Success needs attitude

At age 5 his Father died.

At age 16 he quit school.

At age 17 he had already lost four jobs.

At age 18 he got married.

Between ages 18 and 22, he was a railroad conductor and failed.

He joined the army and washed out there.

He applied for law school he was rejected.

He became an insurance sales man and failed again.

At age 19 he became a father.

At age 20 his wife left him and took their baby daughter.

He became a cook and dishwasher in a small cafe.

He failed in an attempt to kidnap his own daughter, and eventually he convinced his wife to return home.

At age 65 he retired.

On the 1st day of retirement he received a cheque from the Government for $105.

He felt that the Government was saying that he couldn’t provide for himself.

He decided to commit suicide, it wasn’t worth living anymore; he had failed so much.

He sat under a tree writing his will, but instead, he wrote what he would have accomplished with his life. He realised there was much more that he hadn’t done. There was one thing he could do better than anyone he knew. And that was how to cook.

So he borrowed $87 against his cheque and bought and fried up some chicken using his recipe, and went door to door to sell them to his neighbours in Kentucky.

Remember at age 65 he was ready to commit suicide.

But at age 88 Colonel Sanders, founder of Kentucky Fried Chicken (KFC) Empire was a billionaire.

Moral of the story: Attitude. It's never too late to start all over.

MOST IMPORTANLY, IT'S ALL ABOUT YOUR ATTITUDE. NEVER GIVE UP NO MATTER HOW HARD IT GETS.

You have what it takes to be successful. Go for it and make a difference.

The Role of Marketing in t he Firm

A Basis for Classification

 Marketing is an individualized ano highly creative process. Despite the availability of highpowered compuLers and sophisticated software capable of analyzing massive amounts of data, marketing is ~till more of an art rather than a science. Each business must customize its marketing efforts in response to its environment and the exchange process. Consequently, no two marketing strategies are exactly the same. This requirement of marketing to play slightly different roles, depending upon some set of situational criteria, has in tum provided us with a division of marketing into a number of different categories. This is not to imply, however, that there aren't general marketing principles that work in most businesses-there are. There is a right and wrong way to design a package. There are certain advertising strategies that tend to work more often than others. Rather, we are saying that because of certain factors, a busine~s's approach toward marketing and the ensuing trategy will require some modification from the basic plan. Shown in Table 1.1 arc the most common types of marketing categories. Since these various types ofmarketing will be discussed throughout this text, a brief introduction is provided at this point. Macromarketing Versus Micromarketing The division of marketing into macromarketing and micromarketing is a fairly recent one. Initially, the division was a result of the controversy concerning the responsibility of marketing. Should marketing be limited to the success of the individual firm, or should marketing consider the economic welfare of a whole society? Accepting the later, or "macro," point of view dramatically changes the way marketing is carried out. In this light, every marketing decision must be evaluated with regard to how it might positively or negatively affect each person and institution operating in that society. In 1982, Bunt and Burnett surveyed the academic community in order to define more precisely the distinction between macro- and mircomarketing. 4 Their findings suggest that the separation depends upon "what is being studied," "whether it is being viewed from the perspective of society or the firm," and "who receives the consequences of the activity." Examples of macromarketing activities are studying the marketing systems of different nations, the consequences on society of certain marketing actions, and the impact of certain technologies on the marketing transaction. The use of scanners in supermarkets and automatic teller machines in banking illustrates the last example.

 Micromarketing examples include determining how Nikon Steel should segment its market, recommending how National Jewish Hospital should price their products, and evaluating the success of the "Just Say No" anti-drug campaign. Service Marketing Versus Goods Marketing The distinction between services and goods products is not always clear-cuL In general, service products tend to be intangible, are often consumed as they are produced, are difficult to standardize because they require human labor, and may require the customer to participate in the creation of the service product. Goods products tend to be just the opposite in terms of these criteria. Consequently, marketers of service products usually employ a marketing strategy quite different from that of goods marketers. For example, a local family physician creates tangibility by oroviding an environment. waiting room. examination rooms, diplomas on the walls, that convinces patients that they are receiving good health care. Conversely, coffee producers create iiltangibility in order to appear different from competitors. ~:-his is done through colorful packaging and advertisements showing people who are successful because they start each day with a cup or two or ten of Starbuck's coffee.

For-profit Marketing Versus Nonprofit Marketing

 As the terms connote, the difference between for-profit and nonprofit marketing is in their primary objective. For-profit marketers measure success in terms of profitability and their ability to pay dividends or pay back loans. Continued existence is contingent upon level of profits. Nonprofit institutions exist to benefit a society, regardless of whether profits are achieved. Because of the implicit objectives assigned to nonprofits, they are subject to an entirely different additional set of laws, notably tax laws. While they are allowed to generate profits, they must use these monies in specific way~ in order to maintain their nonprufit status. There are several other factors that require adjustments to be made in the marketing strategies for nonprofits.

