Template Of Memorandum Of Understanding: Fill & Download for Free

Read this article - start-up registering business in india ?The information on starting or registering a business in india, is not one of those things that are very well available. The government staff who do it, don't want any layman to be informed, because their bread and butter is in the bribe money they get on each and each thing they do to accept your registration to helping you understand what and how to do it.But things are better with egovernance now.. read on. I think the company registration stuff is one of the first things to be a successful egovernanance project for India.About this post:I am setting up this blog post, and will be updating it regularly as I find more information on this and other interesting areas of starting businesses in India.. also I plan to write posts on my experience over years in helping people operate or handle their businesses... in the context of Indian companies only.If you have something to share/add/suggest, you can email me at harish.palaniappan @ Email from Google and I will find time to discuss with you and add your information and experiences in this blog as well.Information On Companies, Acts, and processes in IndiaMay be these links help to kick-off your information collection drive:Starting your own business in IndiaForming a company in IndiaStarting a business - by doingbusiness.orgThe Indian Ministry of company affairs websiteStarting a business in singaporeMCA21 : Online company registrations and other e-form processesThe Indian ministry of company affairs has setup an online governance website since september 2006 (delayed by almost 6 months) with the help of Tata consultancy services.* Note: Before you read further, understand that this post is not updated regularly when the ministry of companies of india's policies or processes change.. so you should look at this as a starter only.. and do find for yourself more information at the Registrar Of Companies offices around India.. or in the mca21 website.Types of companies:In the different types of companies that can be registered (or that can be created in India at all legally), there's no possibility of starting a single person company.. At a minimum, you can only start a private firm with 2 directors.But, the government has been recommended by an expert committee, to add a new class of companies which is proposed as 'One person company' and probably may have OPC Pvt. or OPC Pvt. Ltd. as the ending name of the company.If this recommendation is approved (which probably will be by amendments in the companies Act), then there will be a possibility of registering One Person companies in India. As of now, you atleast make a friendly legal entity as a director apart from yourself, like your mother or wife, or some friend, and register your company as a Private company with minimum 2 directors.Though it is technically bad that India hasn't still recognized 'one person companies', practically it is better to register as a private company since that will avoid further paper work when your 'one person company' grows to have employees which then requires a conversion in your registration or possibly re-registration.-- continuted --If you are a small enterpreneur, as it happens always, and probably into Software solutions, planning to be a product-based company, or services-based company, thinking of selling your software products / services within India or abroad, then registering your company as a Private firm with 2 directors would do. But this would allow you only to do business within the country. For legally allowing yourself to attract foreign currency through sales or service costs, all you need is an Import/Export number/code (costs somewhere less than 2000 rupees i heard...this number you will quote later while filing your filing your returns.. for foreign currency revenues)...but registering as a private company seems to be the first job to do.To register a private company:1. You can do everything onlineDoing the process online means, you download forms, fill them up digitally using adobe acrobat reader software, attach your digital signature and submit it in submission page on Ministry of Corporate Affairs The website says it will give you service request number for every such submission and you can track status of application online with that number. Also, if a form is rejected and if it is put in 'resubmit with proper information' or something like that, then without additional cost you can refill and resubmit under the same request number.1. Get DSC (digital signature):For all this you need a digital signature. Since there is no paper involved you can only sign digitally.. and only legal and secure method is through digital signatures which are given unique to every person who buys one.Note that the digital signature has nothing to do with your manual signature, it is some very very long and undetectable code provided to you as a file through email or in a thumb drive like storage media.And yes, keep the file or DSC media safe once you buy, because anybody can just steal this file and attach your digital signature to all documents that accept digital signatures (which is only company incorporation or name change or efiling forms today.. but later many other processes in life, for example filing company returns, also might start being computerized and accepting digital signatures)You buy DSC from Digital Ceritifying Authorities in India like MTNL (delhi and mumbai), TCS(all over india), and otherslisted here.While visiting the above websites you will see that there are different classes of digital signatures, and might be confused on which one to buy. The one that is minimum required for our discussion is 'Class 2 individual' or higher classes but something that is for an 'individual'. It is worthy to note here that, 'Class 1 certificate for individuals' which is a basic type of dignital certificate, is for 'individuals' but this DSC is not given based on proof of identity or proof of address.. so the government may not accept 'Class 1 certificates'.Recommedation: Buy a 'Class 2 individual' certificate.2. Get DIN (Directory Identification