Archive for the ‘Uncategorized’ category

An Overview on Indonesian Company Law

December 22nd, 2020

Every company in Indonesia must duly establish in accordance with Law Number 40 of 2007 on Limited Liability Companies (“Company Law”) and other laws or regulations which regulates type of such companies, investment model and industries specialization.

Basically Company Law regulates as follows:-

- Establishment and its procedures;
- Capital and Shares;
- Work Plan, Annual Report and Use of Profits;
- Social and Environmental Responsibilities (Mandatory obligation for company having business activities in the field of and/or related to natural resources)
- General Meeting of Shareholders;
- Board of Directors and Board of Commissioners;
- Merger, Consolidation, Acquisition, and Corporate Split;
- Inspection of Company; and
- Dissolution, Liquidation, and Termination of Company’s Status as Legal Entity.

The Company Law is considered as an “umbrella” provisions for every company that runs its business in Indonesia along with other specific laws which regulates specific consideration.

In Indonesia there are two types of company, which are:-

- Public Listed Company (Tbk) – Governs by Law 8 of 1995 on Capital Market; and
- Private Company.

Public Listed Company means the company offers its securities (stock/shares, bonds/loans, etc.) for sale to the general public, typically through a stock exchange, on the other hand Private Company is on the contrary (do not offer its securities for sale to the general public).

In relation with investment model there are two types of investment model for Indonesian company, which are:-

- Foreign Direct Investment; and
- Local Investment (both governs by Law 25 of 2007 on Investment).

In relation with company which capital owned by the State, such company also must comply with Law 19 of 2003 on State Owned Enterprise.

For specific company industry, there are many laws and regulation governs such company, such as:-

- Banking Industry (Governs by Law 10 of 1998 on Bank);
- Insurance Industry (Governs by Law 2 of 1992 on Insurance Industry);
- Telecommunication Industry (Governs by Law 36 of 1999 on Telecommunication);
- Mining Industry (Governs by Law 4 of 2009 on Mineral and Coal Mining);
- Plantation Industry (Governs by Law 18 of 2004 on Plantation);
- Et cetera.

Know the Types of Laws Prevailing In a State

December 6th, 2020

It is the laws that allow a state to function in a proper order. The legal system protects the rights of the individuals so as to ensure that they are safe and secured in every way. They are the rules that govern the character and function of any individual or group. They regulate the social and economic interactions and maintain that they are smoothly conducted. They are a source of primary mediator between the relations of the people.

It is better to know that every country has its personal legal system. They are generally divided into different branches. To name them it can be said that there is corporate law, taxation law, property law, international law, environmental health law, etc. Every type of law has some or the other importance with respect to the society. Some of the major laws that need mention are as follows:

Criminal Law

The criminal law is enforced to pass a judgment over the criminal activities. They are administered by the individual jurisdictions in every place, including the self-governing territories. It is a matter of concern for the state. In certain cases, the central government of the country and the Commonwealth might also have a say in the case.

Contract Law

The contract law is something that is enforced for the encompassing of the laws or the regulations in terms of certain promises. In most countries, these are related to the common law.

Industrial Law

The industrial law is the rules and regulations that the working people gas to abide by. It also ensures to protect their rights. They also put a restriction on the organizations and mediate the relationship between trade unions, employees and employers.

Constitutional Law

The constitutional law defines different entities within a state. These are divided into three parts or wings, namely the legislature, judiciary and the executive. They are in charge of the total processes of managing the state. With them enforced the ministers, the government bodies are directed the path to their work.

Administrative Law

If any of the subjects of the state wishes to challenge the action or a decision of the state or the country or a government official or an authority they can do so with the help of this law. It is also applicable in case the person on whom one wants to challenge is not a government official but is making use of the public power.

In all the above-mentioned circumstances the judgment is passed down by the court of law and the applicants or here the citizens have to abide by them. The court, therefore, has the final say in such cases.