M ass Marketing, Direct Marketing, and Internet Marketing Mass marketing is distinguished from direct marketing in terms of the distance between the manufacturer and the ultimate user of the product. Mass marketing is characterized as having wide separation and indirect communication. A mass marketer, such as Nike, has very little direct contact with its customers and must distribute its product through various retail outlets alongside its competitors. Communication is impersonal, as evidenced by its national television and print advertising campaigns, couponing, and point-of-purchase displays. The success of mass marketing is contingent on the probability that within the huge audience exposed to the marketing strategy.. there exist sufficient potential customers interested in the product to make ~he strategy worthwhile. Direct marketing establishes a somewhat personal relationship with the customer by first allowing the customer to purchase the product directly from the manufacturer and then communicating with the customer on a first-name basis. This type of marketing is experiencing tremendous growth. Apparently, marketers have tired of the waste associated with mass IParketing and customers want more personal attention. Also, modem mechanisms for coliecting and processing accurate mailing lists have greatly increased the effectiveness of direct marketing. Catalogue companies (Spiegel, J.e. Penney), telecommunications companies (Sprint), and direct mail companies (Publishers Clearing House) are example of direct marketers. A modified type of direct marketing is represented by companies that allow ordeling of product by calling a toll-free number or mailing in an order card as part of an advertisement. Although (officially), Intemet marketing is a type of direct marketing, it has evolved so quickly and demanded the attention of so many companies that a separate section here is 'varranted. Essentially, Intemet technology (which changes by the moment) has created a new way of doing business. In the Internet age, the way consumers evaluate and follow through on their purchase decisions has changed significantly. "Call now!" is no longer an effective pitch. Consumers have control over how, when, and where they shop on the Internet. The Internet has all but eliminated the urgency of satisfying the need when the opportunity is presented. Internet marketing will b e discussed in detail in a later chapter.

Local, Regional, National, International, and Global Marketers

 As one would expect, the size and location of a company's market varies greatly. Local marketers are concerned with customers that tend to be clustered tightly around the marketer. The marketer is able to learn a great deal about the customer and make necessary changes quickly. Naturally, the total potential market is limited. There is also the possibility that a new competitor or environmental factor will put a local marketer out of business. Regional marketers cover a larger geographic area that may necessitate multiple production plants and a more complex distribution network. While regional marketers tend to serve adjoining cities, parts of states, or entire states, dramatic differences in demand may still exist, requiring extensive adjustments in marketing strategy. National marketers distribute their product throughout a country. This may involve multiple manufacturing plants, a distribution system including warehouses and privately owned delivery vehicles, and different versions of the marketing "mix" or overall strategy. This type of marketing offers tremendous profit potential, but also exposes the marketer to new, aggressive competitors. International marketers operate in more than one country. As will become clear later in this book, massive adjustments are normally made in the marketing mix in various countries. Legal and cultural differences alone can greatly affect a strategy's outcome. As the U.S. market becomes more and more saturated with U.S.-made products, the continued expansion into foreign markets appears inevitable. Global marketing differs from international marketing in some very definite ways. Whereas international marketing means a company sells its goods or services in another country, it does not necessarily mean that the company has made any further commitments. Usually the product is still manufactured in the home country, sold by their people, and the profits are taken back to that country. In the case of Honda Motors, for example, it means building manufacturing plants in the U.S., hiring local employees, using local distribution systems and advertising agencies, and reinvesting a large percentage of the profits back into ' the U.S.

Consumer Goods Marketing and Business-to-Business (Industrial) Marketing

 Consumer goods marketers sell to individuals who consume the finished product. Businessto-business marketers sell to other businesses or institutions that consume the product in tum as part of operating the business, or use the product in the assembly of the final product they sell to consumers. Business-to-business marketers engage in more personal selling rather than mass advertising and are willing to make extensive adjustments in factors such as the selling price, product features, terms of delivery, and so forth. For the consumer goods marketer, the various marketing components are relatively fixed. In addition, consumer goods marketers might employ emotional appeals and are faced with the constant battle of getting their product into retail outlets.


Strategic Components of Marketing

 A necessary and useful starting point for the study of marketing is consideration of the management process. The management of marketing serves as the framework for the process of marketing. Marketing management also serves as a central link between marketing and the societal level and everyday consumption by the general public. Although there are many variations of the marketing process, the one shown in Figure 1.1 will be employed in this book. Our process begins with corporate-level considerations, which dictate the direction the entire organization will take. The three corporate-level con~iderations listed here (mission, objectives, and strategy) are more precisely basic management topics, but are addressed in passing in the following sections.

Functional Level Considerations

If a marketing firm is to adopt the customer-centered orientation discussed earlier, it must also extend this philosophy to the other functions/institutions with which it must interact. These functions, and the institutions that perform the functions can be categorized as nonmarketing institutions and marketing institutions. Nonmarketing institutions can exist within the organization or outside the organization. The former inciude accounting, financial planning, human resources, engineering, manufacturing, research and development, and so on. Marketing must be familia; with the capabilities of each of hese functions and plan accordingly. Establishing and maintaining rapport with leaders in these other functional areas is a challenge for every marketer. Nonmarketing institutions outside the firm facilitated the marketing process by providing experlise in areas not directly related to marketing. Examples include financial institutions that lend marketers necessary funds; regulatory institutions that pass laws to allow marketers to perform an activity; and the press, which tells the public about the activities of the marketer.