number):This is probably the only low cost process in incorporation. It costs 100 rupees to get yourself registered as a director (or going-to-be-director) of some company within india.Seems like anybody can apply for a DIN, provided you have any of these.. driving license/passport/elector ID, which is a valid proof of identity, and proof of address.The step-by-step process of getting a DIN is given hereRemember to get a DIN for your mom / wife / partner also if you plan to ask them be the second director of your small company.MCA User RegistrationTo submit forms, on the MCA website, you need an identity on the website.For now, since you may not have a DIN and DSC, you can register as an individual, using the 'New user registration' link on Ministry of Corporate Affairs . Then you can login with your password just like in yahoo mail or hotmail.After you get a DIN and DSC, re-register as a Business professional, using the same link.. and then on you will use your DSC to login to the website.3. Form 1A - Company name availability and blocking.This application is for blocking the name of the company you want to register.All forms that we are talking about in this or other steps are available hereBefore you download and fillup form 1A, you should check whether your company name is available through this pageFill up form 1A, with 2 DINs, affix your DSC, if you have to attach any documents scan them and attach them as files in the end of the form as applicable. Then submit the form. Note your request number and track the form until it is approved. We are almost half done.The above 3 items are the main items and all or most processes below can be done simultaneously.4. Role CheckThis is a simple process where a DIN and DSC are matched and verified to be of the same person, and also that this person is a valid signatory of the company.I am not sure, but this process might be neccessary only for efiling of tax or returns.. not for incorporation..Details about this step is here. http://mca.gov.in/MinistryWebsite/dca/rolecheck/rolecheck.html5. Form 1 - Incorporation Application:Download Form 1, fillup, attach digital sign and submit.6. Form 18 - Office address formDownload Form 18, fillup, attach digital sign and submit.7. Form 32 - DIN appointmentDownload Form 32, fillup, attach digital sign and submit.Steps 5, 6, 7 constitute the main parts... and if the Forms 1, 18 and 32 are approved, you will get a CIN or company identification number which you should quote alongwith your Company's PAN number (apply for one, if you don't have), in all future forms like tax forms, name change or address change forms.The overall cost of registering a private company with 2 DIN's through online mode, could cost as less as 2500 Rupees.. but this estimate can increase based on your capital investment which you will mention in Form 1A and others.As mentioned earlier,All forms are available hereAll process applications should take only a few days to be processed.All above processes might not have their old manual form filing methods sooner and everything will become digital because the ministry of company affairs is overwhelmed by its data, and is strongly being computerized. Already tax forms I think, are no more accepted in paper and government has recruited filing officers who help those who are not able to use a computer and do the process digitally.All above processes are part of a system called MCA21 and is managed and authorized for use by the ministry of company affairs and all its registrar of companies (RoC) offices.Initially, me and my friend hired a consultant for doing my friend's company's Registration(/Incorporation).Though this consulting company does it through Ministry of Corporate Affairs website only, they put in their experience of dealing with government processes.But, yes, you don't need to hire a consultant if you have the time to do it online, and if you know people who can attest your proof of identities (a gazetted officer), and if you know some lawyer who has authority to notarize with his signature anything that you produce on a stamp paper.Our consultant, was an authorized 'Company secretary'. It seems Ministry of Company affairs (MCA) has training and certifications for 'company secretary', which people take up and get authorized/certified (by the govt.) to provide these services to people. Company secretaries are obviously people authorized to do more than just incorporation.. like handling disputes between directors of companies, handling buyouts of companies, and many other things like that.. which require people with legal and indian acts and policy knowledge to do it.For us, our consultant would take care of verifying all documents, getting them attested, getting any legal papers notarized, and submit them through Ministry of Corporate AffairsCertain processes are easy.. and you can go to a consultant after these processes and save a few thousands in fee.For example, if you are a techie, and understand browsing and related technologies, then you are actually better than the consultant for getting your digital signature... and this one thing itself could save you more than 500 rupees. because I understand consultants cost 700 - 1500 rupees for filing your DSC application itself.Digital Signature:Just apply for a digital signature as mentioned above.. in TCS or MTNL websites.They will ask you to send some documents to a verification authority.The verification company will just verify your id proof and address proof and send you a digital signature kit with an eToken.An eToken is a protected pen drive/flash drive/usb drive, in which you can't do any data transfer but it will have your digital signature in it and when you insert it into any PC usb key, it installs the signature on the machine...not everything.. just the general part of it. you have to keep the key on the machine until you sign documents and remove it after.This kit and the digital signature costs 1,200 rupees for two years of validity.. (cost from TCS)If you apply from your machine, yourself, you will pay 1200 to the verification authority. nothing else. But if you use a consultant, he will do the online part also for you (assuming you are not the tech