Requirements for Private Company?

Company is a a legal entity, allowed by company law in India, it permits a group of people, as shareholders (real owners), to apply to the Registrar of Companies for an independent business entity to be created, which can then focus on pursuing set of business goals and projects, and empowered with legal rights like individuals, such as to sue and be sued, own property, hire employees or loan and borrow money.

Incorporation / Formation of company involve a number of steps. We have tried to simplify the procedure to the maximum extent possible.

Minimum Requirement of a Private Company are as follows:

1. Minimum 2 Shareholders
2. Minimum 2 Directors (The directors and shareholders can be same person)
3. Minimum Authorised Share Capital shall be Rs. 100,000 (INR One Lac)
4. DSC (Digital Signature Certificate) for all the Directors (for applying of DIN)
5. DIN (Director Identification Number) for all the Directors
6. At least 1 of the Directors shall be an Indian Resident

Considering above minimum requirements interested business partners can form Private Company by appointing themselves as Directors as well as shareholders in company registration process. In simple words shareholders and Directors can be same person in company registration process.

Foreign company registration in India

India is one of the fastest growing economies in the world with healthy resources and a large market base. In the past few years, there is a great boost in foreign direct investment in India (FDI) because of the changed regulatory environment in the past few years. Therefore, it is very easy for foreign nationals to start a business in India.

Sometimes people get often confused in “Indian Company” and “Foreign Company”. If a foreign national incorporates a company in India then it is an Indian Company. But when a foreign company set up a branch office in India then it is known as Foreign Company.

Private Limited Company is considered to be the most ideal form of business for NRIs, foreign nationals and for foreign entities who want to set up business in India.
According to FEMA guidelines, Foreign Direct Investment (FDI) is not allowed in other types of businesses like Proprietorship, Partnership Firm and One Person Company. Though investment in LLP’s is allowed, but it requires prior approval of the RBI.

Subject to FDI norms, the shares of an Indian Company can be held by a NRI, Foreign National or Foreign Company. Therefore, Incorporation of a Private Limited Company is recommended for foreign nationals as it is the fastest and easiest way to enter into the Indian Market.

What is the process to be followed for a foreign company to establish their business in India?
For a foreign company to register in India, they need to follow certain norms and guidelines specified in the Company’s Act of 2013. A company of foreign nature can enter the Indian market and can commence its business operations by adopting the following methods.
As an Indian company:

• Wholly Owned Subsidiary
• Joint Venture

As a foreign company:

• Setting up of a Liaison Office
• Setting up a Project office or Representative office
• To open a branch office of the foreign company

Are there any restrictions for NRIs to set up a business in India?
Currently, there are no restrictions either for foreigners or NRI’s to start a business in India. With Foreign Direct Investment (FDI) gaining popularity and getting a much-needed boost from the Government many MRI’s are keenly looking forward to invest in India. Earlier NRI’s were not allowed to start or incorporate a business in India without the permission from the Reserve Bank of India (RBI). With the withdrawal of Foreign Exchange Regulation Act (FERA), such restrictions have been lifted.

Cost for company registration in India
Company formation services in India are inexpensive. The company formation process can be completed within few weeks. The incorporation process can be easy with the help of tax advisors in India. It would cost you some pennies but the whole process will be easy for you.

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STPI Registration

There is a 100% tax exemption U/S 10A of the Income tax Act, 1961 with respect to the profits earned by the 100% Export Oriented Units up to 31-03-2009, registered with the software technology parks of India (STPI).

The Documents for the application to the Software Technology Parks of India (STPI) to set up a 100% Export Oriented Unit (EOU), include:
1. Application Form in the prescribed form.
2. Memorandum and Article of Association.
3. Board Resolution for setting up STP Unit and persons authorized to sign and submit the application form.
4. Resume of person heading the operation/CEO.
5. Detailed project report/ Business plan consist of:

• Company profile.
• Promoters background.
• Units Area of expertise/Services offered.
• Marketing Strategy / marketing Arrangements.
• Manpower plan.
• Future plans.
• Brief write up on the parent Company and the activities proposed to be carried out by the Indian entity. (In case foreign equity participation)
• List of Capital goods proposed to be procured from abroad and within India.
• Details of foreign collaborator (whether financial or technical)
• Copy of floor plan of the Unit certified by an architect.
• Copy of the rent agreement if any.
• Copy of invoice of the Internet service provider.

6. Financials statement like. A. Cost of project & Means of finance.

• Projected P&L A?C.
• Projected Balance Sheet.
• Projected Cash flow/fund flow statement.
• Export workings- (As per Transfer Pricing guidelines where ever applicable)
• Financials for a 5 year period projecting income from operations, Capital expenditure & cash Flows.
• Detail for aggregate foreign exchange comings & outgo for first 5 years.
• Detail for estimated numbers of employees and wage bill for first 5 years.