The Chronicles of Law Profession

November 26th, 2020

There are no accounts of when exactly the legal profession flourished. However, history says that long before the Common Era, people depended on individuals who were knowledgeable of their laws to defend their arguments in courts when they got into conflicts with others. These law experts and defenders are those who have emerged today as lawyers or attorneys.

When we speak of laws, it does not necessarily mean that we should only tackle those rules and regulations set by the authorities. Dealing with it implies understanding the concepts of justice, human rights and responsibilities to others and most especially the accepted rights and wrongs in the society. It is therefore more precise to think of law as the application of principles that are assumed just and appropriate in a specific dealing or situation.

Today, we may say that the legal professionals are segregated in their particular line of specialization since a single lawyer may not have the capacity to focus his attention in all the broad issues defining law practice. Some of the major areas of law are:

o International law

o Constitutional law

o Criminal law

o Cyber law

o Business law

o Labor law

o Family law

o Immigration law

o Intellectual Property law

o Military law

o Maritime law

o Statutory law

o Social Security law

o Tort law

o Taxation law

These laws are subdivided into even more specific terms to address a particular concern of an individual or entity. This listing also signifies the intricate and all-encompassing aspect of human laws that has been utilized to set a standard on how the citizens should act in a certain state or society.

Aside from this list, lawyers concentrate on their practice depending on their preferences and particular skills. For example, legal professionals who are quite at ease with articulating themselves in public and have that exemplary talent in thinking and responding to certain issues promptly and suitably are well fitted to be trial lawyers. Like any other legal field of specialization, this also involves lots of paper works, investigative tasks and strategic planning.

On the other hand, some lawyers focus their attention in assisting the injured victims of accidents, malpractice or negligence in filing their charges against the offenders. Hence, they provide their services to recover suitable damages from the defendants or the insurance companies.

Lawyers specializing in the criminal law are those who either prosecute or defend their clients in the courtroom. Yet, they handle cases that involve not just monetary considerations if proven guilty but also stricter penalties such as community service, imprisonment and even death sentence.

Nevertheless, lawyers are not tasked by the society to design, create and implement the laws. Their main obligation and duty is more on applying the laws – to ensure that the clients will be properly guided and represented on their particular legal concerns or cases. This will explain their vital role in upholding justice and fairness in the society.

Finally, the extensive studies and trainings that lawyers undergo before they actually exercise their profession make them worthy of such recognition. Besides, the fact that they were able to pass the strict standards of the government agencies and the American Bar Association in issuing professional licenses is enough to establish their credits to perform their jobs.

Online Law Educational Programs and Degrees

November 3rd, 2020

Students that want to become attorneys need to successfully complete the correct amount of schooling. Students have to complete a specific level of education in order to practice law. Online colleges and universities offer students numerous opportunities to step into careers.

The first thing that needs to be completed in order to enter law school is a bachelor’s degree program. Students can complete a program in any field they desire. Law schools recommend taking some pre-law or paralegal courses to prepare students for training inside their chosen law program. Once a bachelor’s degree is completed students can enter law school. The Law School Admissions Test has to be passed in order to start education.

A Juris Doctor degree is what allows students to step into the industry. Programs typically last three years and train students in all foundational areas of law. Elective courses are often taken to create a personalized degree so students can work in their desired area of law. Many students combine their degree with another master’s degree level program in a specific area of law, which makes training at least two to four years longer. Common courses taken inside a Juris Doctor degree program may include:

Legal Writing
Torts
Comparative Environmental Law

Upon completion of a program students are required to pass a bar exam to legally practice law. For online students this is extremely important because the American Bar Association does not accredit online schools. Some states allow students that have completed an online law program to petition to take the exam. Students have to pass the exam in the state they will practice in. It is strongly recommended that students check with their state to ensure their online education will allow them to become licensed lawyers. If a particular state does not recognize online degree programs as sufficient training, students will have to attend a traditional college.

