Business

Setting up a partnership firm is a relatively easier process. To know more about the procedure of setting up a partnership firm, get online legal advice.  

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<p>The Indian Partnership Act 1932 provides provisions related to partnerships in India. The act lays down the rights and duties of the partners amongst themselves and other legal provisions relating to partners and third parties.&nbsp;</p>



<p>Now you may first inquire as to what its partnership is. Section 4 of the Indian partnership Act states that a Partnership is a relationship between individuals who have agreed to share profits of a business carried on by all or any one of them acting for all. The three main essentials of a partnership are as follows &#8211;&nbsp;</p>



<ul><li>A willful agreement between two or more individuals.</li><li>The partners must have agreed upon profit sharing ratio</li><li>The operations of the business must be carried on by all or one of them acting for all.&nbsp;</li></ul>



<h2>Essential Elements of a Partnership&nbsp;</h2>



<ol><li><strong>Mutual Agreement</strong> &#8211; Any partnership is a result of a mutual agreement between two or more parties. This relationship can arise only from a contract. Mutual agreement forms the basis for a partnership. This agreement may be oral or in writing.&nbsp;</li></ol>



<ol start="2"><li><strong>Sharing Profits of the Business</strong> &#8211; For the purpose of sharing profits in a business, it&#8217;s a must that a business exists. It&#8217;s another crucial aspect of a partnership. Every Partnership is formed with a profit motive.&nbsp;</li></ol>



<p>Charitable institutions or clubs have a distinct institutional personality from that of a partnership. No partnership to carry on a business can be formed without the motive of gaining profits out of business.</p>



<p>Hence it&#8217;s important that an agreement is formed concerning the sharing of profits. This is known as the profit-sharing ratio. Additionally, in the event of damages, unless it is pre-determined in the <strong><a href="https://www.ezylegal.in/partnership-agreement" target="_blank" rel="noreferrer noopener">partnership agreement</a></strong>, it must be borne in the profit-sharing ratio.</p>



<ol start="3"><li><strong>Operating the Business</strong> &#8211; Another essential of a partnership is that the business must be carried on by all the partners or one partner acting for all. This is an important principle of partnership law.&nbsp;</li></ol>



<p>There is a mutual agency between the partners, and this is also a test for Partnership. The Partnership will be non-existent in the absence of mutual agency.&nbsp;</p>



<h2>Partnership Firm&nbsp;</h2>



<p>A Partnership Firm is where two or more persons come together with an agreement to form a business for a profit motive, wherein they decide to mutually share the profits and liabilities of the business. Persons who decide to enter into a partnership with one another are individually referred to as &#8220;Partners&#8221; and collectively a &#8220;Firm.&#8221; The name under which the firm carries out its business is known as the firm name.</p>



<h2>Advantages of a Partnership<strong> </strong>Firm</h2>



<p>Post knowing and understanding what a Partnership is followed by a Partnership Firm; the following are the advantages of a partnership firm: &#8211;&nbsp;</p>



<ol><li><strong>Easy to Initiate a Partnership Firm &#8211; </strong>The first advantage of a partnership firm is that it doesn’t require the complex formalities required when a private limited company is being initiated or a limited liability partnership.&nbsp;</li></ol>



<p class="has-text-align-left">It just requires that the partners are in mutual agreement, there is an existing partnership deed on a stamp paper, and it&#8217;s good to go for registration. Additionally, registering a partnership firm is not a legal mandate.&nbsp;</p>



<ol start="2"><li><strong>Decision-Making Power &#8211; </strong>The power to make decisions is an essential aspect of operating a business. With various perspectives and knowledge banks, making a decision in a partnership firm can be quite effective. All the partners can mutually make a decision, or one can make a decision acting for all. This is another advantage of a partnership firm.</li></ol>



<ol start="3"><li><strong>Ease of Dissolution &#8211; </strong>The next advantage of a partnership firm is that it can be dissolved very easily contrary, unlike a private limited company which can only be closed after an entire year of operations. For that one year, it needs to fulfil all the required compliances. However, the same is not required for a partnership firm.</li></ol>



<ol start="4"><li><strong>Conversion to Private Limited &#8211; </strong>Further, the next advantage of a partnership firm is that there is no restriction regarding conversion. Once you initiate a partnership firm, it doesn&#8217;t mean that it cannot be converted into a private limited company. There are compliances and procedures that must be taken care of for the conversion.&nbsp;</li></ol>



<p>Hence, if a partnership firm begins to grow and is required to expand and diversify, it can be converted into a private limited company.&nbsp;</p>



<ol start="5"><li><strong>No Compliance &#8211; </strong>At the initiation of the business, it’s hectic and stressful when there are complex compliances to be met with. With a partnership firm, there are minimal to no compliances that are to be seen. This is yet another advantage of the partnership firm.&nbsp;</li></ol>



<ol start="6"><li><strong>Low cost of Setting up &#8211; </strong>Moving on to the next advantage of the partnership firm, it has a very low cost of setting up. In a private limited company, the compliances are more complex, and the amount involved is higher. This is a very important advantage of a partnership firm.</li></ol>



<ol start="7"><li><strong>Fund Raising &#8211; </strong>Next advantage of a partnership firm is that, in comparison to a proprietorship firm, partnership firms can easily raise funds. Multiple partners coming together to collectively form a partnership firm means that there are multiple sources of contribution. Additionally, banks have a favourable viewpoint of partnerships during the credit sanctioning procedure.&nbsp;</li></ol>



<ol start="8"><li><strong>Ownership and Accountability &#8211; </strong>The next advantage of a partnership firm is that despite the partnership firm being owned by several parties, every individual is an owner. They own and manage the firm and its activities. They may have varied roles and responsibilities, but they collectively work towards the common goal of the firm.&nbsp;</li></ol>



<p>Further, the partners share their work burden with one another, which doesn&#8217;t lead to any concentrated burden on one individual. The group of people associated by way of partnership work together and diligently.&nbsp;</p>



<ol start="9"><li><strong>Sharing the Risks &#8211; </strong>Another advantage of a partnership firm is that it becomes easier to share the risks with several partners on board. The burden of allocation of risk gets shared amongst the partners and is not concentrated on one individual.</li></ol>



<ol start="10"><li><strong>No Annual Returns and Statutory Audits &#8211; </strong>A partnership firm also doesn’t need to make any submission of annual returns to the Ministry of Corporate Affairs. However, the firm is required to fulfil various compliances when a limited liability partnership is formed. This is another major advantage of a partnership firm.&nbsp;</li></ol>



<h2>Conclusion</h2>



<p>The aforementioned are the advantages of a partnership firm. Another significant advantage of a partnership firm is that there is no requirement for a statutory audit. Hence, the firm is not required to get its accounts audited.&nbsp;</p>



<p>A partnership firm is the easiest to set up; the above-mentioned advantages of a partnership firm are the key points as to why one should set up this form of a business. Though partnership registration is not mandated, it is highly recommended. To know more about the procedure of setting up a partnership firm, get <strong><a href="https://www.ezylegal.in/legal-consultation" target="_blank" rel="noreferrer noopener">online legal advice</a></strong>. </p>


advantages of partnership firm

Advantages of Partnership Firm

Though Registration of a Partnership Firm is not a legal mandate, it is highly recommended to establish a successful business. In order to enjoy the legal rights of a Partnership Firm and have a more secure and credible business, Registration is essential. To know more about the process and clarifications, get online legal advice.


<p>A Partnership Firm is where two or more persons come together with an agreement to form a business for a profit motive, wherein they decide to mutually share the profits and liabilities of the business. Persons who decide to enter into a partnership with one another are individually referred to as &#8220;Partners&#8221; and collectively a &#8220;Firm.&#8221; The name under which the firm carries out its business is known as the firm name.</p>



<h2>Registration of Partnership</h2>



<p>The registration of the partnership is solely decided upon by the partners. There is no legislative mandate upon the registration of the partnership. However, it’s always advisable that the partners mutually decide upon the registration of the firm under the Indian Partnership Act, 1932, as it provides the firm certain exclusive rights and advantages.</p>



<p>Hence, even though the registration of a firm is not explicitly mandated, it is implied that in order to enjoy the benefits provided from the registration of a firm and partnership, it&#8217;s an essential step as only the registered firms acquire a legal existence.</p>



<p>A firm can be registered at any time before its existence or during the continuance of the partnership. However, it must be kept in mind that in order to enforce a legal right arising out of any legal document by filing a case, a firm shall do so only after the registration of the firm. Another instance wherein registration of a firm becomes a necessity is when the firm wishes to adopt a new form or organization such as an LLP or company with ease.</p>



<p>Further, the registration of firms at the income tax department is mandatory for both registered and unregistered firms by the registrar.</p>



<p>Another important point is the proof of registration of the firm. Conclusive proof of registration of a firm is any certified copy of any entry relating to the firm in the register of the firm. Further, any statement, notice of intimation that is recorded or noted with the registrar of the firm shall also be deemed to be conclusive proof of its registration.&nbsp;</p>