7. Other documents like
A. Copy of service agreement signed with parent company / clients/ PO with clients/ Master service Agreement.
B. Initial application processing fee of INR 2,500
8. Advances services charges of INR 50,000 at the time of executing the legal agreement. Service to be paid annually as per the following slabs.
Annual charges for 3 years are payable in advance. At the time of signing the Legal undertaking, the unit is needed to pay additional fees as per the turnover achieved, if the achieved turnover is more than the projected turnover. Note: Once the legal agreement has been executed then a request letter has to be sent to ht STPI for the issue of the Green Card.

(Company formation in India)
(Company registration in India)


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Originating Businesses

Investment required to start a business

"The Entrepreneur dependably scans for change, reacts to it and adventures it as a chance!"

Cited above isn't just an expression yet a genuine display of how a man seeking to build up his very own business should strike back to the dynamic condition we live in. As hazard and reward go as an inseparable unit, it is significant for a business visionary to gauge the cost included and pay created for any new business, regardless of whether you're a quick moving start up or as yet gauging the advantages and disadvantages of regardless of whether to set up another endeavor. 

(Company registration in India)

However, the assets expected to touch off and drive a business may shift contingent upon the nature and kind of business, here is a substance that sets down basic strides to work it out.

Assets accessible with you: Initially, you ought to break down the reality whether you have adequate assets to begin a business or not. Investigating your wage subsequent to deducting all your own costs will naturally lead you to the figure of assets that you have close by, likewise chopped down the installments which you think can be evaded and include vital consumption which can't be bypassed. These numbers will enable you to choose if your business is practical or not, and demonstrate to you a snappier way to equaling the initial investment and long haul gainfulness.

Fuelling the business: After confronting the emergency of budgetary crunch, take notes on what amount is expected to prop the business up for a more extended period. This procedure of fusing a business is trailed by assessing the use of such assets at different stages:

    Initial Cost: These tend to be one-off cost items, including:

1.     Lease or purchase of buildings or land
2.     Permits, licenses or other compliance costs
3.     Equipment and/or machinery
4.     Vehicles
5.     Shop fittings and/or office furniture
6.     Branding
7.     A website and domain name

    Fixed Costs: These are bills and other costs you need to pay on an on-going basis, also known as overheads. These tend to be time-related like monthly phone bills or quarterly rates payments. Common fixed costs include:

•     Insurance
•     Utilities, e.g., electricity and internet
•     Rent or mortgage payments
•     Wages/ Salaries

    Variable Costs: These are expenses that vary depending on how much, or how little, your business produces and include:

•     Raw ingredients
•     Production materials
•     Stock orders

In the event of deficient assets, financial specialists and moneylenders can turn out to be of most extreme help, however their choice generally relies upon the historical backdrop of your business. On the off chance that you step foot in the business showcase out of the blue, just remarkable thought or abilities can initiate them to put their cash in your business.

Take master sentiment: A specialist in the field of financing can give you clear bits of knowledge into how much cash is required to begin and maintain the business. Attempt to discover a bookkeeper or counsel who has a decent reputation with business like your own.

Breaking down set up organizations: A canny move to appraise benefits and expenses is by contemplating and dissecting different organizations in a similar industry. This couldn't turn out to be full evidence consistently, yet at the same time fills the need.

Basic assessment of sources and use of assets of most recent a year is important to keep a beware of what was arranged and how far the business has come. It's normal to work at a misfortune when first business is begun. One needs to ensure that they have enough cash available for later to continue amid this period. An income estimate will help foresee whether you'll have to acquire cash, and on the off chance that you are fiscally arranged for maintaining the business.

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GST Audits- An overview

Section- 2(13) of the CGST Act defines Audit as the examination of records, returns and other documents maintained or furnished by the registered person under the Act / rules made there under or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of the GST Act or the rules made thereunder.
*No audit is required for businesses with turnover less than INR 2 crore.
Types of GST Audit
There are 3 types of GST audits:

1. Audit to be conducted by a Chartered Accountant or a Cost Accountant: Every taxpayer with revenue exceeding the prescribed limit of INR 2 crore during a financial year shall get his accounts audited by a Chartered Accountant or a Cost Accountant. Such taxpayers whose audit is conducted by a Chartered or Cost Accountant shall submit:

• An annual return by filling the form GSTR 9B along with the reconciliation statement by 31st December of the next financial year;
• The audited copy of the annual accounts;
• A reconciliation statement, reconciling the value of supplies declared in the return with the audited annual financial statement; and
• Other particulars as prescribed.

