indian startups & tax
TRANSCRIPT
taxstartup
business
methodologyideatefix
growth
comp
any
deve
lop
adapt
think
leader
consumer
change agile
agile
service taxPAN
TAN
india
india
india
advance tax investor
investor
return
teams
taxfunding
capital
capital
gift tax
teams
tds
excise
buy
tax
sell
innovateideate
funding
venture capital
profits
seed f
und
ideate
exit
markets
audit
merge
integrate
llp
sell
Buyout
finance
return
equity
learn
make in india
Withholding tax
ipo
Rajkot, 23 October 2015
llp
entr
epre
ur
capital
Start ups in India
23#October#2015,#Rajkot For#discussion#purposes#only
START UP
*a (temporary) organisation
designed to search
for a repeatable & scalable
business model *
*
*
What can CAs help with
23#October#2015,#Rajkot For#discussion#purposes#only
START UP
*Financial
Legal
Regulatory
Taxation *
*
*
23#October#2013,#Rajkot For#discussion#purposes#only
Overview of tax considerations
Early stage
Set up
On going
On sale/ exit/ expansion
Legal entity setup – Pvt Co vs LLP vs partnership firm
Statutory compliances
Ongoing compliances
Transaction taxes
23#October#2015,#Rajkot For#discussion#purposes#only
Early stageLegal entity setup – Pvt Co vs LLP vs partnership firm
PARAMETER PVT LTD CO LLP FIRM Registration Required Required OptionalDistinct entity Yes Yes No
Formation costMin incorporation fee
Pvt Co – Rs 6k Public Co – Rs 19k
Min cost of formation Rs 800
Negligible
Time line ~ 10 days ~ 10days 7 days
23#October#2015,#Rajkot For#discussion#purposes#only
nature of business (industry regulations) short to mid term horizonsource of funds
Set upStatutory compliances
PAN, TAN applications
service tax, excise, VAT registrations
shops & establishments, IEC etc
statutory auditors
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On goingOngoing compliances
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taxes deducted at source – payments, filings, consultancy
advance tax – quarterly payments, filing
tax audits, return filing
tax consultancy on specific agreements/ assignments
On sale/ exit/ expansionTransaction taxes
23#October#2015,#Rajkot For#discussion#purposes#only
capital gains on sale of shares to investors
exit by investors via share sale & IPO
mergers, demergers, acquisitions, buyouts
tax consultancy on specific agreements/ assignments
23#October#2015,#Rajkot For#discussion#purposes#only
Need to recognise opportunities available for CAs in the current startup environment
business advisory
compliances
funding intermediaries
non traditional engagements that are flexible and dynamic