<h2>Advantages of Registration of Firm</h2>



<ol><li>&nbsp; Benefits to partners –<ol><li>Registration of firms provides the firm with its legal existence. This essentially means that partners of the firm can sue the other partners, ex-partner, or the firm in case a dispute arises out of a partnership agreement or a right arising out of the partnership act for such purpose.</li><li>A partner can only enjoy these rights subsequent to registration of the firm. Further, the partner, if the circumstance arises, can file a suit against a third party to exercise any right arising out of a contract or any other legal instrument.</li><li>In doing so, the name of the partner raising the action must be registered in the register of firms. The same is not applicable for the third parties to sue the firm.</li><li>However it must be noted that this immunity doesn&#8217;t apply in case of criminal liability of the partner against others. Partners of a firm can exercise their right to set off a debt against creditors.&nbsp;</li></ol></li><li>Benefits to Creditors –<ol><li>Registration of a firm enables the partners of the firm whose names are written on the deed to be equally responsible to repay the creditor’s debts.</li><li>This enables the creditor to claim their money from the firm; hence the credibility of the registered firm immensely increases.</li></ol></li><li>Benefits w.r.t Income Tax –<ol><li>A registered firm can claim tax benefits under the Income Tax Act, which enable the firm to save funds which could then be utilized for the growth of the firm. This is only if registration of a firm is done.</li></ol></li><li>Benefits to a new partner –<ol><li>The new partner can enforce his dues against the existing partners if defaulted. If the firm is not registered, no such partner would be enabled to enforce such a right against the existing partners. This benefit to the new partner can only be enjoyed post registration of the firm.</li></ol></li></ol>



<h2>Essentials of Partnership</h2>



<ul><li>Contractual Relationship – There must exist a contractual relationship among the partners. This contractual relationship must either be oral or written. However, at instances where there is no oral or written contract, merely existing upon mutual understanding would be sufficient to establish a relationship.</li><li>Two or More Persons – The Partnership act provides for the number of persons essential for a partnership by demanding a mutual agency amongst two or more persons. The persons entering into a contract must have the capacity to contract.</li><li>Mutual Agency – Partnership is a mutual agency in which the partners carry out a business. Where one partner acts for all of them as an agent, the partner acts as a principal, and the others as the agent. All the partners are liable for the act of one owed to the relationship of mutual agency.</li><li>Profit Sharing – A partnership firm is formed for a profit motive. The association of partners in a partnership firm is for sharing profits. The profits earned are appropriated amongst the partners in a predetermined ratio, as specified in the deed. In cases where no ratio is mentioned the division is done equally.</li><li>Carrying on a business – Every firm is established with the purpose of carrying on a business. The business shall be in any form of trade, profession, or occupation. The business is initiated with a profit motive otherwise, it doesn&#8217;t qualify as a partnership.&nbsp;</li></ul>



<h2>Procedure for Registering a Partnership Firm</h2>



<ol><li>Application for Registration of firm – An application needs to be filed with the registrar of firms of the jurisdiction in which the firm is situated, along with the prescribed fees. This registration form is required to be attested and verified by all the partners. The application must contain the following details –<ol><li>The name of the firm</li><li>The principal place of business</li><li>The location of all the places where the firm carries on business</li><li>The date of joining of each partner</li><li>The names and permanent addresses of each partner</li><li>The duration of the firm.&nbsp;</li></ol></li></ol>



<p>The application can be sent to the Registrar of Firms through post or by physical delivery.</p>



<ol start="2"><li>Selection of a Name – Any name can be given to the partnership firm, however it is subject to certain conditions. The first being that the name shall not be similar or identical to an existing firm in the same business. Second, the name shouldn’t contain words that portray sanction or approval of the government.</li><li>Draft the <strong><a href="https://www.ezylegal.in/partnership-agreement" target="_blank" rel="noreferrer noopener">Partnership Deed</a></strong> – The deed among the partners of the firm consists of rights, responsibilities, profit shares, along with all the necessary obligatory clauses. The agreement must be written and signed instead of an oral agreement to avoid future conflict. The necessary information to draft a deed is as follows:<ol><li>Name, address, nature of business, date of establishment, capital invested, profit or loss division ratio.</li><li>Interest-based on the capital investment of each partner</li><li>Salaries, including all financial drawing by the partners</li><li>  Rights, Duties, and obligations of every partner specified by name</li><li>Alignments in case of mishaps such as defaults or death of a partner</li><li>All the clauses mutually decided among the partners</li></ol></li><li>Application for PAN – A firm has to apply for a Permanent Account Number to the Income Tax Department, irrespective of the registration. The PAN is a requirement to fulfill the obligation of paying taxes.</li><li>Submit the Documents – The following documents are required to be submitted to the registrar as a part of the registration process:<ol><li>Application for registration of partnership (Form 1)</li><li>A certified original copy of the partnership deed</li><li>Specimen of Affidavit</li><li>PAN Card in the name of the partnership </li><li>Proof of address of the partnership firm, ownership deed, lease and rent agreements, etc. are common acceptable documents.</li><li>PAN Cards and address proofs of all the partners</li></ol></li><li>Pay the Fees and Stamp Duties – Registration Fees and Stamp Duty is required to be paid at the time of submission of the documents with the registrar. The registration is not complete until all dues are paid.</li><li>Finalize the Deed – In order to legalize the Deed, it shall be provided to each partner on a stamp paper, and it should be attested by all the partners in front of the notary. The signed copy is thereafter submitted to the Registrar during the process of registration.</li><li>Receiving the Certificate – Following all the above requirements, if the Registrar is satisfied with the application and the documents, he will register the firm in the Register of Firms and issue the Registration Certificate. The Register contains all the updated information of all the firms and can be viewed by anyone upon payment of the required fees. To know more about the process of registration get <strong><a href="https://www.ezylegal.in/legal-consultation" target="_blank" rel="noreferrer noopener">legal online advice</a></strong>.</li></ol>



<h2>Conclusion</h2>



<p>Registration of Firm is highly recommended, even though it’s not a legal mandate. The partnership provides clarity and a sense of transparency amongst all the partners. Registration enables the partners to file a case against third parties and other partners.</p>



<p>It grants the power to claim set-off against any third-party claim and it makes the process of conversion into any other business structure much easier. The above-mentioned points are some essentials that one is required to be aware of before starting a partnership firm. A partnership firm is an appropriate manner to initiate a business.</p>



<p>However, as an entity grows, diversification and expansion happens in the business structure as per the requirements of the individuals. Hence these key points enable one to make better decisions to establish a successful business. To know more, get online legal advice.</p>


registration of firm

How to Register a Partnership Firm?

 To get the partnership deed enforced in the Court of law, it is important to get it registered. Registration of a Partnership deed is a lengthy process, and it is advisable to consult an attorney to get your deed registered. 

Get Your Partnership Deed Registered


<p>In India, anybody may create a partnership by a written or verbal agreement. Under the terms of this agreement, two or more parties agree to split the earnings of a firm that is operated by all partners or any of them. Partnership firms are required to present a partnership deed as evidence of existence for Income Tax purposes. This article discusses the procedure for GST registration for a partnership firm.</p>



<p>Companies, firms, and individuals that purchase or sell products or provide services are required to register under the Goods and Services Tax (GST) in order to get the input tax credit.</p>



<p>Online GST registration for partnership firms is available on the Goods and Services Tax Website (www.gst.gov.in), where a Temporary Reference Number (TRN) is generated for the application.</p>



<h2>How do you Request a GST registration for a Partnership firm?</h2>



<ul><li>Get access to the GST Online Portal for GST registration for partnership firm.</li><li>Complete Form Part A (PAN, Mobile No., and E-mail)</li><li>The Portal confirms your information by OTP and E-mail.</li><li>Upload the necessary files for GST registration for the partnership firm</li><li>Access and complete Part B by entering the received number.</li><li>The Reference Number will be provided for the application.&nbsp;</li><li>The GST Officer begins document verification.</li><li>Within 7 working days, the GST Officer either rejects or approves your application.</li><li>If an explanation is requested, you must submit the necessary documentation.</li><li>After all explanations, you are assigned a GSTN number.</li></ul>



<p>This is how you request GST registration for a partnership firm.&nbsp;</p>



<h2>Documents necessary for GST Registration for partnership firm</h2>



<ul><li>Images of each partner</li><li>Pan Card of all partners</li><li>Aadhar card for Every Partner</li><li>Card with the Partnership Firm&#8217;s Identification Number</li><li>Business Constitutional Documentation (Partnership deed)</li><li>Proof of Principle location of the business (Anyone &#8211; Electric Bill/Rent or Lease Agreement/Latest Bank Statement &#8211; Not older than two months)</li><li>An authorization Letter in Favor of Any Partner is required for GST registration for the partnership firm.</li><li>After the application has been submitted, an Application Reference Number (ARN) will be issued for tracking the application&#8217;s progress.</li><li>After the Tax Officer approves the application, the Certificate of Registration is created electronically.</li></ul>



<p>The above documents are required for GST registration for a partnership firm.</p>



<h2>Step-by-step processes of GST Registration for partnership firm</h2>



<p>These are the straightforward procedures for GST registration for partnership firm:</p>



<p><strong>STEP 1</strong>: For GST registration for a partnership firm, first, go to the GST gateway at (https://www.gst.gov.in/).</p>



<p><strong>STEP 2</strong>: Then, under the &#8216;Taxpayers&#8217; page, choose the &#8216;Register Now option.</p>



<p><strong>STEP 3:</strong>&nbsp;Select “New Registration” now.</p>



<p><strong>STEP 4</strong>: Complete the remaining information for GST registration for the partnership firm:</p>



<ul><li>Select “Taxpayer” from the “Who am I?” drop-down option.</li><li>Choose the appropriate state and district.</li><li>Then, input the business’s name.</li><li>Then input the business’s PAN.</li><li>Next, put the e-mail address and cell phone number in their appropriate fields. The supplied e-mail address and cell phone number must be active in order to get OTPs.</li><li>Enter the shown picture and click the &#8220;Proceed&#8221; button.</li></ul>



