Tag: Financial Services for Startups

9 most important Income tax changes which will occur from 1st April

There are certain most important Income tax changes which will affect you in the coming month.

Here is a quick read through them!

Tax rebate for taxpayers with income up to Rs 3.5 lakh (earlier Rs 5 lakh) is reduced to Rs 2,500 from Rs 5,000 per year. Because of the combined effect of change in tax rate and rebate, an individual with taxable income of Rs 3.5 lakh will now pay tax of 2,575 instead of 5,150 earlier.

Holding period for immovable property is now reduced to 2 years from 3  and is to be considered “long term”.This change will ensure that any immovable property which is held beyond 2 years is taxed at a reduced rate of 20 per cent and eligible for various exemptions on reinvestment.

Tax exemption on reinvestment of capital gains, this will be in notified redeemable bonds in addition to investment in NHAI and REC bonds.

Tax saving for taxpayers with income above Rs 1 croreof up to Rs 12,500 per year and Rs 14,806 (including surcharge and cess) and a decrease in tax rate from 10 per cent to 5 per cent fortaxpayers with total income between Rs 2.5 lakh and Rs 5 lakh.

Surcharge at 10 per cent of tax levied on rich taxpayers– people with income between Rs 50 lakh and Rs 1 crore. The rate of surcharge for the super rich, with income above Rs 1 crore, will remain the same i.e.15 per cent.

One-page tax return formfor individuals with taxable income up to Rs 5 lakh (excluding business income) is to be introduced. Those filing returns for the first time in this category will generally not be subject to scrutiny.

Time period for revision of tax return cut to one year (which was previously 2 years) from the end of the relevant FY or before completion of assessment, whichever is earlier.

The base year for indexation of cost (adjustment of inflation) has been shifted to April 1, 2001 ( which was previously April 1, 1981).Long term capital gains tax will result in a lower payout owing to beneficial amendments. This means lower profits on sale.

Fine for delay in filing tax return for 2017-18 is Rs 5,000 if filed by Dec 31, 2018 and Rs 10,000 if filed later. Such fee will be restricted to Rs 1,000 for small taxpayers with income up to Rs 5 lakh.

For more information on Income Tax, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

More Newsletter

Tax Reforms – Budget 2017

GST Registration Procedure

One India one Tax- GST

Save Tax through the following Tax Exemptions

Online Tax Filing

Taxation for Expatriate

 

Activities to Be Performed after Incorporation Of Company

If you have recently incorporated your private limited company or under the process of incorporation then you must get yourself familiar to the new provisions of Companies act 2013.

The most important things that every promoter or director of a newly incorporated private limited company should know after getting certificate of incorporation or before getting into the process of incorporation.

Checking Company’s Master Data after Incorporation

Certificate of incorporation for a private limited company is the last step in the process of incorporation. Once you received the certificate of incorporation, it means, all legal formalities required for company registration are completed in India.

At Gapeseed Consulting, we have legal consultants like chartered accountants and Company Secratories who help us in the process of company incorporation and do all such things that are required to complete the registration process.

Now the question is how to cross check to know that the company is incorporated with correct details like authorized share capital, registered office, category, CIN, paid-up share capital, status and date of incorporation etc.

These are the most important thing that every company should keep it right.

We suggest you to check these details in company’s master data by visitingthe website of Ministry Of Corporate Affairs  after getting certificate of incorporation.

If you find any changes or incorrect details then immediately inform to your chartered accountant or Company Secretary  to take necessary actions for its correction.

You need to check following things in company’s master data;

  • Authorized share capital
  • Paid up share capital
  • Registered office address
  • Status i.e. Active or Inactive
  • Date of incorporation

File E-Form INC22 For Situation Of Registered Office

Situation of registered office has to be intimated within 30 days from the date of incorporation to the registrar of companies. This can also be filed at the time of incorporation along with other e-forms if registered office of the company is going to be the director’s residence or owned house.

If it’s not filed at the time of incorporation then within 30 days from the date of incorporation, then it is a Non-Compliance u/s 22 of the Companies Act,2013

As per section 12 of Companies act 2013, a company shall, on and from the 15th day of its incorporation and all times thereafter shall have a registered office. This means the company should enter into a rent or lease agreement within 15 days from the date of incorporation and within 30 days from the date of registration should file INC-22 with ROC.

Display Company’s Identity And Other Details

After incorporation, it’s the duty of the company to display following things outside the company’s registered office;

  1. Name of the company
  2. Registered office address of the company
  3. Corporate identity number or CIN
  4. Telephone number, email ID
  5. Website address and fax number if any

These details are also required to be printed in all business letters, bill-heads and in all other official publications.

Putting CIN or corporate identity number in all official publications is a new requirement in Companies act 2013. This provision was not there in old Companies act 1956.

In case of failure to quote CIN number, penalty of Rs. 1,000 per day shall be imposed on the defaulting company and on every officer in default for every day during which such default continues up to a maximum limit of Rs. 1,00,000.

