How India & Afghanistan can grow together

India remains an integral part of Afghanistan’s steady progress in institutionalizing peace, pluralism, and prosperity. Ties between Afghanistan and India go beyond the traditionally strong relations at the government level. Since time immemorial, the peoples of Afghanistan and India have interacted with each other through trade and commerce, peacefully coexisting on the basis of their shared cultural values and commonalities.
This history has become the foundation of deep mutual trust. Public opinion polls in Afghanistan confirm this, as well as the sentiment Afghans share about feeling at home whenever they visit India.

Growing Asia

• Fastest growing continent in the world with 60% of world’s
  population (4.2 billion)
•  Two-third of global growth would come from Asia in next few
  years
•  In 1990, the top five economies were not among Asia. Today,
  Japan, China and India are top 3 economies in the world
•  Asia’s share is expected to touch 50% of world’s GDP by 2050

Why Afghanistan

• A population of 34 million and increasing
•  Five year compound annual growth (CAGR) is 5.4%
•  GNI per capita is US$630
•  FDI has increased from US$ 230k in 1970 to US$ 169mn in 2015
•  Exports and imports taken together equals 53% of GDP
•  Infusion of billions of dollars in international assistance and investments as well as
  remittances from Afghan expats
•  World Bank expects to provide US$250-300 mn in grants annually to Afghanistan
  through the World Bank Group
•  One of the mineral-rich countries of the world
  (the country holds US$ 3 trillion in untapped mineral deposits without Uranium )
•  Low tax rates in Afghanistan
  (Corporate tax rates are 20% with an overall tax burden of 6.5% only of total domestic income)
•  Improved agricultural production
•  Formation of democratic government & improved regulatory environment

India- Afghanistan relations

• Bilateral relations between the two countries have always been strong and
  friendly
•  India’s financial assistance to Afghanistan was 880 crore in 2015-16
•  In 2016, India has also extended an aid of over UD$2 billion to Afghanistan
  for one of India’s most expensive projects in Afghanistan (Salma dam)
•  India-Afghanistan bilateral trade stood at US$643 million in 2015-16
•  Afghanistan sets a target of US$10 billion for bilateral trade and
  investment with India in five years
•  In February 2017, Indian visa regime has been further liberalised to make
  it even more convenient for Afghan nationals to visit India

Our support to Afghanistan

• Needs in Afghanistan
  • Skilled manpower
  • Professional services for businesses
•  Strengths to work with India
  • Convenience of working in the same time zone
  • Connectivity time is less than two hours
  • Similar cultural backgrounds

Why India can be a strong partner to Afghanistan

• World’s third largest economy (Would double in size to US$ 4–5 trillion in a decade)
•  Fastest growing economy in the world (Current: 7% , by 2018: 7.8%)
•  By 2020, retail market is expected to grow to US$ 1.1 trillion (growing at a high rate of 20%-25% p.a.)
•  IT-business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5% to US$ 300 billion by 2020
•  Indian construction equipment industry’s revenues are estimated to reach US$ 22.7 billion by 2020
•  Total FDI equity inflows touched US$ 35.84 billion (till December 2016)
•  Under FDI, all sectors other than sectors which are specifically prohibited or under approval route
•  Taxes on companies has been reduced to 25% (For companies with annual turnover less than 50 Crores)
•  Low labor costs (Total labor force of nearly 530 million)
•  Working age group will be more than 64% by 2021 (15-59 years)
•  Skill set of India has improved over the years with 40% employable candidates. We have 1.5mn engineering pass outs in India every year

Related : Doing Business in India

Reasons to set up a limited company

Setting up a limited company will mean more administration and more paperwork than if you are a sole trader but there are many advantages to being a limited company, not least eliminating and personal financial liability.
When a sole trading business fails then the owner is personally responsible for any debt, which can have a negative effect on your credit rating and ability to obtain personal loans in the future. You could risk becoming personally bankrupt if the debts are too high for your to pay off.
If you set your business up as a limited company you are protected from this risk.