<p><strong>STEP 5</strong>: On the next screen, input the OTP that was issued to the e-mail address and cell phone number for GST registration for the partnership firm.</p>



<p><strong>STEP 6</strong>: Once the information has been entered, click “Continue”</p>



<p><strong>STEP 7</strong>: The Temporary Reference Number (TRN) will be shown on the screen. Keep track of the TRN.</p>



<p><strong>STEP 8:</strong>&nbsp;Then, return to the GST site and select “Register” under the “Taxpayers” tab.</p>



<p><strong>STEP 9:</strong>&nbsp;Select &#8216;Temporary Reference Number (TRN)&#8217; in the ninth step.</p>



<p><strong>STEP 10</strong>: Then, input the TRN and the captcha information for GST registration for the partnership firm.</p>



<p><strong>STEP 11:</strong>&nbsp;Click the “Proceed” button.</p>



<p><strong>STEP 12</strong>: After continuing, an OTP will be sent to your registered e-mail address and phone number. Enter the OTP on the subsequent screen and click &#8220;Continue.&#8221;</p>



<p><strong>STEP 13</strong>: The status of your application will be shown on the next page. Click the Edit icon located on the right side of the page.</p>



<p><strong>STEP 14</strong>: The next page will include 10 subsections. All pertinent information must be filled out, and all required documentation must be presented for GST registration for the partnership firm. The following is a list of documents that must be uploaded for GST registration for a partnership firm are:</p>



<ul><li>Photographs</li><li>Business address evidence</li><li>Details of the authorized signatory and Partners</li><li>Account number, bank name, bank branch, and IFSC code are examples of bank information.</li><li>Form of authorization</li><li>The taxpayer partnership&#8217;s governing documents</li></ul>



<p><strong>STEP 15</strong>: After reviewing the declaration on the ‘Verification’ page, submit the application using one of the following methods:</p>



<ul><li>With a Digital Authentication Code (EVC). The code will be e-mailed to the cell phone number on file.</li><li>By an e-Sign technique. A one-time password will be given to the cell phone number associated with the Aadhaar card.</li><li>When registering a company, the application must be filed using a Digital Signature Certificate (DSC).</li></ul>



<p><strong>STEP 16:</strong> Upon completion, the screen will display a success message. The Application Reference Number (ARN) will be given to the cell phone number and e-mail address provided during GST registration for the partnership firm.</p>



<p><strong>FINAL STEP</strong>: Finally, on the GST site, you may verify the status of the ARN. If all papers are reviewed and determined to be in order, you will get a GST registration number within seven days, and GST registration for the partnership firm is done.</p>



<p>After following the aforementioned steps, GST registration for a partnership firm can be done easily.</p>



<h2>CONCLUSION:</h2>



<p>Partnership companies are required to present a partnership agreement as evidence of existence for Income Tax purposes.GST registration for a partnership firm is required whose annual revenue exceeds 40 lakhs. There are, however, partnership firms for whom registration is required even if their annual revenue does not exceed a certain threshold.&nbsp;</p>



<p>To get GST registration for a partnership firm, one must consult a lawyer online. An expert lawyer online, apart from saving time, makes your task easier.&nbsp;</p>


gst registration for partnership firm

How to apply for GST registration for a partnership firm?

Business Registration

Anyone can start a new food business just by converting their new food business idea into a reality. To take the help of a lawyer to get your new food business registered, get online advice.

 Get Your Business Registered Now


<h2>Introduction</h2>



<ul><li>Currently, one of the most lucrative and popular industries in India is the food industry. Anyone may order food at any time, anywhere, in this digital age.&nbsp;</li><li>People are adopting online food portals to enjoy their meals at their doorstep. Due to the opening of numerous new restaurants over the last few years, the food industry has seen enormous growth. Nowadays, anyone with a new food business idea may open a cloud kitchen/restaurant.&nbsp;</li><li>A party may sell their new food business idea through a Franchise Agreement. It is a legal agreement wherein an existing company agrees to lend its name, operational model, and necessary support to another party so that it may launch and operate a comparable business in return for a fee and a portion of the profits made.&nbsp;</li></ul>



<h2>What are the legal requirements for a new business idea to convert into a restaurant?</h2>



<p>It is very simple to start a food business by converting a new food business idea, but you must be aware of the legal licensing requirements. It is regarded as among the best businesses to launch. But in order to provide food services and sell food goods, it is essential to adhere to a set of rules before launching a food business. If one doesn&#8217;t, they risk encountering needless legal obstacles. The following things should be kept in mind before beginning a food business:</p>



<ol><li><strong>Decide on the Food Business Type</strong>&#8211; Choosing your type of food-related business based on your new food business idea is the first step. Before starting any form of business, sufficient homework must be completed. You must search for the legal license or NOC needed once you have your resources and plan of action in place in order to avoid any legal snags.</li><li><strong>Establishment of a business entity</strong>&#8211; After deciding on your food business type based on your new food business idea. The registration of a legal and business entity is the next step. The Entrepreneur has a variety of options, including registering as:</li></ol>



<ul><li>One-person businesses,&nbsp;</li><li>Partnerships,&nbsp;</li><li>Limited Liability Companies,&nbsp;</li><li>Private Limited Companies, and&nbsp;</li><li>Proprietorships</li></ul>



<ol><li><strong>Food License</strong>&#8211; The important step for making your dream of converting the new food business idea into reality is getting a Food License. Every owner of a food business, even a small seller or hawker, must get a food license from the FSSAI. The Food Safety and Standards Authority of India is known by the initials FSSAI.&nbsp;</li></ol>



<p>The three types of FSSAI licenses are Registrar FSSAI, State FSSAI, and License Central FSSAI License. You can apply offline or online for an FSSAI Registration or License. The proprietor of the food business must submit an application to the licensing authority together with the necessary fees in order to acquire the license offline. However, the Food Licensing and Registration System (FLRS) site, which was introduced by the FSSAI, can be utilized for online license and registration.</p>



<ol><li><strong>Trade License</strong>&#8211; As an &#8220;Eating House,&#8221; a food business is typically awarded a trade license in India under the municipal corporation rules of the relevant States. Any owner of a food business converting the new food business idea into reality as a next step after obtaining a food license may apply for a trade license with the relevant municipality. Most trade licenses issued by States are typically good for a year, and they can be renewed by paying yearly fees. If your new food business idea intends to open multiple locations, each location needs to have a current trade license from the relevant municipality.</li><li><strong>Liquor Permit</strong>&#8211; A liquor license is also necessary if your new food business idea includes serving alcohol along with the meals. Alcohol sales and distribution are forbidden without a current liquor license. The State Excise Department is the place to go if you want permission to sell and distribute alcohol. Depending on whether you&#8217;re a star hotel, bar, or pub, selling imported booze, international brands, or Indian Made Foreign Liquor; there are many different sorts of alcohol licenses available. You will require identification documentation, proof of address, &amp; a no objection certificate from the fire department and the municipal corporation, among other documents that the State Department may require, in order to receive the license.</li><li><strong>Department of Fire NOC</strong>&#8211; A &#8220;No objection Certificate&#8221; from the Chief Fire Officer is required before opening a restaurant, cafe, hotel, or bakery, according to the fire safety legislation of the majority of Indian States. You must submit architectural drawings, a model of the building, an architect&#8217;s certificate, and a questionnaire about compliance with fire safety laws and regulations in order to receive a fire license.</li><li><strong>Shops &amp; Establishment Registration</strong>&#8211; Each owner of a shop or other commercial institution with more than ten employees are required to register their business with the relevant State Labor Department. Recently, this process has shifted online. Normally, this registration is good for five years before needing to be renewed. Currently, upon payment of renewal fees, certain States are providing Shops and Establishment Registrations with lifelong validity.</li><li><strong>Pollution Clearance-&nbsp;</strong> The next step in converting the new food business idea into reality is getting a pollution clearance. Given the smoke emissions from the cooking process and the washing of food waste, the food sector is seen as a polluting industry. As a result, the State Pollution Control Board&#8217;s consent to start your business and consent to operate will be required for your food business. The type and size of your business operations will determine the category for which you require a license. Below is a breakdown of hotels/restaurants by category provided by the Central Pollution Control Board.</li><li><strong>Tax Registrations</strong>&#8211; For converting the new food business idea, the next step in the process is tax registration under various statutes.&nbsp;</li></ol>



<ul><li><strong>Income Tax Registration</strong>&#8211; Every new food business idea, i.e., the business, including those in the food industry, must have a PAN and TAN in its own name or, in the event of a sole proprietorship, in the name of the person who will be carrying out the transactions. The Income Tax Department issues two ten-digit alphanumeric identification numbers called PAN and TAN. Anyone who withholds or collects tax at source must apply for a TAN allocation.</li><li><strong>Goods &amp; Service Tax Registration</strong>&#8211; Tax is due under the GST system if a turnover of Rs. 20 lakhs is reached (Rs. 10 lakhs for North Eastern states and Special Category States). Each and every business that must pay GST must register and get a GSTIN.</li></ul>



<h2>Conclusion</h2>



<p>Therefore, it can be ascertained from the licenses discussed above that the new food business idea requires a lot of registrations &amp; legal requirements to be fulfilled to reach the stage of a new food business idea to a restaurant.&nbsp;</p>


new food business ideas

How to convert a new food business idea into a restaurant?

