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Non-Disclosure Agreement

In business, there are numerous instances in which you have to share confidential information with another party. For example you have a business idea. In order to execute the idea you will have to share the idea with potential partners, investors or employees.

Startup companies with a new and profitable idea can only succeed if what they are working on remains under wraps. But the key to doing so safely is making sure that the other party is bound to respect the confidential information you provide them and not use it in a way that is detrimental for your business.

Inorder to keep a lid on the sensitive information, a non-disclosure agreement, or NDA, alternatively referred to as confidentiality agreements (CA), confidentiality statements, or confidentiality clauses is signed between two parties.

A Non-Disclosure Agreement is typically put to use while disclosing confidential information to potential investors, creditors, clients, or suppliers. Some people might not like the idea of signing a non-disclosure agreement saying “Don’t you trust me?” But without such a signed agreement, any information disclosed in trust can be used for malicious purposes or be made public accidentally. NDA is a promise between two or more parties that the information conveyed will be maintained in secrecy.

The confidentiality of the information is maintained for a specified period of time as mentioned in the agreement. But once the information is made public, that loses it’s “confidentiality” people will be free to disclose the information.

Types of Non-Disclosure Agreements:  

The specific content of each Non-disclaimer agreement is unique as it will relate to details of specific information, proprietary data involved and what is being discussed. In general there are two types of non-disclosure agreements.

  1. Unilateral Non-disclosure agreement: A unilateral agreement binds only one party to the agreement for example a company signs a unilateral non-disclosure agreement with an employee. Employee agrees not to disclose or reveal confidential information learnt while on the job. The majority of NDAs fall under these category and are intended to protect a business trade secret. Researchers and professors at research universities or at R&D department in the private sector are at times required to sign an NDA before they carry out research with the business or university that supports them.
  2. Mutual non-disclosure agreement: A mutual non-disclosure agreement is typically executed between two parties exploring a possible business arrangement or a joint venture or some other possible merger that might have a mutual benefit to both parties.7 Simple Ways You Can Protect Your Idea From Theft

 

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Company Legal Services to Startups in India

Company Legal Services to Startups in India

“If people are willing to bet on a lot of crazy notions, knowing that while some won’t work out, one breakthrough can change the world”.  – Bill Gates

What is a Startup?

As defined by Department of Industrial Policy & Promotion (DIPP)Startup means an entity, incorporated or registered in India :

  • Not prior to seven years, however for Biotechnology Startups not prior to ten years,
  • With annual turnover not exceeding INR 25 crore in any preceding financial year, and
  • Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.

“Build something you believe in — because that’s the first step to building a great brand.”

At the initial stages of setting up any organization, every entrepreneur is faced with a large number of challenges. All these challenges are hefty reminders that owning and Running a successful business is definitely not easy. It’s worth it though!

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“Don’t aim for 10% improvement. Make it radically better and different.”

Before diving into the deep sea, founders should know that every legal decision they take has a potential to impact the company’s partners, investors, employees and customers. Therefore, it is essential that the founders develop an understanding of basic legal principles and practices associated with building a business.

Tax Laws and the Basics of Accounting

Every organization in the world, be it involved in any kind of  business as to pay taxes to the Central, State and/or local/provincial government(s), as the case may be. It is essential for every new entrepreneur to be aware about accounting details and tricky lanes of the taxation world. An aspiring entrepreneur should have sector and area-specific knowledge of taxation because the taxes applicable to different sectors, geographical regions and/or products vary greatly and it is obligatory to be acquainted with any recent changes that have taken place.

Structuring the business-Choosing the type of venture

The most important thing before pulling up a startup is selecting a legal form of conducting business. It is indispensable to determine whether you want to have a private limited company, public limited company, partnership firm, or a limited liability partnership, depending on your long-term goals and vision.

Each form of business will be governed by separate principles and laws. Not complying with the relevant laws means hefty sums will have to be paid to the Government. Thus, heavy loss before you can even start making profit.

Labour and Employment Laws

When you start an organization, you will eventually have to hire new people.

Even if you plan to have independent consultants and contractors working with you or outsource, all these employee-employer relationships will be governed by labour legislations. Breaching these will not only harm you financially but would also harm your goodwill, even before it’s built!

Securities Laws

Securities laws regulated by the Securities and Exchange Board of India (SEBI), will assist in managing the various stages of life cycle of business including fund-raising. Foreign direct investment, angel investors, crowd funding, venture capitals and even joint ventures are areas that a new entrepreneur must be aware about. It will help increase the profitability of the organization.

Information Technology (IT) laws

Today in this highly-digitalized, and technologically advanced era you inadvertently need the knowledge of Information Technology (IT) laws before starting a new business in order to protect your confidential data from any infringers or hackers.

Corporate governance

Despite being a small organization, a sound knowledge about corporate governance and management will help an aspiring entrepreneur in effectively managing the organization and formulate further expansion plans.

Contract laws 

A business survives on contracts. No organization would come into existence without the use of contracts. Therefore, basic knowledge regarding fundamental principles of  contracts, arbitration, mediation, conciliation certainly helps!

Intellectual property laws

Legally protecting intellectual property is of supreme importance to any business. Hence, filing the right patent/trademark/copyright claims, and timely IP audits of your organization, would increase the profitability of your venture manifold.

Thus, in order for an entrepreneur to sail his ship of business smoothly, a decent knowledge about some of the important legal laws mentioned above is of utmost important.

“ Find the perfect business idea and start building your business today. Build the enterprise and the brand as if you’ll own them forever.”\

We at Tech Corp International Strategist (TCIS, India) have an expert team of Indian lawyers who assist Startups with patent, business brand, trademark and logo registration in India.

