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

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BENEFITS OF ISO CERTIFICATION

International Standards acts as a symbol of surety that the product is safe to use and the quality is good. It ensures the consumer that the product is reliable and good for the environment. International Standards helps in setting up of standards and strategies for companies to overcome various challenges faced by them during the lifetime of the company. It helps in building up the image of the company and also develops it. International Standards also provide international expertise as it is worldwide recognizable as well as experience. ISO also helps in eliminating certain barriers in world trade by providing many agreements on which these trades take place.

Many companies have gained a lot of benefits from these International Standards as they help in making the work more effective and efficient by reducing cost and saving more than required. Some main benefits of ISO for a company are as follows:

BETTER IMAGE AND RELIABILITY

International Standards are accepted worldwide and when a company has been certified by this organisation then it increases the standards and reliability among the consumers.Most of the consumers are very particular with the kind of product they are working with which makes it necessary for them that the product is good and safe to work with that makes them confident. ISO will increase the clients as well as goodwill of the company among consumers.

CUSTOMER SATISFACTION

ISO increases customer satisfaction as most of the customers know that the product is certified, reliable and safe to use. ISO helps a company to fulfill customer requirements by improving and customizing work ethics. Customers will know the quality of the product that they are working with which will help the company to get more satisfied customers. This will also generate more revenues by keeping customer loyalty.

BETTER PROCESS INTEGRATION

ISO lets the company know about the product process integration which makes it easier for a company to make improvements in its product by focusing more on efficiency and also by reducing cost and saving more. ISO helps a company to eliminate waste which may occur during the process of a product by using efficiencies on fewer errors. Also with the help of this a company can set the price of a product accordingly and advertise the product in much better ways. ISO makes the product qualified and better to use than other products which gives a great advantage to the company.

EMPLOYEES ENGAGEMENT

Employees which are in the ISO product improvement need more training and development as the product will be certified. It helps employees as it provides them with information regarding instructions and procedures to complete particular tasks. Employees are mainly happy who work towards the improvement of the product. These employees will be more effective and will help the company to improve as they know that the quality of the product depends on them.

DECISION MAKING

ISO helps a company in decision making as it lets a company to monitor its progress and what more is needed to make the product of the best quality. This lets a company to decide on the procedure of cutting cost, utilizing waste, savings and also on being effective. A company can decide on how to make a customer more satisfied with the product and also on employee’s satisfaction. A company can keep these things in mind while making a decision.

International Standards are of a few types and they are as follows:

ISO 9001:2008

This ISO is a document which maintains the necessary requirements for a quality management system. ISO 9001 provides customer satisfaction by helping a company to fulfil customer requirements. It also increases revenues and low chances of risk as the product is of good quality. It ensures good outgoing control and helps government as it provides expert opinion and opens world trade.

OHSAS 18001:2007

OHSAS lets the company to think about the future as it improves brand building. It focuses more on employee’s safety and satisfaction by attracting good human resource. This ISO reduces the administrative cost, public liability cost and insurance cost for the company. Production is also benefited from this because there is no accidents and disturbance in production.

ISO 14001:2004

In India, ISO 14001:2004 works towards a better environment and a better world by following certain necessary steps to cure these problems. This ISO helps an organisation to increase its profitability by using better ways of production such as through saving energy. Waste management must be of prime importance and ISO helps an organisation to reduce its waste management cost. It also reduces certain risks taken by the organisation which may affect the environment in the future.

ISO 22000:2005

ISO 2200:2005 is the certification provided to food companies which lets them to provide safe food products which are safe, reliable and easy to consume to the consumers.This ensures the consumers that the food is secure and safe for them to have and buy.

For more information on Benefits of ISO Certification, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

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Tax Reforms – Budget 2017

As the Finance Minister of India , Mr. Arun Jaitley, got up to deliver the Union Budget for the Financial Year 2017-2018, every Business Man in the country was waiting for the Tax Reforms. The Direct Tax Reforms given in the budget dated 1^st Feb’2017 will be applicable in the F.Y. 2017-18 or A.Y 2018-19. Some crucial and evident changes have been made by the Government for the Small and Medium Scale Business in the budget.

As per the Narendra Modi Government, the Tax Revenue of the central Government from Direct Tax Collection has gone up by 17% in F.Y. 2015-16 as compared to F.Y. 2014-15, and the rate of growth in advance tax in personal income tax domains for the F.Y. 2016-17 has increased by 34.81% till 20^th Jan’2017 as compared to F.Y 2015-16.