2. Audit to be conducted by the tax authorities: As per Section 65 of the CGST / SGST Act, the Commissioner or any officer of CGST or SGST or UTGST authorized by him by a general or specific order, may conduct audit of any registered / enlisted individual. Intimation of the audit is provided to the taxpayer at least 15 days in advance in Form GST ADT-01 and the audit is to be completed within 3 months from the date of commencement of the audit. In rare cases, the GST Commissioner has the powers to extend the period by another 6 months, if required.
3. Special Audits: If at any stage of investigation or any other proceedings, tax authority is of the opinion that the value has not been correctly declared or credit availed is not within the normal limits, department may order special audit under the mandate of Section 66, by its nominated Chartered Accountant or Cost Accountant.

The Chartered Accountant or Cost Accountant so named will submit review answer to impose officer inside the time of 90 days. This period might be broadened promote for 90 days by duty officer on application made by enrolled individual or the sanctioned bookkeeper. The enrolled individual will be given a chance of being heard in regard discoveries of exceptional review. The costs of the review of records, including the compensation of such contracted bookkeeper or cost bookkeeper will be paid by the Commissioner.
Where the extraordinary review directed outcomes in recognition of assessment not paid or short paid or mistakenly discounted, or input charge credit wrongly benefited or used, the officer may start required activity.
Obligations of the Auditee
Auditees shall have following obligations during the course of audit:

• The taxable person will be required to provide the necessary facility to verify the books of account / other documents as required.
• The auditee needs to furnish the required information and render assistance for timely completion of the audit.

Findings of the Audit
On conclusion of an audit, the officer shall inform the taxable person within 30 days of:

• Findings of audit;
• Their reasons; and
• The taxable person’s rights and obligations.

If you are facing challenges in compliance with GST or require any assistance in GST audits, you may reach us. For any questions regarding this, please click here. 

Why outsourcing payroll services is good for your business

One of the most important part of business management is proper payroll distribution and bookkeeping.  Payroll is not a simple calculation of salary and distribution, it is a lot more complex process .

A businessman should concentrate on  his/her company to maintain profit , success and increased revenue. That’s why a lot of business owners choose for outsourcing payroll services.
If you are a business owner and is does not believe outsourcing payroll services is a better choice, here is a list of benefits you can get from this business payroll solution.

Let Professionals Handle the Job
Some business owners do their own payroll instead of outsourcing payroll services, but they lack the expertise needed to perform the task well. Others hire an existing employee good in math to do payroll and bookkeeping tasks for them, which is basically the same logic.  Outsourcing business payroll solutions mean that payroll tasks are done by professionals who are experts in their field and familiar with payroll regulations and tax codes, minimizing errors in calculations, as well as cutting costs.

Outsourcing Payroll Services Saves Time  
Time saved is money saved, which means you will be cutting costs in different areas related to payroll management as well.
The more your employees grow in numbers, the more time it will take to put in calculating the salaries of  employees.  The more time you spend on your payroll, the less time you spend focusing on business and marketing strategies.

Properly Observing Government Regulations
the lack of knowledge about government regulations can lead to mistakes, Handling your own payroll means that you have to submit reports on employment taxes to the government.

There are many other business payroll solutions out there, but outsourcing payroll services seems a wise choice that can lead to the betterment and more success of our company.

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What cannot be a trademark?

What is a trademark?
The word, trademark means legally registered for representing a product or company . When competition is increasing, it becomes almost essential to differentiate your products or services from others.
The strive to stay in the market makes one concerned about their product’s quality. Trademark Registration concept may be quite new for Indians.
The Trade Marks Act, 1999 provides a platform for the registration of trademarks of goods and services, also provides the unique identification of the product and thereby also providing the manufacturer relief in case of infringement of his trademark.

Certificate Mark
This mark basically identifies the origin, material, quality, and characteristics of goods and services offered by a manufacturer from his competitors. It is also used in assessing the worth of labor in manufacturing goods or services.

Collective Mark
These marks differentiate the members of a collective group, which can be a cooperative organization or an association.

What cannot be a trademark?
Few are the points for refusal in India –


Distinctive Nature – The measure of being unmistakable is considered bad in the Indian law. The sign of an item or administration which isn’t of an unmistakable sort would not be a trademark.

Names / Surnames – Names or surnames cannot be used as a trademark in India if they do not possess a distinctive character.

Numerical – Numbers can’t be used to be utilized as a trademark, as such. In specific cases, the courts in India have reasoned that numbers don’t have a particular nature connected to them, consequently, not fitting the bill to be a trademark.

Geographical Location – Geographical locations cannot be used as trademarks.

Color – The Trade Marks Act does not specifically refuse the usage of color.

Sound – Melodic notes as melodic documentations are acknowledged as trademarks in India, yet clamors, for example, pooch woofing can’t be a trademark.

Smell – It is difficult to distinguish between different smells. Smell cannot go through the process of Trademark Registration in India.

If you want to Apply for Trademark Registration, you can go with Apply Trademark.

What is Foreign Tax Credit (FTC)?

If you have paid or accrued foreign taxes in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, you may be able to take either a credit or an itemized deduction for those taxes.

