Address proof for company
supabcdefgh
(Querist) 08 September 2013
This query is : Resolved
Want to open a company with initial 2/3 member. The problem is coming to the company address.
Can we give home address in the address for the company registration and Tax related documents?
If home address is given, does it increase tax burden?
Can Government house be used for this address?
ajay sethi
(Expert) 08 September 2013
if you are showing ur residence as regd office of company it would imply that property is being used for commercial purposes . your tax liability towards property taxes, water bills will increase .
you cant show flat provided by Goverment as your office address
Rajendra K Goyal
(Expert) 08 September 2013
Agree with the expert ajay sethi ji, nothing more to add.
Guest
(Expert) 08 September 2013
Perfect advice by Shri Ajay Sethi. In addition, use of Government accommodation as a registered office would imply misuse of the Government acommodation, which would attract disciplinary action against the allottee Government servant, besides eviction from the Government accommodation, as the same is provided just for the purpose of residence to an employee and his family at a very subsidised license fee.
supabcdefgh
(Querist) 08 September 2013
That means, even a business can be done without much man power, to open a company u r forced to spend money as tax or rent. Can we use address of some other shop or business?
Rajendra K Goyal
(Expert) 08 September 2013
Query not clear whether the shop or business would be taken on rent by the company for its registered office or how it would be shown? Who would allow for the same. The consent of owner will confirm lien of company on the shop or business.
supabcdefgh
(Querist) 09 September 2013
The business being planned is research oriented, to investigate and publish research reports. This does not require a business space or permanent people. Work will be carried out by temporarily hiring students. The problem is simple. The company is in infant stage with fund problem. For address proof, we are facing a big problem , we need to hire a commercial place continuously even though we do not need. Two people are operating from their home. But either way, now for the address we have two option: a) give home address and convert 25% of home to business area and pay higher taxes b) hire a commercial place. This I feel is unfair. The problem is this: MCA site does not provide about what happens when you provide home as company address, the problems will start when you do it.
I have friends who are shop owner. Can they help me use their address as office address? will that increase their tax burden?
V R SHROFF
(Expert) 09 September 2013
I will arrange commercial office premises
FREE for you for few months to start.
U can use the address. as well as space.
If u need , finance too.
REASON:
I understand ,
As u r helping public at large and giving students opportunity to earn and utilise time in constructive manner.
Your research ad consultancy pvt ltd, hv aim is to assist research and consultancies in various colleges, for Education purpose
supabcdefgh
(Querist) 09 September 2013
thx, I understand, everything come with expenses. May be I will find some one who can help in delhi.
V R SHROFF
(Expert) 09 September 2013
"everything come with expenses"
Not necessarily,
To repay those who helped me free & vanished.Don't want to die in debt of those great persons.
Can be a Hobby too.
Black coat of Lawyer need to wash with charity. [Dr. use White coat]
Guest
(Expert) 09 September 2013
Mr. supabcdefgh ....... (I wonder why you left the remaining alphbets from i to z in your name?)
The following questions arise out of your posts, which I hope you would clarify honestly:
(1) Would your research reports be available free of cost for the users/ public?
(2) Would not be the aim of your company to earn huge profit out of the cheap labour cost of students?
(3) What type of research you propose to get made by the raw knowledge of unexperienced students and on what business, profession or services?
(4) You being a teacher, I can guess, you propose to start writing research based project reports for students of postgraduate level by some school/ college students by paying them some paltry sum to supplement their pocket money. BUT, what would be the intrinsic or moral value of such research reports prepared by the raw knowledge of the unexperienced students for the PG level students after paying the cost of such reports? Would not failure be the destiny of such students, who rely on such raw reports?
(5) If your aim is not profit earning or to supply research reports free of cost, why you feel the need of establishing a company, not a non-profit research society or NGO?
(6) If you have to fix price of each research report and profit earning being the aim of the company, why do you shy of spending the most necessary initial seed money to establish a company? Even a farmer spends the cost of seeds to grow crops, irrespective of whether the crop grows or get destroyed on account of floods, heavy rains or excessive heat. So, what is the hitch in spending the initial necessary cost of establishing a company, which can pay you even after your retirement as a teacher?
(7) As you talked about Government house, and you being a teacher by profession, I assume that you are a Government employee. So, have you read your service conduct rules applicable to your service, which prohibit any business by a Government servant? So, how you would like to justify to your employer about establishing business entity in the shape of a registered company?
Guest
(Expert) 09 September 2013
Shroff ji,
I am sure, you would like to appreciate that companies are not established just for helping public at large and with the aim to give anyone opportunity to earn and utilise time in constructive manner. If someone thinks to set up a company, always the aim behing the idea is profit earning through the company.
V R SHROFF
(Expert) 09 September 2013
Respected Dhingraji.
The Querist is rich Doctorate, facing family disturbance in late 50's and intend to divert attention.
This case is special, and extra-ordinary.
A Delhi based Adv can be of help, I m in Bombay and cannot help him.
Otherwise I do not touch commercial Query.
It is company with 2-3 staff only, without a office or any property.
Not necessarily "profit earning through the company"
supabcdefgh
(Querist) 09 September 2013
a) Would your research reports be available free of cost for the users/ public?