The Marketing Plan

To a great extent, the same sequence of activities performed at the corporate level is repeated at the marketing level. The primary difference is that the marketing plan is directly influenced by the corporate plan as well as tne role of the other functions within the organization. Consequently, the marketing plan must always involve monitoring and reacting to changes in the corporate plan. Apart from this need to be flexible to accommodate the corporate plan, the marketing plan follows a fairly standardized sequence. The marketing plan begins with a mission. A mission reflects the general values of the organization. What does it stand for? How does it define integrity? How does it view the people it serves? Every organization has an explicit.

Core Concepts of Marketing

Defining M arketing

 Noted Harvard Professor of Business Theodore Levitt, states that the purpose of all business IS to "find and keep customers." Furthermore, the only way you can achieve this objective is to create a competitive advantage. That is, you must convince buyers (potential customers) that what you have to offer them comes closest to meeting their particular need or want at that point in time. Hopefully, you will be able to provide this advantage consistently, so that eventually the customer will no longer consider other alternatives and will purchase your product out of habit. This loyal behavior is exhibited by people who drive only Fords, brush their teeth only with Crest, buy only Dell computers, and have their plumbing fixed only by "Samson Plumbing-On Call 24 hours, 7 days a week." Creating this blind commitment-without consideration of alternatives-to a particular brand, store, person, or idea is the dream of all businesses. It is unlikely to occur, however, without the support of an effective marketing program. In fact, the specific role of marketing is to provide assistance in identifying, satisfying, and retaining customers. While the general tasks of marketing are somewhat straightforward, attaching an acceptable definition to the concept has been difficu't. A textbook writer once noted, "Marketing is not easy to define. No one has yet been able to formulate a clear, concise definition that finds universal acceptance." Yet a definition of some sort is necessary if we are to layout the boundaries of what is properly to be considered "marketing." How do marketing activities differ from nonmarketing activities? What activities should one refer to as marketing activities? What institutions should one refer to a~ marketing institutions? Marketing is advertising to advertising agencies, events to event marketers, knocking on doors to salespeople, direct mail to direct mailers. In other words, to a person with a hammer, everything looks like a nail. ~n reality, marketing is a way ofthinking about business, rather than a bundle of techniques. It's ;nuch more than just selling stuff and collecting money. It's the connection between people and products, customers and companies. Like organic tissue, this kind of connection-or relationship-is always growing or dying. It can rever be in a steady state. And like tissue paper, this kind of connection is fragile. Customer relationships, even long-standing ones, are contingent on the last trung that happened. Tracing the evolution of the various definitions of marketing proposed during the last thirty years reveals two trends: 1) expansion of the application of marketing to non-profit and non-business institutions; e.g., charities, education, or health care; and 2) expansion of the responsibili'jes of marketing beyond the personal survival ofthe individual firm, to include the betterment of society as a whole. These two factors are reflected in the official American Marketing Association definition published in 1988. "Marketing is the process ofplanning and executing the conception. pricing, promotion, and distribution ofideas, goods, and services to create exchanges that satisfy individual (customer) and organiwtional objectives.'" While this definition can help us better comprehend the parameters of marketing, it does not provide a full picture. Definitions of marketing cannot flesh out specific transactions and other relationships among these elements. The following propositions are offered to supplement this definition and better position marketing within the firm:

1. The overall directive for any organization is the mission statement or some equivalent statement of organizational goals. It reflects the inherent busines~ philosophy of the organization.
 2. Every organization has a set of functional areas (e.g., accounting, production, finance, data processing, marketing) in which tasks t;lat are necessary for the success of the organi~ation are performed. These functional areas must be managed if they are to achieve maximum performance.
 3. Every functional area is guided by a philosophy (derived from the mission statement or company goals) that governs its approach toward its ultimate set of tasks.
 4. Marketing differ~ from the other functional areas in that its primary concern is with exchanges that take place in markets, outside the organization (called a transaction).
 5. Marketing is most successful when the philosophy, tasks, and manner of implementing available Lechnology are coordinated and complementary.

Perhaps an example will clarify these propositions: L.L. Bean is an extremely successful mail order company. The organization bases much of its success on its longstanding and straightforward mission statement: "Customer Satisfaction: An L.L. Bean Tradition" (Proposition 1). The philosophy permeates every level of the organization and is reflected in high quality products, fair pricing, convenience, a 100% satisfac~ion policy and-above all-dedication to customer service (Proposition 2). This philosophy has necessitated a very high standard of production, efficient billing systems, extensive and responsive communication networks, computerization, innovative cost controls, and so forth . Moreover, it has meant that all of these functional areas have to be in constant communication, must be totally coordinated, and must exhibit a level of harmony and mutual respect that creates a positive environment in order t o reach shared goals (Proposition 3). The L.L. Bean marketing philosophy is in close harmony with its mission statement. Everything the marketing department does must reinforce and make real the abstract concept of "consumer satisfaction" (Proposition 4). The price-product-quality relationship must be fair. The product must advertise in media that reflects trus high quality. Consequently, L.L. Bean advertises through its direct-mail catalogue and through print ads in prestigious magazines (e.g. , National Geographic). It also has one of the most highly regarded websites (Ad 1.1). Product selec:ion and design are based upon extensive research indicating the preferences of their customers Since product delivery and possible product return is critical, marketing must be absolutely sure that both these tasks are performed in accordance with customers' wishes (Proposition 5). While one might argue that the marketing function must be the most important function at L.L. Bean, this is r.ot the case. L.L. Bean is just as likely to lose a customer because of incorrect billing (an accounting function) or a flawed hunting boot (a product function) as it is from a misleading ad (a marketing function). Admitted:y, marketing is often a critical part of a firm's success. Nevertheless, the importance of marketing must be kept in perspective. For many large manufacturers such as Proctor & Gamble, Microsoft, Toyota, and Sanyo, marketing represents a major expenditure, and these businesses depend on the effectiveness of their marketing effort. Conversely, for regulated industries (such as utilities, social services, or medical care or small businesses providing a one-of-a-kind product) marketing may be little more than a few informative brochures. There are literally thousands of examples of businesses-many quite smallthat have neither the resources nor the inclination to support an elaborate marketing organization and strategy. These businesses rely less on research than on common sense. In all these ases the marketing program is worth the costs only if it fits the organization and facilitates its ability to reach its goals.