Characteristics of FTC

• FTC is a method for elimination of double taxation.
• Credit for the amount of any foreign tax paid in the source country against the taxes to be discharged in the residence country.
• In India income tax system, tax Residents and Ordinary Residents (ROR) on worldwide income and offer FTC to tone down the potential for double taxation of income.
• It can be adjusted against tax, cess and surcharge payable under the Income Tax Act.
• It cannot be adjusted against interest, fee or penalty payable under the Act.
• It is not available in case foreign tax or part thereof is disputed by the assessee in any manner.

Conditions to avail FTC
For a tax payer to be eligible for FTC:

• He must have made a payment to a foreign government;
• The payment must be towards an income tax, or a tax in lieu of an income tax; and
• It is permissible in the year where income is offered in India by the assessee within six monthsfrom the end of the month.

Regulations governing FTC

• Section 91includes the tax credit for countries where no DTAA is in force.
• Section 90includes the tax credit for countries where India has entered into a Double Tax Avoidance Agreement (DTAA).
• Rule 128along with Form 67 was introduced in 2016 and came into force on 4.2017

Before the introduction of Rule 128 and Form 67, these provisions were there in the Income Tax Act but no specific rules governing mechanism for determining foreign tax credit.

Unilateral tax credit system in India (Section 91 of Act)

Preconditions

• Available to a tax resident of India.
• Available in respect income accruing or arising outside India.
• Actual tax payment in foreign country on such income.
• Tax liability resulting in tax payment in India (i.e. income is actually doubly taxed).
• No DTAA with the foreign country in which tax is paid.

Quantum of relief

• Proportionate relief at lower of ‘Indian tax rate’ or ‘foreign tax rate’.
• Not full credit.

Bilateral agreements elimination of double taxation (Section 90 of Act)

Two methods envisaged by Model convention – Choice left to the treaty partners.

Exemption method	Credit method
Focus is on income.	Thrust is on taxes and not on income.
Full exemption is granted. Doubly taxed income do not form part of resident country tax computation.	Full credit is granted. Deduction allowed for taxes paid in the source country.
Exemption with progression. Resident country considers doubly taxed income only for the purposes of rate determination.	Ordinary credit is granted. Deduction quantified with relevance to resident country tax on double taxed income. Most of the DTAAs provide for this model of relief.
Taxes retained at the level imposed by source country.	Equality in treatment of capital investment whether made within or outside resident country. If the source country has lower tax rate, overall taxes are increased to that prevailing in the resident country while if source country has higher tax rate, credit is restricted to taxes prevailing in resident country.
Losses incurred in source country can be adjusted.	Losses incurred in source country can lead to “double dip”.

Form-67

Documents required to claim FTC

• Form 67 fully verified and certified by a Charted Accountant (CA) on or before furnishing the tax return.
• Produce a certificate issuedby the concerned tax authority of the foreign country or the specified territory or from the person who is responsible for the deduction (ex. employer) that includes (i) Nature of foreign income and (ii) the amount of TDS.
• A proof of payment of foreign tax.

Few key points

• Form 67 is to be filed electronically.
• It is to be filed on or before due date of filing Income Tax Return.
• It is available on the e-filing portal itself.
• Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC) is required to be filed.
• It should be submitted before filing of Income Tax Return.

This is a complex compliance; you can seek help from our tax experts to claim your FTC.

Visit: Company formation in India

What is Foreign Tax Credit (FTC)?

If you have paid or accrued foreign taxes in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, you may be able to take either a credit or an itemized deduction for those taxes.
Characteristics of FTC

• FTC is a method for elimination of double taxation.
• Credit for the amount of any foreign tax paid in the source country against the taxes to be discharged in the residence country.
• In India income tax system, tax Residents and Ordinary Residents (ROR) on worldwide income and offer FTC to tone down the potential for double taxation of income.
• It can be adjusted against tax, cess and surcharge payable under the Income Tax Act.
• It cannot be adjusted against interest, fee or penalty payable under the Act.
• It is not available in case foreign tax or part thereof is disputed by the assessee in any manner.

Conditions to avail FTC
For a tax payer to be eligible for FTC:

• He must have made a payment to a foreign government;
• The payment must be towards an income tax, or a tax in lieu of an income tax; and
• It is permissible in the year where income is offered in India by the assessee within six monthsfrom the end of the month.

Regulations governing FTC

• Section 91includes the tax credit for countries where no DTAA is in force.
• Section 90includes the tax credit for countries where India has entered into a Double Tax Avoidance Agreement (DTAA).
• Rule 128along with Form 67 was introduced in 2016 and came into force on 4.2017

Before the introduction of Rule 128 and Form 67, these provisions were there in the Income Tax Act but no specific rules governing mechanism for determining foreign tax credit.


