guide to start business in india

7/29/2019 Guide to Start Business in India

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Guide to Setup A Business

LimitedCompany

LimitedLiabilityPartnership


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CompaniesInnBusinessSetupServices ..........................4

OineandOnlineregistraon

BusinessOrganisations:AnIntroduction ..........................6

IncorporatedStructures

Benetsofincorporatedbusinessstructures

CompanyformofBusiness ...............................................8

PrivateLimitedCompany

PublicLimitedCompany

CompanyRegistraon

Conceptoflimitedliability

ManagementandadministraonofaCompany

Compliancerequirementsforacompany

Table of Contents


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LLPformofBusiness.........................................................14

LLPRegistraon

ManagementandadministraonofanLLP

CompliancerequirementsforanLLP

WhyLLPisamorearacvestructuretodoBusiness?

OtherregistrationsrequiredforCompany/LLP.....................18

Accounts&Audit.................................................................20

Taxation..............................................................................22

WhychooseCompaniesinn.comtoformyourcompany/LLP?.....24


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01

CompaniesInn has dedicated team of professionals with vast experience in the eld of

business incorporaon in India. Our onestop soluon brings together all the external

requirements andservicesrequired in theincorporaonprocessunderoneroof.We can

helpyoutoincorporateyourcompanyorLLPorconvertanexisngbusinessintoLLPfrom

thecomfortofyourhomeoroce.

Ourregistraonprocesshasalreadyhelpedmanycustomersinachievingquickerturnaround

mesinincorporangtheirbusinesswithoutlosingqualityandthattooatanaordableprice. Useofstandardizedprocessesand informaontechnology enablesusto oerthe

incorporaonserviceatafeemuchbelowtheusualmarketrates.Fordetailedinformaon

onourservicecharges(inclusiveofGovernmentFees),pleasevisit www.companiesinn.com.

CompaniesInn Business Setup Services


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5

Offline and Online registration

Ifyoupreferfacetofaceinteraconintheregistraonprocess,wehaveocesinmajor

ciesalloverIndiaasdetailedonthebackcoverpage.Elseyoucanavailourservicesthrough

phoneortheinternetfromthecomfortofyourhomeoroce.

Foronlineincorporaon,visitourwebsitewww.companiesinn.com.Fillintheparculars

abouttheCompany/LLPyouwanttoregisterandproceedtoplacetheorder.Thewell

explainedstepswillhelpyoucompleteyourorderinlessthan5minutes.

Foroineregistraon,llthequesonnairegivenalongwiththisbookletanddeliverthe

sameatanyofouroces.

OurdedicatedprofessionalswillcompletealltheformaliestogetyourCompanyorLLP

registeredanywhereinIndia.ApartfromincorporaonwecanalsogetyourLLPagreement

customizedatanaordableaddionalcharge.Wecanalsohelpyoutoobtainyourbusiness

TaxNumbers(PAN&TAN)andotherCentralandStateGovernmentregistraons,tocomplywiththevariouslawsgoverningbusinessestablishmentsinIndia.

ThisGuidedevelopedbyourresearchteamistohelpyoutodecidewhethertheCompany

orLLPstructureistherightformforyourbusiness.Thisguidewillhelpyoutounderstand

thebenetsofCompanyorLLPstructure,themajordierencesbetweenCompanies,LLPs

andotherbusinessstructures,thetaxbenetsandthebasicrequirementsandcompliance

requirementsofacompanyorLLPbeforeandaeritsincorporaon.

Formoredetailsyoucanalwayswritetousatinfo@companiesinn.comorcontactanyofthe

CompaniesInnocesmenonedonthebackcover.


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Businessisalegalorganisaondesignedtoprovidegoodsorservicesinexchangeofmoney.In

India,wehaveseveralbusinessorganisaonssuchasCompany,LimitedLiabilityPartnership

(LLP),PartnershipFirmandSoleProprietorship.Basicallytheseorganisaonsareclassied

into incorporatedandunincorporatedstructures.CompanyandLLPare the incorporated

businessorganisaonsandPartnershipFirmandSoleProprietorshiparetheunincorporated

structures.