Direct selling

From Wikipedia, the free encyclopedia

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling.^[1] Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.^[2] A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."^[3][4]

Industry representative, the World Federation of Direct Selling Associations (WFDSA), reports that its 59 regional member associations accounted for more than US$183 billion in retail sales in 2014, through the activities of more than 62 million independent sales representatives.^[5] The United States Direct Selling Association (DSA) reported that in 2000, 55% of adult Americans had at some time purchased goods or services from a direct selling representative and 20% reported that they were currently(6%) or had been in the past(14%) a direct selling representative.^[6]

According to the WFDSA, consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees.^[5] In contrast to franchising, the cost for an individual to start an independent direct selling business is typically very low with little or no required inventory or other cash commitments to begin.^[5]

Most direct selling associations around the world require their members to abide by a code of conduct towards a fair partnership both with customers and salesmen...

Most national direct selling associations are represented in the World Federation of Direct Selling Associations (WFDSA).

Direct selling is distinct from direct marketing because it is about individual sales agents reaching and dealing directly with clients. Direct marketing is about business organizations seeking a relationship with their customers without going through an agent/consultant or retail outlet.

Direct selling consists of two main business models: single-level marketing, in which a direct seller makes money by buying products from a parent organization and selling them directly to customers, and multi-level marketing (also known as network marketing or person-to-person marketing), in which the direct seller makes money from both direct sales to customers and by sponsoring new direct sellers and earning a commission from their efforts.^[7]

Largest direct selling companies[edit]

According to Direct Selling News, the largest direct selling companies globally, by revenue in 2015,^[8] were:

2015 Rank	Company Name	2014 Revenue
1	Amway	US$ 10.80 B
2	Avon Products	US$ 8.90 B
3	Herbalife	US$ 5.00 B
4	Mary Kay	US$ 4.00 B
5	Vorwerk	US$ 3.90 B
6	Natura	US$ 3.20 B
7	Infinitus	US$ 2.64 B
8	Tupperware	US$ 2.60 B
9	Nu Skin Enterprises	US$ 2.57 B
10	JoyMain	US$ 2.0 B

Personal Selling

Personal Selling as a form of direct selling is the verbal and personal presentation of a need-satisfying product, service, institution or idea to one or more potential buyers.^[9] This platform differentiates itself from non-personal selling forms of Marketing Communications through its personal nature of method. This flexible method is used for establishing and nurturing customer relations. Advantages of using this platform are that the messages can be tailored for specific situations, there is less “noise” to disturb the message and it is effective when communicating complex information. Disadvantages include a high cost per contact and reach can be relatively low. For this platform to work effectively, businesses need to have competent salespeople to consult and help problem solve for the customer. There are several roles and functions for salespeople in the area of personal selling. Marketing managers should understand these functions in order to train and hire sales staff. The roles/functions are: Create new customers, Sell more to current customers, Build long-term relationships with customers, Provide solutions to customers’ problems, Provide service to customers and Help customers re-sell products to their customers.^[10] The function to create new customers can be called prospecting and it involves identifying potential customers. The function to sell more to present customers implies that future growth in sales is dependent on current customers. The function of providing a service to customers’ means they handle complaints, returning damaged goods and ensuring the customers are satisfied with the services accompanying a product.^[9]

There are many qualities and attributes that a salesperson should have. Essential attributes are Communication skills, Sales Knowledge, Trust and Self-leadership. Communication skills consist of 3 elements: Verbal, Non-Verbal and Listening.^[9] Verbal communication is the transmission of words either in face-to-face, over the phone, or through written messages. Verbal communication should be articulated so the customer can easily hear and understand the information. Non-verbal communication comes in the form of expression and body language. This element of communication skills uses appearance to communicate emotion and thoughts without using words. Listening is an essential part of communication skills. It allows the seller to understand the point of view of the customer’s objectives. One strategy that is deployed in the listening element of communication skills it the LEAN strategy: Listen, Evaluate, Ask strategic customer-focused questions and Never interrupt the customer. Sales knowledge means that the salesperson has the sound knowledge of the organisation, competitors, industry, their customers and their products. This builds their self-confidence in turn, building the buyer’s confidence in the salesperson. Self-leadership is an important attribute to a salesperson because it is a measure of how well their selling activities are aligned with their goals.^[9]

How to Copyright in India, Procedure to apply for copyright, Online Copyright Registration, Copyright laws, Copyright Rights

Copyright Registration is necessary to protect the creators, creative work such as music, books, manuscripts, software's, films, fashion designs, website etc from being copied and used for commercial purposes without the creators permission thus causing tremendous loss to the creator. Copyrights operates against unauthorized copying, the taking of another's creation, without paying for it.