If company has changed its name in last two years then it shall paint or affix or print, as the case may be, along with its name, the former name or names so changed in all official publication including letter head and bill-heads.

Appointment Of Company Auditor

As per section 139(6) of Companies Act 2013, company has to appoint its first auditor within 30 days from the date of incorporation in a board meeting. If board of directors are not able to appoint then it has to be appointed within 90 days in a general meeting of members.

First auditor as appointed is required to hold office till the conclusion of first annual general meeting. Companies Act 2013 does not require any form to be filed with ROC but this is a requirement of law and it has to be complied within time.

Open A Bank Account And Issue Shares To Subscribers

Companies Act 2013 requires the company to allot and deliver share certificates within 2 monthsfrom the date of incorporation to all subscribers of MOA. It’s also mentioned that each subscriber will deposit subscription money as specified in MOA to company’s bank account by cheque or through net banking.

We suggest to open a bank account with the help of MOA, AOA and certificate of incorporation and then takecheque from each subscriber and deposit it in company’s bank account.

File Audit Report, Financial Statements And Annual Report Before Due Date

A private limited company is required to file its balance sheet, profit and loss account, auditor’s report and annual return every financial year before the due date with the registrar of companies. Non compliance to this provision will attract additional fee in addition to the normal fee that are charged while filing the e-Form.

Now you know mandatory things that promoter or directors of a private limited company should remember after incorporation of a private limited company. In case of any doubt or clarification please contact us by using our comment form.

For more information about Activities to Be Performed after Incorporation Of Company, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

Also read this:

Outsourced Accounting Services ,
5 Steps for Setting up a Business in India,
Importance of Accounting for Startups ,
Simple Tips to Design a Salary Structure for an Employee, 
Online Tax Filing ,
Tax Accounting Services for start-ups and small businesses, 
Procedures and Documentation For Startups,
Payroll Services for Startups.

IMPORTANCE OF WORK LIFE BALANCE

 WHAT IS WORK LIFE BALANCE?

Work life balance is all about creating and supporting a healthy work environment which will enable a worker to have balance between work and personal responsibilities. This will help in maintaining and strengthening employee loyalty and productivity towards the company. Workers have many responsibilities to take care of, such as work, family, housework and many more little things that matter to them. Balancing between work and life has become a major issue between workers as this conflict has been associated with numerous physical and mental health problems. Work-life conflict impacts workers, employees and their communities as well. A worker can only be productive when there is balance between its work and life.

COMPONENTS OF WORK-LIFE BALANCE

TIME MANAGEMENT

Time management is one of the major components to achieve work life balance. It is a way of organizing and planning effectively the time required to complete certain activities, it also helps in efficient use of your day. Time management can be done on the basis of your work, whether it is urgent or important. It helps in greater productivity and efficiency, less stress and better professional reputation.

STRESS MANAGEMENT

Stress management is a technique to reduce stress suffered by workers. As the world is growing and changing faster every day, work becomes more complex over time. Competition arises between workers to excel in the company. Workers then start working under pressure of promotion and preference, this results in stress of work. Workers must not come under stress while working rather than stressing over deadlines.

SELF-MANAGEMENT

Self-Management is a way of managing one own self. A worker must take care of its body, hygiene and nutrition. A worker must develop talents and potential to enhance their quality of life. A worker must get enough sleep and exercise to be productive and work effectively and efficiently for a company. If a worker excels in managing one own self, then they will become more capable of managing tasks.

CHANGE MANAGEMENT

In this growing world, change has to be adopted no matter whatever the consequences may be, continuously adopting new methods and re-adapting others is vital to a successful career and a happy home life. Effective change management involves making certain changes in your work and everyday life.

IMPROVING WORK-LIFE BALANCE

Role of an Employer

An employer must direct an employee towards the organisational goal and support them by providing them with necessary resources. Employers can arrange special workshops on this major issue and also programmes, initiatives for the betterment of the employees. Here are some decisions an employer must take to eradicate this problem.

Employer must see to it that the employee is not given any extra work after they have left their worksite. It means restricting number of hours which are expected of an employee in a given week. They should also see to it that their e-mail servers should stop after the working hours.

Employers must concentrate more on the outcome rather than the number of hours a working is working. A productive worker can complete its worker well before 8 hours and may not need to waste time.

They should also increase number of brakes while working, keeping in mind the stress factor of an employee. Lunch breaks, rest breaks must also be kept in mind while making such decisions. Also; providing breaks to workers increase their productivity which means effecting work.

Employer must also inform its workforce regarding work-life balance and its importance. This will help them in taking extra care of themselves and their families, resulting in less health problems both physically and mentally.

An employer must let the employees do certain things which make them happy and satisfied at work. This will help the employee in improving its mental state by providing them with happiness.

Getting inputs and feedback from employees keeps them connected to the company and makes them feel that they are a vital part of the organisation. This will keep them motivated and satisfied while working for the betterment and growth of the company.

Motivating its employees by fulfilling their basic needs, social needs and esteem needs. An employer must appreciate the work done by its employees and guide them if they go wrong.