Working in a structured manner &amp; eliminating all the risks associated with it defines your success. To take the help of a lawyer for starting your business management, get online advice. 

Consult Business Lawyer now


<h2>Introduction</h2>



<ul><li>A consultant who is knowledgeable in all areas related to business management is known as a business management consultant. He has extensive experience in a variety of relevant fields, including marketing, human resources, accounting, and finance.&nbsp;</li><li>A business management consultant is also an authority on forecasting and strategic planning. He can assist the business in determining when it can anticipate making money from the efforts of its workers and customers.</li><li>Always consult business lawyers for setting up &amp; acting as a consultant in your business management consultants firm.&nbsp;</li></ul>



<h2>What is the need for having business management consultants?</h2>



<ul><li>First, a business management consultant can assist the owner in making the necessary adjustments to boost revenue.&nbsp;</li><li>Second, a business management consultant can aid in raising employee productivity.&nbsp;</li><li>Third, the business management consultant can advise the business owner on the best marketing approach to draw in new clients.&nbsp;</li><li>Finally, the business management consultant can let the owner know about the issues that his company is facing so that they can be resolved.</li></ul>



<h2>How do business management consultants help to grow the business?</h2>



<p>An analysis of a company&#8217;s operations is done by business management consultants. He will also examine the company&#8217;s competitors, the market resources, the resources accessible to personnel, and the company&#8217;s long-term goals. They can make recommendations for the management of the company after this examination. For instance, the consultants may recommend  transformation project like  improving the workplace if the staff members of the organization are not happy with their positions.</p>



<p>Business management consultants are entitled to a significant salary because they are the &#8220;third eye&#8221; of an organization. The pay package, however, consists of the benefits and other advantages offered to employees, such as health insurance and paid time off, in addition to the usual full-time income. Additionally, business management consultants have the right to receive increased compensation for winning awards and contests.</p>



<h2>What are the day-day functions performed by the business management consultants?</h2>



<p>There are five primary sorts of work a management consultant will do, depending on how the project is going.</p>



<ul><li><strong>Understanding the Goal &#8211; </strong>The effectiveness of the consulting project depends critically on understanding the client&#8217;s needs. In order to reach an agreement on the goal, consultants spend a lot of time with the client&#8217;s management team. There are numerous conversations about the resources the consultants require, such as access to financial data and crucial personnel interviews. In most cases, consultants will also begin with a hypothesis regarding prospective solutions and consider the appropriate data they need to evaluate their hypotheses.</li><li><strong>Research and Gather Data &#8211; </strong>Business management consultants devote a lot of time to finding the appropriate data to back up their theories. This can involve examining a company&#8217;s internal financial records, holding focus groups with outside participants, reading thorough research studies on the business, interviewing staff members, and more. Typically, all of this labor requires enormous Excel files that contain a lot of raw data that needs to be organized and understood.</li><li><strong>Conduct Detailed Analysis</strong> &#8211; Business management consultants then concentrate on reaching the insight they are being hired to uncover after having the data in hand. Typically, consultants use Excel to organize the data before extracting the most important facts and putting them into PowerPoint charts and graphs. The case may take multiple unexpected turns as a result of these visualizations, which frequently help find alternative remedies. The proper interpretation of the data is a topic of considerable debate inside the consulting team as well.</li><li><strong>Consultations with clients</strong> &#8211; There are countless meetings between the business management consultants and the client throughout the course of a project. These meetings aren&#8217;t always with C-suite executives; sometimes, the client will send point people instead to work with the consulting team (usually VPs, Directors, etc.). Most non-consultants are unaware that there shouldn&#8217;t be any significant surprises when the client receives the final output. Every few days or weeks, consultants inform the point person, who updates his superiors and offers continual feedback and guidance.</li><li><strong>Establishing Deliverables</strong> &#8211; The two best buddies of a business management consultant are PowerPoint and Excel. Business management consultants invest a lot of time in creating presentations that are clear and simple to grasp while also being insightful and impactful. A significant percentage of a consultant&#8217;s work is spent producing deliverables, which are continually reviewed by senior consultants and by client team members with less experience. The presentation is continually revised as a result of these tests until it is prepared to be given to the client&#8217;s senior management team.</li><li><strong>Keeping up the Success</strong> &#8211; In the management consulting cycle, post-maintenance procedures are essential since it is simple to revert to previous habits. If you want to maintain the caliber of work at a high standard inside your company, it is imperative to ensure that precise protocols are in place. To assist your business continue to operate at a high level, our business management consultants will develop new business models.</li></ul>



<p>Therefore, these five are the most important day-to-day responsibilities &amp; functions performed by business management consultants &amp; just by looking at these responsibilities; it can be ascertained that the people who took the help of these business management consultants got an upper edge over their other competitors in the market.&nbsp;</p>



<h2>Conclusion</h2>



<p>Business management consultants are specialists that offer short-term assistance and advice to businesses. They can work with firms at any level of development, but they frequently use their knowledge to support startups and new enterprises in their pursuit of success. These consultants can assess every aspect of the company, looking for opportunities to improve technology utilization, optimize processes, hire top people, and reduce expenses wherever possible.</p>



<p>When a business coach works with enterprises and startups, the term &#8220;business management consultant&#8221; is frequently employed. A gear shift is frequently the main emphasis. The move from a tenacious upstart driven by a passion to a complicated organization with well-defined tasks and commitments can be a difficult one as organizations grow from startups to regional players and beyond. A business management consultant resides there.</p>


Business Management Consultant

How do business management consultants help your business to grow?

Family disorganization is rapidly growing in India, which is leading to a high number of Divorce cases; here is the gist of The Divorce law of India. To know more about the procedure, get online legal advice. 

Consult Divorce Legal Expert


<h2>Introduction</h2>



<p>Family disorganization has several connotations, including the breakdown or dissolution of marriages and family crises. Legally, a marriage can be dissolved through the divorce process. What is divorce, and on what grounds may it be filed, are the questions that now need to be answered.</p>



<h2>What is Divorce?</h2>



<p>Divorce is the legal process of ending a marriage when one of the parties submits a petition in a court of law. Divorce rates have risen recently for a variety of reasons. There are numerous issues that can occur in a relationship and ultimately result in divorce. The marriage and any obligations associated with it end after the court issues a divorce judgment, at which point the parties are free to live their lives without being bound by any marriage-related obligations.</p>



<h2>Divorce under Indian Law</h2>



<p>We all are aware that there are so many religions in India, and every religion has there own procedure for Divorce. Hindu Marriage Act, 1955 for Hindus, Jains, Sikhs, and Buddhists, The dissolution of Muslim Marriage Act, 1939 for Muslims; the Indian Divorce Act, 1869; and the Indian Christian Marriage Act of 1872 for Christians, and so on. Here, we are going to discuss the gist of Divorce.</p>



<h2>Divorce under Hindu Law</h2>



<p>Section deals with the ground of Divorce, and Section 13b deals with Divorce by Mutual Consent.</p>



<p><strong>Section 13</strong> of the Hindu Marriage Act 1955 deals with the grounds of Divorce.&nbsp;</p>



<p>Grounds on which Divorce can be taken in Hindu Law are-</p>



<ul><li>Adultery- When any person has voluntary sexual intercourse with any person other than his or her spouse, then that is Adultery.</li><li>Cruelty- Cruelty is when one of the spouses causes bodily injury to the other spouse or harms his/her mental health.&nbsp;</li><li>Desertion- When one of the spouses deserts or abandons his or her spouse without consent and any reasonable cause for a continuous period of two years, then it&#8217;s Desertion.</li><li>Conversion- When one of the spouses converts or changes his/ her religion.</li><li>Unsound mind- When one of the spouses is suffering from a mental disorder, and the other spouse can&#8217;t live with him/ her, then Divorce can be taken under this ground.</li><li>Communicable Venereal Disease- When any spouse is suffering from any venereal disease which is communicable in nature, then the other spouse can file for Divorce.</li><li>Renunciation- When one of the spouses has renounced or abandoned the world to walk on the path of God, then it&#8217;s ground for Divorce.</li><li>Spouse not heard to be alive or Presumption of death- If either of a spouse is not heard from for more than seven years, then it is considered as a ground for Divorce.</li></ul>



<p><strong>Section 13B</strong> Deals with Divorce by Mutual consent.</p>



<p>When both parties mutually want to take a Divorce, then it is allowed under Section 13b of the Hindu Marriage Act, 1955.</p>



<h2>Divorce under Muslim Law</h2>



<p>In Muslim Law, Divorce is of 2 types-</p>



<ul><li>Judicial Divorce</li><li>Extra- Judicial Divorce</li></ul>



<p>Extra- Judicial Divorce</p>



<ul><li>Talak-e-ahasan: In this, the husband has to say the word Talaq only once during the period of tuhr. Tuhr refers to the period between two mensuration. This type of Talaq can be revoked at any time during the period of iddat.</li><li>Talaq-e-Hasan: Under this, the husband has to say Talaq three times during three successive tuhr.</li><li>Ila: Under this husband takes a vow that he will not have sexual intercourse with her wife for an unspecified period. This refers to Ila.</li><li>Zihar: In this form, the husband compares his wife to any other female who is in the prohibited degree of relation like mother or sister. This refers to Zihar.</li><li>Talaq-i-Tafweez: This is basically a delegated Divorce; under this husband delegates</li></ul>