Copyright is essentially a creation of statute, the copyright act makes it clear that no person shall be entitled to Copyright or any similar rights, in any work whether published or unpublished, otherwise than in accordance with the provisions of the Act.

Copyright Registration of Creative work Protects your Creativity from being Stolen or Duplicated, and gives you a Confirmed Legal Right over your creation.

Copyright Registration gives your Creative work a legal Status, thereby making it an Intellectual property, giving you exclusive legal right over your creation.

Copyright Registration guarantees Speedy Justice

List of Creative Work Protected by the Copyright law in India

1. Literary work Which includes computer programmes and computer databases apart from book.
2. Sound recording or audio recorded files which could include songs, dialogues recorded etc
3. Cinematograph film includes films, videos, cartoon films etc (It is advisable to include creative rights in the various agreements between parties in the initial stage itself.)
4. Artistic work including a painting, a sculpture, a drawing such as a map, chart or diagram, an engraving, a photograph, architecture/ artistic craftsmanship and dramatic work.
5. Musical work meaning staff notations and written music.

What is the purpose of Copyright Registrar
Copyright Registrar primarily serves as an office of record, a place where claims to copyright are registered and documents related to copyright are recorded. the purpose is to furnish information about the provisions of the copyright law and the procedures for making registration, to explain the operations and practices of the Copyright Office, and to report on facts found in the public records of the Office.

Copyright office in India is issuing diary no without being in actual possession of the creative work, thereby stating that your legal right will begin only after you get the certificate and not the diary no.

Supreme court Guidelines on Sound Recording and Cinematography

In case you want to copyright a Video, Film or an Audio Recording track i.e song, we request you to have an agreement with all the people involved in the making of it to give an NOC in the very beginning before you avail their services, that they will not have any Objection to you copyrighting the creative work in your favour. This has become imperative now after the latest Supreme court Guidelines on Sound Recording and Cinematography Copyright Registration. Most of the filmmakers in India are facing an uphill task in getting their film copyrighted due to this latest inclusion, kindly ensure that you do not fall in this trap. If you do not have any idea on this how to execute it do let us know we can do it for you at a minimal fee.

** Copyright Registration Under the Copyright Act of 1957 serves as a prime facie evidence in all courts in India, without further proof or production of the original.

* Good news for all waiting for their copyright certificate, the copyright office has now expedited their services hence now Copyright certificate is issued within 6 months

Choreography can also be copyrighted when reduced to writing as a Dramatic work, in the following way: 1) shorthand notation of Benesh 2) the longer more academic and elaborate Laban system and 3) Choreographer's own invented system 

What Copyright Protection Do I Get Under The Copyright Laws?

Registering your work with the Registrar of Copyright Office is basically a copyright protection insurance policy. Copyright protection arises automatically the moment the author fixes the work in a tangible form (i.e. when a writer writes her story), without the author having to do anything.

So why register for copyright protection if you’re work is automatically protected?
Here are four important reasons why filing for copyright protection with the Registrar of Copyright Office is important:

Copyright registration establishes a public record of your copyright and puts everyone in the world on notice that you have sought and claim copyright protection under the Copyright laws.

You cannot sue anyone for copyright infringement until you have filed for copyright protection with the Registrar of Copyright Office
No award for statutory damages or attorneys fees will be made for any infringement of a copyright in an unpublished work which occurs prior to the submission of the copyright registration documents. The same holds true for published works, unless the copyright registration is made within three months after the first publication.

If the registration of your work is done within five years from its creation, it is considered prima facie evidence in court. Prima facie evidence means that if you ever went to court, proof of the copyright registration with the Registrar of Copyright Office would be sufficient evidence of your ownership of the copyrighted material.

Forming A Company In India - company Registration in India -

Forming A Company In India

The Companies Act of 1956 sets down rules for the establishment of both public and private companies. The most commonly used corporate form is the limited company, unlimited companies being relatively uncommon. A company is formed by registering the Memorandum and Articles of Association with the State Registrar of Companies of the state in which the main office is to be located.

Foreign companies engaged in manufacturing and trading activities abroad are permitted by the Reserve Bank of India to open branch offices in India for the purpose of carrying on the following activities in India:
# To represent the parent company or other foreign companies in various matters in India, for example, acting as buying/selling agents in India, etc.
# To conduct research work in which the parent company is engaged provided the results of the research work are made available to Indian companies 
# to undertake export and import trading activities
# to promote possible technical and financial collaboration between Indian companies and overseas companies.