List of legal services offered by Tech Corp International Strategist (TCIS, India) to Startups in India-

    • Incorporation of different types of Companies,
    • Formation (procedure) of Companies,
    • Financing the Companies,
    • Filing of various forms and Returns with the Authorities,
    • Promotion of a Company,
    • Contracts and Conversions,
    • Transfer and Transmission of Securities,
    • Intercorporate Loans and Investments,
    • Audits,
    • Economic and Commercial Laws,
    • Investments in India,
    • IPR,
    • Transfer of Property,
    • Stamp Duty,
    • Contracts and Agreements,
    • Society,
    • Trusts,
    • MSME,
    • Insurance,
    • Registration of Documents,
    • Cost and Management Accounting,
    • Labor Cost,
    • Material Cost
    • Activity Based Costing,
    • Cost records,
    • Budgetary Control,
    • Cost Audit,
    • Tax,
    • Charges,
    • Residential Status,
    • Various heads under which total income is calculated,
    • Deductions from income Calculation of Tax of HUF/Companies etc,
    • Procedure adopted for Assessment,
    • Tax Planning,
    • Wealth Tax Act,
    • International Taxation,
    • Service Tax/ Sales Tax/ VAT

 

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ADVANTAGES OF REGISTERING COMPANY UNDER STARTUP INDIA FOR INNOVATIONS

Are you an entrepreneur? Do you have a startup?

What is Startup India Campaign?

Startup India campaign, a program firstly announced by our very own prime minister “Mr.Narendra Modi” on 15th August 2015, at Red Fort and on 16th  January 2016 by our finance minister “Mr. Arun Jaitley” .

Why register under Startup India Campaign?

Basically this program is for the entrance and starting up new ventures which were financed by the financial institution and banks, through which government can boost up the entrepreneurship and can encourage start ups with the new job creation.

It is being operated and organized by department of industrial policy and promotion, which main focus is to restrict role of state in policy domain and get rid of ‘license raj’ and also to eliminate the hindrance like in the land permission, foreign investment proposal, environmental clearance.

The startup initiative is not only promoting new ventures in cities and towns but also in the rural areas and named as ‘Deen Dayal Upadhaya Swaniyojan Yojana’ and not only this but government also give this chance to SC/ST people and also to the women communities and through this the job rates get increased and the educated unemployed population get opportunities.

What is a start up?

According to government a startup is an entity that is headquartered in India which was opened less than seven years ago and has an annual turnover less than ₹25 crore (US$3.9 million)

Digital India

For the help of the new ventures government launched iMADE, an app development platform aimed at producing 1,000,000 apps and  not only this but government also open some financial institutions like PMMY  and the MUDRA BANK, a new institution set up for the development and financing activities relating to micro units with a refinance fund of ₹200 billion (US$3.1 billion).

What privileges  are given by government to the new ventures/startups?

Government gives many privileges to the new ventures under the startup program as they get reduction in

  • patent registration fee,
  • Modified and more friendly Bankruptcy Code to ensure 90-day exit window,
  • Freedom from mystifying inspections for 3 years,
  • Freedom from Capital Gain Tax for 3 years,
  • Freedom from tax in profits for 3 years,
  • Self-certification compliance,

Innovation hub under Atal Innovation Mission, new schemes to provide IPR protection to start-ups and new firms. Through these steps taken by  government the new ventures under startup program get encourage and get through these privileges they can work freely and make profit and the ventures get expanded and  as they get  expanded new job opportunities were  created in the market and the problem of not getting jobs opportunities get reduced.

And not only these but government also making way for international business and international investments for the new ventures under start up India i.e., SoftBank, which is headquartered in Japan, has invested US$2 billion into Indian startups. The Japanese firm had pledged the total investments at US$10 billion.

And Google also declared to launch a startup, based on the highest votes in which the top three startups will be allowed to join the next Google Launchpad Week, and the final winner could win an amount of US$100,000 in Google cloud credit.

Oracle also announced to set up nine incubation centres in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum, and Vijayawada.

Efforts made by various Indian state and state governments

In many states of southern India like Karnataka, Kerala, Andhra Pradesh, Telangana, in which many new ventures get good rise and opportunities.

Kerala a well known for the government’s startup policy, “Kerala IT Mission”, which focus on fetching ₹50 billion (US$780 million) in investments for the State’s startup ecosystem. It also made India’s first telecom incubator Startup village in 2012.

The state also matches the funding raised by its incubator from Central government with Telangana  has launched the largest incubation center in India as “T-Hub“.

The government of Madhya Pradesh has collaborated with the Small Industries Development Bank of India to create fund of ₹200 crore.

Rajasthan has also launched “Startup Oasis” scheme.

In order to promote startups in Odisha , the state government organized a two-day Startup Conclave in Bhubaneswar on November 28,2016. The main objectives of the event would be to

  • motivate youth towards entrepreneurship,
  • showcase the start-up ecosystem in Odisha and attract more start-ups to the state.

Government also help new ventures under Startup India The Ministry of Human Resource Development and The Department of Science and Technology have agreed to partner in an initiative to setup up over 75 such startup support hubs in the National Institutes of Technology, The Indian Institutes of Information Technology, The Indian Institutes of Science Education and Research and National Institutes of Pharmaceutical Education and Research.

Role of reserve bank in funding startups

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing business’ in the country and contribute to ecosystem that is conductive for the growth of start-up business.

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SEBI – Securities and Exchange Board of India

‘SEBI’ – Securities and Exchange Board of India for Investors 

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Securities and Exchange Board of India for Investors established under the Securities and Exchange Board of India Act, 1992

Just like the U.S.’s Securities and Exchange Commission (SEC) in US, we have Securities and Exchange Board of India (SEBI) in India. Securities and Exchange Board of India (SEBI) is the assigned regulatory body for the fund and venture showcases in India. The board assumes a fundamental part in keeping up steady and productive budgetary and speculation showcases by making and implementing successful direction in India’s monetary commercial center.