Understanding the needs and problems of a worker must be kept in mind. Offering maternity leaves to new parents will help the employees to feel better about the organisation and make them believe that the organisation really do care for them.

The organisation must also provide employees with more number of vacation days so that they get to spend more time with their family and help them self-manage themselves.

Some examples of good work life balance in the world are:

1. Family is given more importance than work in the Danish Culture. The country focuses on fewer working hours so that workers get more time to spend with their families.

2. In Madrid, workers are allowed to have mid-afternoon breaks to avoid the sun and this cuts down their hours substantially.

3. Workers in Germany take an average of 29 days’ holiday every year just to celebrate Oktoberfest and be with their families.

4. In France, workers get mandatory pay leaves of 40 days and the government is forcing them to not use smart devices after work hours, also no checking and responding to e-mails after work.

5. In Netherlands people work an average of 27.6 hours a week. It is one of the few countries in the world to have such a low work week cycle but yet they have a very good GDP. It is also said that Netherlands has a 4-day work week.

6. Bulgaria is the best place for the people to work in who have kids as, the workers are given up to 410 days of paid maternity leave at 90 percent of the mother’s salary.

Work-Life balance is very important in a workers’ day to day activities as performing certain tasks may drain out their energy of doing other tasks for their family or for themselves. Balancing will help a worker to be productive and grow as a person. Good management of time, stress and change in the environment by an employee leads to effective and efficient work.

For more information on WORK LIFE  BALANCE, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

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GST Registration Procedure

Save Tax through the following Tax Exemptions

5 Steps for Setting up a Business in India

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The Evolving Role of Internal Audit in Growing Companies

GST Registration Procedure

GST, AN OVERVIEW

The Goods and Services Tax is destination based indirect tax, levied at the time of consumption of goods and services by the ultimate consumer. It also aims at simplifying the present tax structure in India. It subsumes taxes like Central indirect taxes – Service Tax, Additional Customs Duty, Special Additional Customs Duty, Central Excise Duty, and Countervailing Duty, and Sale indirect taxes – Sales Tax, Central Sales Tax, Entertainment Tax, Luxury Tax, and Octroi/ Entry Tax.GST is just like a duty just on value addition at every stage. The end consumer subsequently bears the GST charged by the last merchant in the Sales Network, with set-off advantages at all the past stages. With the GST all set to be rolled out, we look at the registration procedure.

GST REQUIREMENTS

Any person carrying on any business who has a taxable supply of over Rs.10 lacs in case of Northeastern States Of India and Rs. 20 lacs in the rest of India would be required for registration of GST in India. A mechanism is available for voluntary GST registration to help claim ITC(Input Tax Credit). It must be obtained under 30 days of exceeding the Rs.25 lacs turnover limit. A procedure would be announced for migrating the VAT or service tax registration as a GST registration.

According to Schedule III of the Model GST Law, the following shall be registered compulsorily, disregarding the total turnover of their respective businesses:

• Every person/entity who is registered or holds license under any earlier law, is liable to get migrated under this Act;
• Every person shall be liable to be registered under this Act if his turnover in a financial year exceeds the taxable threshold limit.
• Every person making any inter-state Supply, irrespective of taxable threshold limit;
• persons who are casually taxable i.e. any person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business;
• Every person who are required to pay tax under reverse charge;

GST REGISTRATION NUMBER

It is expected to be provided based on PAN. One of the major advantage of implementation is that the same GST registration number can be used across all states of India against the VAT regimen in which a dealer needs to obtain VAT registration in each of the states (with additional cost and compliance formalities).

DOCUMENTS REQUIRED FOR GST REGISTRATION

For Private limited company

• Certificate of Incorporation
• PAN of the company
• List of Directors along with their personal details
• PAN Card of Directors
• Adhaar Card of Directors
• Passport size Photo of Directors
• Board Resolution
• Address proof of company

For Proprietorship

• PAN of the proprietor
• Address proof of the proprietor
• Photo of Proprietor
• Address proof of Entity

For Limited Liability Partnership

• Certificate of Incorporation
• LLP Dead
• PAN of LLP
• PAN of partners
• Adhaar Card of partners
• Letter Of Authorisation
• Address proof of Entity

For Partnership Firm

• Certificate of Registration
• Partnership Dead
• PAN of Partnership
• PAN of partners
• Adhaar Card of partners
• Letter Of Authorisation
• Address proof of Entity

ONLINE GST REGISTRATION PROCEDURE

GSTN maintains a portal for the online GST registration procedure. The applicant is required to submit an online application for GST registration along with the entire and specific details of the goods and services to be dealt. A temporary GST registration number would be provided post the submission of application and the online payment of registration fee.

A copy of the application must respectively be printed, attached with the other mentioned documents and then couriered to the GST department. A final GST certificate would be issued by the concerned officer post the verification of the application along with the documents.

