Thursday 30 June 2022

All about Nidhi Company Registration

Nidhi Company is the most popular form for giving loans to its member and accepts deposits from its members. Its main objective is to lend and borrow money amongst its members and to cultivate the habit of savings amongst its members. Nidhi Company is governed by the Provision of Companies Act, 2013 and Nidhi rules 2014.

It provides loans and accepts Deposits you have to register. Nidhi Company is referred to as one of the kinds of NBFC. It is also called a mutual benefit company. But no RBI approval is required to incorporate a Nidhi company as it is the exempted category Nidhi Company will always be a public limited company and its name should end with ‘Nidhi Limited’, Presently Nidhi Company becomes very popular for lending business.

How to Register a Nidhi Company?
• Application for Approval of name.
• Preparations and drafting of Incorporation documents.
• Application for incorporation of Nidhi company with ROC
• Signing of Incorporation documents.
• Obtaining DSC for all members and directors.

Nidhi Company Registration:
1) Instant access to Nidhi software and compliances.
2) Lowest cost across India.
3) It takes 10 or 15 days for Nidhi Company Registration.

Documents Required for Nidhi Company Registration: • PAN
• Address Proof
• Registered Office
• Id Proof
• Passport Photo
• Latest Bank Passbook/Statement of Electricity/Broadband bill

Benefits of Nidhi Company:
Simple Formation of Nidhi Company:
• The formation Of the Nidhi Company is a very easy process.
• It requires only 7 members out of which 3 members would be the directors.
• Nidhi Company does not require obtaining a license from RBI.
• The documents of required registration are very less.
• It takes hardly 10 or 15 days to get registered.



Limited RBI registration:
• There would be the least intervention of RBI.
• Nidhi Companies are exempted from main provisions otherwise applicable to be an NBFC in India.
• These Companies follow Nidhi Rules 2014 issued by the center in respect of the activity and working of the Company.

Benefits of member:
• It works with the objective of increasing the savings of its member.
• Easy to make donations and get loans from the Company.
• Loan is given at a lower rate.
• The risk of non-payment is less than the other finance business.

Restrictions on Nidhi Company:
• The period of repayment of the loan should not exceed one year.
• Only secured loans can be given i.e. insecurity of any gold, silver, or any other valuable jewel.
• Nidhi Company cannot do any chit fund activity, hire purchase, and lease financial activities. Nidhi Company cannot lend or borrow money from any person other than its members.
• It’s not allowed for Nidhi Company to issue preference shares, debentures, or any debt instruments.
• Minimum paid-up capital requirement is Rs 5,00,000

For more information Click here

Updated Return under Income Tax Act

 Updated Income Tax Return Filing

Finally, the provision of filing an updated Income Tax Return has been presented in Income Tax with effect from 01.04.2022. An assessee, whether he has filed or not, an income tax return (whether it be the original return, the delayed return of the revised return), may now provide an updated return of income, within two years from the end of the applicable assessment year. For e.g.: For the AY 2022-23 (i.e. Financial Year 2021-22), the updated return could be filed up to 31st March 2025. The updated return can be also fitted out only once for an assessment year. Though the updated return cannot be filed, if it:

a) is a return of loss or
b) has the outcome of decreasing the tax liability determined as per previously filed return or
c) grades in a refund or increases the refund determined as per previously filed return

Who cannot file an updated return
A person will not be entitled to file an updated return for the applicable assessment year and any year preceding that, if in the relevant previous year –

a) a search or survey has been initiated/ directed against him or
b) books of accounts/other documents/ any assets are requested or
c) a notice has been issued to the effect that any asset detained or requisitioned in the case of any other person, belongs to him or
d) a notice has been allotted to the effect that any books of account or documents, seized or requisitioned in the case of any other person, relates/pertains to him
For e.g.: If the search has been originated against the person in FY 2022-23, then the updated return cannot be filed for the relevant AY 2023-24 or any former assessment year.




