Loan to Director of Company

Section 185 of the Companies Act

No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by

(1) any Director of the company, or of a company which is its holding company or any partner or relative of any such director; or

(2) any firm in which any such director or relative is a partner.

The loans are utilised by the borrowing company for its principal business activities.

A company may advance any loan including any loan represented by a book debt, or give any guarantee or provide any security in connection with any loan taken by any person in whom any of the directors of the company is interested.

The special resolution is passed by the company in general meeting: 

Provided that the explanatory statement to the notice for the relevant general meeting shall disclose the full particulars of the loans given, or guarantee is given or security provided and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security and any other relevant fact.

 Acceptable Loans Given to Director of a Company

The following loans given to a company are acceptable under the Companies Act, 2013

(1)  Loans given as a part of the conditions of employment are extended by the company to its employees;

(2) The loan is given to a Director by a company which is in the business of providing loans and provides the loan to the Director with due repayment schedule and at an interest that is not less than the Bank’s rate of Interest to customers.

The penalty for Providing Loan to Director

(1) The Company shall be Punishable with fine which shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees. Every officer of the company may extend to six months or with fine shall not be less than five lakh rupees but which may extend to twenty-five lakh rupees.

(2) The director or the other person to whom any loan is advanced or guarantee or security is given or provided in connection with any loan taken by him or the other person, shall be punishable with imprisonment which may extend to six or with fine which shall not less than five lakh but which may extend to twenty five lakh rupees, or both.

EPF Registration Procedure for Employers

                                   EPF Registration Procedure for Employers

As per the rules, in EPF, employee whose 'pay' is more than Rs. 15,000 per month at the time of joining, is not eligible and is called non-eligible employee. Registration is mandatory companies which employ more than 20 individuals, including contractual and permanent employees drawing less than Rs 15000 per month.

Employers need to provide the following details to successfully register themselves.

• Name and address of company
• Head office and branch details
• Mention date of incorporation/registration of company
• Fill up details of employees – total employee strength
• Activity the business/enterprise is involved in – i.e. manufacturing, production, service, etc.
• Legal details – This pertains to legal status of a company, i.e. whether it is a private firm/public company, partnership or society, etc.
• Owner details, including designation and address of Directors and partners
• Particulars related to wage component of employees, i.e. total wage disbursed during a month
• Details of bank with whom company has banking relationship
• PAN details
• Basic details of employee (name, date of joining, salary, etc.)
• A form titled “Proforma for Coverage” needs to be filled with the details mentioned above to finish the registration process. In addition to this Proforma for Coverage, employers are expected to submit Form 5A with Annexure 1 to complete the formalities.

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How to Import Food Products into India

How to Import Food Products into India

Food Safety and Standards Authority of India (FSSAI) is the only controlling authority of food products. The FSSAI regulates the norms for import of food products in India as well as revise the norms from time to time. No Food Product can be imported to India unless complying with the guidelines set by the FSSAI.

Let’s take a look on the different types of Guidelines for Import of Food Products.

Registrations Process

Every entity who wants to import food products must have to obtain License / Registration certificates to the hassle-free import of food products.

Company / LLP / Proprietorship / Registration
GST Registration.
I.E.C. (Importer Exporter Code) from DGFT
FSSAI  Central Licenses

PROCESS FOR CUSTOM CLEARANCE 

The Business owner must prepare Authority Letter in favour of a Customs Handling Agent (CHA) addressed to the FSSAI/ Authorised officer. On arrival of consignment, Customs Handling Agent would file an application for
clearance of consignment and after a verification by Government Customs Agent clearance of customs formalities and payment of customs duty.

FSSAI Clearance

At the time of Customs Clearance, the Customs Handling Agent will also file an application in the Food Import Clearance System (FICS) of FSSAI to obtain a ‘No Objection Certificate’.

 The documents required to be uploaded to the FSSAI platform for FSSAI clearance are:

1. Importer Exporter Code (IEC) issued by the DGFT;
2. FSSAI Central License
3. Entry Bill
4. Customs Examination Order and NOC from the FSSAI.

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