Online education provides students with many concentrations. Students that complete their education online can find a program that matches their interests. Some concentration areas may include:

*Business Law

Both business and law are incorporated into graduate degree study. Coursework explores the main areas where both fields meet each other. Areas like contracts and mergers are studied to prepare students for careers. Law and business concepts are combined together to create a unique educational training opportunity. Bankruptcy law, taxation law, community property, and marketing management are some courses that emphasize both the business and law industries.

*Family Law

The general practice of family law will be examined in this concentration. Students learn how to handle child custody disputes, divorces, abuse cases, and more. Education typically includes general criminal law and all the necessary family law courses. Adoption law, legal rights of children, and nontraditional family law are some courses taken.

Online Law Educational Programs and Degrees

October 27th, 2020

Students that want to become attorneys need to successfully complete the correct amount of schooling. Students have to complete a specific level of education in order to practice law. Online colleges and universities offer students numerous opportunities to step into careers.

The first thing that needs to be completed in order to enter law school is a bachelor’s degree program. Students can complete a program in any field they desire. Law schools recommend taking some pre-law or paralegal courses to prepare students for training inside their chosen law program. Once a bachelor’s degree is completed students can enter law school. The Law School Admissions Test has to be passed in order to start education.

A Juris Doctor degree is what allows students to step into the industry. Programs typically last three years and train students in all foundational areas of law. Elective courses are often taken to create a personalized degree so students can work in their desired area of law. Many students combine their degree with another master’s degree level program in a specific area of law, which makes training at least two to four years longer. Common courses taken inside a Juris Doctor degree program may include:

Legal Writing
Torts
Comparative Environmental Law

Upon completion of a program students are required to pass a bar exam to legally practice law. For online students this is extremely important because the American Bar Association does not accredit online schools. Some states allow students that have completed an online law program to petition to take the exam. Students have to pass the exam in the state they will practice in. It is strongly recommended that students check with their state to ensure their online education will allow them to become licensed lawyers. If a particular state does not recognize online degree programs as sufficient training, students will have to attend a traditional college.

Online education provides students with many concentrations. Students that complete their education online can find a program that matches their interests. Some concentration areas may include:

*Business Law

Both business and law are incorporated into graduate degree study. Coursework explores the main areas where both fields meet each other. Areas like contracts and mergers are studied to prepare students for careers. Law and business concepts are combined together to create a unique educational training opportunity. Bankruptcy law, taxation law, community property, and marketing management are some courses that emphasize both the business and law industries.

*Family Law

The general practice of family law will be examined in this concentration. Students learn how to handle child custody disputes, divorces, abuse cases, and more. Education typically includes general criminal law and all the necessary family law courses. Adoption law, legal rights of children, and nontraditional family law are some courses taken.

Non-Resident Taxation Policies for Canadian Non-Residents

October 16th, 2020

Canada’s tax system is similar to that of many countries. Employers and other payers usually deduct taxes from the income they pay you, and people with business income usually pay their taxes by installments. Under Canada’s tax system, you have the right and the responsibility to determine your income tax status and make sure you pay your required amount of taxes for each year according to the law.

As per the regulations that are cited in the non-resident taxation policy of the Canadian Revenue Agency (CRA), any nonresident that offers service in Canada and earns an income out of it is liable to pay nonresident tax. So, you should be aware of the entitlements, the rights and the obligations that you face when receiving such income if you are a non-resident who is offering services or plan to offer your services in Canada.

The Canadian non-resident taxation policies can be a bit confusing for people as there are a lot of different rules in the taxation laws and if you are not aware of the terms that are used typically in taxation, then you may find it even more difficult to understand. Some of the nonresidents are exempted from tax as per the tax treaties that are signed between the respective countries and some of the income have to be taxed like it is done for Canadian residents.

You were a non-resident of Canada for tax purposes if one of the following situations applies to you:

• You did not have significant residential ties in Canada and you lived outside Canada throughout the year, except if you were a deemed resident of Canada. For example, you could be a deemed resident of Canada if you were an employee of the Government of Canada posted abroad.