Unilateral tax credit system in India (Section 91 of Act)
Preconditions

• Available to a tax resident of India.
• Available in respect income accruing or arising outside India.
• Actual tax payment in foreign country on such income.
• Tax liability resulting in tax payment in India (i.e. income is actually doubly taxed).
• No DTAA with the foreign country in which tax is paid.

Quantum of relief

• Proportionate relief at lower of ‘Indian tax rate’ or ‘foreign tax rate’.
• Not full credit.

Bilateral agreements elimination of double taxation (Section 90 of Act)
Two methods envisaged by Model convention – Choice left to the treaty partners.
Exemption method
Credit method
Focus is on income.
Thrust is on taxes and not on income.
Full exemption is granted. Doubly taxed income do not form part of resident country tax computation.
Full credit is granted. Deduction allowed for taxes paid in the source country.
Exemption with progression. Resident country considers doubly taxed income only for the purposes of rate determination.
Ordinary credit is granted. Deduction quantified with relevance to resident country tax on double taxed income. Most of the DTAAs provide for this model of relief.
Taxes retained at the level imposed by source country.
Equality in treatment of capital investment whether made within or outside resident country. If the source country has lower tax rate, overall taxes are increased to that prevailing in the resident country while if source country has higher tax rate, credit is restricted to taxes prevailing in resident country.
Losses incurred in source country can be adjusted.
Losses incurred in source country can lead to “double dip”.
Form-67
Documents required to claim FTC

• Form 67 fully verified and certified by a Charted Accountant (CA) on or before furnishing the tax return.
• Produce a certificate issuedby the concerned tax authority of the foreign country or the specified territory or from the person who is responsible for the deduction (ex. employer) that includes (i) Nature of foreign income and (ii) the amount of TDS.
• A proof of payment of foreign tax.

Few key points

• Form 67 is to be filed electronically.
• It is to be filed on or before due date of filing Income Tax Return.
• It is available on the e-filing portal itself.
• Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC) is required to be filed.
• It should be submitted before filing of Income Tax Return.

This is a complex compliance; you can seek help from our tax experts to claim your FTC.

**Section 8 Company Formation** (http://ajsh.in/blog/section-8-company-formation/)

In India, a non-profit organization can be registered as a Trust, by making a Trust deed or as a Section 8 Company, under the Companies Act, 2013. According Indian Companies Act, 2013, a section-8 company can be established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided the profits, if any, or other income is applied for promoting only the objectives of the company and no dividend is paid to its members.

Procedure for formation of section 8 company is listed below:
1. Digital Signature Certificate (DSC) & Directors Identification Number (DIN): The only secure and authentic way that a document can be submitted electronically is DSC. All filings of e-forms on MCA Portal are required to be filed with the use of DSC of the authorized signatory. Further, DIN for all the proposed Directors of the Company must be obtained. For obtaining DIN an application in Form No. DIR – 3 should be filed on MCA Portal with documents attested by a practicing professional.

2. Name approval: By submitting an application in Form – INC 1, applicant can obtain approval for selected names from the Registrar of Companies (RoC). The Applicant can give maximum six names in order of preference. The name once approved by the authority is valid for sixty days. The name once approved by the authority is valid for 3 months. Name approval generally takes 1-2 business days.

3. Main instrument: After obtaining name approval, constitutional documents i.e. Memorandum of Association (MOA) and Articles of Association (AOA) is to be drafted and subsequently filed with the RoC along with the forms and other necessary documents stated below:

• Affidavits
• Consent Letters
• Certificate of Compliance from a practicing professionals
• Subscription pages of MOA & AOA– Both documents shall be signed by each subscriber who shall mention his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, description and occupation, if any. The witness shall be a practicing professional

4. Issuance of license with registration fee: For Section 8 company license, promoter has to file E-Form INC 12 accompanied by:

• MOA and AOA
• A declaration confirming the application by a practicing Company Secretary
• Names, addresses, occupation and descriptions of the promoters as well as Board Members
• A statement showing details of assets & liabilities as on date with the application
• Estimated future annual income and expenditure, specifying the source of income and object of expenditure
• A statement giving brief description of work, if any, already done by the association
• A statement specifying briefly the grounds on which the application is made
• A declaration in prescribed form on non – judicial stamp paper by each person making an application
• A letter of authority with payment of prescribed fee

5. Other requirement: Following forms are to be filed with the RoC after issuance of license:

• Form INC – 7 for declaration of compliance with the requirements of the Act on application for registration of a company;
• Form INC – 22 for notice of situation of registered office;
• Form DIR – 12 for appointment of directors of the company; and
• Subscribers and proposed directors may delegate their authority to a person(s) to carry out appropriate change(s) as suggested by the RoC in any of the incorporation papers that have been filed.

6. Clarifications / additional Information required by ROC: Documents submitted for the purpose of incorporation are thoroughly reviewed by the RoC. RoC may require certain clarifications, if required. The person authorized shall present clarifications with Roc as needed.