Till2009, the only limited liability businessorganisaonavailableunderlaw in Indiawas

theLimitedCompany.Inordertogivesmallandmediumenterprisesgreaterexibilityin

incorporangtheirbusinesses,theGovernmentof Indiahasintroducedanewlawforthe

registraonofLimitedLiabilityPartnershipsinIndia.

Business Organisations: An Introduction02


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7

Incorporated Structures or Limited Liability

Business Organisations

Organisaonsregisteredunderlawandwhosemembersenjoylimitedliabilityprotecontotheextentoftheircontribuon;areverypopularformsfordoingbusiness,allovertheworld.

Asthedocumentsofincorporaonandannualreturnsofthesebusinessenesarekept

inthepublicdomain,theoutsidersdealingwiththeseorganisaonsarealsoabletoknow

abouttheownersandtheircapitalcontribuonbeforeenteringintoatransacon.

BenefitsofIncorporatedBusinessStructures

Allovertheworld,incorporatedbusinessorganisaonsarepopularstructuresforcarrying

outbusinessacvies.Themainbenetsofthesestructuresaregivenbelow

PersonalAssetsProtection

Liabiliesofownersofincorporatedbusinessorganisaonsarelimitedtotheiragreed

contribuon.ItmeansashareholderofaCompanyorapartnerinanLLPonlyneedto

contributehisagreedshare.Aerhecontributeshisshare,heisnotliabletocontribute

addionalamountevenifthecompanyorLLPcreatesfurtherliabilityinitsname.

PerpetualSuccession

Anincorporatedbusinessconnuesirrespecveofchangeinitsowners.Itisbecause,as

perthelawanincorporatedbusinessisalegalpersondisnctfromitsowners.Sochange

intheownerswillnotaecttheexistenceofanincorporatedbusiness.Thisisnotthe

caseforapartnershiporsoleproprietorship.Ifapartnerresignsordies,itistheendof

thepartnershiprm.Sameisthecaseofasoleproprietorshiprm.

Credibility&Acceptance

Sinceinformaonabouttheowners,theregisteredoceandcapitalcontribuonetcare

availabletopublicvericaon;incorporatedbusinessesaremoreacceptabletogeneralpublicandprospecvetradepartners.

NameProtection

An incorporatedbusiness is registeredwith anameand the samenamewill not be

availableforregistraonforanyotherrm.

InvestmentandLoanavailability

Investorsalwayspreferanincorporatedbusinessasthesameisregulatedunderalaw.

Itsbusinessscopeandnancialinformaonetcareavailableforvericaonatanyme.


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03 Company Form of Business

Companyisanincorporatedbusinessformwiththeliabilityofitsshareholderslimitedtothe

amountoftheircontribuontothesharecapital.ACompanyismanagedbytheBoardof

Directorselectedbytheshareholders.InIndiawehavetwotypesofcompanies;i.e.Private

LimitedandPublicLimitedCompany.Acompanyisaseparatepersonunderlawandcanhold

assetsinitsname,cansueandcanbesuedbyothers.


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9

PrivateLimitedCompany

ThemainfeaturesofaPrivateLimitedCompanyare;

Minimumnumberofshareholdersrequiredforformaonare2withmaximumbeing50

APrivatecompanyrequiresminimum2directors

PrivateCompanycanrestrictthetransferofshares

PrivateCompanycannot takedeposits frompublic andneithercan it issueshares to

public

Manyoftherestricveprovisionsof theCompaniesActarenotapplicabletoprivate

companies

NameofaprivatecompanyshouldendwithPrivateLimited

TheminimumcapitalrequiredforformaonisRs.1Lac

PublicLimitedCompany

Usuallypubliccompaniesarebig companieswithmanyshareholdersorownedbyother

public companies.These companies are formed for pooling large resources frompublic,

banksandothernancialinstuons.Themainfeaturesofpubliccompaniesare;

MinimumnumbersofshareholdersrequiredtoformaPubliccompanyare7.Thereare

norestriconsonthemaximumlimit.