We have decoded the key changes proposed in the Union Budget announced by the Finance Minister on February 1, 2017.

Tax slabs

It has been proposed to reduce the tax rate for taxable income less than Rs 500,000 from current 10% to 5% benefiting Individuals (resident/ non-resident) below the age of 60 years and Individuals (resident/ non-resident) above the age of 60 years and below the age of 80 years.

Rebate under section 87A

Rebate under section 87A of the Income-tax Act, 1961 (“the Act”) is proposed to be reduced from Rs 5,000 to Rs 2,500. It has also been proposed to restrict such rebate to resident individuals whose total income does not exceed Rs 350,000 (earlier Rs 500,000). Considering the above amendments, the net benefit arising to an individual with taxable income of Rs 350,000 and Rs 500,000 is Rs 2,575 and Rs 7,725 respectively.

Partial exemption for pension

The existing provision of section 10(12A) of the Act provides that payment from National Pension System (“NPS”) trust to an employee on closure of his account or opting out shall be exempt up to 40% of total amount payable to him. In order to provide relief to an employee who is a subscriber of NPS, it is proposed to provide exemption for partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made thereunder.

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Rationalization of deduction under section 80CCD for self-employed individual

In order to bring about parity between an individual who is an employee and an individual who is self-employed, it is proposed to amend section 80CCD of the Act so as to increase the upper limit of 10% of Gross Total Income (“GTI”) to 20% in case of individual who is self-employed. Accordingly, for a self-employed individual, contributions to NPS to the extent of 20 percent of his/ her GTI will now be allowed.

Withholding tax obligation for individual not liable to tax audit

As per the existing provision of the Act, withholding tax obligation on rent payments arises only in case of individuals or HUF who are liable to tax audit. It is proposed that individual or HUF not liable for tax audit will now be required to withhold tax at the rate of 5%, if the rent exceeds Rs 50,000 per month or part of month on payment of rent.

Also Tax deduction and collection Account Number (“TAN”) will not be required to be obtained.
Further, tax would be required to be withheld only once during the previous year in the last installment payable for the year.

In addition to the above, it is proposed that under section 206AA of the Act, maximum deduction shall not exceed the rent payable for the last month of the previous year/ last month of tenancy.

Shifting base year from 1981 to 2001 for computation of capital gains:

Existing provisions gave the assesse an option to consider Fair Market Value (“FMV”) as on April 1, 1981 for capital assets acquired before the said date. It has been proposed to shift the base to April 1, 2001. Accordingly assesses have an option to consider cost or FMV as on April 1, 2001 as their cost in respect of assets acquired on or before April 1, 2001.

Further, for the purpose of computing indexed cost of acquisition, 2001 shall be considered as the base year.

Reduction of holding period for computation of capital gains for immovable property:

It is proposed to amend section 2(42A) of the Act to reduce the holding period from existing 36 months to 24 months in case of immovable property being land and building or both to quality as long term capital asset.

Expansion of scope of long term bonds under section 54EC

It is proposed to provide exemption under section 54EC of the Act on investment of long term capital gains in any bond redeemable after three years that shall be notified by the central government. This will be in addition to investments in NHAI bonds and RECL bonds where exemption was allowed on investment up to Rs 5,000,000.

Measures for promoting digital payments in case of presumptive business income cases

In order to promote digital transactions and to encourage small unorganized business to accept digital payments, it is proposed to amend section 44AD of the Act to reduce the existing rate of deemed total income of 8% to 6% in respect of turnover or gross receipts received by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year. However, the existing rate of deemed profit of 8% referred to in section 44AD of the Act, shall continue to apply in respect of total turnover or gross receipts received in any other mode.

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

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One Person Company and its Incorporation

ONE PERSON COMPANY

One Person Company (OPC) is a form of business entity that is owned and managed by a single entrepreneur. This concept was introduced in India through the Companies Act, 2013 supporting entrepreneurs who are capable of starting a venture by creating a single person economic entity. A One Person Company is also a separate legal entity from its members just like a Private Limited Company or a Limited Liability Company. In this type of business entity, only one person is required who can be the Director and as well as the shareholder of the company. This venture of One Person Company is still in its emerging stages which makes it much more difficult for entrepreneurs to adopt, it is mainly suitable for people starting an unregistered Proprietorship. The entrepreneur can set up their company without sharing their profits as One Person Company does not need a middleman to target the markets.