The SEBI was built up in 1988 yet was just given regulatory powers on April 12, 1992, through the Securities and Exchange Board of India Act, 1992. It assumes a key part in guaranteeing the solidness of the money related markets in India, by drawing in outside investors and securing Indian investors. SEBI was worked by the legislature of India. Its central command is situated at the Bandra Kurla Complex Business District found in Mumbai. It additionally has northern, eastern, southern and western provincial workplaces.

SEBI’s administration is made out of its own individuals. Its administration group comprises of an administrator selected by the Union Government of India, two individuals who are officers from the Union Finance Ministry, one part from the Reserve Bank of India and five different individuals who are likewise designated by the Union Government of India.

SEBI CAPACITIES AND RESPONSIBILITIES

SEBI’s Preamble portrays in detail the capacities and forces of the board. In this light, as a board, SEBI must be responsive and proactive to the necessities and enthusiasm of the gatherings that constitute India’s budgetary and venture advertises: the investors, the market middle people and the backers of securities.

SEBI is permitted to support by-laws of stock exchanges. SEBI additionally assesses the books of records of budgetary middle people and requests standard comes back from perceived stock exchanges. SEBI’s part covers convincing specific organizations to list their offers in stock exchanges. Beside these, SEBI is entrusted to deal with the enrollment of agents.

At last, the board has three forces: quasi-judicial, quasi-legislative and quasi-executive. SEBI has the privilege to draft directions under its legislative limit, lead examinations and force activity under its executive capacity, and pass new principles and requests under its judicial limit. In spite of these forces, the aftereffects of SEBI’s capacities still need to experience the Securities Appellate Tribunal and the Supreme Court of India.

POWERS OF SEBI

For the release of its capacities effectively, SEBI has been vested with the accompanying powers:

  • To affirm by−laws of Securities exchanges.
  • To require the Securities exchange to correct their by−laws.
  • Assess the books of records and call for periodical comes back from perceived Securities exchanges.
  • Assess the books of records of monetary delegates.
  • Force certain organizations to list their offers in at least one Securities exchanges.
  • Enlistment dealers.

There are two sorts of agents:

  • Circuit agent
  • Trader dealer

SEBI committees

Technical Advisory Committee

Committee for audit of structure of market foundation organizations

  • Advisory Committee for the SEBI Investor Protection and Education Fund
  • Takeover Regulations Advisory Committee
  • Primary Market Advisory Committee (PMAC)
  • Secondary Market Advisory Committee (SMAC)
  • Common Fund Advisory Committee
  • Corporate Bonds and Securitization Advisory Committee

India is one of the quickest developing economies. India witnessed a lot of foreign interest in the recent years. The government has defined its Policy pointing towards drawing in an ever increasing number of funds considering the residential business concerns at the same time.

Foreign direct investment (FDI) in India is the major money related hotspot for financial improvement in India. Foreign organizations put directly in quickly developing private Indian businesses to take advantages of less expensive wages and changing the business condition of India. Financial advancement began in India in wake of the 1991 monetary emergency and from that point onwards FDI has relentlessly expanded in India.

Additionally, apart from being a basic driver of monetary development, Foreign Direct Speculation is a noteworthy wellspring of non-obligation money related asset for the financial advancement of India.

The Indian government’s ideal policy administration and strong business condition have guaranteed that foreign capital continues streaming into the nation. The government has taken numerous activities as of late, for example, unwinding FDI standards crosswise over parts, for example, resistance, PSU oil refineries, telecom, control exchanges, and stock exchanges, among others.

POLICY AND REGULATORY FRAMEWORK TOWARD FDI

The Government has set up a policy structure on Foreign Direct Investment. Which is encapsulated in the Circular on Consolidated FDI Policy, issued which is refreshed like clockwork, to catch and keep pace with the regulatory changes. The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India makes policy professions on FDI through Press Notes/Press Releases which are informed by the Reserve Bank of India as revisions to the Foreign Exchange Management (Transfer or Issue of Security by Persons Resident outside India) Regulations, 2000.

The procedural directions are issued by the Reserve Bank of India vide A.P. DIR. (arrangement) Circulars. Along these lines, regulatory system for FDI comprises of Acts, Regulations, Press Notes, Press Releases, Clarifications, and so forth.

FDI policy is looked into on a progressing premise and measures for its further advancement are taken. Change in sectoral policy/sectoral value top is told every once in a while through Press Notes by the Department of Industrial Policy and Promotion. Policy declaration by DIPP is accordingly informed by RBI under FEMA.

SECTION ROUTES FOR INVESTMENTS IN INDIA

Under the Foreign Direct Investments (FDI) Scheme, investments can be made in shares, obligatorily and completely convertible debentures and compulsorily and completely convertible inclination shares1 of an Indian organization by non-occupants through two routes:

Automatic Route: Under the Automatic Route, the foreign investor or the Indian organization does not require any endorsement from the Reserve Bank or Government of India for the speculation.

Government Route: Under the Government Route, the foreign investor or the Indian organization ought to get the earlier endorsement of the Government of India, Ministry of Finance, and Foreign Investment Promotion Board (FIPB) for the venture.

MARKET SIZE

As per Department of Industrial Policy and Promotion (DIPP), the aggregate FDI investments India got amid April 2016-March 2017 rose 8 per cent year-on-year to US$ 60.08 billion, demonstrating that government’s push to enhance the simplicity of working together and unwinding in FDI standards as yielding outcomes.

Information for April 2016-March 2017 shows that the administration’s area pulled in the most astounding FDI value inflow of US$ 8.69 billion, trailed by broadcast communications – US$ 5.56 billion, and PC programming and equipment – US$ 3.65 billion. Most recently, the aggregate FDI value inflows for the long stretch of March 2017 touched US$ 2.45 billion.