Apubliccompanyrequiresminimum3directors

AllprovisionsoftheCompaniesActareapplicabletothesecompanies

MinimumcapitalrequiredfortheformaonofapubliccompanyisRs.5Lacs

ApubliccompanycanissuesharesaercomplyingwiththerequirementssetbySEBI

(SecuriesandExchangeBoardofIndia)

CompanyRegistration

Anytwopersons(inthecaseofprivatecompany)orsevenpersons(inthecaseofpublic

company);bysubscribingtotheMemorandumofAssociaoncanformaCompany.Theyalso

needtocomplywithvariousprovisionsoftheCompaniesActforsuccessfulincorporaon.Theprocessofcompanyincorporaonisasgivenbelow,

ObtainDIN(DirectorsIdencaonNumber)fromMinistryofCorporateAairs

ApplyforanameforthecompanyandgetitalloedfromtheRegistrarofCompanies

(RoC)

PreparetheMemorandum&ArclesofAssociaonoftheproposedcompany

ApplyforincorporaonwiththeRoCwiththedulystampedMemorandum&Arclesand

otherforms

RepresentbeforetheRegistrarforcorreconinthedocumentsifrequired.

Ifalldocumentsareinorder,theRegistrarregistersthesedocumentsinhisrecordsand

issuetheCercateofIncorporaon.


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ConceptofLimitedLiability

The conceptof Limited Liability is oenmisinterpreted. Limited liability means that the

personalnancial liability is limitedto theextentofaxedamountthatonehas agreed

toinvestinacompanyoralimitedliabilitypartnership.Inotherwords,theinvestorisnot

personallyliableforthebusinessdebtsandliabiliesoftheLimitedCompanyorLimited

LiabilityPartnership.Intheunfortunateeventofwindingupofthebusiness,theinvestors

liabilityislimitedtotheunpaidamountofagreedcontribuonbysharesorotherwise.On

thecontrary,theliabilityofsoleproprietorsandpartnersingeneralpartnershipareunlimited

andeventheirpersonalassetsareexposedtopayothebusinessdebtsandotherbusiness

liabilies.

TheDirectors run the day to day business of a Company and are liable to comply with

thevariousrequirementsspeciedunderlaw.InthecaseofanLLP,DesignatedPartneris

responsibleforthelegalcompliances.DirectorsandDesignatedPartnersarepersonallyheldresponsibleincaseofanynoncompliance.

UsuallyinasmallCompany,theshareholdersaretheDirectorsandinanLLP,thePartners

becomedesignatedpartners.IntheirroleasaDirectororDesignatedpartner,theirliability

isunlimited,astheyareexposedtopenalprovisionsunderthelawforthenoncompliance

ofrespecveregulaons.


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ManagementandAdministrationofaCompany

A company is managed and administrated by its Board of Directors appointed by the

shareholders. Their powers, dues and responsibilies are guided by the provisions of

theCompaniesActandtheMemorandumandArcleofAssociaonexecutedduringthe

incorporaon.

Howdirectorsfunctioninacompany?

DirectorsarecollecvelycalledtheBoard.Allmajordecisionsofacompanyaretakenat

themeengoftheBoardofDirectors.AsperCompanylawminimumofonemeengofthe

Boardneedtobeconvenedineveryquarterandtheproceedingsofthemeengneedto

berecordedintheminutebook.Boardcanalsodelegatemanyofitspowerstoindividualdirectorsandemployeesthroughproperresoluons.

Whatarethepowersofshareholders?

