Choosing the Right Type of Company for Your Business in India

One of the primary decisions that need to be taken when starting a corporation in India refers to the legal entity under which the respective business will operate the local market. India provides a group of business forms, almost like those available in other jurisdictions. the choice regarding the legal structure of an Indian company should be taken in accordance with the capital the investors have, the obligations and liabilities they need to assume or the dimensions of the business they need to work here. Our team of consultants in company formation in India offers legal assistance for selecting a legal entity suitable for a selected business registered here.

Registering an Indian sole trader

The Indian sole trader represents the only sort of doing business during this country. At an equivalent time, if the business fails, the completing procedure is far simpler than within the case of other business forms.

The procedure on the way to form a corporation in India for a sole proprietorship stipulates that this business form are often found out by one investor, who is performing business activities in his or her own name. Our team of representatives in company formation in India can advise on the benefits of a sole trader.

The company will got to be represented by a company checking account , a requirement imposed to other business structures available here, also on register for value added tax, but only within the situation during which the corporate reaches a particular income threshold. This business form is typically the simplest option within the case of small businesses.

Register a partnership in India

Another business form that’s usually employed in India is that the partnership. Its succcess is given by the straightforward registration procedure. India provides two sorts of partnerships, as follows:
1 partnership registered under the Partnership Act 1932;
2 indebtedness partnership, registered under the indebtedness Partnership Act 2008.

A partnership in India is usually found out by an Indian citizen residing in India, but foreign investors can also found out this business form, after having received permission from the local institutions.

Businessmen are invited to contact our team of specialists in company registration in India for in-depth assistance on the way to choose an appropriate legal entity.

For more information Click here

Company registration consultant

Company registration consultant should be selected very carefully once you are registering a corporation . Transparent pricing, thorough knowledge of Companies Act 2013, in-house company secretary team and knowledge within the field should be checked when selecting a consultant for company registration. Business setup is that the top consultant for company registration in Mumbai, Bangalore, Pune and Hyderabad.

What are the foremost important factors when deciding the consultant?

The most details to think about is:
1. The consultant should be locally present.
2. The consultant shouldn’t be aggregator
3. A in-house team of company secretaries should be present
4. Should be experienced in company registration

What is the approximate cost to register a corporation in Mumbai or Bangalore or Pune?

Generally the value for a corporation registration including 2 directors is Rs 6500- Rs 10000. BusinessSetup.in which is locally present in Mumbai, Pune and Bangalore offers free company registration and charges only the govt fees of Rs 4273.

What are the documents you ought to get after the corporate is registered?

It is vital that you simply get the subsequent documents from your consultant after the corporate is registered:
1. Digital signature for all the director and shareholders
2. MOA
3. AOA
4. Certificate of Incorporation
5. PAN and TAN
6. Share Certificates
7. Company Incorporation form that’s SPICE
8. First board resolution for checking account opening and auditor appointment

For more information Click here

For more Details, Visit: http://companyformationindia.com/blog/company-registration-consultant.html

Branch Office in India

What activities can a branch office perform in India?

The branch office are often opened by any foreign company. The activities it can undertake are mentioned below:

• 1 Export/Import of products
• 2 Rendering consultancy services
• 3 Carrying out research work, during which the foreign parent company is engaged.
• 4 Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
• 5 Representing the parent company in India and acting as buying/selling agents in India.
• 6 Rendering services in Information Technology and development of software in India.
• 7 Rendering technical support to the products supplied by the parent/ group companies.
• 8 A branch office cannot perform manufacturing activities on its own but can subcontract these to any manufacturer based in India. Branch Offices can remit the profits to its parent company after paying taxes on an equivalent (RBI).

Who is that the approving authority for branch office?
Reserve bank of India is that the nodal authority to urge the permission to start out a branch office in India

How much time does it fancy setup a branch office in India?
The Branch office could also be registered in 45–60 days

What are the pre requisites to start out a branch office in India?

• 1 The name of Indian Branch office should be same as that of a parent company.
• 2 The Branch is simply extension of the exiting company within the foreign country.
• 3 All the expenses of the BRANCH office are met by the top office, if it doesn’t have the revenue from Indian operations.
• 4 The foreign parent company getting to setup a Branch office should have a profitable diary during immediately preceding 5 years.
• 5 The Net worth of the foreign company should be quite or adequate to USD 100,000. The networth certificate should be
• 6 A branch office is is suitable for foreign companies looking to setup a short lived office in India and not interested or not getting to have future plans for the Indian operations; except banking, shipping and airlines etc. mentioned above.