ADVANTAGES OF GST REGISTRATION FOR BUSINESSES

On the registration of a business it will get various advantages of the implementation of GST. Business will legally be approved to gather charge from buyers and pass the tax credit on to the buyers or beneficiaries and will be legally perceived as a provider of goods and services. The business shall thus be having a proper bookkeeping of expenses paid on the input goods or services which can be used for payment of GST due on supply of products or services by the business.

For more information on GST Registration Procedure, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

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Union Budget 2016-17, Keypoints for Startups

In continuation to our previous blog on what the government has in bag for the startups this blog will take you through what the budget has which can help you make your startup successful.

Overview

With so many startups coming up now and then, the government has now realized that how significantly it can drive our social and economic growth of the nation. This has resulted into coming up with initiatives likes Digital India, Make in India, and Start Up India, Stand Up India.
In the Union Budget 2016-2017 though it has emphasized on different key areas like Agriculture, Rural Development and Infrastructure etc. but it didn’t stand up to the hopes of the entrepreneurs There is uncertainty whether union budget 2016-2017 would truly help India to startup and stand up?

Let’s start with what the government had in for the startups

According to the government notification, an entity will be identified as a startup.

  • A time upto five years from the date of incorporation.
  • The turnover has to be less than 25 crore in the last five financial years.
  • It is working towards innovation, development, deployment, and commercialization of new products, processes, or services driven by technology or intellectual property.

Compliance Regime based on Self-Certification

  • Compliance pertaining to 6 labour & 3 environmental laws will be allowed to be self-certified through the Startup mobile app.
  • No inspections will be carried out under labour laws for a 3 year period.
  • Startups classified as White Category as defined by the Central Pollution Control Board will be allowed self-certification under environmental laws, with only random checks proposed.

Relaxed Norms of Public Procurement for Startups

In order to provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the experienced entrepreneurs/companies in public procurement, Government shall exempt Startups(in the manufacturing sector) from the criteria of “prior experience/turnover” without any relaxation in quality standards or technical parameters. The Startups will also have to demonstrate requisite capability to execute the project as per the requirements and should have their own manufacturing facility in India.

Funding Support through a Fund of Funds

Corpus of INR 10,000 crore: Initial corpus of INR 2,500 crore and a total corpus of INR 10,000 crore over a period 4years (i.e. INR 2,500 crore per year).

“Fund of Funds”: The Fund will be in the nature of Fund of Funds, which means that it will not invest directly into Startups, but shall participate in the capital of SEBI registered Venture Funds.

Credit Guarantee Fund for Startups

Credit Guarantee Fund would help flow of Venture Debt from the formal Banking System.

Corpus of INR 500 crore per year for the next four years: In order to encourage Banks and other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC)/SIDBI is being envisaged with a budgetary Corpus of INR 500 crore per year for the next four years.

Tax Exemption on Capital Gains

The Union Budget 2016-17 gave effect to the proposal made under the Action Plan with tax exemption regard capital gains as follows:

  • Long term capital gains tax exemption: New Section 54EE inserted to provide long term capital gains tax exemption if capital gains proceeds are invested by an eligible tax payer in units of specified fund to be notified by the Central Government, subject to conditions. The maximum investment allowed upto INR 50 lakh.
  • Budget proposes to amend Section 54GB to provide long term capital gains tax exemption arising on account of transfer of a residential property if such capital gains are invested in an eligible startup by way of subscription of share subject to the tax payer holds more than 50% shares and utilizes monies to purchase new asset. Further, the Budget proposes to amend the expression “new asset” to include computers or computer software in case of technology driven startups.

Tax Exemption to Startups for 3 years

The Union Budget 2016-17 gave effect to the proposal made under the Action Plan with regard to tax exemption to Startups for 3 years as follows:

New Section80-IAC inserted in the Income Tax Act, 1961 to provide 100% deduction of the profits and gains derived by an eligible startup from a business involving innovation development, deployment or commercialization of new products, processes or services driven by technology or intellectual property, for 3 consecutive years out of 5 years beginning from the year of incorporation. The said benefit is available to an eligible startup setup before April 2019. However, MAT will apply.

Tax Exemption on Investments above Fair Market Value


Purpose: To encourage seed-capital investment in Startups
Investments made by incubators in Startups proposed to be insulated from the rigors of Section 56(2)(viib) of the Income-tax Act, 1961. Any consideration received by Startups for issuance of shares over FMV to incubators, not to be taxed in the hands of the Startup.

Startup India Hub: The govt. would create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding.

Rolling-out of Mobile App and Portal

The App shall be made available from April 01, 2016 on all leading mobile/smart devices’ platforms to provide the following services:

  • Registering Startups with relevant agencies of the Government
  • Tracking the status of the registration application and anytime downloading of the registration certificate.
  • Filing for compliances
  • Collaborating with various Startup ecosystem partners
  • Applying for various schemes being undertaken under the Startup India Action Plan

Legal Support & Fast-tracking Patent Examination

Startup Intellectual Property Protection (SIPP) scheme will be introduced on a pilot basis for a one year period to facilitate filing of Patents, Trademarks and Designs. The scheme would include:

  • Fast-tracking patent application.
  • Setting up a panel of “Facilitators” who will advise on different Intellectual Property Rights (“IPR”)

Are bate of 80% on patent filing fees vis-à-vis other companies is proposed.