Amid April 2016-March 2017, India got the most extreme FDI value inflows from Mauritius (US$ 15.73 billion), trailed by Singapore (US$ 8.71 billion), Japan (US$ 4.71 billion), Netherlands (US$ 3.37 billion), and USA (US$ 2.38 billion).

“Indian affect investments may grow 25 per cent every year to US$ 40 billion from US$ 4 billion by 2025,” as per Mr. Anil Sinha, Global Impact Investing Network’s (GIIN’s) counsel for South Asia.

Further, with a specific end goal to fit the different access routes for foreign portfolio interest in India, the Indian securities advertise controller i.e. Securities Exchange Board of India (“SEBI”) has presented another class of foreign investors in India known as the Foreign Portfolio Investors (“FPIs”). This class has been shaped by consolidating the current classes of investors through which portfolio investments were already made in India specifically, the Foreign Institutional Investors (FII’s).

Qualified Foreign Investors (“QFIs”):

QFIs are characterized under SEBI roundabout no. CIR/IMD/DF/14/2011 dated August 9, 2011, as foreign investors who are qualified to put resources into value and obligation plans of Mutual Funds in India and are occupant in a nation that conforms to the Financial Action Task Force principles and is additionally signatory to International Organization of Securities Commission’s Multilateral Memorandum of Understanding.

Sub-accounts:

Sub-accounts are characterized under direction 2(k) of SEBI (Foreign Institutional Investors) Regulations 1995 as any person inhabitant outside India for whose benefit investments are made by FIIs in India and who is enlisted as sub-account under these controls. They incorporate foreign corporate, foreign individual, wide based funds or portfolios built up or incorporated outside India

Already portfolio speculation was administered under various laws i.e. the SEBI (Foreign Institutional Investors) Regulations, 1995 (“FII Regulations”) for FIIs and their sub-records and SEBI handouts dated August 09, 2011 and January 13, 2012 representing QFIs, which are currently revoked under the SEBI (Foreign Portfolio Investors) Regulations (“FPI Regulations”) that oversee FPIs. SEBI has, in this way, expected to improve the general operation of making foreign portfolio investments in India.

Basically, foreign portfolio venture involves purchasing of securities, exchanged another nation, which is exceedingly fluid in nature and, in this manner, enable investors to make “speedy cash” through their successive purchasing and offering. Such securities may incorporate instruments like stocks and bonds, and dissimilar to shares, they don’t give administrative control to the investor in an organization. To represent FPIs, SEBI presented the FPI Regulations by a notification4 dated January 7, 2014.

(A) CLASSIFICATION BASED ENLISTMENT OF INVESTORS

FPI has been characterized under FPI Regulation 2(h) as a person meeting the qualification criteria determined under Regulation 4 (secured under (b) beneath) and properly enrolled under Chapter II and are considered as mediators for the reasons for SEBI Act, 1992. Under FPI Regulation 5 the accompanying three classes of FPIs have been made on the premise of related dangers –

(a) Category I incorporate foreign investors related to the government, for example, central banks, government organizations, sovereign riches funds;

(b) Category II incorporates controlled substances like banks, resources administration organizations, venture directors and so forth and expensive based funds, which might be managed, for example, common funds, speculation trusts and so forth. Or, on the other hand non-controlled; and

(c) Category III incorporates investors, which are not secured under classifications I and II.

The enrollment pre requisites are continuously troublesome relying upon the classification under which the investor falls with most straightforward customs for a class I investors. Dissimilar to the past circumstance wherein the QFIs, FIIs and their sub-accounts were required to enroll with SEBI for 1-5 years at first to operate, FPIs enlistment is completed by SEBI assigned store members on permanent premise unless suspended or cancelled. These progressions may tend to back out the underlying endorsement process for FPIs and ensuing operation by them contrasted with the past circumstance.

(B) ELIGIBILITY CRITERIA FOR FPIS

  • FPI Regulation 4 recommends the compulsory qualified criteria for enrollment as FPI. Here, the candidate must be a non-inhabitant in India yet non-occupant Indians (“NRIs”) is particularly disallowed. While this spells “terrible news” for NRIs, a fund having NRIs as its investors can operate as a FPI as expressed by SEBI. Further, the candidate is required to be a resident of a nation which meets the accompanying criteria-
  • Its securities showcase controller is a signatory to the International Organization of Securities Commission’s Multilateral Memorandum of Understandingor gathering to a MOU with SEBI; whose central bank is an individual from the Bank for International Settlements in the event that if the candidate is a bank; and
  • Not specified in people in general articulation of Financial Action Task Force as a nation having issues identified with fighting financing of fear based oppression or illegal tax avoidance.
  • The candidate should likewise be approved to contribute as per the law of its nation of consolidation or place of business and as per its Memorandum of Association and Articles of Association or some other proportionate report. Getting from the FII Regulations, the accompanying conditions have been made material for enrollment as a FPI –the candidate must have adequate experience, proficient skill, great reputation, monetary soundness and a notoriety for reasonableness and respectability; must meet the criteria indicated in the SEBI (Intermediaries) Regulations, 2008 and
  • Give of enlistment to the candidate must be in light of a legitimate concern for advancement of the securities showcase. SEBI may determine some other criteria every now and then.

TAX ASSESSMENT OF FPIS

After the FPI Regulations came in compel, perplexity won among India Inc with respect to the tax collection of FPIs. This was on the grounds that the diverse classes of investors were burdened contrastingly beforehand and there was no lucidity with reference to how the combined FPI will be saddled. The Central Board of Direct Taxes (“CBDT”) turned out with a notification dated January 22, 2014, regarding FPIs enlisted under the FPI Regulations as FIIs for tax collection purposes. The notice shows that all investor classes shaping the FPIs would be burdened likewise to FIIs. QFIs are burdened at the rates of 40% and 20% on here and now capital picks up and long haul capital increases, separately emerging from exchange of securities, which are brought down for FIIs under the Income Tax Act, 1961 (“Tax Act”), i.e. 30% for here and now capital increases and 10% for long haul capital gains. Similar duty treatment should, hence, advantage QFIs through lower tax collection under the new law. Notwithstanding, since the CBDT warning applies FII impose treatment to FPIs just for reasons for segment 115AD of the Tax Act, the pertinence of tax reductions that FIIs appreciate under different arrangements, for example, area 196D to FPIs stayed misty.