7. Certificate of Incorporation: After providing clarifications, the Certificate of Incorporation is issued by the RoC along with a unique Company Identification Number (CIN) and the Company is deemed to be incorporated from the date of certificate issued. Consecutively, company may apply for other tax and regulatory registration as may be required to run the business smoothly like PAN, TAN, Bank account, etc.

8. Subscription money: A new bank account solely at the name of the company newly incorporated shall be opened by the Board of Directors and the Subscribers. Further to that, they shall deposit their subscription money in bank account to help the company raise initial capital to start its business.

Minimum Requirements for Section 8 Company:
1. At least 2 shareholder and 2 Director (both can be the same person)
2. At least one Director shall be resident in India
3. No Minimum capital required
4. PAN is a mandatory requirement in case of Indian nationals
5. Identity Proof (Voter ID/Aadhar Card/Driving License/Passport); Passport is mandatory requirement for proof of identity in case of foreign nationals
6. Proof of Residence
7. Registered utility proof that is any office address proof
8. Any documents establishing the ownership such as sale deed / house tax receipt along with no objection certificate, in case the premises are owned by a Director and Promoters


For further queries, click here!www.newcompanyregistrationindia.com/contact-us.php

Private Ltd, LLP or Public Ltd, which to choose when going for New company registration in India

Fortunately, the new rules and regulations are easier when it comes to start-up a new business in India. Also, there are hassle free new company registration service providers available in India who take care of A to Z of forming and registration of the company. In this post, we will touch upon various forms of new company registration In delhi presently available and which is best suited for your business.

To start with, below mentioned is explanation for new company registration in Gurgaon that are done in India:

Sole Proprietorship:The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

When to incorporate: However, after the introduction of the concept of One Person Company. It is not recommended to form a proprietorship in India.

Limited Liability Partnership: Partnerships when given the feature of limited liability, the LIMITED LIABILITY PARTNERSHIPS came into picture. LLP is a separate legal entity and which can be formed in India by minimum of two persons with a motive of earning profit.

When to incorporate: LLP enjoys the benefits of private limited company and traditional partnerships, therefore, because of increasing compliance in private limited company, it is recommended for start-ups to incorporate LLP if they are not planning to raise investments in future.

Partnership: A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. Partnerships are easy to form. There is no minimum capital requirement. Only two people are needed to incorporate the partnership.


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A Comprehensive Guide for Incorporation of One Person Company

Here is step-by-step guide for starting your company individually the understanding of an OPC, the benefits of incorporating it and the legal formalities in its formation.
As per the Companies Act,1956, a Public Ltd Company requires at least 7 members or shareholders wherein a Pvt Ltd Co requires to have at least 2 members. Hence, a One Person Company was never allowed to be formed in our country earlier. However, under the provisions of the Companies Act 2013, Sec 2(62), One Person Company (OPC) is being allowed to form.

One Person Company means a company which has only one member. It is important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member. All the provisions related to the private company are applicable to an OPC, unless otherwise expressly excluded. In case of OPC, though it is true that the One Person appears to be like sole proprietor his liability to the debtors of the Company is limited to the shareholding of the company and his personal assets are never attached for payment of the company’s liability, which in case of Proprietorship never happens.

Steps to be followed to Incorporate One Person Company (OPC)

• The director is firstly required to obtain a Digital Signature Certificate [DSC] for the proposed Director(s).
• He is then required to obtain a Director Identification Number [DIN] for the proposed director(s).
• Thirdly, they are supposed to select a suitable Company Name and then make an application to the Ministry of Corporate Office for the availability of name.
• The fourth step is to Draft a Memorandum of Association and the Articles of Association [MOA & AOA].
• The fifth requirement is to sign and file various documents of the OPC including MOA & AOA with the Registrar of Companies electronically.
• The director is required to pay the Requisite fee to Ministry of Corporate Affairs and also as Stamp Duty.
• The seventh step is to scrutinize the documents at Registrar of Companies [ROC].
• Lastly, he is required to obtain the receipt of Certificate of Registration/Incorporation from ROC.

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Private Ltd, LLP or Public Ltd, which to choose when going for New company registration in India

Fortunately, the new rules and regulations are easier when it comes to start-up a new business in India. Also, there are hassle free new company registration service providers available in India who take care of A to Z of forming and registration of the company. In this post, we will touch upon various forms of new company registration In delhi presently available and which is best suited for your business.

To start with, below mentioned is explanation for new company registration in gurgaon that are done in India:

Sole Proprietorship: The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

When to incorporate: However, after the introduction of the concept of One Person Company. It is not recommended to form a proprietorship in India.

Limited Liability Partnership: Partnerships when given the feature of limited liability, the LIMITED LIABILITY PARTNERSHIPS came into picture. LLP is a separate legal entity and which can be formed in India by minimum of two persons with a motive of earning profit.