This was a quick synopsis which is useful for the startups or those who are planning to startup. Incase, you seek any further clarity or recommendations on your startup, feel free to write to us at, info@gapeseedconsulting.com

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Start Up India Stand Up India Scheme

Now that you have been following our posts for so long, we would like to inform you about the
latest schemes regarding Start-Up India initiated by our government. This information might be of some use to you… On 5th April PM Modi officially launched one of the schemes in Noida. The official portal has been set up. Now it has become even easier for you to get detailed information regarding the Start up India plan. The portal was made live on April 1 2016. You can find all the information regarding the enrolment into the scheme which includes the online application forms, how to apply for loan etc. To simply know the working just navigate to the “Action plan” on the portal. For all latest notifications, you can navigate to “Notification” Section. A pdf file containing the list of incubators can be downloaded by interested applicants. For List of SEBI Registered funds, you can Visit HERE. If you have any queries regarding the “Start-up India Scheme” you can make use of the official Contact Us Page.

The whole world witnessed the launch of an ambitious programme in India on 16th January 2016.
The launch event took place in Vigyan Bhawan, New Delhi. Many of you still might not be clear about the goal, highlights and features of Start-up India programme but through this article you can find all the available information regarding the same. So if you have queries like – What is Start Up India Stand Up India Scheme ? Who can Apply ? How to Apply ? Application Form downloads etc, read the given information for the answers.

The economy of any country depends on its countrymen. Larger the number of employed or working
people, better be the economy. The Indian government has realized that Indians have great
potential when it comes to ideas; all they need is a promising opportunity or maybe a kickstart. Many people dream of starting up their own business, but due to financial or lack of opportunity they are unable to do so; hence Indian govt in the leadership of Mr. Narendra Modi has decided to offer a gift as a nation wise program- “Start Up India”.

Mr. Narendra Modi in his speech acknowledged that Indians have ideas and capability, all the need is a little push.

“Start Up India” is a revolutionary scheme that has been started to help the people who wish to start their own business. These people have ideas and capability. The government decided to give them support to make sure they can implement their ideas and grow. Success of this scheme will eventually make India, a better economy and a strong nation.

Start Up India Scheme – From Job Seekers to Job Creators

Technology is evolving with a pace faster than ever. This has given birth to various new businesses like E-commerce, internet marketing etc. giving a great scope of development in such areas. Those who plan to start new business are eligible to apply. Gapeseed Consulting knows that setting up a business has its own constraints – forming a company, taking approvals, taking care of legal compliances and registration etc. It isn’t a cakewalk for others but it is definitely easy for our clients. We will walk you through all the steps required for your Start-up.

During his speech at the event, Mr. Modi said that they are trying to make the youth Job Creators, rather than Job Seekers. He also said that one’s mindset should not be towards earning money in the initial phase, it should be rather on grabbing and using the opportunities.

Start Up India Stand Up India Scheme – Action Plan in Detail and How Gapeseed Consulting can do it for you.

  • E- registration has to be done. The application forms for start-up India are made available in
    April 2016.
  • A self-certification system has been launched.
  • A dedicated web portal and mobile app will be developed.
  • Arrangement of self-certificate based compliance.
  • No inspection during the first 3 years.
  • 80 percent reduction in the application fee of start-up patent.
  • Easy exit policy.
  • Inclusion of Credit Guarantee Fund.
  • Relaxation in Income Tax for first three year.
  • Special Arrangement for Female applicants.
  • Introduction of Atal Innovation Mission: Innovation courses will be started for the students.

As per the sources, the online application forms will be launched this month in April 2016. Interested applicants need to provide the required details in the application form. We will help you review you application so as it doesn’t get rejected.

For further queries and to know more about the Start-up India initiative, you can drop us a line here or feel free to send in an email to info@gapeseedconsulting.com

Gapeseed Consulting will be more than happy to help you setting up your own business.

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PROCEDURES and DOCUMENTATION FOR STARTUPS

E-FORM INC-32

PROCEDURES and DOCUMENTATION FOR STARTUPS

Now that you have an understanding about the launch procedure and also in ascertaining the best
suitable option for your start-up idea. This post will help you understand the procedure for Formation/Registration/Incorporation of Private and Public Company in India. Also Detailed Documents required for the same can be found here.

Whether you are just starting a business or incorporating a business already in existence, it is helpful to know and understand the formation and ongoing requirements each state places on corporations and limited liability companies. Incorporation / Formation of company involve a number of steps. We have tried to simplify the procedure to the maximum extent possible in the following steps

Step 1: Digital Signature

The basic step to company incorporation is to get DSC made of all directors. The Information
Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in
electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the only secure and authentic way that a document can be submitted electronically. As such, all filings done by the companies under MCA21 e-Governance programme are required to be filed with the use of Digital Signatures by the person authorised to sign the documents. To know the names of Certification Agency (CA) from where DSC can be acquired refer to our Free Guide.