Features of One Person Company (OPC)

One Shareholder

One Person Company is a business entity which is owned and managed by a single person. The Company Incorporation Rule states that only a resident and also a citizen of India can form a One Person Company. The entrepreneur hold all the shares of the company as it has only one member. The people who are Foreign citizens and are Non-Resident citizens cannot indulge in the formation of a One Person Company. A shareholder can only have shares in a single One Person Company and not in various companies.

Director

A One Person Company can be managed by a Single Person. In this type of business entity, the Sole Shareholder can become the Sole Director of the business. A One Person Company can have a maximum number of 15 directors even if it may be having a Sole Shareholder.

Nominee

This states that the Shareholder of the company has to nominate a person who in the event of death or inability to continue the work in the company will come forward to take the charge of the One Person Company. The present shareholder will issue a written consent in the name of the nominee, the nominee must also be a resident and a citizen of Indian. The person nominated must not have any other One Person Company under control.

Incorporation of a One Person Company (OPC) in India

A One person Company can be incorporated as per the procedure explained below :

Director Identification Number (DIN) & Digital Signature Certificate (DSC)

A person intending to become a director of a company requires a unique identification number which is issued by the Ministry of Corporate Affairs. This number then is used to record the details of the director of the company. The Digital Signature Certificate is the digitalised version of all the paper certificates. This certificate can be used to prove the director’s identity, access information and sign documents digitally. Certain documents are required for DIR-3 application:

1. Identity Proof: A copy of PAN card is mandatory whereas a copy of the Driver’s license is optional.

2. Address Proof: A copy of the Passport / Election ID / AADHAR card / Driver’s License is sufficient.

3. Passport Size photo

4. Mobile Number

5. Education Qualification

6. Verification signed by the applicant.

Company Name Availability

The name of the company must not be pre-existing, applicants must first search for any existing Trademark and then decide on the company’s name. The Promoter of the company have to provide at least 6 names in the order of their preference to the Registrar of Companies for name availability.

Memorandum of Association (MOA) & Articles of Association (AOA)

When the name of the company has been approved by the Registrar of Companies then the Subscriber have to draft a MOA & AOA specifying their Names, Address, Occupation and the sign the subscription pages of the Memorandum and Articles of Association formed.

The Memorandum of Association is a document regarding the main objectives as well as the secondary objectives of a company. It covers all the necessary fundamental provisions of the company’s constitution.

Articles of Association is a contract based on mutual understanding between the company and its members defining their rights and duties.

Filing E-Forms with Registrar of Companies

After the drafting of Memorandum of Association and Articles of Association, an application has to be sent to the Registrar of Companies regarding the incorporation of the company. This Application must contain all the necessary documents of the Company and its Directors.

Verification of Documents

The company must pay the desired fees to the Registrar of Companies and must get Stamp Duty to get the documents verified.

Issue of Certificate of Incorporation

When all the documents are verified and duly approved by the Registrar of Companies, a digitalised ‘Certificate of Incorporation’ is mailed to the Directors of the company. Once the Incorporation Certificate is received, company can start with its operations.

Post Incorporation

After the Incorporation of a One Person company some necessary formalities are required immediately, such formalities are:

 Opening a Current Bank account in the name of the Company

 The Company must apply for the Shop Act License

 The Shareholder must be issued a Share certificate by the Company

 The subscription money must be payed through the Current Bank account

of the Company

BENEFITS

1. A One Person Company is a separate business entity and have Limited liability to its members.

2. This type of Company helps an entrepreneur to establish its own business without depending upon a second person.

3. A Legal Auditor is not required in this business unlike any other business enterprise.

4. A One Person Company being a separate legal entity can own property in the Company’s name and the shareholder cannot make any claim upon the property.

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

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Excerpts from GST Council’s 8th Meeting

What were the main points in the GST Council’s 8th meeting?

