It's a single person firm. Remember, it's not a company; it’s a good way to start a business with less costing &less compliance. It needs only one person for the legal registration.
It's a single person firm. Remember, it's not a company; it’s a good way to start a business with less costing &less compliance. It needs only one person for the legal registration.
A sole proprietorship business does not take more than 5 days to open-up & get running. This makes it popular among the small traders and merchants.
To start a sole proprietorship, you need an address and identity proof, PAN card, all KYC documents and rental agreement or sale deed.
Sole proprietorships are not treated separately. Any profit derived from your sole proprietorship is treated as your personal income and is accounted for on your individual tax return.
No. However, it is a good decision for partners to work out the details of partnership and create a written agreement.
Unlike corporations, partnerships are relatively informal business. Partnerships aren't required to hold meetings, prepare minutes, elect officers, or issue stock certificates. Partners share equally in the management and assume equal responsibility for its debts & liabilities.
Legally, a partnership is inseparable from its owners. As a result, each partner is personally liable for the entire amount of any business-related obligations.
A partnership have atleast two partners and maximum of 10 partners in case of banking business and 20 partners for other class of business.
LLP is defined as partnership formed and registered under the Limited Liability Partnership Act, is an alternative corporate business form that gives the benefits of limited liability of a company and flexibility of a partnership.
Persons, who subscribed to the ‘Incorporation Document’ at the time of incorporation of the LLP, shall be partners of the LLP. New partners can be admitted in the LLP as per the requirements of LLP Agreement.
Every LLP, whose annual turnover exceeds Rs. 40Lakhs or the total contribution of its partners gets above the limit of Rs. 25Lakhs, is a mandatory need to get its accounts audited every financial year, strictly in accordance with the rules provided in the LLP Rules by 2009.
An LLP agreement is not compulsory, however the legislation does provide for a default agreement. If an LLP has a partnership agreement it may be verbal or written. It is a formal agreement that governs members’ mutual rights in relation to each other and the LLP.
A person can be member in only one OPC.
In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees means then it has to be converted into private or public company.
Only an Indian citizen who has resided in India shall be eligible to act as a member and nominee of an OPC. The term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days, immediately preceding one financial year.
One Person Company can be registered like Private Limited Company, where all the rules and regulation are laid down by the Ministry of Corporate Affairs
A type of company that offers limited liability, or legal protection for its shareholders, but places certain restrictions on ownership. These restrictions are defined in the company’s bylaws and are meant to prevent any hostile takeover attempt.
No professional or educational qualification is required for becoming a director of a company.
A private limited company can change its registered office any time after following specified procedures.
Yes, representatives of these companies may be appointed as Directors in Indian Company, one of them should be an Indian Resident.
There has to be a minimum of Seven Shareholders and Three Directors, for setting up a public limited company. The directors can also be shareholders.
A public company is a company that has permission to issue registered securities to the general public through an initial public offering. A PLC's stock is offered to the general public and can be acquired by anyone, during an initial public offering or through trades on the stock market.
A public limited company can have a huge magnitude of capital, much more than that gathered by a private limited company. It is legally authorized to trade on stock exchanges. There is no limit to the maximum number of shareholders in a public limited company.
Yes, an NRI can be a shareholder or director in a public limited company of India. Since, becoming a director, a person must possess the DIN issued by MCA.
A Non-profit organization in India can be registered as a society or a Trust under the register of societies as a private limited non-profit company under section 8 of the companies act, 2013.
Since section 8 companies are supposed to apply their profits in promoting The objects such as commerce, art, science, sports, etc., these companies are not required to follow CSR provisions.
A minimum of two directors is required for a section 8 company registration.
Profit of Non Profit Company can only be used for promotion of the charity work in which it is involved. Even distribution of profit to its promoters is not allowed.
PAN is mandatory for obtaining GST registration. In case of Proprietorship, the PAN of the Proprietor can be used. In case of a Company, PAN must first be obtained for the entity making the GST registration application.
There is no such requirement under GST law.
No, GST is a consumption based tax. Because the place of consumption is outside India there is no GST on exported goods and services.