friendly person) and charge you twice or even more than the actual cost.Form 1A, and DIN application:These two forms are the initial steps, and probably easy steps for incorporation.Form 1A:Ministry Approval of Form 1A that you submit, means your company name and location is approved and you can start incorporation process. The name is valid only for 6 months and you should incorporate within 6 months.. or you can renew the name for another 6 months. The cost is a flat price of 500 rupees payable on http://Ministry of Corporate Affairs through credit card.If you are starting a software company, Form 1A will have no problems.. since the ministry won't question your address of manufacturing. Other businesses might have problems if the ministry feels your address is a residential area and you business is not proper to be there.. or things like that.In Form 1A, you have to give 6 or 7 company name choices.You type names... likeSample solutions Pvt., Ltd.,Sample software solutions Pvt., Ltd.,Sample Pvt., Ltd.,One of it gets approved.Director Identification Number (DIN):In India, to incorporate a company you need minimum two directors.. (yes, the law is outdated, and only recently government is considering recommedations that single person companies should be allowed to register)If you don't have another director, pull some friend you like.. or easier, get your mother or father as another director. So, atleast two directors should apply for and get a DIN to register the company under them. Later you can always change your directors, company name, address, anything.. just by submitting that form or application alone...and ofcourse paying for that change alone.If you are two or more people who will be directors, and if all of you have a valid passport, no other proof is required for submitting to government anywhere in the full process. A valid passport stands proof for name, address, and father's name most of the time... and the company affairs ministry seems to approve all applications with passport as proof for people, very smoothly.You don't need a consultant for submitting DIN if you follow the instructions clearly on the DIN pages that the ministry has.I think on Digital signature, and DIN .. ministry's website is clear.. and process itself is clear and easy to do by anybody who has used software like browsers, adobe acrobat, etc.,After two DIN's get approved, you can use the DINs and DSC of one director to apply for the actual, main, important form .. FORM 1. .. so this is why the first form we submitted was called FORM 1A (I was wondering why isn't called form 1 if its the first step in incorporation)For Form 1, we need the following.1. Form 1A approval (approving the name of the company)2. DIN numbers of directors (minimum two directors for pvt. ltd. company)3. Articles of Association (a stamped paper agreement signed by directors stating their claims of part ownership of company, has all about holding of shares, how they could be sold, how they could be bought back, blah blah..)4. Memorandum of Association (again a stamped paper document signed by directors stating what all are the objectives of the business, what all they want to sell/buy/resell/import etc., through the operations in the business, what all rights they will exercise in doing the business like renting space/real estate, having employees, etc., blah blah.. important part will be statement of objectives of business.. its like asking for incorporation only to do business on these lines.. if the operations or objectives change, you have to change the memorandum and resubmit for approval until which you can't do the new business)5. Form 18 stating the address of registered office of the company. (a simple form)6. Form 32 stating the DIN numbers of directors of the company. (a simple form)Sample word document templates for 3. and 4. can be downloaded from here (3) and here (4).Before you download, check up whether the ministry website has latest template of these files downloadable there.. as of this writing the ministry website hasn't put a link since this is a legal document and obviously it is a very important step which needs complete understanding by the person before signing it. The links above are provided only for you to have access to samples so you can read in detail before you get into doing it. Also, if you get to read, the 'Memorandum document (4)' read the 'objects' part carefully, because it says what you want to do with your business and you know this better than your consultant.Submitting Form 1 means, submitting all the above.In submitting Form1, you will need a consultant or help with the text from a Chartered Accountant, or company secretaries, or simply referrence documents from friends who have already done this.That's if.. you submit Form 1 digitally scanned and signed with the digital signature of one of the directors, through Ministry of Corporate Affairs... originals also have to be submitted to the registrar of companies.While submitting Form 1, you have to pay a registration fee which is based on a slab for the capital you are mentioning.. minimum capital is 1,00,000 rupees.. I mentioned just that, and the fee was 4,800 rupees for that.. (so that means it takes a minimum of 4800 rupees for registering a private limited company in India, not like I thought earlier that it could be done with around 2500 rupees).Government generally approves Form 1 submission in 1 day after the originals are submitted.Sometimes if the objectives of business stated in the memorandum is not clear / the AOA (3) or MOA (4) documents have mistakes / incomplete, then the registrar office raises a query or asks for deletion of objectionable points, or asks clarifications.. and the form has to be resubmitted if changes are made.. and I believe you don't have to pay again for corrections but I am not sure. For this part, probably being proactive, my consultant took a power of attorney from me and my mom for doing such changes himself, if they are raised, and to resubmit the memorandum himself without signatures from the directors (me or my mom).Once, your Form 1 is approved, within a day or two you will receive an email with a one page pdf certificate