The main points of discussion in the 8th GST council meeting were as follows:

1. ISSUE OF DUAL CONTROL
In the 8th GST council meeting, the group of members didn’t have any common agreements on the issue of dual control. This issue made people think differently as many had different views on this topic. The State does not want the Centre to have the authority over all the small tax paying entities whereas The State does not have any problem in having Dual Control with the Centre for the authority of all the bigger tax payers. The Council also cannot decide the turnover to defy a small taxpayer from a bigger one, for some a company having a turnover below 5 crores will be a small tax payer whereas as per the Centre a company having a turnover of 1.5 crores will also be a small tax payer. The centre is not ready to accept the demands of state for access over 1.5 crores in case of small tax payers. The council wants to consider a high cut off rate and wants the Central Goods and Services Tax to be administered by the Centre and the tax payers below that cut off should be administered by the State.

2. CESS
CESS will be charged on many more goods such as luxury goods, aerated drinks, tobacco products and on high-end cars. The ultra-luxury goods and sin goods will have a GST cess for a period of 5 years. The major part of CESS will depend upon the current incidence of tax, if the clause of GST cess for 5 years raises any profit, then the council will decide on how to use these profits to compensate any other losses incurred by the State or Centre. Only the Clean Environment Cess will be retained and all the funds will be used to compensations.

3. INDUSTRY REPRESENTATION
The Government is deliberating all representation from Trade and Industry in the implementation of the GST bill. The Commerce and Industry sectors has given representation from officials to the GST council. The banking and insurance sector also has given representation to understand the impact of GST on products.

STATE WISE SCHEDULE FOR GST REGISTRATION

State	Start Date	End Date
Puducherry	08-11-2016	07-12-2016
Sikkim	08-11-2016	07-12-2016
Maharashtra	14-11-2016	07-12-2016
Goa	14-11-2016	07-12-2016
Daman and Diu	14-11-2016	07-12-2016
Dadra and Nagar Haveli	14-11-2016	07-12-2016
Chhattisgarh	14-11-2016	07-12-2016
Gujarat	15-11-2016	07-12-2016
Odisha	30-11-2016	15-12-2016
Jharkhand	30-11-2016	15-12-2016
Bihar	30-11-2016	15-12-2016
West Bengal	30-11-2016	15-12-2016
Madhya Pradesh	30-11-2016	15-12-2016
Assam	30-11-2016	15-12-2016
Tripura	30-11-2016	15-12-2016
Meghalaya	30-11-2016	15-12-2016
Nagaland	30-11-2016	15-12-2016
Arunachal Pradesh	30-11-2016	15-12-2016
Mizoram	30-11-2016	15-12-2016
Manipur	30-11-2016	15-12-2016
Uttar Pradesh	16-12-2016	31-12-2016
Jammu & Kashmir	16-12-2016	31-12-2016
Delhi	16-12-2016	31-12-2016
Chandigarh	16-12-2016	31-12-2016
Haryana	16-12-2016	31-12-2016
Punjab	16-12-2016	31-12-2016
Uttarakhand	16-12-2016	31-12-2016
Himachal Pradesh	16-12-2016	31-12-2016
Rajasthan	16-12-2016	31-12-2016
Kerala	01-01-2017	15-01-2017
Tamil Nadu	01-01-2017	15-01-2017
Karnataka	01-01-2017	15-01-2017
Telangana	01-01-2017	15-01-2017
Andhra Pradesh	01-01-2017	15-01-2017
Enrolment of Taxpayers who are registered under Central Excise Act but not registered under State VAT	05-01-2017	31-01-2017
Enrolment of Taxpayers who are registered under Service Tax Act but not registered under State VAT	09-01-2017	31-01-2017
New registration under VAT/Service Tax/Central Excise after August 2016	01-02-2017	20-03-2017

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

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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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Limited Liability Partnership and its Incorporation

Limited Liability Partnership and its Incorporation (LLP)

It is an association of 2 or more persons who have set up this business structure for carrying on a lawful business with a view to profit, with the partners having a limited state of liability. LLPs are governed under the Limited liability Partnership Act, 2008. It can be said that LLP is a combination of Partnership and Private Limited Company as it encompasses features of both. Limited liability partnerships are distinct from limited partnerships in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses in which all investors wish to take an active role in management.

How to Incorporate a New Limited Liability Partnership

A Limited Liability Partnership may be incorporated as per the procedure explained below :

Registration

Register yourself on the website of Ministry of Corporate Affairs, developed for LLP services . Fill in the registration form then select your user name and password. Therein, upload digital signature certificate.

Designated Partners Identification Number (DPIN)

All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN) / Director Identification Number (DIN)”.

Digital Signature Certificate

Partners/Designated partners whose signatures are to be affixed on the e-forms has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorised certifying agency.