• You did not have significant residential ties in Canada and you stayed in Canada for less than 183 days in the year. Any day or part of a day spent in Canada counts as a day. If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation; Or

• You were deemed not to be resident in Canada under the Income Tax Act because of the provisions of a tax treaty Canada has with another country.

If you are facing any problems with the Canadian taxation of nonresidents, then it is a good option to seek the services of a tax expert who has specialized in dealing with non-resident taxation issues. Such tax experts will have very good knowledge of the various problems that arise due to Canadian nonresident tax and also the options available to you to get over the issue you are facing currently. But it is very important to select a tax expert who has the expertise and also the experience in handling such issues as problems related to nonresidents can get ugly if not properly handled.

Corporate Laws In India

September 27th, 2020

A company incorporated in India under the Companies Act, 1956, being a legal personality, has to obey all the laws enacted by the Government of India for its creation, continuation and association with the parties of the outside world.

The main laws which will impinge upon the existence of a company in the corporate sector are:

-The Indian Companies Act, 1956;

-Foreign Exchange Management Act, 1999;

-Laws on Foreign Investment in India;

-Laws on Financial Systems and Capital Markets;

-Immigration Laws; and

-Taxation laws of India.

COMPANIES ACT

The existence of a legal framework is perhaps the most significant aspect of the corporate environment. Not being an exception, the Indian company law, largely based on its English counterpart, streamlines the procedure for regulation of Indian companies & branches of foreign companies operating in India.

Concept & Types

As understood under Companies Act, 1956 a company is an incorporated association registered under the act, having an independent entity distinct from the members constituting it. Companies so incorporated can exist as public or private companies with or without limited liability.

Incorporation

The promoters, deciding the nature of company to be floated, can initiate incorporation of a company, by making application for availability of the name, prepare memorandum & article of association and file it with Registrar of Company (R.O.C.), who after scrutinizing the documents issues the certificate of incorporation.

MoA &AoA

Memorandum of association (MoA) comprises of the fundamental parameters upon which company is enacted which includes clauses of name, registered office, objects, liability & subscription. Similarly, articles of association (AoA) constitute the rules & regulations that govern the management of its internal affairs & conduct of business including provisions relating to share capital of the company, rights of various shareholders, transmission of shares etc.

Share Capital
Shares may be defined as indivisible units of fixed amounts into which the capital of the company is divided. Generally, a public company is entitled to issue two kinds of shares-equity & preference.

FOREIGN EXCHANGE MANAGEMENT ACT

The object of this Act is to help corporate India to have foreign associations in Indian companies and Indian associations in foreign companies in the form of investments, collaborations, mergers & acquisitions and joint ventures, etc.

Foreign Investment in India:

► As an Indian company

A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through:

o Joint Ventures

o Wholly Owned Subsidiaries

Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment policy.

Other options are:

-Joint Venture

-Wholly Owned Subsidiary

► As a foreign company

Foreign Companies can set up their operations in India through:

o Liaison Office / Representative Office:

o Project Office;

Branch Office;

o Branch Office on a ‘Stand Alone Basis’.

► Automatic Route

Under the existing policy, FDI up to 100% is allowed under the automatic route in all activities/sectors except the some selected sectors, which require the prior approval of the Government:

► Government Route

FDI activities not covered under the automatic route require prior Government approval & are considered by the Foreign Investment Promotion Board (FIPB). An application can be made online or on a plain paper accompanied by all the relevant documents. The approvals are generally granted expeditiously.

THE FINANCIAL SYSTEM

The financial system in India is regulated by the Government of India for raising capital for the corporate sector from the Indian capital market and by the Reserve Bank of India for regulating the foreign exchange loans in the form of external commercial borrowings. The Securities and Exchange Board of India is an important and independent legal authority created by the Central Government for regulating the raising of capital through offer of shares to the public.