Without any difficulty in enlistment prerequisites and lucidity on tax assessment being gotten for FPIs, the new FPI administration is probably going to help portfolio investments in India by foreign investors. Conceding of permanent enrollments to FPIs should not expect them to approach the DDPs over and over for the same, therefore, giving them a more steady condition for interest in India. Then, with the designation of work to DDPs, SEBI would now be able to concentrate on more essential issues close by requiring its consideration and perform its regulatory part more adequately. It can be contended that the move to the new administration, for all classes of investors that have been consolidated, should be an agreeable one especially in light of the fact that a cushion period has been given to them to operate without requiring them to promptly conform to the customs and process for transformation to and operation as FPIs.

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Protecting a Business Idea Advice to budding Entrepreneurs

Advice to budding Entrepreneurs For Protecting a Business Idea

Got a brilliant Idea? Already daydreaming about a groundbreaking business and becoming the next Bill Gates? But what if someone comes up with something similar?

Running a successful business is not a solo sport. We work with and through other people.

In order to get off to a flying start, an entrepreneur needs investors, vendors, employees and may be a partner or a mentor. Thus eventually you have to discuss your idea with the masses. But what if someone steals your idea?

Fear of getting the idea stolen is one fear that stops a number of people from starting a new business.

An individual with a fear of getting the idea stolen will move forward so slowly and cautiously that someone else who already thought of the same idea will move ahead. So how do you market your idea to the masses without having someone rip you off?

Here are certain things all budding entrepreneurs should consider while protecting a business idea.

1. Yes, a patent can help you remain competitive in your field and give you an edge on your rivals.

Technically ideas themselves cannot be patented. When you take an idea and turn it into an invention or process that meets specific criteria and requirements, it can be patented. But make sure your invention fulfills all the requirements to apply for a patent.

2. Consider the money involved in filing a patent.

Patent filing requires money. Patents have filing fees and maintenance fees over the life of the patent and a large amount of money is required for the defence of the patent. If your idea fulfills all the requirements to apply for a patent, and there are no other previously filed patents, then it’s time to apply for your patent. But before filing a patent make sure that the patent generates enough profit to justify the expenses associated with its filing.

It is advisable to seek legal counsel and advice before filing a patent and get patent professional involved for writing and filing patent.

3. When should you consider a Non-Disclosure Agreement (NDA) ?

There is no patent or copyright for an idea. If you really feel you’re onto something new and want to discuss it with some people, potential co-founders and contractors before you have been able to build it. In such cases, it is advisable to sign a Non-Disclosure Agreement (NDA).

A non-disclosure agreement (NDA) is a confidentiality contract between two parties.

According to the non-disclosure agreement (NDA), one party agrees with the other that if the latter party discloses to the former its idea and other confidential information, then the former will maintain its confidentiality for a specified period of time. If the former party were to breach this agreement, causing loss to the disclosure, then the disclosure has a remedy in being able to sue for breach of contract.

True, some people might not like the idea saying “Don’t you trust me?”, but there’s value in your invention only if you own and protect your idea. Moreover the agreement will also demonstrate the individual’s seriousness in commercialising the idea.

4. Get to marking your territory.

Preferably put a “CONFIDENTIAL” stamp on anything you have pen down on paper related to your idea. You can also add copyright symbols, like ‘©’, ‘TM,’ to logos, which help establish that you are claiming copyright and trademark protection to your works.

Putting copyright symbols by your business plan or logo is a good idea even if you aren’t sure you’ll ever go through the trouble of filing a copyright or a trademark.

It’s like putting a yard sign or a sticker that says your house is protected by a security system even if it’s not.

When people will see that copyright symbol next to your work, they won’t take the chance to burglarize.

5. Implementation of idea.

Ideas alone are not worth that much — it’s how they are implemented.

It is important to implement that idea into sustainable innovation.

“What makes the difference for successful businesses is not the idea alone. It’s the implementation of the idea, a commitment to delivering the products, services or information on a daily basis, that makes the difference.

It takes a lot of energy to run a business, It’s hard to get things done and it takes a lot of discipline. Also there’s no guarantee that any business will be successful. If you have an idea for a product, service or business, beat the odds and use your passion and energy, to figure out how to make it profitable.

At Tech Corp International Strategist (TCIS), we help Startups to Raise Funds & Assist Foreign Companies to find Right Business Partner in India. We assist enterprises to enter INDIA and find RIGHT Angels, and Venture Capitals in Malaysia, Singapore, US, UK, Japan and India. We believe that for protecting your innovation in India, your startup idea and our intellect is the perfect combination. Every business has a #strategy. We at TCIS facilitate the process of identifying Key issues and help amplify business goals of any business (short term goals and long term goals). Everything is simple we tend to complicate and use heavy words to prove our point.

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Co Author

Aanchal Verma

Patent Associate at TCIS, India

Patent Application Filing Procedure-Process in India
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Indian Funding Grants for Innovative Clean & Renewable Energy

Cleantech patent brand renewable energy, green materials, solar and other green power, transportation and cleantech industries

THERE ARE VARIOUS GRANTS FOR CLEAN AND RENEWABLE ENERGY IN INDIA

Energy Alternatives India (EAI): It  is India’s largest research and consulting firm for the Renewable Energy and Cleantech industry. They deal with the World Bank, Bill & Melinda Gates Foundation, Reliance, Exxon Mobil, Mitsubishi, and IITs, to name just a few. They organised REaction 2012, India’s largest Renewable Energy and Clean Technology meet, and extensively work with government agencies and industry bodies on other Renewable Energy events.