Inacompany,thepowersofshareholdersarelimited.Theyhavethepowertoappointor

removedirectors.Theycanalsovoteonsomeofthepolicydecisionsneedingtheirapproval,

aspertheArclesofAssociaonortheCompanyLaw.Shareholderstakealldecisionattheir

meeng,andeverycompanyisrequiredbylawtoholdanAnnualGeneralMeeng(AGM)

everyyear.IffoundnecessarytheboardcanalsocallforExtraOrdinaryGeneralMeeng

(EGM)assomepolicydecisionsregardingtherunningofacompanycanonlybetakenbythe

shareholders.

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CompliancerequirementsforaCompany

ThemanagementofacompanyisvestedwiththeBoardofDirectors.TheBoardofDirectors

managesthedaytodayaairsofthecompanysubjecttotheprovisionsoftheCompanies

ActandaspertheMemorandumandArclesofAssociaon.Thedecisionsatthemeengofdirectorsarecarriedbywayofresoluons.Therearecertaindecisionsthatrequirethe

approvalofshareholders.

TheBoardhastomeetleastonceinevery3monthsandatleast4meengsshallbeheldin

everyyear.Everyyear,thecompanyhastoconveneanAnnualGeneralMeeng(AGM)of

theshareholdersforadopngtheAnnualaccountsandtheAppointmentofauditorsforthe

followingyear.AspertheCompanyLaw,minutesoftheBoardandGeneralMeengsshould

bekeptinthecompanyrecordsandthesameneedtobesignedbytheChairmanofthe

meengs.

EverycompanyhavingapaidupcapitalofRs.5Croreormoreshallappointawholeme

CompanySecretaryandeverycompanyhavingapaidupsharecapitalofRs.10LacstoRs.5

CroreshallobtaintheSecretarialComplianceCercatefromaCompanySecretaryinwhole

mepracce.ThesamealsoneedtobeledwiththeRegistrarofCompanies.

CompliancemechanismunderCompaniesActmandateslingofReturns/FormstoRegistrar

of Companies (RoC) within prescribed me limits. Compliance related ling of returns /documentswiththeoceofRoCcanbebroadlyclassiedintotwocategories;

A.AnnualStatutoryCompliances

B.EventBasedCompliances

AnnualStatutoryCompliances

FilingofAnnualAccounts:

EverycompanyhastopreparenancialaccountsconsisngofBalanceSheetandProt

andLossaccountonayearlybasisandthesamehas tobeplacedbeforetheAnnualGeneral Meeng of the company. Copy of the Annual Accounts duly audited by a

CharteredAccountanthastobeledwiththeRegistrarofCompanies.

FilingofAnnualReturn:

EveryyearacompanyshallleareturnwiththeRegistrarofCompanieswithin60days

ofAGMcontaining the parcularssuchasaddressofregisteredoce, registerof its

members, register of its debenture holders, shares and debentures, indebtedness,

membersanddebentureholderspastandpresent,anddirectorsandmanagingdirectors

pastandpresent.

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EventBasedCompliances

EventBasedCompliancesThefollowingarefewinstancesthatrequirealingofdocuments

withtheRegistrarofCompanies.

1. ChangeofNameoftheCompany

2. IncreaseinAuthorisedCapital/IssueofShares

3. Creaon/Modicaon/SasfaconofChargesontheAssetsofCompany

4. ChangeinRegisteredOceofthecompany

5. StatutoryMeengofaPublicLimitedCompany

6. ResoluonspassedbytheBoard/GeneralMeengsandAgreementsenteredbythe

company

7. AppointmentofDirectors/ManagingDirectorandchangesamongthem

Minutes/Registers/RecordsandCommonSealAcompanyisrequiredtomaintainandpreserveasetofrecordsasrequiredunderCompanies

Actasfollows:

1. Statutory Registers such as Register of Members, Register of Directors, Register of

DirectorsShareholding,RegisterofChargesetc.