of incorporation(unsigned) with a Company Identification Number (CIN).. probably they will send an original signed one later which I am yet to receive.Actually, you should start business transactions, only after you receive this certificate.. though it happens usually that everybody does registration or incorporation a couple of years after starting business.Import / Export Code - IEC:After Registering the company, a software solutions provider, who wants to be able to provide services to foreign clients, or sell products online to people outside India, MUST apply for an Import/Export license.Bank account:For getting IEC, you need to have a current account in a bank under your new registered company's name. The bank will obviously ask your documents of company registration. Other than that, the bank will ask you a 'Board Resolution' from your company, signed by all registered directors of the company, authorizing one or more of the directors of the company to open and operate the account in the company's name. The board resolution is just a letter/statement from the people who represent the company, but some banks like it in a specific format and you can ask the bank to give you the board resolution format if they have. Some banks even have this format downloadable on their websites 'corporate banking' sections.The current account, will also be useful for you to do transactions in your company's name, which is a MUST for accounting your company's cash flows. Also, you will be able to accept payment from your clients in the name of your company through Cheques, direct wire transfer, etc., which clients will like since they will understand that your company is a permanent entity, and you are not somebody who takes money and can go missing.IEC application process is simple:You get an application form from the Zonal director general of Foreign Trade.. or download from their website (like their Tamilnadu/Chennai office website).Major attachments to this process are:1. your company registration form,2. a letter from your bank attesting that a current account is held under your company's name operated by one of the director's of the company, and the bank should attest in the letter the photographs of the directors of the company.The zonal director's office will guide and help you in the application process by rejecting the application with corrections mentioned clearly for you to correct and re-submit, each time you do it.Some consultants take close to 3000 rupees to do the IEC process.. my recommendation Do it yourself if you have not done this before, you will like to know and be clear of what is happening.

NEPAL'S POLITICSThe politics of Nepal function within a framework of a republic with a multi-party system. Currently, the position of President (head of state) is occupied by Bidhya Devi Bhandari. The position of Prime Minister (head of government) is held by Puspa Kamal Dahal (Prachand).[1] Executive power is exercised by the Prime Minister and his cabinet, while legislative power is vested in the Constituent Assembly.Until May 28, 2008, Nepal was a constitutional monarchy. On that date, the constitution was altered by the Constituent Assembly to make the country a republic.On June 1, 2001, Crown Prince Dipendra was officially reported to have shot and killed his father, King Birendra; his mother, Queen Aishwarya; his brother; his sister, his father's younger brother, Prince Dhirendra; and several aunts, before turning the gun on himself. Although he never regained consciousness before dying, Crown Prince Dipendra was nonetheless the king under the law of Nepalese royal succession. After his death two days later, the late King's surviving brother Gyanendra was proclaimed king.2005–2007: Suspension of parliament and Loktantra Andolan[edit]Main article: 2006 democracy movement in NepalOn 1 February 2005 King Gyanendra suspended the Parliament, appointed a government led by himself, and enforced martial law. The King argued that civil politicians were unfit to handle the Maoist insurgency. Telephone lines were cut and several high-profile political leaders were detained. Other opposition leaders fled to India and regrouped there. A broad coalition called the Seven Party Alliance (SPA) was formed in opposition to the royal takeover, encompassing the seven parliamentary parties who held about 90% of the seats in the old, dissolved parliament.The UN-OHCHR, in response to events in Nepal, set up a monitoring program in 2005 to assess and observe the human rights situation there[3]On 22 November 2005, the Seven Party Alliance (SPA) of parliamentary parties and the Communist Party of Nepal (Maoist) agreed on a historic and unprecedented 12-point memorandum of understanding (MOU) for peace and democracy. Nepalese from various walks of life and the international community regarded the MOU as an appropriate political response to the crisis that was developing in Nepal. Against the backdrop of the historical sufferings of the Nepalese people and the enormous human cost of the last ten years of violent conflict, the MOU, which proposes a peaceful transition through an elected constituent assembly, created an acceptable formula for a united movement for democracy. As per the 12-point MOU, the SPA called for a protest movement, and the Communist Party of Nepal (Maoist) supported it. This led to a countrywide uprising called the Loktantra Andolan that started in April 2006. All political forces including civil society and professional organizations actively galvanized the people. This resulted in massive and spontaneous demonstrations and rallies held across Nepal against King Gyanendra's autocratic rule.The people's participation was so broad, momentous and pervasive that the king feared being overthrown.