Mistakes that a start-up should avoid

A booming out-pour of Startups in Bharat is that the recent trendsetter. Recently, we've witnessed several low and status Start-Ups landing up within the Court of law fighting legal battles and sabotaging their name in public. so as to avoid such mistakes, here square measure “8 fast tips” that a Start-Up should do to avoid such ugly legal battles.

1. TO HAVE A STRONG LEGALLY BINDING AGREEMENT: One of the key issues that a Startup ought to look at is that the Founders’ Agreement. One ought to in an exceedingly means think about the Founders’ Agreement as a variety of “pre-nuptial agreement”. It ought to be clear, comprehensive, unambiguous agreement between the Founders of the Start-Up so as to chop down the probabilities of legal proceeding.

2. TO ABIDE WITH COMPLIANCES: A productive Start-Up ought to have an honest, wakeful and knowledgeable team of Advocates, Company Secretaries and leased Accountants so as to fits all the Legal and Government compliances, to avoid legal proceeding by the govt, Income Tax, ED, EOW, etc.

3. TO HAVE A ROBUST CUSTOMER REDRESSAL SYSTEM Treat your Consumers/customers with utmost importance and care by providing them smart services/products. this could decrease the probabilities of the consumer/customer to approach the buyer Forum for redressal.

4. TO MAKE TIMELY PAYMENTS TO VENDORS: One ought to confirm you pay your vendors on time failing that the seller would choose and approach the Court of Law for recovery of debts.

5. TO HAVE SECURE IP(Intellectual Property) POLICY: All the holding like Copyright, Trade Mark, Designs, Patents ought to be registered and may be specifically registered within the name of the Company/Founders and not on the name of the worker.

6. LACK OF EMPLOYEE DOCUMENTATION: Make sure that the documentation with the workers square measure done properly. Business Start-Ups typically encounter issues once they don't maintain adequate employment documentation. Consequently, Start-Ups ought to prepare a nucleus of employment documents to be signed by most, if not all, staff like staff enchiridion, supply letter, counselling, Non – speech act Agreement etc.

7. NOT HAVING A GOOD TERMS OF USE AGREEMENT AND PRIVACY POLICY FOR YOUR WEBSITE/MOBILE APP: A Terms of Use Agreement sets forth the terms and conditions for folks exploitation your Website/Mobile App. Your Privacy Policy could be a legal statement on your website/mobile app. setting forth what you may do with the private information collected from users and customers/consumers of the site/mobile app., and the way such information could also be used, sold, or discharged to 3rd parties.

8. NOT HAVING THE CORRECT LEGAL COUNSEL: In a misguided effort to avoid wasting on expenses, Start-up businesses typically rent inexperienced legal counsel. instead of disbursement the cash to rent competent legal counsel, founders typically rent lawyers WHO square measure friends, relatives or others WHO supply steep fee discounts. In doing therefore, the founders deny themselves the recommendation of tough legal counsel WHO will facilitate the founders in avoiding several legal issues.

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Income Tax Saving Tips

Recommended ways that of saving taxes beneath Sec 80C & 80D
1. Make investment of Rs one.5 large integer beneath Sec 80C to cut back your ratable financial gain
2. Buy Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment beneath Section 80D
3. Claim deduction upto Rs fifty,000 on equity credit line Interest beneath Section 80EE

Investment choices beneath Sec 80C
The most in style tax-saving choices offered to people and HUFs in India area unit beneath Section 80C of the tax Act. Section 80C includes numerous investments and expenses you'll be able to claim deductions on – up to the limit of Rs. 1.5 large integer during a twelvemonth.

Other Tax Saving choices on the far side Sec 80C
Apart from the 80C deductions, there area unit numerous deductions beneath Section eighty you'll be able to use to avoid wasting on tax. Tax edges on insurance premiums and residential loan interest area unit many.
1. Get Medical Insurance & claim a deduction up to Rs. 25,000 (Rs 50,000 for Senior Citizens) for medical payment
2. Claim deduction upto Rs fifty,000 on equity credit line interest beneath Section 80EE
3. A equity credit line would conjointly assist you in reducing your ratable financial gain because the principal portion of equity credit line is claimed beneath Section 80C upto Rs one.5 large integer and also the interest portion is claimed as a deduction from financial gain from house property

How to arrange your tax-saving investments for the year
The best time to begin coming up with your tax-saving investments is at the start of the twelvemonth. Most taxpayers procrastinate until the half-moon of the year, leading to hurried choices. Instead, if you propose at the beginning of the year, your investments will compound and assist you attain semipermanent goals. Remember, tax-saving ought to be a further perk and not a goal in itself.

