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.