When to incorporate: LLP enjoys the benefits of private limited company and traditional partnerships, therefore, because of increasing compliance in private limited company, it is recommended for start-ups to incorporate LLP if they are not planning to raise investments in future.

Partnership: A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business. Partnerships are easy to form. There is no minimum capital requirement. Only two people are needed to incorporate the partnership.

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Trademark Filing – Process & Documents Required

When an outsider looks for startup business, the first thing they notice is the trademark. A trademark is  the identity of a business lies. It is the name and symbol under which a business undertakes its trade and commerce, which represents the company.

In India, trademarks are regulated by the Trade Marks Act of 1999. The Act aims to provide registration and better protection towards trademarks while preventing the use of fraudulent marks.

How to Choose a “Good” Trademark?

• The mark(s) should be easy to remember.
• It should be short and easy to spell and write.
• It may be aesthetically appealing.
• It should not ideally be descriptive in its nature.
• It can be fanciful and coined, to avoid confusion.

“APPLE/ASUS/DELL/HP/LENOVO” for computers are an example of a non-descriptive and arbitrary mark, which makes for good trademarks.

“KODAK” for cameras is a coined term; that also makes a good trademark.

“MICROSOFT” for software, “LAKME/AMWAY/AVON” for makeup, are all good examples.

Trademark Search

Before filing a trademark application, its recommended that a trademark search be conducted to know all similar or identical trademark applications filed along with its status. A trademark search can help reduce chances of the application being objected or opposed or refused.

Documents required for Trademark filing

To file a trademark application the following documents are required:

• Signed Form 48 – Form 48 is used to provide an attorney with authorisation to file your trademark application.
• Udyog Aadhar Registration Certificate – In case you would like to avail the lower trademark fee of Rs.4500. For Partnership Firms, LLPs and companies not having Udyog Aadhar, the government fee for trademark filing is Rs.9500.
• Incorporation certificate.

How to apply for a Trademark?

• Conduct a trademark search that will let you know if there are similar trademarks that are already registered.
• Apply for a trademark registration. You can do this by yourself through the Government website, or get a lawyer to do it for you. The procedure of application is laid down in the Trade Marks Act, 1999.
• An application number is allotted for every pending registration, which can be tracked on the website.
• If the application is accepted, it will be published in the Trademark Journal. If there are no oppositions, your trademark will be registered to you. However, if there are oppositions, there will be a hearing in the Trademark Hearing Office to decide on the final registration of the mark.

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Incorporating a private limited company with Indian directors

Incorporating a company in India has become much easier now. On the 69^th republic day, the government has brought various changes making it easier to set up a private limited company in India. Now a company can be incorporated using just 1 E-Form, SPICe (INC-32).
A single window form: SPICe (INC-32)
It is a single application for

• reservation of name,
• incorporation of a new company and/or
• application for allotment of DIN and/or
• application for PAN and TAN

It is accompanied by supporting forms SPICe_AoA and SPICe_MoA.
Once the e-Form is processed and found complete, company would be registered and CIN would be allocated. DINs get issued to the proposed Directors who do not have a valid DIN and PAN and TAN would also get issued to the Company.

Important points:

• Maximum three Directors are allowed for using this integrated form for filing application of allotment of DIN while incorporating a company.
• No minimum paid-up capital requirements apply for incorporating a company
• Maximum number of members excluding proposed employee(s) should not be greater than 200 in case of a private company.
• Number of members excluding proposed employee(s) should be greater than or equal to two in case of Private Company (other than Part I company) and seven in case of Part I company/ public company.
• The company can establish its place of registered office on or from the fifteenth day of its incorporation. Till then the correspondence address shall be the mailing address for company.
• The correspondence address should be in the same state where company is willing to have its registered office.
• Total number of first subscribers are restricted to seven, considering possibility of affixing maximum DSCs in form SPICe MOA (INC-33) and form SPICe AOA (INC-34).
• Directors not having DIN cannot be more than 3 in number.

Name approval
There are 2 ways to register a company’s name

1. Directly getting the name approved through SPICe (INC-32)
2. Reserve Unique Name (RUN)

A unique name should be chosen for the company considering Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014
The illustrative list of names based on the type of company is as follows:
In case of an one person company – ABC (OPC) Private Limited
In case of a private limited company (other than producer company) – ABC Private Limited
In case of a private limited company (Producer company) – ABC Producer Company Limited
In case of a public limited company – ABC Limited
In case of an unlimited liability private company – ABC Private Unlimited
In case of an unlimited liability pubic company – ABC Unlimited
If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then approval shall be attached of such owner of the registered trademark or the applicant of such trade mark for which application for registration is pending.
A name reserved by RUN remains reserved for 20 days from the date of approval.