BANKING

Foreign Direct Investment (FDI) in India is permitted in the banking sector, however, there is a limit for FDI in the banking sector in India.

Foreign investment by way of transfer of shares of 5% and more of the paid up capital of a private sector banking company, requires prior approval of RBI. Wherever applicable, FDI in banking companies should confirm to provisions regarding shareholding and transfer etc.

Financial Institutions:

The financial system in India allows an Indian corporate to raise foreign currency resources abroad by issuing ADR/GDR, Foreign Currency Convertible Bonds (FCCBs). India also encourages foreign institutional investors.

Mergers & Acquisitions:

In case of mergers and acquisitions, the primary aspect is the acquisition of shares in the Indian entity. An Indian corporate through the issue of ADRs or GDRs can issue shares.

IMMIGRATION LAWS

A foreigner is a person born in or coming from a foreign country. The entry of foreigners’ stay, movements and departure is regulated by the Immigration Laws passed by the Indian Parliament and rules framed there under by the Central Government from time to time.

The relevant laws as applicable for various purposes to foreigners visiting India are:

o The Passports (Entry into India) Act, 1967

o The Foreigners Act, 1946 (as amended from time to time)

o The Citizenship Act, 1955 (as amended from time to time)

o The Immigration (Carriers’ Liability) Act, 2000

o The Illegal Migrants (Determination By Tribunals) Act, 1983

Types of Visas:

(1) Tourist Visas;

(2) Collective Visas;

(3) Transit Visas;

(4) Business Visa;

(5) Student Visa;

(6) Conference Visa;

(7) Employment Visa;

(8) Recreation.

The intention behind the above immigration laws is to see that genuine entrepreneurs and business enterprises come to participate in the blooming economy of this country by participating in the economic activities of this country.

TAXATION SYSTEM IN INDIA

India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax.

Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.

In last 10-15 years, Indian Taxation System has undergone tremendous reforms to come at par with International taxation Systems. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.

Real Estate Taxation

September 2nd, 2020

What Is a Real Estate Tax?

Real estate tax is also known as property tax and is the tax that government imposes on a property. The property tax is said to be influenced by only one factor and that is the value of the property. The higher the property value, the more tax you will have to pay for it. It is a tax that has a lot of controversy behind it as people are not too keen on property tax. The fact that they have to shell out a good fortune to buy a property and above that, they have to keep paying property tax every year. The government levies real estate tax for the services that it provides to the property and the property taxes are different from one country to another.

Real Estate Taxation

The property tax that is levied on a property is to be paid the owner of the property on a yearly or half yearly basis to the government. There was a lot of opposition to property taxes being so high and also having to be paid every year. There were situations where some owners have paid more than half the value of the property as taxes over the years. This led to a lot of changes to the real estate taxation norms in countries and there were also a lot of benefits and reduction of tax percentages that were brought into the taxation policy. But as it is well known, there are always some criteria that have to be met if we want to take advantage of the sops that the government has provided in the real estate tax slabs.

Get an Expert to Help You With Property Taxation

It is not easy to keep tabs of the tax laws that are in use in a country and add the fact that there are changes in tax laws every year, it is not an option for a person to know every tax law that will influence him.

One can be aware of the major taxation laws that are important and not get into the intricate laws that exist.

Real estate taxation can be a tricky thing to do and it is better to get the help of a good tax consultant who specializes in property taxes to ensure that you do not end up paying more than you ought to.

There are ways to save tax in any taxation and it is the tax experts who will be able to tell you what has to be done in order to save tax.

How to Select a Good Real Estate Tax Expert

Experts in taxation are available to help you in tax planning and to help you in saving money by making you pay less taxes. But finding a good expert can be tricky. Research and find out the best real estate tax experts available closer to you, check on their reputation and consumer reviews and then shortlist a few of them. Then talk to the shortlisted experts and identify if anyone has experience in handling your type of taxation and then look at the fee charged by the expert. Consider all the options and take you time to select a good tax expert for you.