Use the subsequent tips that could arrange your tax-saving for the year:
1. Check the tax-saving expenses you have already got – like insurance premiums, children’s tuition fees, EPF contribution, equity credit line compensation etc.
2. Deduct this quantity from Rs one.5 large integer to work out what quantity to speculate. You needn’t invest the whole quantity, if expenses area unit covering the limit.
3. select tax-saving investments supported your goals and risk profile. ELSS funds, PPF, NPS and stuck deposits area unit a number of the favored choices.

This way, you'll be able to discover the way to exhaust the 80C limit. it's best to start finance within the half-moon of the twelvemonth so you'll be able to unfold the investments over the year. Doing this won’t burden you at the top of the year and can conjointly enable you to create hep investment choices.

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COMPANY FORMATION IN INDIA

START-UP IDEAS TO BUILD A NEW INDIA

India has been recognized as one of the top start-up hubs in the world. Especially under the leadership of Narendra Modi there are several initiatives taken from the year 2016 to revolutionize the start-up businesses.
Start-up India Initiative is one such program taken by Prime Minister Narendra Modi which has benefited entrepreneurs across the country. This initiative was mainly take to support the economic growth and create better and more number of employment opportunities.

Let us look into the Facts and Figures of the Start-up India Initiative from 2016 till date:
NUMBER OF NEW START UPS REVOLUTIONIZED
- 16, 578 new start-ups recognized through 499 districts
- 47% of start-ups started from Tier 2 and Tier 3 cities
- A total of 1,66,385 fresh jobs Created by recognized start-ups.

REGULATION INITIATIVES TAKEN FOR SMOOTH FUNCTIONIG OF BUSINESS
1. Exemption from Income Tax Act of Section 56 for investment raised by start-ups upto Rs.25 Cr
2. Exemption from income Tax Act for investments raised by specified companies with no limits
3. 22 regulatory reforms implemented for ease of conducting business
4. Self certification regime for 6 Labour Laws and 3 Environmental Laws.

FUNDING AID TO START-UPS
- 66,000 Cr funding for start-ups with a corpus of Rs.10,000 Cr to support 8,000 companies
- 2151 Cr committed to 39 Venture Capitalist funds who have raised Rs.10,440 Cr
- 1819 Cr invested by Venture Capitalist in 255 companies, creating 29,895 employment opportunities.

INTELLECTUAL PROPERTY ASSISTANCE
1. 1031 Patent and Trademark facilitators to provide free support to start-ups
2. Rebate of 80% granted to 1403 start-ups for Patent filing fees
3. 50% rebate granted to 2672 start-ups for Trademark filing fees

CONSTITUTING INNOVATIVE INFRASTRUCTURE
- 260 Cr spent in establishing 2171 Atal Tinkering Labs in schools across 623 districts
- 7 Research Labs established with an amount of Rs. 665 Cr
- 77 new and existing incubators supported.

EASE OF NORMS PAVING FOR NEW AVENUES TO START-UPS
- For Government tenders the criteria for prior experience, minimum turnover and submission of money deposit is waived off.

STATE START-UP REVOLUTION
1. State Start-up ranking launched to enhance a healthy competitive spirit
2. Participation of 30 States and Union Territories
3. Seed funding aid to 3213 start-ups
4. 21 States have launched start-up policies
5. Start-up India Yatra conducted in 21 States to promote entrepreneurship in rural and non metro areas
6. Mentorship support to 76,146 entrepreneurs across 195 districts
7. 1314 start-ups offered free incubation.

START-UP INDIA HUB-A TOTAL DESTINATION FOR START-UP CULTURE
- Having a community of 3 lakh users and 599 investors, incubators and mentors
- 2,37,902 users have availed free Start-up India Learning Program to build business plans
- 647 start-ups supported through dedicated facilitation services
- 1262 start-ups connected to mentors.