Step 2: Acquire Director Identification Number

INCOME TAX PAN IS MANDATORY, so before applying of DIN a person must have his PAN number.
Details on PAN and DIN must be same. Step by step process to be followed by the applicant can be found in our resource section.

Step 3: Register DSC

Third step is to register DSC of the person authorized to sign E-forms on MCA21 or if you want us to do it for you drop us a line here.

Step 4: Apply for Reservation of Name [S.4(4)]

As per section 4(4) of Companies Act, 2013 read with rule 9 of Companies Incorporation Rules, 2014, application is to be made to registrar for reservation of name. 6 names can be proposed after checking its availability at MCA21 and as per guidelines given in the said rules and the procedures & documents required to be attached to INC – 1 are also available in the resource section.

Step 5: Drafting and Printing of Memorandum and Articles of Association

A public company limited by shares may adopt all or any of the regulations contained in model
articles of association registered along with its memorandum of association. The memorandum and articles shall be in conformity with the provisions of Section 4 and 5 of the Companies Act 2013. Read more here.

Step 6: Filing of Company Incorporation form – eform INC 7, DIR 12 & INC 22

As per Rule-12 of Companies (Incorporation) Rules, 2014, application for incorporation of a private and Public company, with the Registrar, within whose jurisdiction the registered office of the company is proposed to be situated, shall be filed in Form no. INC 7 [Rule 12 to 18] along with Form no. INC.22 for situation of registered office of the Company, (as the case selected in form no. INC 7) and DIR -12. There is a list of documents to be filled for Filing of company incorporation form get in touch with us to know it all.

Step 7: Filing of Commencement of Business – eform INC 21

On registration, a company cannot commence business or exercise any borrowing powers until it
files a declaration by directors in Form INC – 21 to the effect that every subscriber to the
memorandum has paid the value of the shares agreed to be taken by them as specified in section
1(1)(a).

E-form INC.21 is required to be filed with concerned Registrar of Companies for obtaining approval for commencement of Business and exercise of borrowing powers. This E-form is required to be filed by all companies incorporated under Companies Act 2013.

To know about the Procedure for commencement of Business under Companies Act, 2013 check out
our resources.

We hope that this post helped in understanding the procedures and documentations requirement
for your start-up. In case if you have any query about our startup series or services that we offer, please send in an email to info@gapeseedconsulting.com

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Basics For Incorporating A Startup

Now that you have understood the basics of CFO Services for Startups and the Payroll Services and the advantages of payroll for startups, our blog 3 in the series is all about Incorporating a startup, the options and categorization as sanctioned by the Ministry of Corporate Affairs.

To help you understand the requirements, following are the types of Incorporation as laid down by the Ministry of Corporate Affairs and other government authorities in some cases. Anyone who is interested in Incorporating a Startup can choose to launch business from the following categories:

1. One person Company

Anyone can incorporate “one person company” as a corporate body. He or she is only one entitled shareholder and Director of the company. The pre-conditions for one person company include:

  • Shareholder and Director Must be citizen or resident in India
  • Only One Director at a time
  • Nominee for shareholder is must

If you are planning of incorporating a startup which is home run, family run or service oriented you can probably begin with one person company and once you get established you can think of expansion.

2. Private Limited Company

A private limited company is the one with two directors and two shareholders. This is the basic requisite to incorporate private limited company. The maximum number of members in a private limited company can be 200. Company cannot invite general public to subscribe its shares or debentures. A private limited company can

  • Register with MCA as body corporate
  • Business governed by board of directors
  • Limited liability of members
  • Can not accept deposit from Public

People incorporating a startup which involves product, delivery and revolves around mass consumption or even which involves a number of stakeholders involved from the beginning should go for private limited company. This adds credibility to your idea at the launch stage itself.

3. Limited Liability Partnership (LLP)

LLP is a corporate structure that combines the flexibility of a partnership and the advantage of limited liability. Owing to flexibility in structure and operation, it would be useful for small and medium enterprises, in general and for the enterprises in service sector professionals.

  • It is body corporate and legal entity separate from its partners
  • Limited liability of partner.
  • Minimum two partners
  • On LLP, the Partnership Act 1932 not applicable.

There are pros and cons attached but entrepreneurs who are in the process of incorporating a startup which involves further licensing and compliances with other government authorities opt for LLPs. This is mostly a preferred option for startups entering the BFSI sector.

How we can help as an Agency for Setting Up a Business in India

Gapeseed Consulting Pvt Ltd is a financial services company with a team of experts coming from the Accounting and Legal backgrounds. Startups usually have reservations with the set of services, registration protocols etc and they find it complex to execute. We are here to simplify business functions and thereby multiplying the possibilities.

Our set of services include, Incorporation, Accounting, Tax and Company Law compliance, consulting, drafting agreements, Payroll and CFO Services.