Documents required for forming a Branch Office in India
The application for forming a branch office is to tend to the bank in India. The bank then submits the appliance to RBI for approval.

The following documents are required to open a branch office in India:

• A Indian resident who are going to be liable for branch operations and can be susceptible to make the tax payments and regular compliances Form FNC 1 (Three copies)
• 1 Letter from the principal officer of the Parent company to RBI.
• 2 Letter of authority from the parent company in favor of Local Representative.
• 3 Letter of authority/ Resolution from parent company for fixing BRANCH office in India.
• 4 Comfort letter from the parent company meaning to support the operation in India.
• 5 Two copies of English version of the Certificate of Incorporation, Memorandum & Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary within the country of registration.
• 6 Certification of Incorporation — Translated & Duly Notarized and properly authenticated.
• 7 The Latest audited record and annual accounts of parent company duly Translated notarized for past Three years and properly authenticated
• 8 Name, Address, email ID and phone number of the authorized person in Home Country.
• 9 Details of Bankers of the Organization the Country of Origin along side the checking account number
• 10 Commitment from the Organization to the effect that it’ll be hospitable report / opinion sought from its banker by the govt of India / Federal Reserve Bank of India
• 11 Expected funding level for operations in India.
• 12 Details concerning address of the proposed local office, number of persons likely to be used , number of Foreigners among such employees and address of the top of the Local office, if decided
• 13 Details of Activity administered in Home Country by the applicant organization in short about the merchandise and services of company in short .
• 14 Bankers Certificate from the bank of the parent company about the small print of parent company and duration of banking with parent company
• 15 Latest Proof of identity of all the administrators — Properly Certified by Banker in Home Country and duly authenticated
• 16 Latest Proof of address all of Directors — Properly Certified by Banker in Home Country and duly authenticated
• 17 Details of the Individuals / Company holding more 10% of Equity
• 18 Structure of the Organization and its Shareholding pattern
• 19 Complete KYC of Shareholders holding quite 10% Equity within the Applicant Company
• 20 Resolution for Opening up checking account with the Banker
• 21 Duly Signed checking account Opening Form for Indian Bank
• 22 The application for BRANCH office Licenses is approved by the RBI, but as per the recent changes the applications for BRANCH office are routed through the Authorized Dealers (AD). thanks to this the timeline for fixing the BRANCH office has increased tremendously. Further the documentation required for an equivalent has also increased to an excellent extent.

Post Incorporation Procedural Requirements
After Incorporation, the subsequent registrations also are necessary for a branch office:

• 1 Permanent account number — PAN
• 2 Tax deduction number — tan number Shop & establishment
• 3 Registration GST Registration if providing services to Indian Customers
• 4 What are the compliances after the Branch Office is made in India?

Every year a branch office is required to undertake the subsequent activities:

• 1 Book Keeping
• 2 Audit
• 3 Annual activity Certificate with RBI
• 4 Filling of financials with Registrar of Companies

For more information Click here

How To Change A Company Name?

Changing the name of a corporation cannot continue without complying with the wants of selecting a corporation name set by the Registrar of Companies.

Changing a corporation Name

Getting a corporation ’s name changed by the Registrar of Companies (RoC) is not any small matter! Executing a company name search will assist you select an appropriate name. an equivalent rules and laws apply to vary a person’s name, as well. The procedure to vary the corporate name is well-defined and is to be followed strictly. Hence, it's essential to follow all the wants of the registrar of companies in India.

Benefits To Changing name

1. once you Can’t Get A Copyright: Acquiring copyright and trademark is important to the success of a business because it forms a part of its branding and marketing strategy. However, if the present name of the corporate cannot get copyright it'll affect revenue streams and future earning potential. for brand spanking new names, check name availability, before you opt to vary the corporate name.

2. Memorable Business Name: From a marketing and a business standpoint, memorability is everything when it involves the name of the corporate . So when registering the name of the corporate with the registrar of companies, confirm you select a reputation that's easy to recollect , and also the one that's available as per a corporation name check.

3. Repositioning: To change name or a brand’s name, especially when your business is prepared to maneuver into a replacement market helps with the concept of repositioning. this is often done to specialise in one particular product or niche that's doing better than others, or when entering a replacement market.