<p>his power to Divorce to his wife. The wife can take talaq from his husband.</p>



<ul><li>Khula: It is a separation by ending matrimonial bonds. In this wife agrees to give a certain amount of consideration to the husband for her freedom from the marriage ties.</li><li>Mubarat: It is the dissolution/ breaking of marriage by mutual agreement. The offer to Divorce can be made by any party, and the other party mutually accepts it.</li></ul>



<p>Judicial Divorce</p>



<ul><li>Lian- When the husband falsely accuses the wife of adultery, then that is Lian, and the wife can ask for Divorce on that basis.</li><li>The wife has no whereabouts of a husband for four years.</li><li>Imprisonment of 7 years is faced by the husband.</li><li>Impotency of the husband at the time of the marriage.</li><li>The insanity of the husband for at least two years.</li><li>Cruelty by husband.</li><li>If a husband is unable to fulfill his marital obligation for at least three years without any valid reason.</li><li>If the husband is suffering from venereal disease.</li></ul>



<h2>Divorce under Christian Law</h2>



<p>Grounds under which Christians can file a petition for Divorce are-</p>



<ul><li>If the spouse has committed Adultery.</li><li>Convert his/her religion from Christianity.</li><li>One of the spouses has been of Unsound mind for a continuous period of not less than two years.</li><li>Suffering from Venereal disease in a communicable form for a period of not less than two years.</li><li>Unheard for a period of 7 years or more by those who would have heard of the respondent if he had been alive.</li><li>Refused to consummate the marriage wilfully.</li><li>Desertion is done by one of the spouses for at least two years.</li><li>Failed to comply with the decree of Conjugal rights for two years or more.&nbsp;</li></ul>



<p>Dissolution or Breaking of marriage by mutual consent can also happen if both spouses, with their consent, voluntarily want to take a Divorce.</p>



<h2>Conclusion</h2>



<p>According to Indian law, every person has the right to leave a marriage amicably if they are not content with it, are having problems, and the problems cannot be resolved. The aforementioned are the grounds for divorce that a person may use.</p>



<p>The actions listed above outline a legal process for peacefully ending a marriage so neither party has to deal with the problem. Get online legal counsel here to learn more about the divorce petition filing process.</p>


Family disorganization

Family  Disorganization: Divorce

Legal Consultation

Registered Will can be contested, and the procedure to be followed is detailed in the article. Get advice on online Will registration!

 Make Your Will


<h2>&nbsp;Introduction</h2>



<ul><li>A Will is a written document in which a person explains the method for transferring his or her property and expresses his or her wishes on what and how a lifetime&#8217;s worth of assets will be handled after his or her death. </li><li>The person who makes the Will is referred to as the &#8216;Testator,&#8217; the person for whom the Will is executed is referred to as the executor, and the property disposed of in the Will is referred to as the subject matter of the Will.</li><li>A will is registered under the Indian Registration Act 1908. There is no provision for making the registration of the Will compulsory because requiring such a document to be registered compulsorily will have some negative consequences in many aspects of its practice in India. </li></ul>



<h2>What is a Will?</h2>



<p>A Will is a statement made using an established instrument in which a person disposes of their property that will take effect after their death and is, by definition, ambulatory and reversible during that person&#8217;s life. The Will was mostly recognized because of its ambulatory properties, which distinguished the disposition from the ordinary deed. A will, according to the legislation, is the sum of a man&#8217;s testamentary intentions as stated and legally signed.</p>



<h2>Reasons to challenge a registered Will in court:</h2>



<p><strong>Fraud</strong></p>



<p>A document created by anybody that obligates another person to labor in part or in full for compensation or without compensation will not be permitted to stand. In the eyes of the law, such a document has no legitimacy or legality. A registered document has acquired the assumption that it is free of any malice or in any manner illegal; according to the same concept, the registered Will is free of any fraud.</p>



<p><strong>Coercion</strong></p>



<p>Coercion is defined as the use of force against a person who must be coerced into doing a task without their agreement or from whom any responsibilities must be completed. From the viewpoint of the law, compulsion is prohibited. If the re-registered Will is the result of compulsion, it will be declared illegal; nonetheless, the person claiming the Will is illegal must establish that the Will is illegal in this context.</p>



<p><strong>Unwanted Influence</strong></p>



<p>Undue influence is the use of one&#8217;s position of power or emotional connection to make a choice that is not based on solid reasoning or informed reasoning. If a document is registered under such influence, this aspect is one of the key factors in determining whether it is morally or legally acceptable. The registered Will may be contested in court if it can be demonstrated by significant evidence that it was influenced unlawfully by any family members or friends of the Testator in making any decision.</p>



<h2>Wills with a Strange Content/ Language</h2>



<p>Various features demonstrate the legitimacy of the Will in a court of law, although the nature of the Will may also be questioned if it is not prepared in perfect conformity with these aspects. The following are different features that, if discovered or lacking, might be contested in a court of law:</p>



<p>1. &nbsp; &nbsp; &nbsp; When a person creates a Will in which any of the content(s) of the Will is vague or has no meaning as to substance, such Will can be challenged; however, if two Wills exist in which one is vague and the other supplements the other at the same time, such Will can be challenged, and such objection will be allowed by law.</p>



<p>2. &nbsp; &nbsp; &nbsp; There is a flaw in the stamp needed by the Testator for Will registration, and if such Will is not correctly stamped but is nonetheless registered, it might be disputed.</p>



<p>3. &nbsp; &nbsp; &nbsp; If the thumb imprint is necessary on the Will but is not created, or if there are more thumbprints than are required by law, such impression generates uncertainty among the signatories on the Will, and such confusion on a Will can also be contested in court.</p>



<p>4. &nbsp; &nbsp; &nbsp; A will can be contested in court if it disposes of property or transfers ownership of any rights to property in favor of someone who is not even loosely related to the Testator or if there is no relationship to support the legitimacy of the Will.</p>



<p>5. &nbsp; &nbsp; &nbsp; The Will may have been executed anywhere, but in order for it to be registered, the date, time, and location must all be noted on the document. If the location of the execution is not noted, however, the Will may still be contested in court.</p>



<h2>Error in carrying out the Will</h2>



<p>Anyone who intends to execute a Will must first perform some functions in drafting the Will, followed by some legal compliance to validate the Will and construct a Will that has the support of the law and is recognized in the eyes of the law. The validity of a will could be contested in court if there were mistakes in its implementation.</p>



<h2>Intentional error in the content</h2>



<ul><li>The Will can now be accurately interpreted as the Testator&#8217;s demand, request, or instruction for how to handle his property after death, as was previously explained.&nbsp;</li><li>Any person, when writing a Will, maintains clear and transparent content as to the Testator&#8217;s want, but such purpose of the Testator should be made apparent, and the content of the Will should be brief and unambiguous,</li><li>If by any interpretation of the Will there seems to be such that the provision of any clause in the Will looks ambiguous or contradictory to the Testator&#8217;s intention, then such clause or any Will can be challenged in a court of law.</li></ul>



<h2>Procedure that must be followed to challenge a registered Will :</h2>



<p>1. &nbsp; &nbsp; &nbsp; The action is being filed.</p>



<p>2. &nbsp; &nbsp; &nbsp; Vakalatnama publication</p>



<p>3. &nbsp; &nbsp; &nbsp; Payment of the required court charge</p>



<p>4. &nbsp; &nbsp; &nbsp; Initiation of the proceeding and preparation of the statement</p>



<p>5. &nbsp; &nbsp; &nbsp; Submitting a number of supporting papers.</p>



<h2>Conclusion</h2>



<p>A Will is a very significant part of a person&#8217;s life since it determines who will inherit all of the person&#8217;s hard-earned money once the person dies. As a result, in a nation like India, it is critical that if a person deems a Will made to be unsatisfactory, he or she has the right to dispute the registered Will in court to ensure that no wrongdoing occurs. For all of the reasons stated above, the registered Will can be contested, and the procedure to be followed is detailed in the article. </p>


can registered will be challenged

Can a person challenge a registered Will in Court?

Entering into an MOU before entering into a Contract is always a wise step to take. One must seek legal advice and  get the MOU agreement drafted by an expert lawyer before entering into a contract. 