Name reservation

Log on to the LLP portal. After login, click “E-Forms” link. Open Form-1 for reservation of name and fill in the details. Choose the name of the proposed LLP (upto 6 choices can be indicated). After this attach the digital signatures and submit the e-form and pay the necessary fee.

Details of minimum two designated partners of the proposed LLP, (at least one of them must be a resident of India) is required to be filled in the application for reservation of name. Only individuals or nominees on behalf of the bodies corporate as partners can act as designated partners.

Incorporation of LLP

Once the name is reserved by the Registrar, log on to the portal and fill up Form-2 “Incorporation Document and Statement”.
Pay the prescribed registration fee as per the slab given in LLP Rules, 2009, based on the total monetary value of contribution of partners in the proposed LLP. Statement in the e-form is to be digitally signed by a person named in the incorporation document as a designated partner having permanent DPIN and also to be digitally signed by an advocate/company secretary/chartered accountant/cost accountant in practice and engaged in the formation of LLP . On submission of complete documents, the Registrar after satisfying himself about compliance with relevant provisions of the LLP Act can register the LLP, maximum within 14 days of filing of Form-2 and will issue a certificate of incorporation in Form-16.

Incorporation documents must be filed with the following attachments.

1. Copy of authorisation where the partner is a limited liability partnership, or company, or a limited liability partnership incorporated outside India or a company incorporated outside India.
2. Proof of address of registered office of limited liability partnership.
3. Details in respect of names of partners/witnesses and their signatures.
4. Attachments in respect of details of individuals/bodies corporate where the number exceeds five.
5. Optional attachments as may be required.

LLP agreement must be filed in (E-Form 3) with the Registrar within 30 days of incorporation.
The LLP Agreement must be stamped in accordance with the stamp Act.

CHARACTERSTICS

Separate legal entity : Like a company LLP also has a separate legal entity. So the partners and the LLP are distinct from each other.

No requirement of minimum capital : In case of companies there should be a minimum amount of capital that should be brought by the members or owners who want to form it. But to start an LLP there is no requirement of minimum capital.

Minimum number of members : To start a limited liability partnership at least two members are required initially. However, there is no mentioned limit on the maximum number of partners.

No requirement of compulsory audit : All the companiesare required to get their accounts audited. But in case of LLP, there is no such mandatory requirement.

BENEFITS

• It is flexible to organise the internal structure of an LLP
• There is no maximum limit for the no. of partners in LLP
• Raising and utilisation of funds depends on the partners will
• LLP is exempted of Dividend Distribution Tax (DDT)
• The partners have limited liability
• There is no requirement of minimum capital
• One can easily become a Partner or leave the LLP
• An LLP can easily attract finance from PE Investors, financial institutions, etc.

DEMERITS

• Any act of the Partner without the other partner , may blind the LLP
• LLP cannot raise money from public, unlike a company.
• Angel investor or venture capital firm does not prefer LLP

Simple Tips to Design a Salary Structure for an Employee

Having an absolute salary structure makes it easier to manage your salary expenditure. Not to mention, it can help you retain your current employees, as well as make your recruiting, hiring and promoting efforts more focused and easier to execute.

If you’re considering creating a salary structure, here are a few tips to help you get started.

Benchmark jobs

It should start from here, you need to know the value of each position you offer in your organization. Know the market, know your competition and see what others are paying for similar jobs. There are a variety available salary survey sources that can provide you with data related to salary information for various positions and different industries. You could easily know about benchmark jobs, but this mostly works out for jobs in which duties and responsibilities are generally defined. Once you have identified the benchmark jobs you can compare the market rate according to your budget, you could use statistical procedures to plan it up. Or you can simple get in touch with our HR department.

Consider company’s competitive position

The competitive position of company is its overall salary level compared to market average when compared with the benchmark jobs. This helps you answer if the salary rates for your employees currently above, below or comparable to the rates of your competitors. You should decide what competitive position suits best to your company. Some other things which could be solved by doing this could be if you need to pay at a higher-than- market level so to retain your current employees? Pay according to the market level which attracts better quality candidates or pay according to your budget.