4. Specific product or service: This occurs when a business gains popularity for one particular product or service. For that reason, a business or a brand are often renamed to maximize their popularity and generate more demand, or sales.

5. Location Friendly Name: When it involves choosing the way to change name , one effortless thanks to move forward is to think about the situation . If your business is moving to a location then it might be prudent to rename your business to something that's more friendly and acceptable with the situation of the business.

6. Change Of Ownership: When a business passes ownership, it's only natural for the new owner to see name availability, and alter name . For this purpose, the owner will approach the registrar of companies India to vary his/her name .

Checklist For Updating name , After name Change
1. Updating your social media accounts
2. Update Email footers
3. Name change on stationery – letterheads, business cards, etc.
4. Website changes
5. Informing customers and suppliers
6. Voicemails, messages on answering machines
7. Company registers and Articles of Association
8. Update your computer systems
9. Employment Contracts
10. Update business licenses or permits
11. Supplier Contracts

How To Execute a corporation Name Search

One of the foremost important steps before registering a corporation name with the registrar of companies is to make sure to see name availability.

It is advised to shortlist four to 5 business names before checking availability, within the event a number of those names are already taken or in use. When registering your company with the registrar of companies, the Ministry of Corporate Affairs will authorize the name to be used supported existing rules and regulations.

In the event, a brand has already been trademarked, you'll need a NOC certificate from the owner of the name .

Documents Required For name Change When a corporation decides to vary its name, a resolution is passed among the board of directors/members of the corporate . After which, the subsequent two documents are filed with the registrar of companies;

MGT-14:

This e-form is filed with the registrar of companies on the Ministry of Corporate Affairs portal, thirty days after filing the resolution to vary the corporate name. along side the MGT-14 form, the subsequent forms need to be attached also .

1. Notice of Extraordinary general meeting (EGM).
2. Copy of special resolution passed within the EGM.
3. Copy of altered Memorandum of Association and Article of Association, with the new name .

INC-24

After the MGT-14 is approved, the INC-24 e-form is filed within a period of 30 days with the registrar of companies on the Ministry of Corporate Affairs portal. along side the INC-24 form, the subsequent forms need to be attached also .
1. Extract of the Minutes of the Extraordinary general meeting of the corporate
2. Notice of EGM
3. Copy of resolution agreement
4. Copy of altered MOA and AOA, with the new name .

Source: How To Change A Company Name?

Difference between Bookkeeping and Accounting?

When most small business owners consider the terms bookkeeping and accounting, they often use them interchangeably. While it’s true both bookkeeping and accounting are important within the management of your company’s finances, some key differences between the 2 functions do exist. Therefore, business owners got to understand the roles of every and the way they work together to make sure your company’s success.

Yes, bookkeeping and accounting both need to do with money and therefore the financial picture of your business, but there are key differences. Here’s your chance to know them.When running your business, your ability to grow and succeed is usually hooked in to how organized your financial records are. But managing your business finances is quite just recording your financial transactions and balancing your checkbook. For your business to flourish, you want to be ready to access and use your company’s financial reports to develop a workable business strategy. While both bookkeepers and accountants handle your business’s financial information, they perform different tasks within your company’s financial cycle.

The Function of Bookkeeping

Bookkeeping is comprised of the tasks required during the primary a part of the accounting process. It involves the consistent, timely, and accurate recording of a business’s financial transactions in chronological order. A bookkeeper’s duties include:

Maintaining an entire and arranged set of books, comprised of the overall ledger and every one subledgers (i.e., fixed assets, inventories, assets , accounts payable, cash, tax, costs, and sales) during which to post financial transactions.

Creating and issuing customer invoices.
Recording suppliers’ invoices.
Paying suppliers.
Logging cash receipts from customers.
Documenting inventory changes.
Processing employee payroll.
Managing fund transactions.
Preserving all supporting documents for all business transactions.

A bookkeeper follows a selected set of procedures to perform these duties on a repetitive basis. The complexity of a company’s bookkeeping system depends on the dimensions of the business and the way many transactions are completed on a daily, weekly, and monthly basis. Typically, an accountant or the tiny business owner oversees the bookkeeper’s work.