Goods and Services Tax Identification Number (GSTIN) is a 15 digit state-wise PAN-based number to be used to identify businesses registered under the GST.
The ESI scheme is a self-financing scheme. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages paid.
The ESI Scheme is administered by a corporate body called the ‘Employees’ State Insurance Corporation, which has members representing Employers, Employees, the Central Government, State Government, and the Parliament.
It is a 17 digit identification number allotted by the Regional Office on receipt of Form-01 or Survey report from the Social Security Officer, which is to be used by the employer in all the correspondence with the ESI.
It is the responsibility of the employer under Section 2-A of the Act read with Regulation 10-B, to register the Factory/Establishment under the ESI Scheme within 15 days from the date of its applicability.
It is the social security legislation benefit of employees and their dependents in case of retirement, disability, sickness or unemployment in the future.
No, interest earned by an employee on his Provident Fund balance is not taxable.
In case you leave your present employer, you can either transfer your balance from the RPFC of the present employer to RPFC of the new employer or you can withdraw the funds.
Depending upon the purpose, you can get two types of Loans against your PF balance-Non-refundable Loans and Refundable Loans. Refundable loans have to be repaid via monthly instalments. Non-refundable Loans are like withdrawals.
Any person/ company starting a venture for International trade.
Import Export Code is a registration required for persons importing or exporting goods and services from India. IE Code is issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industries, Government of India.
No. IEC forms a primary document for recognition by Govt. of India as an Exporter/ Importer.
Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture. Import/export by government ministries and departments, and certain notified charitable organizations.
Professional tax is collected by the employers from the monthly salaries. It is then paid by them to the government. If you are not working for anyone then you are liable to pay the professional tax yourself.
Every employer who is liable to pay Profession Tax on behalf of his employees, whom he pays salary/wages in the taxable limit, is liable to obtain a Certificate of Registration.
The employer is responsible for deducting professional tax from employees’ salaries and paying the collected amount to the appropriate state government. An employer has to furnish a return to the tax department in prescribed form along with the proof of tax payment.
The maximum amount payable per annum towards professional tax is INR 2,500. The professional tax is usually a slab-amount based on the gross income of the professional.
A) Micro industries B) Small industries C) Medium industries
MSME is recognized by all the institutions & banks. Banks prefer MSME instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is much higher in a case of MSME.
MSME registration is totally voluntary. Businessmen & entrepreneurs usually get this done to utilize the advantages offered under it. The registration process is quite easy and simple.
The validation of a PRC is for 5 years and if the unit is still not under operational then you may still re-apply for it. As soon as you start operations, you can easily apply for the Permanent License.
Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments like shops, residential hotels, restaurants, theatres and other places of public amusement or entertainment.
This Act sets rules for working hours per day and week, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, young persons, and women, rules for annual leave, maternity leave, sickness and casual leave, rules for employment and termination of service, maintenance of registers and obligations of employers as well as employees.
Within 30 days from the date of commencement of business, the employer of shop or establishment has to send an application in prescribed form to the inspector in charge.
PAN card, Identity proof, Commercial address proof and other licenses required to start a business.
You are required to obtain a central license from the address contained in Import Export Code. A FSSAI central license is required to export as well as to import.
FSSAI license is mandatory for a kind of food processing like manufacturing, trading, distribution & transportation. Therefore, you shall need a license from FSSAI.
Food Safety and Standards Authority of India in association with State Food Authorities are responsible for implementation &enforcement of FSSAI.
The mandate assigned to the Food Authority is (I) to regulate manufacture, storage, distribution, sale and import of food (II) to facilitate food safety.
Income-tax is to be paid by every person. The term 'person' includes Individual, Hindu Undivided Families, Association of Persons [AOPs], Body of individuals, Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.
The rates of Income-tax and corporate taxes are available in the Finance Act passed by the Parliament every year.
Agricultural income is not taxable. However, if you have non-agricultural income, then while calculating tax on non-agricultural income, your agricultural income will be taken into account for rate purpose.
It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department.
GSTR-3B is a simplified summary return and purpose of the return is for taxpayers to declare their summary GST liabilities for the tax period and the discharge of these liabilities in a timely manner.