[citation needed] On 21 April 2006, King Gyanendra declared that "power would be returned to the people". This had little effect on the people, who continued to occupy the streets of Kathmandu and other towns, openly defying the daytime curfew. Finally King Gyanendra announced the reinstatement the House of Representatives, thereby conceding one of the major demands of the SPA, at midnight on 24 April 2006. Following this action the coalition of political forces decided to call off the protests.Twenty-one people died and thousands were injured during the 19 days of protestsOn 19 May 2006, the parliament assumed total legislative power and gave executive power to the Government of Nepal (previously known as His Majesty's Government). Names of many institutions (including the army) were stripped of the "royal" adjective and the Raj Parishad (a council of the King's advisers) was abolished, with his duties assigned to the Parliament itself. The activities of the King became subject to parliamentary scrutiny and the King's properties were subjected to taxation. Moreover, Nepal was declared a secular state abrogating the previous status of a Hindu Kingdom. However, most of the changes have, as yet, not been implemented. On 19 July 2006, the prime minister, G. P. Koirala, sent a letter to the United Nations announcing the intention of the Nepalese government to hold elections to a constituent assembly by April 2007.December 2007 to May 2008: Abolition of the monarchy[edit]On 23 December 2007, an agreement was made for the monarchy to be abolished and the country to become a federal republic with the Prime Minister becoming head of state.[4] Defying political experts, who had predicted it to be trounced in the April 2008 elections, the Communist Party of Nepal (Maoist) became the largest party amidst a general atmosphere of fear and intimidation from all sides.[5] A federal republic was established in May 2008, with only four members of the 601-seat Constituent Assembly voting against the change,[6] which ended 240 years of royal rule in Nepal. The government announced a public holiday for three days, (May 28—May 30), to celebrate the country becoming a federal republic.This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2010) (Learn how and when to remove this template message)Major parties such as the Unified Communist Party of Nepal (Maoist), Communist Party of Nepal (Unified Marxist-Leninist) (CPN UML) and the Nepali Congress agreed to write a constitution to replace the interim one within 2 years. However, uncooperative and "selfish" behavior of the political parties has been cited[by whom?] as the major cause behind the de-railing of the peace process.The Maoists, as the largest party of the country, took power right after the elections and named Pushpa Kamal Dahal (Prachanda) as the Prime Minister of the country. CPN UML also joined this government, but the Nepali Congress took the part of the main opposition party. People soon saw that the country's situation deteriorated and political turmoils were in store.[citation needed] Prachanda soon fell into a dispute with the then army chief Rookmangud Katwal and decided to sack him. But the President Ram Baran Yadav, as the supreme head of military power in the country, revoked this decision and gave the army chief additional time in office. An angry Prachanda and his party quit the government, majorly citing this reason and decided to operate as the main opposition to the government headed by CPN UML and its co.POLITICS OF INDIAPolitics in India take place within the framework of its constitution, because India is a federal parliamentary democratic republic, in which the President of India is the head of state and the Prime Minister of India is the head of the central government. India follows the dual polity system, i.e. a double government which consists of the central authority at the center and states at the periphery. The constitution defines the organization powers and limitations of both central and state governments, and it is well-recognized, rigid and considered supreme; i.e. laws of the nation must conform to it.There is a provision for a bicameral quequette legislature consisting of an Upper House, i.e. Rajya Sabha, which represents the states of the Indian federation and a lower house i.e. Lok Sabha, which represents the people of India as a whole. The Indian constitution provides for an independent judiciary, which is headed by the Supreme Court. The court's mandate is to protect the constitution, to settle disputes between the central government and the states, to settle inter-state disputes, to nullify any central or state laws that go against the constitution, and to protect the fundamental rights of citizens, issuing writs for their enforcement in cases of violation.[1]Governments are formed through elections held every five years (unless otherwise specified), by parties that secure a majority of members in their respective lower houses (Lok Sabha in the central government and Vidhan Sabha in states). India had its first general election in 1951, which was won by the Indian National Congress, a political party that went on to dominate subsequent elections until 1977, when a non-Congress government was formed for the first time in independent India. The 1990s saw the end of single-party domination and the rise of coalition governments. The elections for the 16th Lok Sabha, held from April 2014 to May 2014, once again brought back single-party rule in the country, with the Bharatiya Janata Party being able to claim a majority in the Lok Sabha.[2]In recent decades, Indian politics has become a dynastic affair.[3] Possible reasons for this could be the absence of party organizations, independent civil society associations that mobilize support for the parties, and centralized financing of elections.[4]5.2 Vice President of India5.3 The Prime Minister and the Union Council of Ministers5.4 State Governments5.5 Dynasties in Indian Politics6 Political parties and alliances[edit]For other political parties, see List of political parties in India. An overview on elections and election results is included in Elections in India.Main articles: Indian general election, 2009 and Indian general election, 2014Compared with other democratic countries, India has a large number of political parties. It has been estimated that over 200 parties were formed after India became independent in 1947.