Financial Services for Startups

The challenge to startups is not just to manage and grow business, it is also about managing in the right way. Entrepreneurs need advice on regular basis so that all compliances are met right from the day of incorporation of business.
We at Gapeseed Consulting provide virtual CFO Services to support your business. We understand that Startups usually do not hire a senior Chartered Accountant or Finance Professional at initial stage because it is very difficult situation for entrepreneur and Senior Financial Professional to do full time job in Startup. Therefore Virtual CFO Services is win-win situation for both.

Virtual CFO or Interim CFO Services in Delhi from Gapeseed Consulting can offer the follow-ing solutions:

  • Business Plan
  • Investor Relations
  • Financial Analytics
  • Budgeting and forecasting.
  • Cash Flow Management
  • Board & Management Reporting
  • Accounting Team Search
  • Transaction Accounting

Gapeseed Consulting has also launched Financial Services Startup Packages to make it more suitable for the startup requisites.

Allied Services

One of our startup client who will be soon celebrating their first anniversary felt dramatically low at a point when they realized about the compliances and regular taxation norms. Apparently those were nor considered at the planning stage and hence they felt the pressure to perform as per law & guidelines.

Since we had helped them with the Registration process, they asked for our help and Gapeseed Consulting readily deputed our in-house chartered accountant Mr.Jain as the Interim CFO to manage the Liquor Import Compliances for Incorporating a Business in India while setting up a business.

Some of our basic allied services include the management of compliance, taxation and other procedures that include:

  • Tax Deducted at Source- TDS is to be deducted by company at the time of booking or making payment exceeding prescribed limits. TDS to be deposited every month before 7th day of next month. TDS return is to be filed quarterly before 15th of each quarter.
  • Service Tax- Presently Service tax rate is 14%. Service Tax is to be deposited before 6th day of every month by company and before 6th of every quarter in case of individuals. Return is to be filed half yearly.
  • Advance Tax- Advance tax is to be calculated every quarter and to be deposited by company before due date. It is payable before 15th June, 15th Sep, 15th Dec and 15th March.
  • Income Tax Return- Income Tax Return is to be filed annually after accounts are adopted by Board and Audited by Chartered Accountant” – we provide help to startup prepare complete accounts so that auditor can audit without any problem. We provide all information, details required for audit.
  • Transaction structuring/ Opinion – Our experts give opinion on transaction structuring on any matter of accounting, taxation, debt or equity.
  • MCA Filings- Returns to be filed with MCA for shifting of registered office, change in directors, increase in share capital, filing of Board and EGM/AGM Resolutions.
  • RBI matters for filing FCGPR, or any other matter.
  • Drafting Shareholders Agreement and Debenture Agreement for Private Limited Companies.
  • Drafting of contracts, patent and trad mark registration and other services

We hope that this post helped in understanding the launch procedure and also in ascertaining the best suitable option for your startup idea. Our next post will be around the documentation that is required to complete the registration process for a startup or new business.

In case of any query pertaining to startup series or services that we offer, please send in an email to info@gapeseedconsulting.com

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5 Steps for Setting up a Business in India

Startups and India are rhyming well together and 2016 seems to be bringing opportunities in abundance. That makes a perfect reason to bring last post of this year as the ‘5 Steps for Setting up a Business in India’

With Gapeseed Consulting, you can climb the steps smoothly when Setting Up Business in India!!

The current economic scenario of India is growing towards the trend of individuals getting ready to start up their own business enterprises. Opportunities are opening the doors and people are rushing to enter through those doors. Unlike hunting for a job, setting up a business requires a winning idea in the first place. But besides that a lot of groundwork has to come before the actual act of opening up a business. Now, such groundwork includes creating a workable business plan, thorough market research, finalizing funding sources and pinning down the business model. Once you have validated your idea with these steps, it is time to delve into the legalities and paperwork involved in setting up a business in India. And that’s where we enter. We, at Gapeseed provide our clients Business Setup Solution based on a methodology which takes care of approvals, legal compliances, registrations with authorities etc. to provide a ready to operate business setup in shortest time period.

In this post, we will not only guide you with the steps of setting up a business in India processes but also with the tips of how smoothly you can walk past it.

 

Industrial Approval for Business Investment

Although in today’s time setting up a business and investing in India generally do not require any approval. However, in case of some Industries approval is required for setting up business in India. Gapeseed provides services for obtaining approvals from Foreign Boards or Indian Boards (read Reserve Bank of India), as may be required. We also provide services for formulating strategies for mode of business setup i.e. Foreign Branch Setup or Liaison Office setup or Setup of Subsidiary Company as required.

See more at: http://www.gapeseedconsulting.com/blog/liquor-import-compliance-for-setting-up-a-business-in-india/
Incorporation of Your Enterprise

For setting up business in India through limited liability company involves registration with Registrar of Companies under the Companies Act. Foundation of company involves several steps including name approval, digital signature of directors, and preparation of Memorandum of Association etc. Our Business Setup Solution takes care of all the required compliances and procedures for incorporation of a company and endeavours to provide our clients ready to operate business setup as smoothly and as quickly as possible.

 

Get. Set. Register.