Application for permission to open a branch, a project office or liaison office is made via the Reserve Bank of India by submitting form FNC-5 to the Controller, Foreign Investment and Technology Transfer Section of the Reserve Bank of India. For opening a project or site office, application may be made on Form FNC-10 to the regional offices of the Reserve Bank of India. A foreign investor need not have a local partner, whether or not the foreigner wants to hold full equity of the company. The portion of the equity thus not held by the foreign investor can be offered to the public.

Incorporating a Company - Approval of Name

The first step in the formation of a company is the approval of the name by the Registrar of Companies (ROC) in the State/Union Territory in which the company will maintain its Registered Office. This approval is provided subject to certain conditions: for instance, there should not be an existing company by the same name. Further, the last words in the name are required to be "Private Ltd." in the case of a private company and "Limited" in the case of a Public Company. The application should mention at least four suitable names of the proposed company, in order of preference. In the case of a private limited company, the name of the company should end with the words "Private Limited" as the last words. In case of a public limited company, the name of the company should end with the word "Limited" as the last word. The ROC generally informs the applicant within seven days from the date of submission of the application, whether or not any of the names applied for is available. Once a name is approved, it is valid for a period of six months, within which time Memorandum of Association and Articles of Association together with miscellaneous documents should be filed. If one is unable to do so, an application may be made for renewal of name by paying additional fees. After obtaining the name approval, it normally takes approximately two to three weeks to incorporate a company depending on where the company is registered.

Memorandum and Articles

The Memorandum of Association and Articles of Association are the most important documents to be submitted to the ROC for the purpose of incorporation of a company. The Memorandum of Association is a document that sets out the constitution of the company. It contains, amongst others, the objectives and the scope of activity of the company besides also defining the relationship of the company with the outside world.
The Articles of Association contain the rules and regulations of the company for the management of its internal affairs. While the Memorandum specifies the objectives and purposes for which the Company has been formed, the Articles lay down the rules and regulations for achieving those objectives and purposes.

The ROC will give the certificate of incorporation after the required documents are presented along with the requisite registration fee, which is scaled according to the share capital of the company, as stated in its Memorandum. A private company can commence business on receipt of its certificate of incorporation.

A public company has the option of inviting the public for subscription to its share capital. Accordingly, the company has to issue a prospectus, which provides information about the company to potential investors. The Companies Act specifies the information to be contained in the prospectus.

The prospectus has to be filed with the ROC before it can be issued to the public. In case the company decides not to approach the public for the necessary capital and obtains it privately, it can file a "Statement in Lieu of Prospectus" with the ROC.

On fulfillment of these requirements, the ROC issues a Certificate of Commencement of Business to the public company. The company can commence business immediately after it receives this certificate.
Certificate of Incorporation

After the duly stamped Memorandum of Association and Articles of Association, documents and forms are filed and the filing fees are paid, the ROC scrutinizes the documents and, if necessary, instructs the authorised person to make necessary corrections. Thereafter, a Certificate of Incorporation is issued by the ROC, from which date the company comes in to existence. It takes one to two weeks from the date of filing Memorandum of Association and Articles of Association to receive a Certificate of Incorporation. Although a private company can commence business immediately after receiving the certificate of incorporation, a public company cannot do so until it obtains a Certificate of Commencement of Business from the ROC.

Miscellaneous Documents
The documents/forms stated below are filed along with Memorandum of Association and Articles of Association on payment of filing fees (depending on the authorised capital of the company): 
# Declaration of compliance, duly stamped 
# Notice of the situation of the registered office of the company 
# Particulars of Directors, Manager or Secretary 
# Authority executed on a non-judicial stamp paper, in favour of one of the subscribers to the Memorandum of Association or any other person authorizing him to file the documents and papers for registration and to make necessary corrections, if any 
# The ROC’s letter (in original) indicating the availability of the name.

Tax Registration

Businesses liable for income tax must obtain a tax identification card and number [known as Permanent Account Number (PAN)] from the Revenue Department. In addition to this, businesses liable to withhold tax must necessarily obtain a Tax Deduction Account Number (TAN). Both the PAN and the TAN must be indicated on all the returns, documents and correspondence filed with the Revenue Department. The PAN is also required to be stated in various other documents such as the documents pertaining to sale or purchase of any immovable property (exceeding Rs. five lakh), sale or purchase of a motor vehicle, time deposit (exceeding Rs. 5 lakh), contract for sale or purchase of securities (exceeding Rs. 10 lakh), to name a few.

Rules Applicable

Companies (Central Governments') General Rules and Forms,1956
Filing Registering/Approving Authority
One copy has to be submitted along with a forwarding letter addressed to the concerned Registrar of Companies.