Set-up compensable leverage

Compensable leverage refers to how much more or less salary rate increases in your company, overall, compared to the market rate increase for higher-paid positions in the organizational hierarchy. See this for an example, when employees are promoted to a higher position within the organization, will they receive an increase in salary rate that is similar to, greater than or less than the rate increase provided, on average, in the market. It’s important to determine the desired compensable leverage for your company. This will allow you strike a balance between providing attractive salary increases to employees for promotional opportunities and maintaining an affordable salary practice.

Develop a salary structure

Now that you have the data from the market and your internal and external resources together using this information, you can develop the salary structure for your company. You should also decide if you want to offer a specific salary range – with a minimum and maximum rate – for each position, or if you want to create pay grades in which multiple positions with similar market rates are grouped together within the same range.

Get your current employees up to par

Once you have established a salary structure, possibly with pay grades, then you’ll want to look at your current employees’ salary rates compared to the range to see if anyone is being paid below the minimum rate or above the maximum rate. This involves determining whether the salary rates of any employees should be adjusted to achieve market alignment to have competitive position as created through the structure. If an employee is being paid below the range minimum, it’s recommended that you increase the salary rate, either immediately or incrementally over time, until it hits the minimum rate. If an employee is being paid above the range maximum then it’s recommended that you suspend the person’s next salary increase until market movement warrants an adjustment.

Sometimes these practices are acceptable if the positions in question have a significantly greater or less of strategic importance to an organization than it has to competitors. You’ll want to do a systematic analysis of all of these things mentioned in above steps. This will help you have a good basis for creating your salary structure.

If you would like to get your organization’s salary structure in place feel free to drop us an email at info@gapeseedconsulting.com or you can also call us +91-9599444630 else drop us a line here.

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

Corporate events or workshops or conferences bring together your employees and clients together and for the overall growth of any organization such meets are extremely important. But organizing such events or any of M.I.C.E services at times not only becomes hectic or chaotic, if not implemented well it can end up being the most unorganized one! But when referring to business profits, one of the really important things is cost cutting. With this in mind, it is obvious that any organization will try to organize a business event alone, without the help of any professional event management company. This makes sense, but not completely. You may save on those extra services but this almost always brings in a lower result than what the professional can offer. And that’s where Gapeseed comes for your rescue. We do events not just in Delhi NCR but across the country.

Whether you plan to stage a small workshop or a large scale conference, whether you host an event in India or in foreign countries, we can produce and manage the complete event for you – right from the initial concept planning, venue selection, hospitality to post event analysis. And the commercials will be according to your budget. Our approach is very simple – it is customized.

We are experts. We deliver end-to-end services.

From the smallest group meeting to the largest live event, our team of experts can plan and deliver flawless logistics, organize unique event concepts, design memorable content and deliver high impact production environment. In short we provide end-to-end services competently. A special team of professionals are assigned to take up the task, so you save on time, cost and conversation. We believe that detailed and overall project planning is vital to the success of any event, as it ensures that no details are missed and the time spent on the event is 100% productive and therefore value for money.

The experience which our team has earned over years while working with German corridors or with the Japanese expats – gives us the edge over others in delivering just what you seek. So if you are looking for MICE Services in Delhi or rest of India, we are just a call away.

Better Connections. Better Planning.

This is a huge reason why you should seriously consider Gapeseed. The connections we guarantee ensure that your event will be of a higher quality. And not only our professionals will help you organize the most planned event, they will ensure that you save money – which is one thing you most likely did not know. We have contracts signed with different service providers which mean we will get you better prices when compared with what you would be offered at an individual level. The connections that we have built over the years will help you take advantage of great services at minimum cost. For instance, may be you can get a diner hall with a ready decoration or with required itinerary without having to pay anything extra for it.

Promote your event. Make it a success.

Post organizing an event the next step is to promote it thoroughly. It is much more difficult than you may believe at first glance. The event can be a failure if you are not going to have people who can attend it. We know exactly what has to be done in order to guarantee success for your events due to the fact that we realize how to properly promote them. Be it following up with clients for their acknowledgment or following up with your employees for prompt suggestions or feedback. We do it all. If necessary or if it’s a large scale event, we even go to that extend of promoting it through newspaper ads to online promotional channels. We then actually take care of the entire marketing campaign to promote the events.

Designing and managing bespoke events requires both creativity and expertise. Gapeseed guarantees fresh ideas, a flexible approach and services which are efficient and reliable. Our expertise means we budget efficiently, plan accurately and leave nothing to chance.

For more details on M.I.C.E Services in Delhi or rest of India, contact us here

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