Principles of Residence As They Apply to Taxation Law

September 2nd, 2020

An individual is an Australian resident if he or she resides in Australia under the primary ordinary concepts of the test of residence or satisfies one of three statutory residence test. Residents in the primary sense is quite different from domicile, nationality and citizenship. Whether a person resides in Australia is essentially a question of fact and degree and there is no one rule which will determine issue in every case. The dictionary definition of reside is have one settled the blow, dwell permanently or for a reasonable considerable time leave in awe at a particular place. It is not necessary through person to reside in a particular structure such as a house. Whilst physical presence alone may be insufficient evidence of residence, it does seem to be a prerequisite to a finding of residence in a particular place.

A person may be resident in more than one place. An individual may be held to be resident Australia, even though living permanently abroad, if individual visits Australia for part of the year as part of the regular order of his or her life. Conversely a sailor, for example, would arisen in Australia if you she maintains a family home in Australia which the sailor spends time whilst in Australia, even though absent from the country to most of the year. Members of the defenceless is serving abroad retain their residency but may also be held to reside in the country in which they are serving. A person need not intend to remain permanently in place to be found to reside there but it seems that where the duration of the state is not decisive, the circumstances under which a person moved to that location should be considered.

Marketing, Promoting and Advertising Your Business

February 28th, 2020

One thing that goes without saying in today’s business world, is that regardless of the nature of your home based business, a website is an absolute MUST. Whether you have a product or service to sell, whether local or global, your business will go nowhere fast if you don’t have an online presence. If you need internet marketing help, you’ve landed on the right article. I’ll give you some home based business marketing ideas that will help you promote your business successfully.

The first step is choosing a domain name and getting it registered. You can build your own website (if you have the time) and host it yourself or you can have everything done by another company (if you have the money). Either way, you have many options and tools at your disposal that can align with your business plan and budget. Also note that you can still start your own home based business even if you don’t have a product or service to sell. There are thousands of individuals and companies that have products you can sell for them while earning a commission, called affiliate marketing.

Of the many business marketing strategies known to man, internet marketing is, hands down, the best strategy to use for promoting a home based business as it is the cheapest method and has the potential for reaching millions of people all over the globe. Driving traffic to your site through online resources is like killing two birds with one stone. You can tackle print advertising by writing articles and publishing them to directories and ezines and by submitting ads to the many available (and most of them free) classified ad sites. Online media advertising encompasses writing press releases and distributing them to press release sites. One of the biggest and most popular online advertising trends today is via social media advertising through sites such as Twitter, Facebook, and LinkedIn where you build relationships with your customers. Forums and communities are also great ways to build relationships which helps promote your home based business in the long run. Simply Google your market or industry with the word ‘forum’ or ‘community’ behind it and search for one or two that seem to be the best fit for you.

All of these methods of online advertising contribute to search engine optimization (SEO), which is to say improving your online visibility and escalating in the search engines like Google, Yahoo and Bing. Your goal is to claim the #1 spot in the organic search results (the results on the left, not the right side which are paid ads). This is where your traffic will come from. If you are 800 in the list of search results, no one is ever going to see your site because very few people have the time or patience to scroll through 800 search results. Research shows that people typically won’t even scroll past 4 or 5 search results, let alone 800.

Can you grasp the importance of internet marketing for any business? If you are new to the internet marketing phenomenon and don’t know exactly where to start, there are many great programs or systems online that walk you through every aspect of marketing your online business. A lot of these systems were created by online entrepreneurs who have spent thousands of their own dollars trying to figure it all out over the years and finally DID. Their sacrifices have made it easier for newbies to become successful at their own online home based business. If you are new to running your own home based business, I recommend you find a great system (do your research, read reviews, ask questions in forums) and start marketing your home business from there. Don’t waste the time and money that so many of us have in going it alone, without a proven system, as it will just set you back further and hinder your progress.