As we can see that there are more than 10,000 start-ups being registered every month in India either as Private Limited, Public Limited, Limited Liability Partnership, Partnership or One Person Company, the government has taken huge steps that have benefited the start-ups. The facts and figures itself mentioned above are the success generated by the Modi held government. In India, the dream of becoming a successful entrepreneur is made a reality.

Start up India initiative is one of the best and biggest revolutions introduced by our present Prime Minister Narendra Modi apart from Swachh Bharath Abhigyaan, Make in India and others.

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Company formation in India | Company registration in India

Start a regulated and recognised business in India

To register business name in India, one must have to visit the official website of Ministry of Corporate Affairs (MCA) and have to apply for new business registration. MCA as sole business invigilator deals with complete administration of all businesses running under Companies Act, LLP act and various other allied acts. It is also responsible for regulating running business enterprises and helping new business ideas to get incorporated with no delay in grounded documentation.
Types of Companies
Considering legislations, one must have to choose a specific form of business to get it incorporated as :
Sole Proprietorship: It is a form of business which is run and governed by single individual. An advantage to this form is that it does not require any registration for incorporation and the owner enjoys unlimited liability.
Private Ltd Company : It is a restricted form of business in which no right is given to shareholders to transfer their shares, it is incorporated with a minimum of 2 members required and with a maximum limit of 200 members.
Public Ltd Company: It is a form of business which is incorporated in a regulated entity format having minimum number of members as 7 with no maximum limit. Companies getting applied for shares in the market are generally counted under Public companies.
Unlimited Company : In this form of business, an entity works with a team of members all having unlimited liability. It runs with a disadvantage of getting personal assets of the members into threat as it is stated that personal assets of the members would be used in cases the business gets into big unsettled debts.
One Person Company : It is a registered form of private company, which includes only one member as the sole owner and having at least one director (provided that owner could also declare himself as director).
Section 8 Company : These companies are registered to promote science, sports, art, social welfare, religion, charity, etc. They do not intent to earn maximum profit while generally these companies work for social causes and are mostly non profit making entities.
Nidhi Companies : These companies are generally registered as Non banking finance companies and are incorporated for increasing saving habit of associated members.
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Tips for Tax Saving Investment

Tax saving is that the strategy by that one saves taxes by victimization the provisions given underneath law. At the time of filing your come, you'll be able to seamlessly claim these exemptions and deductions from the tax department. Such provisions square measure provided by the govt to incentivize savings and investments within the economy. the method of tax saving is totally legal and inspired by the govt. it's a obligatory contribution to state revenue levied by the govt on staff financial gain and business profits or else to the value of some merchandise, services and dealings. Taxes paid by public square measure employed by the govt for closing numerous welfare schemes as well as employment programs. underneath section eighty of tax Act, 1961 (“Act”) there square measure numerous deductions a remunerator will claim from his total financial gain which might bring down his dutiable financial gain and thereby cut back his tax outgo.

Every year most people struggle to avoid wasting our tax and it would be difficult for the new earners or freshly recruited workers further. most typically used choice to save tax is section 80C. in line with this section, if a private or hindu undivided family (HUF) invests in or spends on given sources, then up to government agency one.5 lakhs of such investment are often claimed as a deduction from gross total financial gain before conniving tax collectible on that in fiscal year. Such deduction created are often claimed solely from the financial gain within the fiscal year within which such investment was created.

Tax saving investment is a necessary a part of tax designing we have a tendency to do to avoid wasting our tax Associate in Nursingd conjointly an activity which each and every tax money dealer ought to endure. So, here is all the knowledge and analysis we'd like so as to decide on the tax saving investment theme underneath section 80C:

Public provident fund (PPF): Investment in PPF is that the most suitable choice underneath section 80C of tax Act. it's worthiest for those UN agency ought to keep aside funds for his or her retirement. It declares to permit the come on par with the inflation typically. Contribution amounting government agency one hundred fifty,000 is allowed underneath PPF. Rate of interest is set by Ministry of Finance from time to time. Interest earned is nontaxable . The lock-in amount for PPF is fifteen years. once 5 years quantity are often withdrawn subject to bound conditions. it's amongst the most effective ways for tax saving.

