A drag-along right, as the name suggests, is the power of the investor to compel the entrepreneur to sell his equity stake in the event that a certain event (called the “trigger” takes place) . It is...
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Nominee Directors – their role and importance to investors and the company...
Every agreement to invest in a company comes with a clause entitling the investor to a seat on the board of the Company. In many cases, along with the seat on the board of directors of the Company, the...
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