Enclosures

The declaration must be submitted with the following annexure
# Document evidencing payment of fee 
# Memorandum and Articles of Association 
# Copy of agreement if any, which the proposed company wishes to enter into with any individual for appointment as its managing or whole-time director or manager 
# Form 18 
# Form 32 (except for section 25 company) 
# Form 29 (only in case of public companies) 
# Power of Attorney from subscribers 
# Letter from Registrar of Companies making names available 
# No objection letters from directors/promoters 
# Requisite fees either in cash or demand draft

Fees

Fee payable depends on the nominal capital of the company to be registered and may be paid in one of the following modes. Cash/postal order (upto Rs.501-), demand draft favouring Registrar of Companies/Treasury Challan should be payable into specified branches of Punjab National Bank for credit

Time-Limit / Practice Notes
Time-Limit 
It should be submitted before incorporation or within 6 months of the name being made available. Top

Practice Notes 
The declaration has to be signed by an advocate of Supreme Court or High Court or an attorney or pleader entitled to appear before the High Court or a secretary or chartered accountant in whole-time practice in India who is engaged in the formation of the proposed company or person named in the articles as director, manager or secretary.

The Registrar of Companies has to be satisfied that not only the requirements of section 33(1) and (2) have been complied with but be also satisfied that provisions relating to number of subscribers, lawful nature of objects and name are complied with.

The Registrar will check whether the documents have been duly stamped and also whether the requirements of other laws are met.

Any defect in any of the documents filed has to be rectified either by all the subscribers or their attorney, or by any one subscriber holding the power of attorney on behalf of other subscribers.

This form is to be presented to the Registrar of Companies within three months from the date of letter of Registrar allowing the name.

This declaration is to be given on a non-judicial stamp paper of the requisite value . The stamp paper should be purchased in the name of the person signing the declaration.

This declaration is to be given by all the companies at, the time of registration, public or private.

The place of Registration No. of the company should be filled up by mentioning New Company therein.

The Registrar of Companies will now accept computer laser printed documents for purposes of registration provided the documents are neatly and legibly printed and comply with the other requirements of the Act. This will be an additional option available to the public to use laser print besides offset printing for submitting the memorandum and articles for the registration of companies.

Where the executants of a memorandum of association is illiterate, he shall give his thumb impression or marks which should be described as such by the subscriber or person writing for him.

An agent may sign a memorandum on behalf of a subscriber if he is authorised by a power-of-attorney to do so. In the case of an illiterate subscriber to the memorandum and articles of association, the thumb impression or mark duly attested by the person writing for him should be given. The person attesting the thumb mark should make an endorsement on the document to the effect that it has been read and explained to the subscriber. The Registrar of Companies will not accept zerox copies of the memorandum and articles of association for the purposes of registration of companies.

Presented by
This declaration is to be presented by the person signing the declaration or by his bearer at the counter of the Registrar of Companies office.

Managerial Remuneration
# Any person in order to be appointed as the Managing Director of the company should be a resident of India. Any person, being a non-resident in India, must obtain an Employment Visa from the concerned Indian mission abroad at the time of their appointment as the Managing Director.

# Whereas private companies are free to pay any remuneration to its directors, public companies can remunerate their directors only within the specified limits.

# In case of public companies, in the event of absence or inadequacy of net profits in any financial year, managerial remuneration is limited to amounts varying from Rs 75,000 to Rs 2,00,000 per month, depending on the effective capital of the company. In case of an expatriate managerial person, perquisites in the form of children’s education allowance, holiday passage money and leave travel concession provided to him would not form part of the said ceiling of remuneration.

# In case of a managerial position in two companies, remuneration can be drawn from one or both companies provided that the total remuneration drawn from the companies does not exceed the higher maximum limit admissible from any one of the companies of which he is a managerial person.

With whom to be filed

With the Registrar of Companies of the State in which the company is to be registered

Documents required to be submitted
# A printed copy each of the Memorandum and Articles of Association of the proposed company filed along with the declaration duly stamped with the requisite value of adhesive stamps from the State/ Union Territory Treasury (For value of stamps to be affixed see Schedule printed in Part III Chapter 23). Below the subscription clause the subscribers to the Memorandum should write in his own handwriting his full name and father's, or husband's full name in block letters, full address, occupation, e.g.,'business executive, engineer, housewife, etc. and number of equity shares taken and then put his or her signatures in the column meant for signature. Similarly at the end of the Articles Of Association the subscriber should write in his own handwriting : his full name and father's full name in block letters, full address, occupation. The signatures of the subscribers to the Memorandum and the Article of Association should be witnessed by one person preferably by the person representing the subscribers, for registration of the proposed company before the Registrar of Companies. Under column 'Total number of equity shares' write the total of the shares taken by the subscribers e.g., 20 (Twenty) only. Mention date e.g. 5th day of August, 1996. Place-e.g. , 'New Delhi'.

# With the stamped copy, one spare copy each of the Memorandum and Articles of Association of the proposed company.

# Original copy of the letter of the Registrar of Companies intimating the availability of name.

# Form No. 18 - Situation of registered office of the proposed company.

# Form No. 29-Consent to act as a director etc. Dates on the consent Form and the undertaking letters should be the same as is mentioned in the Memorandum of Association signed by the director himself. A private company and a wholly-owned Government company are not required to file Form No. 29.

# Form No. 32 (in duplicate). Particulars of proposed, directors, manager or secretary.

# Power of attorney duly typed on a non-judicial stamp paper of the requisite value. The stamp paper should be purchased in the name of the persons signing the authority.