Under GST, a registered dealer has to file GST returns which include Purchases, Sales, Output GST (On sales) and Input tax credit (GST paid on purchases) To file GST returns, GST compliant sales & purchase invoices are required.
GSTR1, GSTR2, GSTR3, GSTR3B and GSTR9. These are mandatory for regular business enterprises.
GSTR 1 needs to be filed even if there is no business activity (NIL return) in the tax period
As per Income Tax Act, 1961, all corporate and government deductors are compulsorily required to file their TDS/TCS returns on electronic media. However, deductors other than corporate/government also file their returns.
If the TDS/TCS statement is not filed for one year from the due date of filing, there would be a penalty of minimum Rs. 10,000.00 to Rs. 1,00,000.00 for not filing TDS /TCS statement under section 271H of the IT Act, 1961.
Form No. 27A is a control chart of quarterly e-TDS/TCS statements to be filed in paper form by detectors along with quarterly statements. It is a summary of e-TDS/TCS returns which contain totals of 'amount paid' and 'income tax deducted at source.
All Drawing and Disbursing Officers of Central & State Governments come under the category of Government deductors.
The Employees registered under ESI are entitled to medical treatment for themselves and their dependents, unemployment cash benefits and maternity leaves for women employees.
Every ESI registered Company has to file their return half-yearly and annually returns. They also have to submit the ESI contribution paid every half yearly, the period of contribution is 1st April to 30th September and 1st October to 31st March, which has to be given to the nearest branch office or ESIC regional commissioner.
(i) It is a mandatory and continued compliance. (ii) ESIC strives to provide medical and sickness benefits. If the returns are not filed appropriately, employees may not be able to avail these benefits.
No, the right to receive any benefits under this act is not transferable.
Yes, contributing to EPF is mandatory for the employees who have a basic salary plus dearness allowance is up to Rs.15, 000. Those who are earning above Rs.15, 000 may contribute voluntarily.
One more benefit of the EPF account holder is that it gives a life insurance cover of Rs.60, 000. This comes from the Employees Deposit Linked Insurance Scheme and for this employers have to contribute 0.50% of your monthly basic pay as a premium for your life cover.
Accounting year is from March to February.
The Employee contributes 12% of his /her Basic Salary & the same amount is contributed by the Employer
Registrar of Companies is the official agency that falls under Ministry of Corporate Affairs. All the Companies incorporated under the Companies Act, 1956 are mandatory required to file various forms, returns and documents with the Registrar of Companies.
Companies have to by file various return, forms and documents. The filing can be made in two ways. (I) Annual compliance filling – Compliances which are required to be made once in a year. (II) Other Compliance filling – Compliances which are required to be made from time to time.
Maintenance of books of accounts, Resolutions & Minutes of the Board Meeting and General Meetings and Share Register & Share Certificate.
Annual return is required to be signed digitally by a Director of the company and a CS.
The existing company needs to reserve the name through ‘RUN’. After the name is approved, MGT-14 needs to be filed. Form INC-24 (Application for approval of Central Government for change of name) needs to be filed to give effect to change in name.
As soon as Companies House has accepted the name change, the new company name is entered on the register in place of the old name and a 'Certificate of Incorporation on Change of Name' is emailed to you. This certificate states, both the previous & the new company name and the date that the new name came into effect.
Yes, Company to prepare minutes and resolutions of a director's meeting recommending the name change to the members of the company.
Company has to register the name as a registered trademark if and when required.
The company needs to amend the MOA for changing the registered office from one state to another state. A special resolution needs to be passed by the company for alteration in the MOA.
The Company has to pass a special resolution in a general meeting, if it wants to change the registered office to a place which is outside the local limits of the city, town or village in which the registered office is presently located.
If the company wants to change the registered office from the jurisdiction of one ROC to the other ROC means it has to apply for the approval of Regional Director in the prescribed format. Once the Regional Director confirms this change, it has to file the same confirmation the ROC within 60 days.
Every change of the situation of the registered office shall be notified to the Registrar within 15 days of the change. Hence, any change in the registered office of the company shall be filed with the ROC within 15 days in form INC-22.