2. ShareCercate

3. MinutesBook

4. CommonSeal

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04 LLP form of Business

LimitedLiability Partnershipor LLP isa limited liability organisaon(body corporate) like

Limited Company. The major dierence of it from company is in its management and

administraon.LLPismanagedlikeapartnershiprmbasedonthetermsandcondions

detailedintheLLPagreement,givingpartnersthefreedomtomanagetheirbusinesswith

minimumoutsideinterference.Italsogivesmoreexibilityasexternalcompliancesareless

comparedtoacompany.LLPcanbeformedbyindividualsandbodycorporate(Company,

LLPorotherlimitedliabilityorganisaons).ThoughLLPisanewconceptinIndia,thistypeof

organisaonisverypopularallovertheworld.InUSAandMiddleEastcountries,thistypeof

business(knownasLLC)staredfunconingasearlyasyear1977.


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LLPRegistration

An LLP can be formed by two persons (natural or legal persons) by subscribing to the

incorporaon document aer complying with other legal requirements. The process of

registraonisgivenbelow;

1. ObtainDirectorIdencaonNumber(DIN)ForEachDesignatedPartners

(MinimumTwo)

2. ApplyforanamefortheLLP

3. FileExecutedIncorporaonDocument

4. Ifalldocumentsareinorder,Registrarregistersthesedocumentsinhisrecordsand

issuestheCercateofIncorporaon.

5. FinaliseLLPAgreement

6. AerlingtheotherformsandagreementwiththeRegistrar,theLLPcanstartits

operaon.

ManagementandadministrationofLLP

ManagementofanLLPisdonebythepartnerssubjecttoLLPagreement.Unlikecompany,

theyhavethefreedomtomanagetheLLPandcandelegatepowerstoanyparcularpartner.

ItisadvisableforanLLPtotakealldecisionintheirmeengorbywrienconsent.

LLPisa legalentycreatedbylawandthusisdisnct from itspartners. Itis requiredto

keepa separatebankaccount for all itsbusinesstransacons.Allpaymentsandreceipts

shallbeinthenameoftheLLP.AnLLPneedstokeepproperbooksofaccountsforrecording

businesstransacons.Itisalsoadvisabletokeeprecordsofmajorbusinessdecisionstaken

bypartners,eitherintheformofminutesorintheformofwrienconsent.

CompliancerequirementsforLLP

Compliance mechanism under LLP Actmandates to le Returns / Forms to Ministry of

CorporateAairs(MCA)withinprescribedmelimits.Compliancerelatedtolingofreturns

/documentscanbebroadlyclassiedintotwocategories,1. AnnualStatutoryCompliances

2. EventBasedCompliances

AnnualStatutoryCompliances

FilingofAnnualReturn:

EveryLLPthatisregisteredbeforeSept30thofayearshallleareturnwiththeRegistrar

ofLLPwithin60daysofclosureofitsnancialyearcontainingtheparcularssuchas

addressofregisteredoce,detailsofpartners,designatedpartnersetc.

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FilingofAnnualAccounts.

Every LLPhas tole aStatementofAccountsandSolvencywith theRegistrarof LLP

within30daysfromtheendofsixmonthsofthenancialyear.

EventBasedCompliances

FollowingarethefewinstancesthatrequirellingofdocumentswiththeregistrarofLLP

1. ChangeintheLLPAgreement

2. ChangeintheNameoftheLLP

3. ChangeinRegisteredoceaddressoftheLLP

4. AdmissionofPartners

5. Resignaon/DeathetcofPartners

WhyLLPisamoreattractivestructuretodoBusiness?

ThemainbenetsofLLPformare;

Limitedliabilityprotection

LiabiliesofPartnersInAnLLPislimitedtotheagreedcontribuon.IfXisapartner

inXYZLLPandifXagreedtocontributeRs10000intothecapitalofLLP,hisliabilityis

limitedtoRs.10000.HeisnotpersonallyresponsiblefortheliabiliesofXYZLLP.Sodoing

businessthroughLLPstructureprovidessafetytohispersonalassetsastheliabilityofLLP

shallnotbeextendedtohispersonalproperes.