The Function of Accounting

Accounting involves the method of analyzing, interpreting, reporting, and summarizing the financial data recorded by the bookkeeper or the business owner. a number of an accountant’s responsibilities include:

Preparing adjusted entries (i.e., earned revenue or incurred expenses that haven’t yet been recorded during the bookkeeping process).
Preparing financial statements on the condition and performance of the corporate .
Creating management reports to deal with specific issues.
Analyzing operations costs.
Creating a corporation budget.
Compiling tax returns from the financial data.
Helping the business owner understand the company’s financial data and therefore the impact of his/her financial decisions.

Basically, the accounting process helps you understand where your business stands financially at any point in time by measuring your company’s progress within the terms of growth and financial success. Additionally, the financial data generated helps you to form informed business decisions, so you’ll plan for your company’s future.

Benefits of Filing Income Tax Return (ITR)

Income Tax Return is a document an individual is required to file with the Income Tax Department on a yearly basis. However, it is not mandatory for everyone to file the Return. If your income in the previous year is above the basic exemption limit of INR 2,50,000 (Rupees Two Lakh Fifty Thousand only), then you are required to file the Income Tax Return compulsorily.

Even though it is not mandatory for some persons to file the Income Tax Return, one should file it every year as there are many benefits of filing it.

Here are some of the major benefits of filing Income Tax Return:

Loans and credits:
 In order to urge a loan, one should have the tax Returns for the last three years. All banks and lending institutions invite a minimum of three years of tax Returns to grant a loan to a private . At the time of processing application , banks and lending institutions check the declared income and source to verify the repaying capacity of the individual seeking a loan. They use tax Returns to verify an equivalent .

In case you’re seeking a private loan, a home equity credit , or a automobile loan , it’s essential for you to file tax Return. If you often file tax Return, you’ll get a loan from any bank or financial institution very easily. Even the banks prefer allotting credit cards to perons who file regular tax Returns.

Easy to claim your TDS:
 TDS means Tax Deducted at Source. it’s a Tax deducted from your income by the person paying the salary or making the other payment on which TDS is applicable. The deductor while making the payment deducts the tax amount and pays it to the tax department directly on your behalf.

You may get the tax amount so deducted by filing tax Return. If there’s no tax amount payable at the time of filing the tax Return, the entire TDS amount are going to be refunded.

If you’re working as an employee during a company and earning but Rs 2.5 lakh a year, you’ll claim your TDS from the Tax department. just in case you’re a businessman and need your TDS to urge back in your account, it’s mandatory to file an ITR per annum .

For going out of country
 In order to use for a VISA to go to any country, you would like to possess tax Returns. While giving VISA, embassies officials check the income proofs and address proofs of a private . Thus, tax Returns are checked by the officials to verify the income and address. Therefore, if you’re getting to go abroad, you want to get your tax Return filed immediately.

From the fiscal year 2017–18, tax Return of a previous year are often filed within the same assessment year only. After the top of the assessment year, the tax Return of the previous year can’t be filed.

Required for giant insurance cover:
 If you would like to use for an insurance cover of over INR 50,00,000 (Rupees Fifty lakh only), the insurance companies invite tax Return. The annual income and tax returns help insurers to work out the precise premium amount and security amount. Most of the days , tax Return may be a necessary document for purchasing an insurance cover.

Helps in executing financial transactions:
 Income Tax Return is required just in case of executing some financial transactions. Transactions or payments for house, car, mutual funds etc require tax Returns. Some payments for giant investments also need tax Returns.

Address proof:
 Income Tax Return works as an address proof in many government organisations and agencies. you’ll use it as an Address proof in situ of unavailability of other documents.

Source: http://companyformationindia.com/blog/benefit-filling-income-tax-returns.html

How to sell on Online Portal

Step 1

Register your business (How to Sell Online in India)

There ar three choices to try and do a similar. Please choose the most effective possibility supported the variations listed below.

Private Ltd.
Entrepreneurs reaching to raise funds for angles or VC’s
If you’re 2 or additional partners
Time Taken: five Days
Cost: Rs fifteen,000

LLP
Best suited to traders and on-line sellers
If you’re 2 or additional partners
Time Taken: five Days
Cost: Rs 8,500

Proprietorship
Best suited to individual traders and on-line sellers
Time Taken: two Days
Cost: Rs fifteen,000

Step 2

Apply for a store and institution act license
It will price you Rs 1500 to Rs 3500 looking on the kind of structure. it’ll take solely two days to urge his registration. it’s mandatory for all kind of businesses and is necessary to show the license at registered workplace.

Step 3

Apply for GST registration
This is a mandatory registration needed to sell on-line. The time needed for a similar are going to be five days.