For removal or addition of director in Private Limited Company, the consent of the members of the company shall be obtained by Ordinary Resolution. The number of directors cannot be less than 2 after the changes taken place.
The procedure of change of directors in Private Limited Company can be carried on simultaneously. Hence, Removal and Addition of directors can be carried at the same time.
Yes, a director can voluntarily resign from the company. The resigning director needs to file request form with MCA to intimate about the resignation from the Company.
Once the director has filed his resignation with the company, it is the responsibility of the company to intimate the change to MCA. The requisite e-form is required to be filed within 30 days of the resignation.
The increase in authorized capital must be approved by the Board of directors of the company.
Form SH-7 is required to be filed for Increase in Authorized Capital. The attachments are Board Resolution, Notice of EGM Explanatory Statement, Resolution passed in the Extra Ordinary General Meeting and Altered Copy of MOA.
Check the articles of association (AOA) of the company to verify whether necessary power is there to increase authorized capital of company.
For successful increase in the authorized share capital of the company, clause V of MOA and clause IV of AOA of the company needs to be altered.
Paid-up capital is the amount of shares that the company has received in full from the shareholders.
The issued share capital must be paid up immediately after incorporation and deposited into the company’s bank account.
Yes. You can start using the fund for valid business needs right after company has been set up.
No, there is no any limit for paid up capital.
A board meeting must be conducted after giving notice to all the directors for a general meeting to pass a special resolution of altering the MOA of the Company.
Object clause is the clause in the MOA of the company which defines the main business activity of the company. It defines the main objects that the company is going to pursue after incorporation.
Form MGT-14 is required to be filed with the Registrar. Attachments with form MGT-14 are certified copy of the resolution, Notice of Extra ordinary General Meeting, Explanatory statement to the notice and Altered Memorandum of Association.
(a) Name Clause, which contains name of the Company, (b) Registered Office Clause which, contains State of India where registered office is situated. (c) Objects clause of the Company and matters considered necessary in furtherance thereof, (d) Liability Clause, which defines liability of members of the company; (e) Share Capital clause, which defines Authorized share capital of the company.
Sections 63, 64 and 65 LLP Act 2008 regulates the process of winding up an LLP.
Voluntary winding up & winding up by the Tribunal are the two type deal with the process of winding up an LLP.
When it is proposed to wind up an LLP voluntarily, the majority of its designated partners shall make a declaration in Form No. 2 verified by an affidavit to the effect that the LLP has no debt or that it will be able to pay its debts in full within a specified period, but not exceeding one year from the commencement of the winding up.
For the purposes of winding up of an LLP by the Tribunal or for the appointment of Provisional Liquidator, there shall be a ‘Liquidator’ who may be either an ‘Official Liquidator’ or a Liquidator appointed by an order of the Tribunal from the panel maintained by the Central Government.
Section 270 of the Companies Act 2013, lays down the procedure for winding up of a company. It provides two ways of winding up (I) By the tribunal and (II) Voluntary
(I) If the company passes a special resolution for winding up of the Company. (II) The company in general meeting passes a resolution requiring the company to be wound up voluntarily as a result of the expiry of the period of its duration or on the occurrence of any event in respect of which the articles of association provide that the company should be dissolved.
Yes, an administrator, usually denoted as a liquidator, is appointed in the context of winding up of a company. The liquidator takes control over the company, assembles its assets, pays the debts of the company and finally distributes any surplus amongst the members according to its liabilities.
1. Members’ voluntary winding up: Winding up the company voluntarily under the supervision of members whereby declaration of solvency is made by the Board and the same has been filed with the Registrar. 2. Creditors’ voluntary winding up: Winding up Company when the declaration of solvency is not made by the directors and the Creditors of the Company's control and supervise the entire process.
Having good bookkeeping will ensure you have efficient accounting systems. This helps you manage critical components of your business.
Most small and medium business owners do not have the knowledge, time or ability to effectively perform their bookkeeping duties. Outsourcing a bookkeeper will provide you with the time required to focus on your businesses operations.
Some accountants do offer bookkeeping services, but most prefer to focus on the higher end processes such as legal and tax management. They also charge considerably more than a bookkeeper. Some data entry people are able to perform, but they are much more limited in what they are qualified to do.