The updated return cannot be filed for the year in respect of:
a) which has any assessment/reassessment/re-computation/revision of income is incomplete or has been completed
b) which has hearing chronicles have been initiated
c) the assessing officer has any information about the assessee, under double taxation avoidance agreements or under the following Acts, which has already been transferred to him, prior to the filing of such return –
i. The Smugglers and Foreign Exchange Schemers (Forfeit of Property) Act, 1976
ii. The Ban of Benami Property Transactions Act, 1988
iii. The Prevention of Money-laundering Act, 2002
iv. The Black Money (Unnamed Foreign Income and Assets) and Nuisance of Tax Act, 2015

The circumstance where the filing of updated return is mandatory for succeeding years too
If any person has formally filed a return of loss for any previous year, duly within the time allowed for filing the original return, then he shall be permitted to provide an updated return, if the updated return is a return of income, irrespective of the time limit of two years from the end of the relevant assessment year. However, in such a case, the assessee will have to deliver an updated return for each subsequent previous year, if
a) such loss or even the unabsorbed reduction has been carried forward or
b) tax credit in respect of tax paid on supposed income relating to certain companies or tax credit for substitute minimum tax is to be condensed as a significance of filing the updated return.

Tax on Updated Return
The taxation norms in case of an updated return would though be somewhere different from the normal income tax return. The assessee will have to pay an “additional income tax” along with the tax and interest figured to be payable if filing an updated return.

Additional Income-Tax
The additional income-tax due in case of an updated return shall be equal to – I. 25% of the aggregate tax and interest payable, if the updated return is furnished after the expiry of time offered for filing the belated return of the revised return but before the completion of twelve months from the end of the pertinent assessment year. II. 50% of the collective tax and interest payable, if the updated return is furnished after the expiry of twelve months but before the completion of twenty-four months from the end of the applicable assessment year. Also, the proof of payment of tax, additional income tax, interest, and fee shall attend such return.

Conclusion: At this, one may accomplish that the introduction of a provision for filing an updated return would result in escaping litigation to a good extent. If any income has been left to be reported by the assessee in the return initially filed or the revised return, then the updated return results in an opportunity to rectify such a mistake. Otherwise, assessment chronicles would have been initiated against him, which the assessee always wants to avoid, as he will have to sustain the consulting fees of professionals for responding to the proceedings and then will pay the tax on that income at the conclusion of such proceedings.

For more information contact us

Wednesday 25 May 2022

Accountant in India

 Monetary tasks including an organization's records or other cash-related issues require explicit consideration, particularly while working in India as an outsider. An expert's help can likewise support understanding how the tax collection framework in this nation works.

Anything that type of monetary exchange you wish to finish, a bookkeeper in India is one of the experts you'll need to depend on.

Our India organization development specialists team up with qualified bookkeeping experts to offer complete types of assistance to the neighborhood and global financial backers and entrepreneurs, and we welcome you to look further into a portion of these administrations underneath.






If you have any desire to know how to shape a Business in India, the least complex response is that the methodology is equivalent to what it is in some other regions of the planet, and it involves setting up the records on which the Companies Register will give the business' Certificate of Registration, as well as getting the necessary duty enlistment and GST number, as well as applying for the expected permit to operate or allow, contingent upon the area of movement of your business.

Our Company incorporation experts will deal with the joining system, while our Indian bookkeeper will deal with the duty and GST enrollment processes, permitting you to start tasks straight away.

Getting an expense number suggests recording the organization's enlistment papers with the Central Board of Direct Taxes in India.

Tuesday 17 May 2022

COMPANY INCORPORATION SERVICES IN INDIA

Under the New Companies Act 2013, the Ministry of Corporate Affairs has ordered the strategy for the consolidation of organizations in India.

In this article, we will examine the bit-by-bit process and required archives for the consolidation of organizations in India. There are two areas of organizations example Public and Private. In this article, we will accentuate privately owned businesses joining, according to the new Companies Act 2013. Other than the expected archives, we will likewise examine private restricted organization enrollment expenses and the chief's ID number significance, which is bewildering for new entrepreneurs


Private Limited Company's Registration cost is zero if, the organization is little. In 2019, the Government of India deserted the enrollment charges for new organizations which are consolidating under the private restricted class.

This relinquishment of enrollment charges is pertinent just for those private restricted organizations whose approved capital is not as much as Rs 15 lakh. Just stamp obligation expects to be paid in such a case. Be that as it may, little organizations benefiting from expense abandonments for enrollment can't raise any capital till one year.

Enrollment charges for a private restricted organization having more than Rs 15 lakh capital and not as much as Rs 50 lakh capital are Rs 2000. On the off chance that, on the off chance that it's anything but a little organization, then enlistment expenses are Rs 36,000.

Try not to get shocked with regards to circumspect the system for the consolidation of organization in India! We at Company arrangement India are here to furnish you with master direction and mentorship.

Tuesday 22 March 2022

Branch Office in India


A branch office is a suitable business model for foreign companies looking to establish a temporary presence in India. The branch office serves as an extension of the head office business and carries on the same business and activity as that of its parent company.