Get MOU Drafted


<h2>Introduction</h2>



<p>You may have come across various types of agreements or indeed inked many either at work or while renting an apartment, or in starting or running a business. The significance of subscribing to fairly binding agreements cannot be ignored. Agreements not only guarantee that the terms and conditions outlined are enforced but can also be assessed fairly. The terms <strong>Memorandum of Understanding (MOU)</strong> <strong>and Contracts</strong> are over and over used interchangeably. Nevertheless, the two have differences.</p>



<h2>What is an MOU?</h2>



<ul><li>This is a document that shows that two parties have agreed to cooperate to achieve an ideal. The purpose of MOUs is to show that the two parties have a shared understanding in written form.</li><li>MOUs are great for starting an honored and formal collaboration with other parties. They also contain little obligation and are oftentimes general or specific as necessitated.</li><li>Substantially, the parties involved in an MOU don&#8217;t intend to have a fairly enforceable agreement. As similar, these documents tend not to contain fairly binding terms. Still, the other party can&#8217;t have the agreement fairly executed if one party fails to fulfill an obligation as required in the MOU.</li><li>A memorandum of understanding, or MOU, is defined as an agreement between parties and can be bilateral (two) or multinational (further than two parties). The MOU serves as an expression of joint will between the parties in question and depicts the intention of a line of action commonly drawn.</li></ul>



<h2>When should you draw up an MOU?</h2>



<p>An MOU is frequently the first step toward a formal agreement via a binding contract if you or your business is in the kick-off stages of a deal with another party. An MOU unarguably defines how the parties will work together and lays out each one’s expectations and liabilities. The aim is to achieve a combined understanding of the alliance, so you can move forward into an enforceable contract everyone feels confident about.</p>



<h2>When to use an MOU?</h2>



<p>There are several common reasons for using an MOU.&nbsp;</p>



<ul><li>You hold a business and plan to partner with another business</li><li>You have a small business and often partner with others.</li><li>Another business has asked about working with you and your business.</li><li>Your company and another business want to work on a specific ground plan together.</li></ul>



<h2>What is a Contract?</h2>



<ul><li><strong>What is a Contract?</strong></li></ul>



<p>This is a mutual agreement where two or more parties concurrence to a legally binding agreement. A contract can only be legally abiding where two parties have entered into an agreement lawfully enforceable. The purpose of a contract is to validate the scores of both parties, distribute and minimize the danger if one party fails to perform as per the contract terms.</p>



<h2>A lawful contract must have the following &#8211;</h2>



<ol><li>An offer</li><li>Acceptance</li><li>It must be made with the will to produce a legal relationship</li><li>It must have consideration from both parties. Still, the other party can have it fairly executed if one party fails to fulfill the contract terms.</li></ol>



<h2>Is MOU a Contract?</h2>



<ul><li><strong>Points of Similarities between MOU and Contract</strong></li></ul>



<p>Though <strong>an</strong> <strong>MOU and a Contract </strong>are not one and the same, it still has some similarities. Given are some of them-</p>



<ol><li>Involvement of two or more parties</li><li>Involved parties must agree on the same thing</li><li>MOU and Contract both have an offer that must be accepted by the other party</li></ol>



<ul><li><strong>Points of difference between MOU and Contract</strong></li></ul>



<p>MOU is a document that shows that two parties have agreed to cooperate to achieve an aim. It isn&#8217;t enforceable at law and aims to show that the two parties have a collective understanding in a written form. On the other hand, a contract is a collective agreement where two or further parties concurrence to a fairly binding agreement. It&#8217;s fairly binding and aims to validate the scores of both parties distribute and reduce the trouble if one party fails to perform as per the terms of the contract.</p>



<p>1) <strong>Definition</strong></p>



<p>MOU is a document that intends to show that two or more parties ( as the case may be) have agreed to cooperate with each other and achieve a common aim.</p>



<p>On the other hand, a contract is a mutual agreement enforceable by law. It is an agreement where two or more persons have willingly consented to a legally binding relationship arising out of the agreement.</p>



<p>2) <strong>Enforceability</strong></p>



<p>As stated above, a contract is a legally enforceable agreement. However, an MOU is not a legally enforceable agreement.&nbsp;</p>



<p>3) <strong>Object</strong></p>



<p>The object of a contract is to give rise to a legal reciprocating relationship. It also aims at documenting the obligations of parties entering into a contract. It also distributes and reduces the risk of failure to perform the contract as agreed upon by the parties. Whereas an MOU has the object of showing that two parties have agreed to a mutual understanding in a written form.</p>



<h2>Advantages of entering into an MOU</h2>



<ol><li>Though an MOU is not a Contract, it initiates the establishment and building of a mutual connection between the parties. It also enables clarity of goals and aims for each party.</li><li>An MOU, not being a contract, Finalizing MOU allows the parties to go ahead with the paper trail or to keep a sound record of the negotiations, which leads to the finalization of the MOU.</li><li>An MOU, not a contract, reduces the level of uncertainty and ambiguity between the parties involved, as the MOU highlights the expectations and, commitments, responsibilities and also reduces the risk of disagreements in the future.</li><li>An MOU is not a contract, as it is an agreement that paves the way for a future contract between the parties. It provides an easy exit to the party who thinks that goals and objectives or any terms and conditions are not easily met and can also end an agreement.</li></ol>



<h2>Disadvantages of entering into an MOU</h2>



<p>The only disadvantage an MOU has is a lack of legal bindingness. Which allows another party to take an easy exit from an MOU agreement or not perform the things agreed in the MOU agreement without facing the legal consequences. MOU is not a contract as the Contract does not allow the person to run away from his responsibilities and leave the other party helpless. The contract is a legally binding document, a breach of which calls for legal action against the defaulter.&nbsp;</p>



<h2>Conclusion</h2>



<p>An MOU is a document that intends to show that two or more parties have agreed to cooperate to achieve a goal. It isn&#8217;t legally enforceable and aims to show that the two parties have a combined understanding in a written form. On the other hand, a contract is a combined agreement where two or further parties give clearance to a legally binding agreement. </p>



<p>It&#8217;s fairly binding and aims to establish the liabilities of both parties distribute and reduce the threat if one party fails to perform as per the terms of a contract.</p>


is a memorandum of understanding a contract

Is MOU A Contract ?- Understanding  A Thin Line of Difference

Modern adoption systems, which emerged in the twentieth century, are often controlled by extensive rules and regulations. To understand the process, get Family Law Advice.


<h2>Introduction</h2>



<p>Adoption was introduced to give orphaned, abandoned, and relinquished children the right to family. The goal of introducing this notion was to ensure the performance of one&#8217;s funeral rights and the continuance of one&#8217;s lineage. Adoption was seen to be the finest way to restore family life to a kid who had been separated from his or her original family.</p>



<p>Many international Human Rights Accords clearly specify the affirmative obligation to offer protection and aid to children, such as the 1989 Convention on the Rights of the Child (CRC), which is a repository of different rights pertaining to children. Other cultures, such as Muslims, Parsis, and Christians, do not recognize the notion of adoption.</p>



<h2>What is Adoption?</h2>



<p>Adoption is a legal procedure that permits someone to become a parent to a kid even if the parent and child are not blood relatives. Adoptive parents, however, are the child&#8217;s parents in every other respect.</p>



<p>Adoption, unlike guardianship or other institutions created to care for children, is intended to achieve a permanent change in status and, as such, requires society&#8217;s acceptance, either via legal or religious permission. Historically, some civilizations adopted particular adoption laws, while others employed fewer formal procedures. Modern adoption systems, which emerged in the twentieth century, are often controlled by extensive rules and regulations. To understand the process, get Family Law Advice.</p>



<h2>Adoption in India</h2>



<p>According to official adoption data, 3,559 children were adopted in India between April 2020 and March 2021. There were 3,142 domestic adoptions and 417 international adoptions. Three thousand seven hundred forty-five children were adopted in the preceding year. Taking note of the country&#8217;s poor adoption rate, the Supreme Court granted a petition on April 12 to streamline the legal process for child adoption in India.</p>



<p>The Supreme Court issued a notice to the Centre on April 12 in response to a plea brought by the NGO &#8216;The Temple of Healing,&#8217; represented by petitioner Piyush Saxena. In his courtroom presentation, Mr. Saxena said, “As per the data available in the public domain, there are only 4,000 child adoptions annually but till last year we had three crore orphan children in the country. There are several infertile couples who are willing to have a child.”</p>



<h2>Child Adoption Resource Authority (CARA).</h2>



<p>CARA is an autonomous and statutory organization of the Government of India&#8217;s Ministry of Women and Child Development. The system functions as a centralized digital database of adoptable children and potential adoptive parents. It serves as the main organization for Indian child adoption and is responsible for monitoring and regulating both in-country and inter-country adoptions.</p>



<p>CARA has been recognized as the Central Authority to handle inter-country adoptions in compliance with the rules of the 1993 Hague Convention on Inter-country Adoption, which the Government of India signed in 2003.&nbsp;</p>



<p>CARA primarily works with recognized adoption agencies to place &#8220;orphaned, abandoned, and relinquished&#8221; children. CARA permitted persons in a live-in relationship to adopt children from and in 2018.</p>



<h2>Stakeholders of the Adoption Process</h2>



<p>The following Stakeholders are involved in the process of Adoption:</p>



<p>1. Central Adoption Resource Authority (CARA) &#8211; CARA oversees the smooth operation of the adoption process by issuing Adoption Guidelines outlining the procedures and processes that all stakeholders in the adoption program must follow.</p>



<p>2. State Adoption Resource Agency (SARA) &#8211; In collaboration with the Central Adoption Resource Authority, the State Adoption Resource Agency serves as a nodal authority within the state to promote and supervise adoption and non-institutional care.</p>



<p>3. Specialised Adoption Agency (SAA) &#8211; The State Government recognizes Specialised Adoption Agency (SAA) under sub-section 4 of Section 41 of the Act for the purpose of putting children for adoption.</p>



<p>4. Authorised Foreign Adoption Agency (AFAA)- An AFAA is a foreign social or child welfare agency that has been authorized by the Central Adoption Resource Authority on the advice of the concerned Central Authority or Government Department of that country to coordinate all issues pertaining to the adoption of an Indian child by a citizen of that country.</p>



<p>5. District Child Protection Unit (DCPU) &#8211; A District Child Protection Unit (DCPU) is a unit established at the district level by the State Government under Section 61A of the Act. It identifies orphaned, abandoned, and lost infants in the district and has them legally deemed adoptable by the Child Welfare Committee.</p>