Efficienttaxsavingbusinessform:

Intheeyesoftaxlaws,LLPisarmandhencermtaxaonisapplicabletoLLP.Various

taxesleviedonaCompanylikeDividendDistribuontaxandsurchargesarenotapplicable

toanLLP.TheprotaertaxfromLLPsoperaonwillbereectedinthepersonalincome

ofpartners.ItisesmatedthattheapproximatetaxsavingsofanLLPwillbearound17%

comparedtothatofacompany.

Management:

Incompanies,themanagementisvestedwithitsBoardofDirectors.Theyareresponsible

fortakingthedaytodaydecisionsandmanagementofacompany.Shareholdershave

limitedpowersintheaairsofacompany.InLLP,managementofLLPisvestedwith

partnersunlessspecicallymenonedintheLLPagreement.ItispossibleforanLLPto

delegateallpowersofmanagementtoasinglepersonexceptcompliancerequirements

undertheLLPact,whicharetheresponsibiliesofDesignatedPartners.

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Lesscompliancerequirements:

Comparedtoacompany,thelegalcompliancerequirementsarelesserforLLPs.Fora

company,itismandatorytomaintainvariousregisters,minutesetc,butthereisnosuch

requirementforanLLP.

Auditofaccounts:

AllcompaniesarerequiredtoappointaCharteredAccountantasauditorsforauding

accounts,irrespecveofthesizeandoperaonofthecompany.IncaseofanLLP,the

auditrequirementstartsonlyiftheturnoverexceedsRs.40Lacsorcontribuonexceeds

Rs.25Lacs.

Lesscostofmaintenance:StatutorylingfeespayablebyanLLParemuchlesscomparedtoacompany.Soeven

smallbusinesscanthinkofincorporangtheirrmasrunningcostareverylow.

Flexibleownership:

ItispossibleforapartnerinanLLPtoresignsubjecttothetermsofLLPagreement.Aer

resignaon,usuallythepartnercantakebackhisshareofcontribuonfromtheLLP.

Managementflexibility:

LLP isfree to takeanybusiness decisions subject to the LLP agreement. Itcanenterinto a contract with its partner or relaves ofpartners and borrowandmake loans

to outsiders. But in a company structure, many of these decisions need either the

permissionof theshareholders orapprovalofgovernmentauthories, forwhich the

processiscumbersome.

Noownershiprestrictions:

Inaprivate company, the number of shareholders is limitedto 50. There isnosuch

restriconinthecaseofanLLP.AnLLPcanhaveanynumberofpartnersandthuscan

securemorecapitalforitsbusinessoperaons.

Greatercredibility:

ByvirtueofbeingaregisteredentyunderGovernmentlaws,registeringyourbusiness

asanLLP,willgainyourbusinessbeerlegimacyandgreatercredibilitywhendealing

withothercompanies,banksandpotenalbusinesspartners.

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05

Basedonthenatureofitsbusiness,acompanyorLLPneedtotakeseveralotherregistraons

andcomplywithrespecvelawsoftheCentralandStateGovernments.

Other Registrations Required for a Company/LLP


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PermanentAccountNumber(PAN).ThisisauniquenumberissuedbyIncomeTaxdepartmentfortaxling.Thisnumberis

mandatoryforallincorporatedbusiness.

TaxAccountNumber(TAN)

ThisnumberisissuedbyIncometaxdepartmentforlingTaxDeductedatSource(TDS).

Manyofthetransaconsrequirededuconatsourceandthisnumberisrequiredfor

propercompliance.

ServiceTaxRegistrationIf the company/LLP provides taxable services, and if the taxable turnover exceeds

Rs10lacs,colleconofservicetaxiscompulsory.Suchserviceprovidersneedtoregister

andobtainServiceTaxRegistraon.