The future is green energy, sustainability, renewable energy.

Arnold Schwarzenegger

They assist companies raise equity or debt funding for their renewable energy projects in India.

Assistance for financial closure – $5 million-$ 1 billion

They provide assistance which is strictly for projects in the Renewable Energy and Clean Technology domains, typically

  • Solar PV, Thermal, or CSP

  • Wind

  • Biomass Power

  • Waste to Energy

  • Energy Efficiency

  • Water Management and Treatment

 

Process — A questionnaire found on the website is to be filled found and email it to consult@eai.in.

Government of India Initiatives:

Regulatory / Policy level initiatives:

1.1. GOI set up the Ministry of New and Renewable Energy (MNRE) as a nodal agency for all matters relating to new and renewable energy. The aim of the Ministry is to develop and deploy new and renewable energy for supplementing the energy requirements of the country. IREDA was established under the administrative control of MNRE to promote, develop and extend financial assistance for renewable projects. Recently, MNRE’s budget was enhanced by 65% to INR 2519 crore to ensure that adequate funds are available for financing renewable energy projects.

1.2. Feed in Tariffs – Feed-in tariff policies offer guaranteed price for fixed periods of time for electricity produced from RE sources. By offering assured prices for a fixed period, this policy helps in reducing the revenue risks of investing in renewable energy technologies significantly, and also contributes towards developing a favorable environment for rapid development of renewable energy sources.

1.3. RPOs – DISCOMs and some large power consumers are obliged to purchase minimum ratio of their total power from renewable sources, referred to as Renewable purchase obligation (RPO). The long-term objective for India is RPO to reach 15% by FY2020. There are however substantial problems with the compliance as the entities in the majority of the states continue to remain below the RPO trajectory. One of the reasons for the lack of demand in renewable energy is the financial difficulties (high debt) of the state-owned distribution companies. Under the RPO framework, non-compliance of RPO attracts penalties on such entities.

1.4. REC: In November 2010, the Government launched Renewable Energy Certificate (REC) mechanism which enables the obligated entities to meet their RPO. The RECs are used for interstate trading of renewable power. The purpose of RECs is to facilitate states with low renewable potential / capacity to comply respective stipulated RPOs. They are used as a proof of the generation of 1MW renewable energy. The certificates can be traded through a power exchange platform within price range set by CERS and are differentiated into solar and non-solar renewable sources.

1.5. GOI introduced the payment security mechanism to enable financial closure of projects under the National solar mission by extending Gross Budgetary Support amounting to INR 486 crore to the MNRE. Under the scheme, in the event of defaults in payment by the state utilities to NTPC Vidyut Vyapar Nigam (NVVN), the Central Agency which will purchase solar power from the developers and sell it to the utilities bundled with unallocated thermal power available from NTPC utilities. The core component of the Payment Security Scheme is to ensure availability of adequate funds to address all possible payment related risks in case of defaults.

1.6. The renewable energy industry is exempted from obtaining several industrial clearances that are mandatorily required for setting-up an industry in India.

Fiscal initiatives :

2.1. MNRE capital subsidy schemes– The scheme provides partial subsidy and interest bearing loan to the project developer. The entire funding under this scheme is based on project basis. A detailed project report including client details, technical & financial details, O&M and monitoring arrangements has to be submitted to the ministry.

2.2. National Clean Energy Fund– It was created to support entrepreneurial ventures and research in the field of clean energy technologies. NCEF is collected by the central board of excise and customs via a levy of INR 100 per ton on coal. GOI provides low interest bearing funds from the NCEF to IREDA for lending to renewable energy projects at concessional rate of interest.

2.3. Soft loans from IREDA-The funds secured by IREDA from the NCEF are provided as loans to banks at 2 per cent for funding renewable energy projects at cost not exceeding 5%. Recently, the GOI increased the authorized share capital of IREDA to INR 6000 crore from INR 1000 crore. This move will enable IREDA to mobilize financial resources to the tune of INR 14000 crore and finance capacity of 4800 MW from RE projects during the 12th five year plan. This is discussed in more detail in the subsequent section.

2.4. Accelerated Depreciation – Accelerated depreciation, a fiscal mechanism has been was one of the most significant drivers of additions to renewable energy capacity. Under this, GOI allowed the producers of renewable-energy-based power to claim accelerated depreciation (AD) up to 80% in the first year on a written-down value (WDV) basis under Section 32, Rule 5, of the Income Tax Act.

2.5. Generation based incentives – To attract foreign investors, the government has taken several initiatives such as introducing GBI schemes to promote projects under Independent Power Producers (IPP) mode for wind and solar power

2.6. Viability gap funding (VGF) was introduced as a financing mechanism to fund the solar projects. VGF is a capital subsidy that bridges the gap between the project cost dictated by the prevailing electricity rate and the price quoted by a developer. The advantage of this scheme is that with upfront availability of part of capital, the cost of financing is lower.

2.7. A 10-year tax holiday for RE projects. – Income tax exemption applicable to RE projects. Union Budget 2013-14 has extended the sunset clause for eligibility for tax holiday u/s 80IA from March 31, 2013 to March 31, 2014, i.e. undertaking which begins generation of power by March 31, 2017 will be eligible for tax holiday. MAT @ 20% is applicable to RE projects.

 

2.8. The Central Government has given various incentives on setting up the renewable energy power project which includes concessions and exemption from customs and excise duties on specific goods required for setting up the renewable energy projects.

 

2.9. Some state governments have provided the incentives in the form of a VAT at a reduced rate (5 percent) whereas the other states levy a VAT of 15 percent. An exemption of sales tax in certain states

 

2.10.In the 2014 Budget, the GOI announced a onetime Investment allowance of 15% to manufacturers investing above INR 25 crore on new plant and machinery.