[5]Some features of the political parties in India are that the parties are generally woven around their leaders, the leaders actively playing a dominant role, and that the role of leadership can be transferred, thus tending to take a dynastic route. The two main parties in India are the Bharatiya Janata Party and the Indian National Congress, Indian National Congress dominates Indian politics. On the left-right political spectrum, the Indian National Congress is a welfare-heavy, centre-left party, whereas the BJP is a fiscally conservative, center-right party.Parliament of India.Types of political parties[edit]Main article: List of political parties in IndiaThere are many types of political parties in India - National Party and Regional/State party. Every political party must bear a symbol and must be registered with the Election Commission of India. Symbols are used in Indian political system as an identity of political parties and so that illiterate people can also vote by recognizing symbols of party.[6]In the current amendment to the Symbols Order, the Commission, has infused the following five principles, which, in its view, should govern the polity in the country, situate as it is in its present state:[7]Legislative presence is a must for recognition as a National or State party.For a National party, it must be the legislative presence in the Lok Sabha and for a State party, the legislative presence must be reflected in the State Assembly.In any election, a party can set up a candidate only from amongst its own members.A party, that loses its recognition, shall not lose its symbol immediately, but shall be given the facility to use that symbol for some time to try and retrieve its status. [However, the grant of such facility to the party to use its symbol will not mean the extension of other facilities to it, as are available to recognized parties, like, free time on Doordarshan/AIR, free supply of copies of electoral rolls, etc.]Recognition should be given to a party only on the basis of its own performance in elections and not because it is a splinter group of some other recognized party.Criteria[7] -A political party shall be eligible to be recognized as a National party if :-it secures at least six percent(6%) of the valid votes polled in any four or more states, at a general election to the House of the People or, to the State Legislative Assembly; andin addition, it wins at least four seats in the House of the People from any State or States.OR it wins at least two percent (2%) seats in the House of the People (i.e., 11 seats in the existing House having 543 members), and these members are elected from at least three different States.Likewise, a political party shall be entitled to be recognized as a State party, if :-it secures at least six percent (6%) of the valid votes polled in the State at a general election, either to the House of the People or to the Legislative Assembly of the State concerned; andin addition, it wins at least two seats in the Legislative Assembly of the State concerned.ORit wins at least three percent (3%) of the total number of seats in the Legislative Assembly of the State, or at least three seats in the Assembly, whichever is more.At present there are 5 national parties and many more state parties.Alliances[edit]India has a history of alliances and breakdown of alliances. However, there are three alliances on a national level in India, competing with each other for the position of Government. The member parties work in harmony for gratifying national interests, although a party can jump ships The three alliances -National Democratic Alliance (NDA) - Centre-Right coalition led by BJP was formed in 1998 after the elections, NDA formed the government although the government didn't last long as AIADMK withdrew support from it resulting in 1999 general elections, in which NDA won and resumed power. The coalition government went on to complete the full five years term, becoming the first non-Congress government to do so. In the 2014 General Elections, NDA once again returned to power for the second time, with a historic mandate of 336 out of 543 Lok Sabha seats. BJP itself won 282 seats thereby electing Narendra Modi as the head of the government.United Progressive Alliance (UPA) - Centre-Left coalition led by Indian National Congress, this alliance was created after the 2004 General Elections, with the alliance forming the Government. The alliance even after losing some of its members, was reelected in 2009 General Elections with Manmohan Singh as head of the government.Third front - The coalition of parties which do not belong to any of the above camps due to certain issues. They are not bound together due to any ideological similarities but primarily due to their stand of maintaining distance with both major parties. One of the party in the alliance CPI(M), prior to 2009 General Elections was a member party of the UPA. The alliance has no official leading party and generally smaller parties keep coming and leaving the alliance as per political convenience. Many of these parties ally at national level but contest against each other at state level.Local governance[edit]Main articles: Panchayati Raj and Local self-government in IndiaPanchayati Raj Institutions or Local self-government bodies play a crucial role in Indian Politics, as it focuses on grass-level administration in India.On April 24, 1993, the Constitutional (73rd Amendment) Act, 1992 came into force to provide constitutional status to the Panchayati Raj institutions. This Act was extended to Panchayats in the tribal areas of eight States, namely Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Maharashtra, Madhya Pradesh, Orissa and Rajasthan from 24 December 1996.The Act aims to provide 3-tier system of Panchayati Raj for all States having population of over 2 million, to hold Panchayat elections regularly every 5 years, to provide reservation of seats for Scheduled Castes, Scheduled Tribes and Women, to appoint State Finance Commission to make recommendations as regards the financial powers of the Panchayats and to constitute District Planning Committee to prepare draft development plan for the district.Role of political parties[edit]Part of the Politics seriesParty politicsPolitical spectrumLeft-wingPost-left Far-left New Left Hard leftCenter-wingCentre-left Radical center Centre-rightRight-wingHard right New