First Class Accounts bookkeepers operate their own businesses and therefore charge different rates. Contact us for more information.
A Digital Signature authenticates your identity electronically. It also provides you with a high level of security for your online transactions by ensuring absolute privacy of the information exchanged using a Digital Signature.
For sending and receiving digitally signed and encrypted emails. For carrying out secure web-based transactions IneTendering, eProcurement, MCA [for Registrar of Companies efiling] and in filing Income Tax For signing documents like MSWord, MSExcel and PDF.
Yes, digital signature can be employed in wireless networks.
Outsourcing your payroll requirements gives you the freedom to re-allocate your resources to deal with more important, revenue-generating activities. It may also enable you to run your payroll in a more cost-effective manner. Outsourcing will lighten the load on your internal services as ‘Buzypro’ will retain the payroll records on our systems.
Our payroll service is suitable for companies of all sizes with both local and expatriate staff. ‘Buzypro’ payroll specialists have considerable experience in dealing with both types of employees.
Don’t get caught out by hidden costs. Many payroll services appear to be cost effective but contain a pile of additional costs for regularly occurring payroll activities. We offer you only reasonable & transparent prices.
Our advanced payroll platforms are cloud based and offer an Application. It has functionality that enables you to use it in your internal payroll system. You can file your taxes on schedule, but also can customize its services to meet your changing needs over time.
It is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application. PAN enables the department to link all transactions of the “person” with the department.
The purpose of having a pan card is strengthened from the fact that from 1 January 2005 it has been made mandatory to quote Permanent Account Number (PAN) on challans for any payments due to Income Tax Department (ITD), while filing returns of income and all correspondence with any income tax authority. Thus Purpose of having Pan Card has become mandatory.
You can apply for a new PAN card by filling up an online form (49A) You have to submit Two Passport size photographs Proof of Identity Proof of Address Proof of Date of Birth
You can apply for Changes/Correction in your PAN card by filling up an online form. You have to submit Two Passport size photographs Proof of Identity Proof of Address Proof of Issuance of PAN card
All those persons who are required to deduct/collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.
TAN is allotted by the Income Tax Department on the basis of the application submitted online at NSDL e-Gov -TIN website.
No documents are required to be submitted along with the application for allotment of TAN. However, where the application is being made online, the signed acknowledgment which is generated after filling up the form should be forwarded to NSDL e-Gov.
You can inquire the status of your application by accessing NSDL e-Gov -TIN website at the "Status track" option and quoting your unique 14-digit acknowledgement number after three days of your application date.
If it is a word it should be easy to speak, spell and remember. The best trademarks are coined words or unique geometrical designs.
Under modern business condition a trademark performs four functions It identifies the goods / or services and its origin. * It guarantees its unchanged quality * It advertises the goods/services * It creates an image for the goods/ services.
The registration of a trademark confers upon the owner the exclusive right to the use the trademark in relation to the goods or services in respect of which the mark is registered and to indicate so by using the symbol (R), and seek the relief of infringement in appropriate courts in the country.
The basic principle is that the trademark applied for should not be substantially altered affecting its identity. Subject to this changes are permissible according to rules detailed in the subordinate legislation.
The Copyright Act, 1957 protects original literary, dramatic, musical, artistic works and cinematograph films. Unlike the case with patents, copyright protects the expressions and not the ideas. There is no copyright protection for ideas, procedures, and methods of operation.
No. Acquisition of copyright is automatic and it does not require any formality. Copyright comes into existence as soon as a work is created and no formality is required to be completed for acquiring copyright. However, certificate of registration of copyright and the entries made therein serve as prima facie evidence in a court of law with reference to dispute relating to ownership of copyright.
One can pay fee in favor of ‘Registrar of Copyrights’ payable at ‘new Delhi’. The fee is not reimbursable in case of rejection of the application.
Yes. Computer Software can be registered as a ‘literary work’. As per Section 2 (o) of the Copyright Act, 1957 “literary work” includes computer programs, tables and compilations. ‘Source Code’ and “Object Code” have also to be supplied along with the application for registration of copyright for software products.