5 year bank fastened deposits (FDs): Any term deposit with the tenure of a minimum of five years with the scheduled bank conjointly qualifies for the deductions underneath section 80C and also the interest earned on that is dutiable. The investment created in FDI can't be withdrawn in between. Equity joined Saving Schemes (ELSS): ELSS funds have the shortest obligatory lock-in amount of 3 years among the tax-saving investment choices accessible underneath section 80C. The investment is created in equity, directional additional outstanding returns and provides regarding V-J Day within the long run. The deduction are often claimed u / s 80C simply. ELSS is Associate in Nursing overall financial statement and is ideal to assemble one’s semipermanent financial goals.

National Savings Certificate (NSC): the most effective factor regarding this instrument is that not like Associate in Nursing insurance or a pension account NSC doesn't need a multi-year commitment. So, it's a decent possibility for those that don’t have time to check the options of the set up or hunt to the promising ELSS funds. it's issued within the post offices. The tax deduction for this investment are often claimed underneath section 80C of the Act.

Unit joined Investment set up (ULIP): ULIP came into focus from last year once the budget introduced tax on semipermanent capital gains from stocks and equity funds. it's the mixture of investment and insurance that is eligible for tax exemption. It covers the come however there aren't any bonded returns.

Premium of life insurance: The theme is roofed underneath section eighty of the Act. The schemes of insurance facilitate someone to safeguard itself and its dependents from any risk occurring in future.

Senior voters Savings theme (SCSS): SCSS was already the most effective tax-saving possibility for those higher than sixty years elderly, however last year’s budget created it additional engaging by giving senior voters a further government agency fifty,000 exemption on interest financial gain. this implies that the general tax exemption for senior voters higher than sixty is currently government agency three.5 lakhs and for terribly senior voters higher than eighty is government agency five.5 lakhs. most limit for the higher than mentioned investment is government agency fifteen Lakhs. The lock-in amount of five years. The deduction is allowed underneath section 80C. (Company Formation)

Above expressed square measure the investments which give deductions that may be claimed underneath section 80C for saving the tax, considering numerous provisions. The half-moon of each fiscal year that's Gregorian calendar month to March is that the time once most people rush to settle our tax saving exercise by submitting the documents to our employers and conjointly creating numerous investments. Doing this we should always confine mind some small print or measures that we should always see exercise the tax saving profit. constant are mentioned in our next section.
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How to Check TDS (Tax Deducted at Source) online?

Introduction

Income is one such aspect of recent day life that can't be unnoticed or brushed off. It finds how to influence the answer of one’s day to day challenges from an easy issue on if one ought to walk the additional mile or take the bus? or a lot of larger things on if a corporation ought to invest crores of rupees during a specific sector or not? It influences the lives of all people from poor laborer to wealthy man of affairs and because of such influence that financial gain yields during a country like Republic of India folks square measure usually interested in what cash they pay as taxes and the way a lot of they're stepping into the shape of returns as being compliant with revenue enhancement rules and laws here are available the thought of TDS and TDS returns. allow us to currently verify what one means that by TDS and TDS returns and what's the procedure to envision the standing of such returns online

TDS is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) Department of Revenue managed by Indian Revenue Service.

Any quantity subtracted from earnings could be a pinch to our pockets. TDS is subtracted once the worker receives his earnings. several queries and doubts come to a novice taxpayer’s mind:
1. Is the TDS subtracted paid promptly by the employer?
2. How do I reassure that it's been credited to my PAN?
3. Can I check the TDS subtracted all on my very own or i want a CA for it?
4. Is permission needed from the employer?
5. Are there any charges for checking your TDS?
6. How do I check TDS online?