Right Far-rightParty platformExtremist RadicalModerate Reformist Syncretic Third PositionConservative Fundamentalist ReactionaryParty systemNon-partisan One-partyDominant-party Two-party Multi-partyCoalitionHung parliament Confidence and supply Minority government Rainbow coalition Grand coalition Full coalitionNational unity government Majority governmentListsPolitical parties by country Political parties by UN geoscheme Political ideologiesPolitics portalv t eFor other political parties, see List of political parties in India. An overview on elections and election results is included in Elections in India.As with any other democracy, political parties represent different sections among the Indian society and regions, and their core values play a major role in the politics of India. Both the executive branch and the legislative branch of the government are run by the representatives of the political parties who have been elected through the elections. Through the electoral process, the people of India choose which representative and which political party should run the government. Through the elections any party may gain simple majority in the lower house. Coalitions are formed by the political parties, in case no single party gains a simple majority in the lower house. Unless a party or a coalition have a majority in the lower house, a government cannot be formed by that party or the coalition.Current ruling parties in the states and union territories of IndiaBJPCoalition with BJPINCCoalition with INCOther partiesIndia has a multi-party system, where there are a number of national as well as regional parties. A regional party may gain a majority and rule a particular state. If a party is represented in more than 4 states, it would be labelled a national party. Out of the 66 years of India's independence, India has been ruled by the Indian National Congress (INC) for 53 of those years, as of March 2014.The party enjoyed a parliamentary majority save for two brief periods during the 1970s and late 1980s. This rule was interrupted between 1977 and 1980, when the Janata Party coalition won the election owing to public discontent with the controversial state of emergency declared by the then Prime Minister Indira Gandhi. The Janata Dal won elections in 1989, but its government managed to hold on to power for only two years.Between 1996 and 1998, there was a period of political flux with the government being formed first by the nationalist Bharatiya Janata Party (BJP) followed by a left-leaning United Front coalition. In 1998, the BJP formed the National Democratic Alliance with smaller regional parties, and became the first non-INC and coalition government to complete a full five-year term. The 2004 Indian elections saw the INC winning the largest number of seats to form a government leading the United Progressive Alliance, and supported by left-parties and those opposed to the BJP.On 22 May 2004, Manmohan Singh [8] was appointed the Prime Minister of India following the victory of the INC & the left front in the 2004 Lok Sabha election. The UPA ruled India without the support of the left front. Previously, Atal Bihari Vajpayee [9] had taken office in October 1999 after a general election in which a BJP-led coalition of 13 parties called the National Democratic Alliance emerged with a majority. In May 2014, Narendra Modi of BJP was elected as Prime Minister of India.Formation of coalition governments reflects the transition in Indian politics away from the national parties toward smaller, more narrowly based regional parties. Some regional parties, especially in South India, are deeply aligned to the ideologies of the region unlike the national parties and thus the relationship between the central government and the state government in various states has not always been free of rancor. Disparity between the ideologies of the political parties ruling the centre and the state leads to severely skewed allocation of resources between the states.Political issues[edit]Main article: Socio-economic issues in IndiaSee also: Corruption in IndiaSocial issues[edit]The lack of homogeneity in the Indian population causes division between different sections of the people based on religion, region, language, caste and race. This has led to the rise of political parties with agendas catering to one or a mix of these groups. Parties in India also target people who are not in favour of other parties and use them as an asset.Some parties openly profess their focus on a particular group; for example, the Dravida Munnetra Kazhagam's and the All India Anna Dravida Munnetra Kazhagam's focus on the Dravidian population and Tamil identity; Biju Janata Dal's championing of Odia culture; the Shiv Sena's pro-Marathi agenda; Nagaland People's Front's demand for protection of Naga tribal identity; People's Democratic Party and National Conference's calling for Kashmiri Muslim identity. Some other parties claim to be universal in nature, but tend to draw support from particular sections of the population. For example, the Rashtriya Janata Dal (translated as National People's Party) has a vote bank among the Yadav and Muslim population of Bihar and the All India Trinamool Congress does not have any significant support outside West Bengal.The narrow focus and votebank politics of most parties, even in the central government and central legislature, sidelines national issues such as economic welfare and national security. Moreover, internal security is also threatened as incidences of political parties instigating and leading violence between two opposing groups of people is a frequent occurrence.Economic issues[edit]Economic issues like poverty, unemployment, development are main issues that influence politics. Garibi hatao (eradicate poverty) has been a slogan of the Indian National Congress for a long time. The well known Bharatiya Janata Party(BJP) encourages a free market economy. The more popular slogan in this field is Sab Ka Sath, Sab ka Vikas (Cooperation with all, progress of all). The Communist Party of India (Marxist) vehemently supports left-wing politics like land-for-all, right to work and strongly opposes neo-liberal policies such as globalisation, capitalism and privatisation.Law and order[edit]Terrorism, Naxalism, religious violence and caste-related violence are important issues that affect the political environment of the Indian nation. Stringent anti-terror legislation such as TADA, POTA and MCOCA have received much political attention, both in favour and opposed.Terrorism had effected politics India since its conception, be it the terrorism supported from Pakistan or the internal guerrilla groups such as Naxalites. In 1991 the former prime minister Rajiv Gandhi was assassinated during an election campaign.