What are the Benefits :
Whilst running a limited company does have its fair share of responsibility, and the administrative responsibilities are certainly greater than other ways of working, there are many advantages too.

• Limited liability – In simple terms, if you run a Limited Company you are protected should things go wrong. Assuming all rules have been followed, as a director you will not be personally liable for any financial losses made by the company.

• Separate entity – A Limited Company is a legal entity in its own right. This means that everything from the company bank account, to the ownership of assets relates to the business. They are totally separate from the interest of the directors and shareholders.

• Tax – As a director and shareholder of a limited company you could elect to take the majority of your income in the form of dividends, which enables you to manage your own tax liability and potentially save on National Insurance costs.

• Perception – If you plan to do business with larger companies, it can help if you are working via a Limited Company as it gives off a more professional image. In some industries, it may even be a mandatory requirement as they will not deal with sole traders or partnerships.

• Protection – As well as the limited liability protection mentioned above, once you have successfully registered your company, your company name is protected by law. Companies House has very stringent rules for the naming of companies so no one else can use the same name as you, or anything deemed too similar.

• Ownership and succession – As the sole shareholder in your business, you own the business. However, a Limited Company can easily transfer ownership of shares, or existing shareholders can sell a stake in the company to other parties at any time. If for example a shareholder wishes to retire, or bring a new director on board, it is far easier to transfer ownership, or part ownership, of a Limited Company than it is with a less formal business structure.

• Take home pay – It’s safe to say that this is the area where you can really reap the rewards of running your own Limited Company. The only person you need to pay as a Limited Company is yourself – combined with the tax efficiencies on offer, this means you can keep anything from 81 to 86 percent.

Accounts
Accounts must be prepared each year but most small companies are not required to have them audited so the process is relatively simple, especially now that the process can be done online.

Source :-http://www.ajsh.in/blog

Audits Under PCAOB Standards

A yearly audit is a key safeguard for your money and a planning tool for the year ahead. Think of it as a “year in review” for your finances.

The primary benefit of an annual audit under PCAOB standards  is the confidence it gives you and your members that the PTO’s financial house is in order. Basically, the audit verifies the numbers, ensures accuracy, and assesses procedures. A comprehensive audit also identifies internal controls that should be implemented to improve the integrity of your financial systems. Furthermore, the audit gives closure to the treasurer and sets a starting point for the new year’s activity. An audit is also the primary tool for uncovering financial mismanagement. Hopefully you won’t need to conduct an audit for this reason, but an annual audit can uncover problems before they become significantly more serious. Your PTO might also choose to include in your audit a review of how closely your group’s income and expenditures matched the year’s budget. This type of review can be a strong planning tool.

The audit is not within the jurisdiction of the PCAOB. This seems like a strange request.  Perhaps the client is a clearing agency or futures commission merchant registered with the Commodity Futures Trading Commission, which requires that entities registered with it have an audit performed in accordance with PCAOB standards. Maybe the client has entered into a contractual agreement that requires an audit conducted under PCAOB standards. Or maybe, for whatever reason, the client just wants an audit conducted under PCAOB standards.

The PCAOB determines which audits are within its jurisdiction, including audits of the financial statements of issuers and nonissuer brokers and dealers registered with the SEC. A regulator (other than the PCAOB) requiring that the audit be conducted in accordance with PCAOB standards does not make the audit fall within the jurisdiction of the PCAOB. Therefore, even though the regulator— for example, the CFTC— requires an audit to be conducted in accordance with PCAOB standards, that audit is required to also be conducted in accordance with GAAS.

The Auditor’s Report

The report from the auditor will mark the completion of the review. If you are using volunteers, you should clearly itemize what you expect back, so your auditors know when they have completed their job.

Ensure that your auditor has returned the files you provided, and file the original report in the PTOs permanent archives. At the first meeting of the new school year, you should present the auditors report and move that it be adopted. According to Robert’s Rules of Order, once the annual report of the auditor is adopted, it is no longer necessary to move to adopt each month’s treasurer’s report. The reports are presented and then simply filed for next year’s audit.

Related Things you should Know before Registering a Company in India