TDS is calculated on your financial gain and subtracted from your salary; thus you've got authority to envision your TDS while not your employer’s permission. you'll check it yourself while not anyone’s facilitate, and it’s completely freed from cost! It takes solely a number of minutes to envision credit of TDS subtracted. Following area unit the steps to envision TDS Credit on type 26AS:

1. Visit e-Filing Home Page, Income Tax Department, Government of India
2. Register yourself
3. If already a registered user, log in using the credentials
4. Go to ‘My Account’
5. Click on ‘View Form 26AS’
6. Select ‘Year’ and ‘PDF format’
7. Open the file downloaded. The password to open this file is your date of birth mentioned on your PAN card, e.g. if your birth date is 1st January 1990 then your password will be 01011990
8. After opening Form 26 AS you will get information regarding total income on which TDS is deducted and TDS credited to your account
9. If you have internet banking facility and your PAN is linked to it, then you can use your bank’s net banking portal to check your TDS online

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PRIVATE LIMITED COMPANY | DIGITAL SIGNATURE

FDI amendments in India

The Union cupboard Ministry crystal rectifier by the Prime Minister Narendra Modi gave its endorsement to varied amendments to the FDI Policy in an exceedingly Press note of last year. Foreign Direct Investment (FDI) could be a noteworthy driver of {monetary|of economic} development and a wellspring of non-debit finance for the monetary improvement of the state.
According to the press note that was discharged last December, the subsequent FDI amendments were created throughout the cupboard meeting:

Single complete Retail: Existing FDI approach on Single complete Retail commercialism (SBRT) permits forty ninth FDI beneath programmed course and FDI past forty ninth and up to 100 percent through Government authorization route. it's currently been determined to permit 100 percent FDI beneath automatic route for SBRT. it's been chosen to permit the one complete retail commerce unit to line off its steady sourcing of merchandise from India for worldwide tasks amid 1st five years, beginning one Gregorian calendar month of the year of the start of the first store against the obligatory sourcing requirement of half-hour of products from India.

Civil Aviation: per the present document, remote carriers ar allowable to place beneath Government approval route within the capital of Indian organizations operating planned and non-booked transportation management, up to forty ninth of their paid capital. In any case, this arrangement was directly not relevant to Air India, on these lines inferring that overseas craft couldn’t place resources into Air India. it's currently been determined to urge obviate this limitation and modify outside carriers to contribute up to forty ninth beneath endorsement course in Air India adhering to the conditions:

1) Foreign investment(s) in Air India, also as overseas Airline(s), won't surpass forty ninth in any means.

2) in depth possession and effective management of Air India shall still be unconditional within the Indian National.

3) Construction progress: it's been created clear that real-estate broking services don't add up to land business and, thus, qualified for 100 percent FDI beneath the automated route.

4) Power Exchanges: Existing policy accommodates forty ninth FDI beneath automatic route in Power Exchanges noncommissioned beneath the Central Electricity restrictive Commission (Power Market) laws, 2010. Conversely, FII/FPI investments were confined to the secondary market. it's currently been created clear to urge obviate this arrangement, on these lines allowing FIIs/FPIs to place resources into Power Exchanges through the first market too.

5) prescribed drugs: FDI policy on Pharmaceuticals division among alternative things imparts that which means of the medical equipment as fenced in within the FDI Policy would be vulnerable to alteration within the medication and Cosmetics Act. because the definition fenced in within the policy is thorough in itself, it's been chosen to discontinue the relation to the medication and Cosmetics Act from FDI arrangement. Further, it's to boot been determined to vary the which means of ‘medical apparatus’ as fenced in within the FDI Policy.

6) relating to audit firms: the present FDI policy doesn't have any arrangements in reference to detail of auditors which will be hand-picked by the Indian investee organizations obtaining overseas funds. it's been chosen to grant within the FDI policy that where the foreign capitalist wishes to work out a selected auditor/review firm having a world system for the Indian investee organization, at that time a review of such investee organizations got to be done as joint audit whereby one in all the inspectors ought not be a neighborhood of the same system.

The FDI Policy, because it remained once to those revisions, legalised FDI with no legislative approvals automatic route in units engaged with the business centre model of web business, and denied FDI in substances engaged with a stock-based model of web business. a poster centre model was characterised to mean the arrangement of associate degree data technology platform and alternative frameworks by the net business part, to encourage transactions among purchasers and vendors. A stock model nonetheless was characterised to mean a model during which the e-commerce business unit has management of products, and directly pitches to patrons on a B2C basis.

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