ValueAddedTax(VAT)

ValueAdded TaxandCentral Sales tax registraon is compulsory for companies/LLPs

dealingintaxablegoods.Itisastatemaerandifthecompanies/LLPsoperatelocallyin

dierentstates,separateregistraonsarerequiredforeachstate.

ImportExportCode(IEC)

Import and Export Code number is compulsory for the companies/LLPs planning for

importandexportofgoods.

Shop&EstablishmentRegistration

AlltheocesofacompanyorLLPhastoberegisteredwiththelocallabourauthories

under therelevantshopsandestablishmentRegulaons.Generally this registraonis

requiredtobedonewithin30daysofopeningtherespecveoces.

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06 Accounts & Audit

Accounng isthe lifebloodof anycompanyorLLPasbusinessdecisionsaremadebased

onaccounnginformaon.CompanyandLLPlawmandateskeepingbooksofaccountsand

records in accordancewith the Indian accounng standards. These requirements ensure

systemacpresentaonofaccounts,publicdisclosureandfullltaxaonrequirements.


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20

Company:Accounts&Audit

Everycompanyneedstokeepitsbooksofaccountswithallsupporngdocumentsattheregisteredoceofthecompany.Thebookskeptshallbeclosedattheendofnancialyear

andaprotandlossaccountandbalancesheetshallbeprepared.

Aerclosingofaccounts,thebooksanddocumentsneedtobeauditedandshallbeled

withtheRegistrarofCompanies.Therequirementofauditisapplicabletoallcompanies

irrespecveofsizeandturnover.

LLP:Accounts&Audit

Likecompany,anLLPalsoneedtokeepthebooksofaccountsandpapersatitsregistered

oce.AnLLPisrequiredtocloseitsaccountson31 stMarchevery year. The audingof

accountsisonlyapplicableiftheturnoveroftheLLPexceedsRs.40Lacsorifthecontribuon

exceedsRs.25 Lacs.The accountspreparedevery yearshallbeledwithRegistraronor

before30thOctoberofthatyear.


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07

ThetaxaonrequirementsspulatedunderlawisdierentforaCompanyandanLLP.Fewbriefpointsregardingthemajordierencesareexplainedintheparagraphsbelow.

Taxation


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ForCompany

Everycompanyneedtopayincometaxonprotandsurchargesifapplicable.Theprot

aer tax can beused to declare dividend to shareholders aerpaying the dividend

distribuontax.Insimpleterms,thecompanyisliabletopaytaxonprotandagainon

protdistributedtoshareholders.

ForLLP

IncomeofanLLP, aermeengthebusinessexpenses andpartners remuneraon is

taxedatsuchratesasapplicableforeachnancialyear.Theprotaertaxbelongsto

partnersandthesameistaxfreeinthehandsofpartners.Varioustaxleviedoncompany

likeDividenddistribuonTaxandsurchargesarenotapplicabletoanLLP.

CompliancerequirementsunderTaxlaw

Thecompliancerequirementsundertaxlawsencompassboththeregularpaymentof

taxontheearningsandlingthenecessaryrecordswiththetaxauthoriesasperthe

prescribednocaonseveryyear.

AnnualtaxReturnfiling

TheCompanyorLLPhastoleIncomeTaxreturntotheIncomeTaxauthoriesevery

year.ThemelineforlingthereturnisJuly31st(incasewheretaxauditisnotrequired)

andSeptember30th(incasewheretaxauditisrequired)

TaxDeductedatsource(TDS)

IfanyCompanyorLLPmakesanypaymentswhichrequirestaxdeducons,thesame

shallbedeductedandpaidtotheGovernment.ThecompanyorLLPisalsorequiredto

lereturnsregardingdeducons.

AdvancetaxpaymentsThecompanyandLLPshallforecastitstaxliabilitybasedonitsincomeforecastedand

paythetaxtothegovernmentinperiodicintervals.