2.11.Loans at concessional rates for off-grid applications.

Public financing initiatives

3.1. FDI policy on investment in RE sector

– GOI has formulated a policy to encourage transfer of foreign technologies in the renewable energy sector. FDI up to 100 percent in the sector under the automatic route in Renewable Energy Generation and Distribution projects that are subject to the provisions of the Electricity Act of 2003. Under the Act, no prior approval of regulatory authorities is required.

3.2. As per the RBI directives, all scheduled commercial banks can treat loans sanctioned to individuals for setting up off-grid solar and RE solutions for household purpose as a part of Priority Sector Lending. This will encourage more funding; and greater adoption of renewable technology among households.

3.3. The Government has advised all banks to encourage home loan/home improvement loan seekers to install roof top solar PVs and include the cost of equipment in their home loan proposals.

3.4. The tax free bonds issued by IREDA have been able to attract significant interest from the investors due to the tax benefits they offers as compared with other investment options. Giving a fillip to the country’s renewable energy programme, the new government has taken a slew of measures in a short span of time to revitalize the country’s clean energy ambitions.

In april 2016, 40 NBFCs sanctioned Rs. 71,200 crore to finance Renewable Energy projects. 40 Banks & Non-Banking Financial Companies (NBFCs) have sanctioned an amount of Rs. 71,201.54 crore to finance the various renewable energy projects and disbursed Rs. 29,529.57 crore against the sanctioned amount since February 2015 till 21 March, 2016. This a part of commitment made by them during RE-INVEST 2015.

It may be recalled that during RE-INVEST 2015, 40 major Banks and Non-Banking Financial Companies (NBFCs) [Public, Private Sector Banks &NBFCs and Foreign Banks operating in India] committed to provide debt funding to Renewable Energy Projects aggregating to over 78.75 GW during the span of next five years. Loans sanctioned by these Banks & FIs for RE projects are 18.63% of commitments made.

The commitments made by country’s Banks & NBFCs to finance RE projects and agreements with Foreign Banks& FIs to provide low cost and on long term funding are expected to boost the growth of the Indian renewable energy sector.

Ministry of New and Renewable Energy had organized First Renewable Energy Global Investor Meet and Expo (RE-INVEST 2015) from 15-17 February, 2015 in New Delhi. RE-INVEST 2015 saw RE capacity commitments of over 283 GW from stakeholders. Further, there was commitment of over 62 GW of manufacturing of RE equipment in India.

Ministry of New and Renewable Energy have been getting monthly status reports on achievements made so far by the Banks & NBFCs who have given commitments to finance RE bankable projects.

The Government has set an ambitious target of 175 GW of Renewable Energy capacities by 2022. Achieving this target require capital outlay of US $ 160 billion including equity of US $ 40 billion. In addition, huge investment is required for transmission; up-gradation of infrastructure in order to utilize power generated though Renewable Energy sources. As such Banks & NBFCs have to play a major role to provide low cost and long term financing for these projects.

Over the last few years some private banks in India have signed deals with development banks to provide loans at concessional rates. The Indian Renewable Energy Development Agency (IREDA) is also providing loans at low rates following its recent agreements with banks like KfW, AFD, Nordic Investment Bank, World Bank, Asian Development Bank, the European Investment Bank, and Japan International Cooperation Agency.

  • The government is in the process of setting up a $1.25 billion fund, backed by state-owned and private institutions, to finance renewable energy projects.
  • The move will help in the scaling up of clean energy generation from 37 gigawatts (GW) at present to 175GW by 2022, according to a senior government official.
  • State-owned institutions such as Power Finance Corp. Ltd and Rural Electrification Corp. Ltd have already committed a total of $300 million to the fund, Varsha Joshi, joint secretary in the ministry of new and renewable energy, told a gathering of power industry executives and bankers at the India Investment Summit organized by the finance ministry on Thursday.

“This fund will make equity and mezzanine investments in renewable energy projects and will be modelled like the National Infrastructure Investment Fund (NIIF),” Joshi said.

  • The government wants to make renewable power projects, including solar energy, more attractive, she said.
  • The NIIF is being set up with a corpus of about Rs.40,000 crore, partly funded by private investors, to finance infrastructure projects, including stalled ones.
  • To scale up renewable energy output as planned, India will need an investment of $140 billion over the next six years.
  • According to official estimates, financial institutions have already committed about $57 billion to support nearly 78GW of renewable energy, slightly less than half of the target.
  • At present, about 70% of India’s 284GW power capacity is fired by fossil fuels such as coal, gas and oil. Large hydroelectric projects account for 15%, while other renewable sources account for about 13% and nuclear power about 2%.
  • The proposed target of 175GW of renewable energy output assumes at least 100GW from solar, 60GW from wind, 10GW from bio-power and 5GW from small hydro-power.
  • Industry executives said that the central government’s commitment to cut carbon emissions and the recent revision in the power tariff policy gives confidence to investors in renewable energy.
  • The 175GW renewable energy target is further complemented by India’s commitment at the latest Paris climate conference to reduce carbon emissions by 30-35% and increase renewables to 40% of the energy mix by 2030,” said Tulsi Tanti, chairman of wind turbine producer Suzlon Group, which recently ventured into the solar power segment.

What WE DO at TCIS

TCIS, India provide innovation related Cleantech Patent advisory services for identifying  industry trends, and market research in India.  However, the patents for innovation related to Cleantech and renewable sector has doubled from a little less than 15,000 cleantech patents globally.