[10] The suicide bomber was later linked to the Sri Lankan terrorist group Liberation Tigers of Tamil Eelam, as it was later revealed the killing was an act of vengeance for Rajiv Gandhi sending troops in Sri Lanka against them in 1987.[10]The Babri Masjid demolition on December 6, 1992 by Hindu Karsevaks resulted in nationwide communal riots in two months, with worst occurring in Mumbai with at least 900 dead.[10][11] The riots were followed by 1993 Mumbai Bomb Blasts, which resulted in more deaths.Law and order issues, such as action against organised crime are issues which do not affect the outcomes of elections. On the other hand, there is a criminal–politician nexus. Many elected legislators have criminal cases against them. In July 2008, the Washington Post reported that nearly a fourth of the 540 Indian Parliament members faced criminal charges, "including human trafficking, child prostitution immigration rackets, embezzlement, rape and even murder".[12]High Political Offices in India[edit]President of India[edit]Main article: President of IndiaThe Constitution of India lays down that the Head of State and Union Executive is the President of India. S/He is elected for a five-year term by an electoral college consisting of members of both Houses of Parliament and members of legislative assemblies of the states. The President is re-eligible for elections; however, in India's independent history, only one president has been re-elected till now - Rajendra Prasad.The President appoints the Prime Minister of India from the party or coalition which commands maximum support of the Lok Sabha, on whose recommendation he/she nominates the other ministers. The President also appoints judges of the Supreme Court and High Court. It is on the President's recommendation that the Houses of Parliament meet, and only the president has the power to dissolve the Lok Sabha. Furthermore, no bill passed by Parliament can become law without the president's assent.However, the role of the president of India is highly ceremonial. All the powers of the president mentioned above are exercised on recommendation of the Union Cabinet, and the president does not have much discretion in any of these matters. The president also does not have discretion in the exercise of his executive powers, as the real executive authority lies in the cabinet. The current President is Pranab Mukherjee.Vice President of India[edit]Main article: Vice President of IndiaThe Office of the Vice-President of India is constitutionally the second most senior office in the country, after the President. The vice-president is also elected by an electoral college, consisting of members of both houses of parliament.Like the president, the role of the Vice-President is also ceremonial, with no real authority vested in him/her. The Vice-President fills in a vacancy in the office of President (till the election of a new president). His only regular function is that he functions are the Chairman of the Rajya Sabha. No other duties/powers are vested in the office. The current Vice President is Mohammad Hamid Ansari.The Prime Minister and the Union Council of Ministers[edit]Further information: Prime Minister of India, Union Council of Ministers, and Narendra Modi ministryThe Union Council of Ministers, headed by the Prime Minister, is the body with which the real executive power resides. The Prime Minister is the recognized head of the government.The Union Council of Ministers is the body of ministers with which the PM works with on a day-to-day basis. Work is divided between various ministers into various departments and ministries. The Union cabinet is a smaller body of ministers which lies within the Council of Ministers, which is the most powerful set of people in the country, playing an instrumental role in legislation and execution alike.All members of the Union Council of ministers must be members of either House of Parliament at time of appointment, or must get elected/nominated to either House within six months of their appointment.It is the Union Cabinet that co-ordinates all foreign and domestic policy of the Union. It exercises immense control over administration, finance, legislation, military, etc. The Head of the Union Cabinet is the Prime Minister. The current Prime Minister of India is Narendra Modi.State Governments[edit]Main article: State governments of IndiaIndia has a federal form of government, and hence each state also has its own government. The executive of each state is the Governor (equivalent to the president of India), whose role is ceremonial. The real power resides with the Chief Minister (equivalent to the Prime Minister) and the state council of ministers. States may either have a unicameral or bicameral legislature, varying from state to state. The Chief Minister and other state ministers are also members of the legislature.Dynasties in Indian Politics[edit]In recent decades, Indian politics has become a dynastic affair. The reasons for this state of affair could be the absence of a party organization, independent civil society associations that mobilize support for the party, and centralized financing of elections.[4] This phenomenon is seen both at the national level as well as the state level. One example of dynastic politics has been the Nehru–Gandhi family which produced three Indian prime ministers as well as leading the Congress party.[13] At state level too, a number of political parties are led by family members of the previous leaders. For example, Akhilesh Yadav, the former chief minister of UP is the son Mulayam Singh Yadav who held that position before.