IndirectTax

Basedonthenatureofitsbusiness,acompanyorLLPisrequiredtopayvariousindirect

taxes. For service industries this is in the formofservice tax and for product based

industriesthisistheformofcentralexciseandValueAddedTax.

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08

CompaniesInnthroughitsexperiencedbusinesssetupservicesandincorporaonconsulng

professionalshas advisedover5000 companiesand LLPs inthe last3years insengup

oftheirbusinesses.Ourvastexperienceinthelegaldomaincoupledwiththeeecveuse

of informaon technology ensures the mely delivery of serviceswith high professional

standardsatanaordableprice.Thisnewmethodofcompany/LLPincorporaonevolved

byourresearchteamhelpsanentrepreneurtonavigateeasilythroughthevarioussteps

required by law. The following factors contribute to our excellent and highly acclaimed

incorporaonandcomplianceservices:.

Experiencedteam:

Our experienced team have the experse to handle anyassignment for seng upa

Company/LLPinIndia.Thisincludesincorporaonofanewenterpriseorconvernganexisngbusiness(i.e.soleproprietorship,partnershipetc)intoaCompany/LLP.

Why choose Companiesinn.com to form yourCompany/LLP?


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Lowcost:

CompaniesInnbusinesssetupservicesarepricedaracvelytomeettherequirements

ofentrepreneursandbusinessstartups.Useofstandardisedprocessesandinformaon

technologyenablesustoprovidetheserviceatcompevecosts,oenattherates

chargedbyothers.Moreoverourpricesarepredenedwithnohiddencharges.The

onlinepricecalculatorallowsyoutogetitemisedservicechargesincludingthestandard

Governmentfee.

Allservicesavailableunderoneroof:

TocomplywiththevariouslawsgoverningbusinessestablishmentsinIndia,aCompany

orLLPneedstoapplyforPANandTANNumbers(IncomeTaxDept.),Shops/Establishment

Registraon(Dept.ofLabour),ServiceTax(CentralExciseDept.),VAT(StateCommercial

TaxDept.)etcdependingonthenatureofitsacvity.Wecanhelpyoutoobtainallthese

cercatessothatyoucanfocusyourmeandenergiesonoperangthebusinesswhich

otherwisemightbeillspentinfollowupswithvariousGovernmentdepartments.

Continuedsupport:

Our associate rm CN Partners Consultants LLP has experience in corporate law

complianceandwillensuremelycomplianceofyourCompany/LLPslegalrequirements

atanaordableprice.

Taxcomplianceandaccountingservices:

OursisterconcernCN Business Solutons LLP,isabookkeepingandtaxlawcompliance

rm.ThisrmcanhelpyoumaintainyourCompany/LLPsaccountsandlethevariousreturnsasrequiredunderlawatanaordablecharge.

CompaniesinnHelpDesk:

RunningabusinessascompanyorLLPneedprofessionalhelpandadvise,tocaterthis

wehaveourhelpdeskforallourclients.Aerincorporaon,youcancallanymeduring

businesshoursormailtohelpdesk@companiesinn.comforanyhelporassistance.

CompaniesInn is the ideal partner for your business incorporaon and regulatory

compliance services. When youre ready to form your Company/LLP, visit us online at

www.companiesInn.com. Fill in the parculars about the Company/LLP you want to

registerandproceedtocompleteyourorder.Alternavelycallusatanyoftheanyofthe

CompaniesInn IncorporatonKiosk menoned on the back page to incorporate your

Company/LLP.

Aerreadingthisbooklet,ifanyofyourdoubtsregardingCompanyorLLPincorporaon

remainunanswered;[email protected]

provideanyaddionalinformaonregardingbusinessincorporaoninIndia.

25


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NOTES:

HelpDesk:+918030255900

Email:[email protected]


27/28

NOTES:

HelpDesk:+918030255900

Email:[email protected]


28/28

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