Most businesses use this mode to learn more about the Indian market. Accordingly, businesses that are looking to expand into Asia or diversify their Asia presence should consider whether a branch office meets their market entry requirements

Conditions for setting up a branch office

Businesses that would like to set up a branch office in India need to meet the following conditions:
• The applicant company must be a body corporate incorporated outside India;
• The name of the Indian branch office must be the same as the parent company.
• The net worth of the branch office must not be less than US $100,000
• The parent company should have a profit making record in the immediately preceding five financial years in the home country.

In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.

Permitted Activity Of Branch Office In India:
• Export/Import of goods.
• Rendering professional or consultancy services.
• Carrying out research work, in which the parent company is engaged.
• Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
• Representing the parent company in India and acting as buying/selling agent in India.
• Rendering services in Information Technology and development of software in India.
• Rendering technical support to the products supplied by parent/group companies.
• Foreign Airline/shipping Company.

Closure Of Branch Office

Branch office licenses is given for three years, if at any time the Company plans to close the Branch office setup in India it shall file the necessary documents with the Authorized Dealer, and the application for the closure shall be forwarded by the Authorized Dealer.

Copy of the Reserve Bank’s permission/ approval from the sectoral regulator(s) for establishing the BO / LO.

Auditor’s Certificate-
I) Indicating the manner in which the remittal amount has been arrived at and supported by a statement of assets and liabilities of the applicant, and indicating the manner of disposal of assets.
ii) confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc., of the Office have been either fully met or adequately provided for; and
iii) confirming that no income accruing from sources outside India (including proceeds of exports) has remained un- repatriated to India.

No-objection / Tax Clearance Certificate from Income-Tax authority for the remittance/s.

Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending and there is no legal impediment to the remittance.

A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 1956, in case of winding up of the Office in India.

Any other document/s, specified by the Reserve Bank while granting approval.

For more information contact us

Friday 28 January 2022

All about Nidhi Company Registration


Nidhi Company is most popular form for giving loan to its member and accepts deposits from its members. Its main objective is to lend and borrow money amongst its members and to cultivate the habit of savings amongst its members. Nidhi Company is governed by the Provision of Companies Act, 2013 and Nidhi rules 2014.

It providing loan and accepting Deposits you have to register. Nidhi Company is referred to as one of the kinds of NBFC. It is also called mutual benefit company. But no RBI approval is required to incorporate a Nidhi company as it is the exempted category Nidhi Company will always be public limited company and its name should end with ‘Nidhi Limited’, Presently Nidhi Company is become very popular for lending business.

How to Register a Nidhi Company?
• Application for Approval of name.
• Preparations and drafting of Incorporation documents.
• Application for incorporation of Nidhi company with ROC
• Signing of Incorporation documents.
• Obtaining DSC for all member and director.

Nidhi Company Registration:
1) Instant access to Nidhi software and compliances.
2) Lowes t cost across India.
3) It takes 10 or 15 days for Nidhi Company Registration.

Documents Required for Nidhi Company Registration: • PAN
• Address Proof
• Registered Office
• Id Proof
• Passport Photo
• Latest Bank Passbook/Statement of Electricity/Broadband bill

Benefits of Nidhi Company:
Simple Formation of Nidhi Company:
• The formation Of Nidhi Company is very easy process.
• It requires only 7 members out of which 3 members would be the directors.
• Nidhi Company does not require obtaining a license from RBI.
• The documents of required registration are very less.
• It takes hardly 10 or 15 days to get registered.

Limited RBI registration:
• There would be least intervention of RBI.
• Nidhi Companies are exempted from main provisions otherwise applicable to be an NBFC in India.
• These Companies follow Nidhi Rules 2014 issued by the center in respect of activity and working of Company.

Benefits of member:
• It works with the objective of increasing saving of its member.
• Easy to make donations and get loans from the Company.
• Loan given at Lower rate.
• The risk of non-payment is less than the other finance business.

Restrictions on Nidhi Company:
• The period of repayment of the loan should not exceed one year.
• Only secured loans can be given i.e. insecurity of any gold, silver, or any other valuable jewel.
• Nidhi Company cannot do any chit fund activity, hire purchase, and lease financial activities. Nidhi Company cannot lend or borrow money from any person other than its members.
• It’s not allowed for Nidhi Company to issue preference shares, debentures, or any debt instruments.
• Minimum paid-up capital requirement is Rs 5,00,000

For more information Click here