<h2>Who is allowed to adopt a child?</h2>



<p>Prospective adoptive parents must be physically, intellectually, and emotionally healthy, financially capable, and eager to adopt a child. They must also be free of any life-threatening medical conditions. Any hopeful adoptive parent, regardless of marital status or biological son or daughter, is eligible to adopt a child.</p>



<p>A single female can adopt a kid of either gender, but a single guy cannot adopt a girl child. In the event of a couple, both spouses&#8217; approval is essential. No child shall be placed for adoption with a spouse unless they have been in a stable married relationship for at least two years.</p>



<p>The maturity /age of prospective adoptive parents as of the date of registration shall be taken into account when determining the suitability and willingness of prospective adoptive parents to seek children of various age groups. The age difference between the kid and any potential adoptive parent should be at least 25 years.</p>



<p>&nbsp;The prospective adoptive parents&#8217; age at the time of registration will determine their eligibility. In the case of family adoptions and step-parent adoptions, the age limits for prospective adoptive parents do not apply.</p>



<p>Couples with three or more children are not eligible for adoption, save in the case of special needs children as described in sub-regulation (21) of regulation 2, difficult to place children as defined in regulation 50, and relative adoption and step-parent adoption.</p>



<h2>How to adopt a child?</h2>



<p>Only by submitting an online application at www.cara.nic.in and following the processes outlined in the Adoption Regulations, 2017 may a child be adopted. Please visit the website www.cara.nic.in for further information. Get Online Advice</p>



<p>To adopt a kid, you must now register online through CARINGS. If you are unfamiliar with/unable to register online, you can contact your district&#8217;s District Child Protection Officer (DCPO).</p>



<h2>Conclusion</h2>



<p>The adoption rules have greatly improved, as has the standing of women in society. However, some communities are unable to legally adopt a kid due to a lack of a universal civil code on adoption. Only by implementing a consistent civil code would all communities in India be able to legally adopt a child, therefore improving the health of childless parents. The adopted child will be well-cared for and protected, and he or she will have a wonderful future.&nbsp;</p>


Adoption rules in india

What are the Rules for Adoption in India? 

Legal Documents

Interests in immovable property are obtained in the transferee's favor upon the transfer of such property to him. To know more about this, get online legal advice.

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<h2>Introduction</h2>



<p>Property transfer and exchange are fairly prevalent in an individual&#8217;s day-to-day existence. Indian Law has a number of provisions concerning the property. But first, what exactly do we mean by &#8220;property&#8221;? Property is any physical or virtual entity owned by an individual or group of individuals who have ownership and rights to the property.</p>



<p>According to Indian law, the property can be transferred or sold from one person to another by a variety of procedures such as a will, gift deed, etc. The Transfer of Property Act of 1882 (ToPA) governs the transfer of property from one person to another. Section 19 of the Transfer of Property Act deals with a provision called Vested interest.</p>



<h2>What is Vested Interest?</h2>



<ul><li>A vested interest is an interest developed in favor of a person when the condition provided for the contract of property transfer is definite, and the event will occur in the future.&nbsp;</li><li>The transferer and the transferee enter into a property transfer contract, and the transferer creates a condition for the fulfillment of the property transfer, and upon accomplishment of the condition, the transferee has ownership of the property.&nbsp;</li><li>The transferee may not receive ownership of the property immediately after signing the contract, but he might anticipate it after meeting certain conditions.</li></ul>



<h2>Section 19 of the Transfer of Property Act</h2>



<p>Section 19 of Transfer of Property Act of 1882[1] defines vested interest as –</p>



<p>“Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer. A vested interest is not defeated by the death of the transferee before he obtains possession.”</p>



<p>For example, person X commits to transfer the property and enter into a contract with person Y. In this case, X is the property transferer and Y is the property transferee. For the purpose of transferring the property, X stipulates that Y may take ownership only after X&#8217;s death. X&#8217;s death is a definite occurrence that will undoubtedly occur in the future, and hence Y can claim X&#8217;s property after X&#8217;s death. If Y dies before X, the property will be passed on to Y&#8217;s rightful heirs following X&#8217;s death. In this case, Y has a vested interest in X&#8217;s property.</p>



<h2>Vested Interest Characteristics</h2>



<p>Vested Interest has the following characteristics-</p>



<p>1.&nbsp; &nbsp; Certain events have a vested interest in them. The condition of the contract must be definite for the fulfillment of a contract connected to the transfer of property by vested interest. A vested interest does not include an impossible or unknown occurrence.</p>



<p>2.&nbsp; &nbsp; Certain occurrences are conditions that are expected to occur in the future, such as death, aging, and so on. The contract&#8217;s fulfillment is exclusively dependent on the occurrence of specific conditions.</p>



<p>3.&nbsp; &nbsp; Vested Interest applies even if both parties die. The interest is not lost by the transferee&#8217;s death if he or she passes away before being able to use the property, and the transferee&#8217;s lawful heirs will be granted the right to use the property.</p>



<p>4.&nbsp; &nbsp; Vested Interest is both a transferable and heritable right. The transferee, under a contract of property transfer by vested interest, possesses both transferable and heritable rights. It denotes that the individual has both the rights to the property while claiming it from the transferor and the rights to the property after his death. After the transferee&#8217;s death, the property will pass to his lawful heirs.</p>



<h2>Conditions That Apply to Vested Interest</h2>



<p>When the parties are minors, bankrupt, or unborn, the criteria for vested interest might vary. The Transfer of Property Act of 1888, the Indian Partnership Act of 1932, and the Indian Contract Act of 1872 all specify property rights and possession in such circumstances.</p>



<p>1.&nbsp; &nbsp; Minor: When a contract for the transfer of property is entered into while a person is still a minor, that person is governed by the legal guardian who is in possession of the property until the minor reaches the age of majority and is not permitted to exercise any rights in the vested interest until that time.</p>



<p>2.&nbsp; &nbsp; The Unborn Child: Section 13 of the Transfer of Property Act of 1888 states that an unborn child is not regarded as a living person and cannot possess a vested interest individually. The unborn child will have access to his or her rights upon birth, and the interest in the property is instantly passed to the unborn kid&#8217;s or children&#8217;s legal heirs.</p>



<h2>What Is the Difference Between Vested and Contingent Interest?</h2>



<p>Section 19 of the Transfer of Property Act of 1888 mentions vested interest. Section 21 of the Transfer of Property Act of 1888 mentions contingent interest. Vested Interest only occurs if a certain event occurs. Contingent Interest only occurs if an unclear occurrence occurs.</p>



<p>The death of the transferee does not negate vested interest. The transferee&#8217;s death will result in the failure of contingent interest. Vested Interest is both a transferable and heritable right. Contingent interest is transferable, but it is not always inherited.</p>



<h2>The idea of Vested Interest</h2>



<p>Vested Interest is defined under Section 19 of the Transfer of Property Act of 1882. It is an interest generated in favor of a person when no period is specified or a condition of the occurrence of a certain event. The individual with the vested interest does not have ownership of the property but expects to obtain it upon the occurrence of a specific event.</p>



<h2>Conclusion</h2>



<p>Under the Transfer of Property Act of 1888, the transferee has two basic categories of interests in the contract of transfer of property: vested interest and contingent interest. Section 19 of the Transfer of Property Act of 1882 to section 24 of the Act outline the requirements of vested and contingent interest.</p>



<p>Such interests in immovable property are obtained in the transferee&#8217;s favor upon the transfer of such property to him. This transfer of interest might occur immediately or upon the occurrence of a specific event. To know more about this, Consult a Lawyer now!</p>


section 19 of transfer of property act

An Explainer on Vested Interest in a Property: Sec 19 of Transfer of Property Act

Take the help of a legal expert to understand the relevance of Section 35 of the TPA. It helps you choose whether to go with the transaction and get online advice.

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<h2>Introduction</h2>



<ul><li>The election under Section 35 of the Transfer of Property Act (“<strong>TPA</strong>”) refers to the ability to select from presumed options. Both moveable and immovable properties are included in the notion of election.&nbsp;</li><li>It stipulates that if someone claims to be transferring property over which they have no legal authority without first notifying the owner, they must go to the owner to ask for the property&#8217;s disposal. The decision to authorize it or not rests with the owner.</li><li>It follows that he has the legal authority to use the doctrine of election to concur in a transaction or to object to it. It is always better to register your gift deed beforehand. </li></ul>



<h2>What are the essential ingredients for constituting an Election under Section 35 of TPA?</h2>



<ul><li>Property transfers should not be made by the owner of the asset being transferred.</li><li>The transferor is required to grant a portion of his own property to the property&#8217;s owner simultaneously and in the same document.</li><li>Both transfers—transferring the owner&#8217;s property to the transferee and giving the owner of the property a benefit—must be completed in the same transaction. If the transfers are made as a result of two different instruments, the notion of election is not relevant.</li><li>The proprietor must have a proprietary interest in the asset. A creditor has no obligation to support the candidate because he only has a personal claim to payment from the debtor.</li><li>The owner who benefits indirectly from the transaction but does not directly profit from it is not put to an election.</li><li>When the benefit is received by a person in a different capacity, the election issue is not present. For instance, a person could receive an inheritance from an estate while also keeping the property if it was within his personal competence.</li></ul>



<h2>When does the requirement of Election arise under Section 35 of TPA?</h2>



<p>The requirement of Election arises under Section 35 of TPA when the transferor-</p>



<ul><li>Decides to quit his rights in order to transfer.</li><li>They must decide whether to take it or not in the same transaction if he doesn&#8217;t.</li><li>Until then, he must release the advantages.</li><li>Benefits accrued up to that time return to the transferor as if they had never been granted.</li></ul>