A business to be fully functional requires registration with various authorities. For instance, a trading company needs to get registered with Sales Tax/VAT Authorities, Income Tax Department, Excise Department, Custom Department, Service Tax Department, Registration with Shops and Establishment Act etc. Our Business Setup Solution provides services for registration with various authorities immediately after incorporation. This leads to reducing burden from client’s end with matters related to tax, labour and other relevant authorities.

See more at: http://www.gapeseedconsulting.com/resources/

 

Brand yourself and advertise

What’s the point in getting things right if people don’t come to know about your company? Gone are the days when people used to spread the word verbally; Now-a-days one has to find the right kind of customer first and then think of many ways to reach out to them. In order to create an identity, create a logo, and then create a company website and social media profiles to mark your presence and through social media windows spread the word about your brand. You can not only promote your business through digital channels but can get hands-on feedback from your customers which will further help you improve.
Move ahead with your business

Once you start up, you should think of growing your business with each passing day. In order to make profit, you have to be ahead of what you received out of your business yesterday. And to do so you can think of collaborating with more established brands of your genera. You can even reach out to other companies and request them for your business promotion in exchange of a free service, product etc. You can even partner with other lines of business and build a mutual relationship to promote each other’s brands.

Setting up a business can be challenging but if you follow these steps and reach out to us, you can not only set on the path of entrepreneurship smoothly but can make your business more profitable and more successful.

 

Further to this if you seek any further clarity, feel free to write to us on, info@gapeseedconsulting.com or you can also call us at +91-9599444639.

 

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Setting up a business in India

Outsourced CFO Services for Startups for Winning edge

Importance of Accounting for Startups

Union Budget 2016-17, Keypoints for Startups

Gapeseed’s Accounting Services for Small Businesses

Small businesses often face the challenge of growing their business and having to cope with rising costs. It takes a lot of effort to run a small business successfully wherein the time, resource and energy must be optimally used. It is also crucial to ensure proper accounting practices for any particular business, regardless of its industry. Once considered to be done by huge companies, now-a-days accounting is a fundamental necessity for any business, be it small or big.

Apart from handling business challenges, financial challenges can become too great to handle without expert help. Reasons could be many – May be the company’s accounting software isn’t providing the type of data required to grow the business, one may be facing trouble while switching from cash to accrual accounting, may be someone wants to better the financial function of the business. Whatever the reasons are, for complete solutions you can certainly rely on Gapeseed’s Accounting Services.

 

What is special with Gapeseed’s Services?

Our primary goal is to make accounting hassle free for our small business and start-up clients. Our expertise as accounting professionals has helped hundreds of small business clients to achieve their financial goals and we work hard to help all of our clients succeed. We offer a full range of accounting services and create custom accounting solutions if need be for businesses based on the specific accounting needs. Our solutions help our clients save time and money, so they can utilize those resources on other aspects of your business. And not just bookkeeping, payroll or auditing services, depending on a particular need, we even work towards achieving financial goals for our clients and their business.

4 reasons to consider Gapeseed’s Accounting Services for Small Businesses:

    • Pace up productivityAccounting is a task that requires long hours and accuracy on the job. If you opt for hiring a small business accountant in-house, it might add an additional cost burden. Whereas if you hire Gapeseed, we will not only provide expert accounting but we are always willing to put in the extra hours to increase productivity and efficiency of businesses which are small & settling up.
    • Keep your books clean & up to dateMaintaining an accurate book of accounts is important to any small business as it necessary to keep a check on the expenses and cash inflow. And you need expertise in order to maintain an error-free bookkeeping operation. Our accounts clean up services include tallying account items with actual expenses and inflows, classifying items in the correct category and removing any dead transactions. With such a systematic record keeping like ours, you can not only maintain accuracy but lessen your burden during the financial year end and tax seasons.
    • Keep your books in safe handsBookkeeping in small businesses is often seen as chore that must be given good amount of time and importance in order to stay in business. Gapeseed can relieve you of this chore by taking up all the painstaking work of maintaining your bookkeeping operations. Right from maintenance of ledgers to reconciliation of accounts to preparing cash flow statements, we will handle them all.
    • Grow your small business with usMany entrepreneurs who start their own small businesses start out by wearing the accountant’s hat. With simple bookkeeping software coming handy, one might even keep a good track of business’ finance. But when the business starts growing, it no longer appears to be an easy task. It totally makes sense to hand over responsibilities for taxes, accounting, and the rest of the financial functions to specialists. Gapeseed can help your business not only with tax returns but with long term tax planning, business planning, networking, and even personal tax planning.

If four reasons aren’t good enough and if you want more, you can visit us to get the details of Gapeseed’s Accounting Services for small businesses or call us on +91-9599444639 | 9599444630. We at Gapeseed are purposed to empower our clients through our services as strategic growth partners.

 

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Importance of Accounting for Startups

Social Security Systems for Effective Payroll Management

Hire Gapeseed Consulting for M.I.C.E Services?

Tax Accounting Services for start-ups and small businesses