TAN Number:
Under the new SPICe form, TAN would be allocated along with the PAN. Allocating TAN with PAN would reduce another compliance related registration a company has to obtain at a later date and ensure that all companies are ready to deduct & remit tax collected at source from day one.

Conclusion:
SPICe Form INC-32 is surely an improvised version of e-Form-29 wherein a lot of changes have been made to accommodate the interest of the stakeholders. By introducing a single window form, there has been a drastic reduction in the timelines. However, due to some limitations, it might not be feasible like limited number of subscribers, affixing of DSC of subscribers.
With the hope that the regulators might address the inherent limitations that are being observed in the current procedure and make the necessary changes, we can conclude that stakeholders will be more benefited in all perspective.
AJSH has an expertise company registration and incorporation and has been assisting clients for 10 years.


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Business Tax Return Filing

All businesses operating in India are required to file income tax return each year. In addition to filing income tax return, a business may also be required to file TDS return and pay advance tax to stay compliant under the Income Tax Act. We can help file income tax return for your business and ensure it remains compliant under the Income Tax Act and Rules. The average time taken to file an income tax return for your business is 3 to 5 working days. Get a free consultation on business tax return filing by scheduling an appointment with an New Company Registration Advisor.

If you’ve always worked as an employee and had a relatively uncomplicated income tax return, you may wonder how much that will change now that you have a small business. It’s true you’ll have more record-keeping and responsibilities than you did when your employer sent you a Form W-2 at the end of the year.

However, being a business owner has its perks, too. You control how much time and effort you want to put into the business, and you alone reap the rewards. You can also plan for taxes and take business deductions to lower your tax bill.

• Business Tax Filing Service Includes
• GST Return Filing
• Income Tax Return Filing
• TDS Return Filing

If you have any query regarding this CLICK HERE

Incorporating a private limited company with Indian directors

Incorporating a company in India has become much easier now. On the 69th republic day, the government has brought various changes making it easier to set up a private limited company in India. Now a company can be incorporated using just 1 E-Form, SPICe (INC-32).

A single window form: SPICe (INC-32)

It is a single application for

reservation of name,
incorporation of a new company and/or
application for allotment of DIN and/or
application for PAN and TAN
It is accompanied by supporting forms SPICe_AoA and SPICe_MoA.

Once the e-Form is processed and found complete, company would be registered and CIN would be allocated. DINs get issued to the proposed Directors who do not have a valid DIN and PAN and TAN would also get issued to the Company.

Important points:

Maximum three Directors are allowed for using this integrated form for filing application of allotment of DIN while incorporating a company.
No minimum paid-up capital requirements apply for incorporating a company
Maximum number of members excluding proposed employee(s) should not be greater than 200 in case of a private company.
Number of members excluding proposed employee(s) should be greater than or equal to two in case of Private Company (other than Part I company) and seven in case of Part I company/ public company.
The company can establish its place of registered office on or from the fifteenth day of its incorporation. Till then the correspondence address shall be the mailing address for company.
The correspondence address should be in the same state where company is willing to have its registered office.
Total number of first subscribers are restricted to seven, considering possibility of affixing maximum DSCs in form SPICe MOA (INC-33) and form SPICe AOA (INC-34).
Directors not having DIN cannot be more than 3 in number.
Name approval

There are 2 ways to register a company’s name

Directly getting the name approved through SPICe (INC-32)
Reserve Unique Name (RUN)
A unique name should be chosen for the company considering Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014

The illustrative list of names based on the type of company is as follows:

In case of an one person company – ABC (OPC) Private Limited

In case of a private limited company (other than producer company) – ABC Private Limited

In case of a private limited company (Producer company) – ABC Producer Company Limited

In case of a public limited company – ABC Limited

In case of an unlimited liability private company – ABC Private Unlimited


In case of an unlimited liability pubic company – ABC Unlimited

If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then approval shall be attached of such owner of the registered trademark or the applicant of such trade mark for which application for registration is pending.

A name reserved by RUN remains reserved for 20 days from the date of approval.

TAN Number:

Under the new SPICe form, TAN would be allocated along with the PAN. Allocating TAN with PAN would reduce another compliance related registration a company has to obtain at a later date and ensure that all companies are ready to deduct & remit tax collected at source from day one.

Conclusion:

SPICe Form INC-32 is surely an improvised version of e-Form-29 wherein a lot of changes have been made to accommodate the interest of the stakeholders. By introducing a single window form, there has been a drastic reduction in the timelines. However, due to some limitations, it might not be feasible like limited number of subscribers, affixing of DSC of subscribers.

With the hope that the regulators might address the inherent limitations that are being observed in the current procedure and make the necessary changes, we can conclude that stakeholders will be more benefited in all perspective.

AJSH has an expertise company registration and incorporation and has been assisting clients for 10 years.

If you have any query regarding this CLICK HERE