Wind and other clean, renewable energy will help end our reliance on fossil fuels and combat the severe threat that climate change poses to humans and wildlife alike.           – Frances Beinecke

Innovation can happen in any field. Seeing the current scenario WHAT is needed is a portfolio of renewable energy patents in cleantech and energy development sector in India. Innovation can occur in any technological field and often involves multi-disciplinary innovation. Our FOCUS is to provide sector-focused patent and brand litigation representation before DELHI HIGH COURT and Supreme Court of India. Our experienced  techno-legal counsel provide strategic holistic legal advice, business and scientific depth to clients across the globe.

We assist and facilitate our clean technology clients need to reach their business GOALS

TCIS, INDIA has team of skilled techno-legal thinking geek professionals with range of technical backgrounds. Our team of International Strategist currently handle a number of cleantech invention patent innovation files.

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STARTUPS ENTERING THE SHARE MARKET

LEGALITIES AND COMPLIANCES

India’s economy is one of the fastest expanding in the world, with a rapidly expanding consumer class. India is one of the most promising new markets of the decade to come. For a company, not considering expanding a business to India means ignoring one of the most promising (if not the most!) markets.

For any Startup, a key requirement is its funding. Funding may be from various sources and one such source is the startup bank loan.

Startups in the manufacturing or trading sector for investing in plant, machinery, infrastructure, equipment and inventories can avail Startup bank loan.Banks generally don’t fund expenses like marketing, research & development, salary, rent etc.

Companies in the technology or service sector often cannot access funds from banks and are forced to run their startup with minimal financial resources (bootstrap).

THE BASIC FRAMEWORKS 

Startups can access and actively participate in the Indian share market by making public issue of securities and other instruments within the regulatory framework as stipulated by SEBI (Securities Exchange Board of India) from time to time.The most active stock exchanges in India are the BSE Limited (Bombay Stock Exchange) and the NSE Limited (National Stock Exchange of India).

BSE is the 11th largest stock exchange with more than 5500 companies publicly listed on it.

PUBLIC ISSUES

IPO (INITIAL PUBLIC OFFER)Initial Public Offer is the process through which an issuer company allots fresh securities (“Fresh Issue”) or offers for sale securities (“OFS”) held by its existing shareholders or a combination of both Fresh Issue and OFS to the public for the first time.

This paves the way for the listing and trading of the issuer company’s securities on SEBI-approved stock exchanges in India.

FPO (FOLLOW-ON PUBLIC OFFER) 

In the case of Follow-on Public Offer, an existing publicly listed company makes an additional issuance of its securities to the public or offer for sale of its existing securities to the public, through an offer document.

The process for executing an IPO or an FPO besides other offerings and issues like IDRs (Indian Depository Receipts), preferential allotment etc. is governed by the “Issue of capital and requirements” regulation of SEBI.

IPOs and FPOs are also governed by the Companies Act 2013, the Securities Contract (Regulation) Rules 1957 and the listing regulations.

FEMA(Foreign Exchange Management Act) and its various clauses and regulations including the FDI (Foreign Direct Investment) policies governed by the orders and circulars issued by the government and the Reserve Bank of India (RBI) act as ancillary legislations.

Eligibility Requirements for IPO

The following conditions need to be satisfied by an unlisted startup company to undertake an IPO of its equity shares:

  • The issuer company should have tangible assets of at least INR 30 million(3 crores) in each of the 3 preceding years, of which not more than 50% should be held in monetary assets. However, the limit of 50% on monetary assets shall not be applicable in case the public offer is made entirely through offer for sale;
  • The issuer company should have minimum average pre-tax operating profit of INR 150 million (15 crores) calculated on a restated and consolidated basis, during the 3 most profitable years out of the immediately preceding 5 years;
  • The issuer company should have a net worth of at least INR 10 million (1 crore) in each of the 3 preceding full years;
  • The proposed issue size and all previous issues in the same financial year should however not exceed 5 times its pre-issue net worth as per the audited balance sheet of last financial year; andIf the issuer company has changed its name within the last 1 year, at least 50% of the revenue for the preceding 1 year is earned from the activity indicated by the new name.
  • An unlisted public company cannot undertake an IPO, if the company has less than 1,000 prospective allottees and there are outstanding convertible securities of the company or any other right which would entitle any person any option to receive equity shares after the IPO.

Minimum Offer Requirements

The issuer company is required to offer: 

i. At least 10% of each class or kind of securities to the public, in an IPO, provided: the post issue capital of the company calculated at offer price is more than INR 40,000 million; and

The company shall increase its public shareholding to at least 25%, within a period of 3 years from the date of listing of the securities, in the manner specified by SEBI.

ii.    At least 25% of each class or kind of securities to the public, in an IPO.

SUCCESS MANTRA

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Tech Corp International Strategist (TCIS), Helps Startups to Raise Funds & Assisting Foreign Companies to find Right Business Partner in India. Chief Strategic Officer (CSO) for your Startup IDEA. Investor incubating GREAT IDEAS and grow the startups. Assisting enterprise to enter and find RIGHT Angels, and VCs in Malaysia, Singapore, US, UK, Japan and India.

Our team at TCIS, India consists of experienced professional patent researchers, patent strategists, law experts and mediators who are experts and have experience in performing more than 2200+ patent searches in all technological domains.

Our technological THINKING GEEKS experts provide their assistance to gain a clear perspective over technical as well as market difficulties that Your PATENT may face while launching and entering into a country.

We at TCIS, India have a well renowned team of Lawyers of Delhi/ NCR who have vast experience of more than 12++ years.  We at TCIS, India have inspiring and tireless mediators who have successfully completed mediation in disputes related to co-founder disputes, company disputes, mediation is website ownership, trademark infringement, commercial disputes, patent infringement, intellectual property disputes, disputes in corporate sectors and trademark commercial disputes.

We at TCIS, India BELIEVE mediation is a voluntary and a non-coercive form of conflict management, wich is highly practical within the intricate dynamics of international relations, dominated by the principles of preservation of actors, independence and haptonomy.