No, it will find ways to generate fund. I will give you an example. I will create a group of technical experts to support sports with equipments, experts from abroad, medical and psychologists based on my experience of the time when my son from age (8-12) to become a Olympic level swimmer and its failure. This group will provide two options:
i) pay for service
ii) Allow the video recoding to be sold and generate fund.
Yes, I do not believe in charity. I believe in honest business and earn in a self sustainable way. I will in future generate public donation and Government/International donation. I will not ask for charity as tax break and loose my independence.
b) Would not be the aim of your company to earn huge profit out of the cheap labour cost of students?
I am at IIT considered as a generous spender and more I spent, more I earned.
c) What type of research you propose to get made by the raw knowledge of inexperienced students and on what business, profession or services?
that is a challenge. It can be in any topic. I am writing a book about this topic now.
My work in engineering has no relationship here. It is more to do with sports, dance, music, family problems (like I faced), man's life problem, and any thing in the world.
Hence, SRC will initiate the following activities immediately in the following order:
a) Documentation of SRC founding thoughts and initial experiments
b) Music, song and dance: Initiate research to understand how these entertainment forms are utilized in religion in India, and in other forms in other countries. Initiate debate and try to incorporate a model where people participate and enjoy life.
c) Sports: Create a group of psychologist, medical experts and physical trainer to investigate the loop holes of the process of child growth, process of participation in sports in India and create a system of technical support for them. If necessary, purchase instruments and provide services in a financially feasible way.
d) Research: Train people to think with clear objective and proper literature/life review. SRC will initiate debates in all levels to effect the society in a positive way, in the same model of Rand Corporation in USA.
e) Information Base: SRC will create a information base about education in different colleges and their benefits. It will create a knowledge base of life of different people, so that readers can read and know how to approach life.
f) Flexible Education system: Investigate the possibility of flexible education system to provide opportunity to children to participate in music and sports without hurting overall carrier.
I am not shy of spending, I find it illogical. I have no problem in paying commercial rent when my group become big, not when 2 people are working solely on my savings. As the company starts, why ask for a business address upfront? why not allow them some time to establish? this will allow for sincere business. I business address should depend on no of people working, quantum of electricity consumed.. etc. Not on if this is a future billionaire company. Now I have to hire a address which I will never use. and last, why can't MCA clarify the meaning and implications, many people are using home address without penalty.. The problem with india is clarity of thoughts.
My name is Supratic Gupta, IIT Delhi, 45 years old
supabcdefgh
(Querist) 09 September 2013
Service rules? Every rule as a way to escape. Do you think rules can stop us?
See the business concepts are mine. I hold the intellectual property rights to all documents created by me utilized by this company. If ever I need to take out income that is the way.
But will i ever require this money?
I would rather control a billion/trillion dollar rather then own it.
This effort is a research and scientific approach that will benefit the world. Indian Government would be approached to allow me to participate legally and allow the world to get the benefit of my intellect (sorry if its looks proud, there is no better way of telling the truth).
I feel the Indian Government of looking at NGO, Non-profit is faulty. who wants charity, we want rights, transparency.
Guest
(Expert) 09 September 2013
Mr. Gupta,
Nice of you for providing clarifications to my points and additional information.
About your statement cum query, "Every rule as a way to escape. Do you think rules can stop us?", I know, majority of the employees flout service rules intentionally or unintentionally out of ignorance in the Government organisations and they escape due to having not been appropriately noticed. I have not stated that rules can stop you in any way. I have quoted only the rules position, as ethically, I won't prefer to advice anyone to flout the rules or law of the land. The fact is the thief is that who is caught, not even a very big offender, if not caught or is smart enough to manage his escape.
About registered address, it can be any address where the company is capable of receiving and acknowledging all communications and notices as may be addressed to the company. There is no restriction in law on giving any address whether it is a home address or a Government accommodation. Responsibility of the compliance of relevant laws and rules rests with the promoters of the company.
So, nobody can restrain you to register a company at any address, if you have the capability to run and can also escape the provisions of other relevant laws/rules, if you tend to flout.
Wish you the best of luck.
V R SHROFF
(Expert) 09 September 2013
Dhingraji,
Can't he use the office I offered free?
His problem of office can be solve. Later on, It is his ground and his horse. Ride as fast and as he like.
We can be helping hand to deserving..
A helping hand to harassed hus.
In such situation , they are over sensitive, away from prudency, though Doctorate, but highly sensitive.
A word may also encourage, one do not loose much.
It motivate a person. Why put salt on wounds??
As I smell their motives, internal thinking faster,I try to read in between the lines, I either slap or help immediately.
All risks and hidden advantage are calculated..
thanks..
I think yopu can help him bettewr as he too is DELHI BASED, and need a Sr. Consultant to go ahead. I feel, you r right person to guide him.
Adv Shroff.
supabcdefgh
(Querist) 09 September 2013
>I won't prefer to advice anyone to flout the rules or law of the land.
All I said that rules of the land cannot stop me. I will make sure I comply with the rules. IIT rules some time allow, which I am asking permission. Indian law also do not explicitly prohibit, but requires taking permission which I will seek.
Other wise, I will remain a official mentor and the intellectual property right.
Some one suggested asking me keep one qualifying share (of 10000 share) to be able to finance the company. is it technically ok?
Yes, sir, as Mr. Shroff suggested, your help will be highly appreciated.
I am sending you email.