<p>Even if he at least pays to the transferee when benefits are returned, this is possible in the following circumstances:</p>



<ul><li>When a transfer is voluntary, and the transferor is unable to execute another transfer due to death or another circumstance.</li><li>The transfer is a possibility.</li></ul>



<h2>When is a person not required to Elect under Section 35 of TPA?</h2>



<p>According to Section 35 of TPA, the individual gains indirectly from the transactions rather than directly.</p>



<h2>In what circumstances does a person elect to dissent from the Election under Section 35 of TPA?</h2>



<p>The transferred service will be returned to the transferor or his representative as if he had not been released, in accordance with Section 35 of TPA, if the owner decides not to allow the transfer. It might happen as follows:</p>



<ul><li>The transfer is voluntary, and the transferor has either passed away or lost the ability to make further transfers.</li><li>In all circumstances where the transfer needs to be verified, it is the transferor&#8217;s or his agent&#8217;s duty to make up for disgruntled purchasers. The property&#8217;s worth or amount that will be transferred if the option is exercised is the compensation amount.</li></ul>



<h2>What is the time limit applicable to ELection under Section 35 of TPA?</h2>



<p>Section 35 of TPA states that the transferor or his representative must get a notice from the property owner within a year of the transfer&#8217;s date. If they don&#8217;t respond after the term has passed, even if they are aware of the expiration date and have heard it through their representatives, they will be assumed to have confirmed the election.</p>



<p>Election by a person with a disability is not possible unless and until:</p>



<ul><li>His condition gets better.</li><li>Someone else who is not impaired makes the decision on his behalf.</li></ul>



<h2>What are the exceptions applicable to the doctrine of Election under Section 35 of TPA?</h2>



<p>According to the provisions of Section 35 of the TPA, a beneficiary clause must be made for the transferee when the transferee accepts the transfer. The transferor may then accept the transfer and make use of the beneficiary clause, or the transferee may object. However, there is a specific exemption to this regulation, which states that if the transferee does not expressly consent or make a firm decision, then it will be assumed that they have approved the transfer in the following circumstances:</p>



<ul><li>It will be deemed that the transferee has accepted if they fully benefit from the beneficiary clause mentioned in the transfer or in other circumstances where they do.</li><li>The transferee is required to respond if, after a year, no approval has been given about the transfer of the property. If he or she didn&#8217;t, it would be assumed that they had given their consent to the transfer.</li><li>When there is a disability, such as a minority or insanity, the electoral duty is suspended unless the guardian makes the transfer.</li><li>Suppose the transferor includes both an independent beneficiary clause and a beneficiary clause at the moment of transfer. Therefore, the transferee will likewise receive the independent beneficiary clause even if they did not consent to the transaction.</li></ul>



<h2>Conclusion<strong>&nbsp;</strong></h2>



<p>The Doctrine of Election is described in Section 35 of TPA, 1882. According to the doctrine of election, which may be a common-law rule of equity, the beneficiary must decide between maintaining the property or accepting the device if a testator attempts to remove property that belongs to someone else and makes a device thereon. </p>



<p>Therefore, Section 35 of TPA states that a person who derives an indirect benefit from a transaction but does not directly gain from it need not elect. Additionally, a person who benefits from the transaction in one role may object to it in another.</p>


Section 35 of TPA

The doctrine of Election under Section 35 of the Transfer of Property Act of 1882 

The process of drafting a deed of gift can be simplified with the help of expert advocates.

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<h2>Introduction</h2>



<p>The Transfer of Property Act of 1882 defines a gift as a voluntary transfer of ownership without any consideration from the transferor. Section 122 states that there are no conditions, and if the transferor is willing to give up his property, including cash, without receiving anything in return, the transfer is said to be unconditional. Section 56 of the Income Tax Act also talks about the taxation of gifts that are received without consideration or with inadequate consideration.</p>



<h2>Taxation of Gift from father to daughter</h2>



<p>The following are the situations in which gifts are taxed: Gifts that are taxed in the recipient&#8217;s hands under the heading &#8220;Income from Other Sources.&#8221;</p>



<p><strong>1. Monetary gift from father to daughter:</strong> Any amount of money received without consideration by the daughter and the aggregate value of such money received throughout the year exceeds Rs 50000 will be taxed in the hands of the father&nbsp;</p>



<p><strong>2.</strong> <strong>Gift from father to daughter in Receipt of Immovable Property:</strong></p>



<p>a) No Consideration: If the value of the such property exceeds Rs 50,000, the father will be taxed. It will be taxed under the category of &#8220;Other Income.&#8221;</p>



<p>b) Inadequate Consideration: If the consideration is less than the stamp duty value of the property and the difference is greater than the higher of Rs 50,000 or 10% of the consideration, then the father will be taxed.</p>



<h2>Gift From Father to daughter under Income Tax Act,1961</h2>



<p>Section 2(41) of the Income Tax Act, 1961, gives the following definition of the term &#8220;relative&#8221;: &#8220;Relative,&#8221;&nbsp; in relation to an individual, means the husband, wife, brother, sister, or any lineal ascendant or descendant of the individual.</p>



<p>Gifts from the father to daughter are tax-free, regardless of the amount. A parent would be considered a &#8220;relative,&#8221;; thus, a gift from a father to a daughter will not be taxed in his hands as income. Without having any financial consequences for the kids, parents are free to give their kids any amount of money from their taxable income. Parents and kids fall under the defined category of &#8220;relatives,&#8221; who are excluded from paying income tax under the Income Tax Act.</p>



<ol><li>Husband/Wife, Son/Daughter (including stepchild and adopted child),</li></ol>



<p>2) Father/Mother (including stepfather/mother),</p>



<p>3) Daughter-in-law/Son-in-law, Brother-in-law (and his wife),</p>



<p>4) Sister-in-law (and her husband) are tax-exempt.&nbsp;</p>



<p>It would be in the daughter&#8217;s interest to get written confirmation there was a transfer of gift from father to daughter. Later, if the income tax officer wants, he can ask you to prove the identity and capacity of the donor to make the gift to her. She will need to prove that it was a gift from father to daughter.</p>



<h2>Exempt Tax</h2>



<p>Under Section 56, individuals are exempt from Income tax for gifts received on certain occasions, such as marriage. A gift from father to daughter for her marriage will be an exception. This is applicable only when the gift is in the name of the donee, who is either the bride or the groom; it would be taxable otherwise.</p>



<h2>Gift Deed<strong>&nbsp;</strong></h2>



<p>A gift deed is a legal document that is used when one person wishes to transfer money or property to another. A gift from father to daughter can be made during his lifetime. The gift can be property or anything else. For this purpose, since the immovable property is being transferred, he will have to execute a gift deed in your favor.</p>



<h2>Essentials of a Gift from father to daughter</h2>



<p>1) While drafting a deed of gift from father to daughter, the person must keep in mind that a gift is only considered valid if it is made voluntarily, without consideration.</p>



<p>2) There must be an offer by the donor, and the offer must be accepted by the donee. And the donee accepts the gift, according to Section 122 of the Transfer of Property Act, 1882.</p>



<p>3) The gift from father to daughter must be made willingly by the father, without any monetary transaction, and accepted by you. The deed must be signed by your father and witnessed by two witnesses.</p>



<h2>Registration of Gift Deed</h2>



<p>Section 17 of the Registration Act of 1908 lays down the documents that must be registered. As per Section 17(1)(a) of the Registration Act, a gift deed must be compulsorily registered, and charges have to be paid. Each state government determines a different value for stamp paper. A deed drafted for a gift from father to daughter must be written on the stamp paper after paying the applicable charges, after which the gift deed should be registered at the registrar&#8217;s or sub-registrar&#8217;s office.</p>



<h2>Advantages of a Gift Deed</h2>



<p>1) It allows the donor to freely transfer ownership of the movable or immovable property to the donee. In the case of a gift from father to daughter, this can be easily executed.</p>



<p>2) It allows the property owner to donate the property to anybody and removes any future inheritance or succession problems. A gift deed, unlike a will, transfers property quickly and does not require a court appearance to be performed.</p>



<p>3) A movable or immovable property, or an existing transferable property, can be donated via a deed. Having a registered deed will assist you in preventing any further disputes.</p>



<p>4) For the most part, deed transfers are generally Income tax-free for both the sender and the donee. Since a gift from father to daughter is tax-free, deed transfers are simpler.</p>



<h2>Contents of the Gift Deed</h2>



<p>1) The place and date on which the deed is to be executed.</p>



<p>2) Relevant information on the gift deed regarding the donor and the donee, such as their names, address, relationships, date of birth, and signatures.</p>



<p>3) Provide complete information and details about the property for which you draft a gift deed.</p>



<p>4) Two witnesses to bear testimony of the deed and their respective signatures</p>



<p>5) Print the details on the stamp paper with applicable value depending upon each state</p>



<p>6)Stamp rate</p>



<p>7) Getting the deed registered at the respective registrar or sub-registrar&#8217;s office.</p>



<h2>Conclusion</h2>



<p>The income tax levied on a gift from father to daughter is an important concept to be understood. The transfer of property by way of gift is a common process; however, it is important for the owner to comprehend the complexities of the property transfer and to follow the enabling terms relating to the legal system. <br><br>The deed can be drafted and executed properly with the help of legal professionals and proper online legal advice. With the right guidance and assistance from legal experts, this process is simplified.</p>


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