# No objection letter from the persons whose name has been given in application for availability of name in Form No. 1-A as promoters/directors but are not interested at a later stage should be obtained filed with the Registrar at the time of submitting documents, for registration

# The agreements, if any, which the company proposes to enter with any individual for, appointment as managing or whole-time director or manager are also to be filed.

Fee payable
Cash or a bank draft/ pay order treasury challan should be drawn in the name of the Registrar of Companies of the State in which the Company is proposed to be registered as per Schedule X.

Reporting Requirements

Annual Accounts

The Indian company law does not prescribe the books of accounts required to be maintained by a company. It, however, provides that the same should be kept on accrual basis and according to the double entry system of accounting and should be such as may be necessary to give a true and fair state of affairs of the company.

The Indian company law requires every company to maintain proper books of account with respect to the following:
# All sums of money received and expended and the matters in respect of which the receipt and expenditure take place 
# All sales and purchases of goods by the company 
# The assets and liabilities of the company 
# In case of companies engaged in manufacturing, processing, mining etc, such particulars relating to utilization of material or labour or other items of cost.

The first annual accounts of a newly incorporated company should be drawn from the date of its incorporation upto to the day not preceding the AGM date by more than 9 months. Thereafter, the accounts should be drawn from date of last account upto the day not preceding the AGM date by more than 6 months subject to the extension of the time limit in certain cases. The accounts of the company must relate to a financial year (comprising of 12 months) but must not exceed 15 months. The company can obtain an extension of the accounting period to the extent of 18 months by seeking a prior permission from the ROC.
The annual accounts must be filed with the ROC within 30 days from the date on which the Annual General Meeting (AGM) of the company was held or where the AGM is not held, then within 30 days of the last date on which the AGM was required to be held.

Books of accounts to be kept by company

Every company is required to maintain proper books of account with respect to all sums of money received and expended, all sales and purchases of goods, the assets and liabilities. Central Government may also specifically require the maintenance of certain additional particulars with respect to certain classes of Companies. The books of account relating to eight years immediately preceding the current year together with supporting vouchers are required to be preserved in good order. Every profit and loss account and balance sheet of the company (together referred to as financial statements) is required to comply with the accounting standards issued by the Institute of Chartered Accountants of India. Any deviations from the accounting standards, including the reasons and consequent financial effect, is required to be disclosed in the financial statements.

The responsibility for the preparation of financial statements on a going concern basis is that of the management. The management is also responsible for selection and consistent application of appropriate accounting policies, including implementation of applicable accounting standards along with proper explanation relating to any material departures from those accounting standards. The management is also responsible for making judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the entity at the end of the financial year and of the profit or loss of the entity for that period.

Annual Return

Every company having a share capital is required to file an annual return with the ROC within 60 days from the date on which the AGM of the company was held or where the AGM is not held, then within 60 days of the last date on which the AGM was required to be held.

Certain Accounting related issues

Depreciation
The company law in India permits the use of depreciation rates according to the nature of the classes of assets. Assets can be depreciated either on the basis of straight-line method (based on the estimated life of the asset) or on the basis of reducing balance method. The law prescribes the minimum rates of depreciation. A company may, however, provide for a higher rate of depreciation, based on a bonafide technological evaluation of the asset. Adequate disclosure in the annual accounts must be made in this regard.

Dividend
There is no limit on the rate of dividend but there are certain conditions prescribed with regard to computation of profits that can be distributed as dividend. Generally, no dividend can be paid for any financial year except out of the profits of that year after making an adequate provision for depreciation subject to certain conditions.
Dividends may also be distributed out of accumulated profits.

Repatriation of profits
A company has to retain a maximum of 10% of the profits as reserves before the declaration of dividends. These reserves, inter alia, can be subsequently converted into equity by way of issue of bonus shares. Dividends are freely repatriable once the investment approval is granted.

Imposition of taxes
Currently, domestic companies are taxable at the rate of 35.875% (inclusive of surcharge of 2.5%) on its taxable income. Foreign companies are taxed at a marginally higher rate of 41% (including surcharge of 2.5%). However, in case where the income tax liability of the company under the provisions of the domestic tax laws works out to less than 7.5% of the book profits (derived after making the necessary adjustments), a Minimum Alternate Tax of 7.6875% (including a surcharge of 2.5%) on the book profits, would be payable. Domestic companies are required to pay a dividend distribution tax of 12.8125% (including surcharge of 2.5%) on the dividends distributed during the year.

Companies are required to withhold tax under the domestic law from certain payments including salaries paid to employees, interest, professional fee, payments to contractors, commission, winnings from games / lottery / horse races etc. Moreover, taxes have to be withheld from all payments made to non-residents at the lower of rates specified under the domestic law or under the applicable tax treaty, if any. 

Penalty

# Imprisonment up to two years and fine 
# Person liable for default 
# Person signing the declaration

Download Company law Forms:

# Form no.1: Declaration of compliance with the requirements of the Companies Act, 1956 on application for registration of a company
# Form no: 18: Notice of the situation / change of situation of registered office

# Form no 29: Consent to act as director of a company and/or undertaking to take and pay for qualification shares [pursuant to section 264(2)/266(I)(a) and 266(1) (b) (iii)]
# Form no 32: Particulars of appointment of directors and manager and changes among them [Pursuant to section 303(2)]