BUSINESS SETUP IN INDIA
Growing internationally is an essential part of a company’s business expansion policy. It is governed by a company’s aim to diversify its commercial activities across International frontiers and increase its competitiveness.
Due to factors like a large customer base, rapid growth in economy, comparatively inexpensive labour force countries like India, china, Brazil etc. remain the most obvious choice of Multi National companies to establish business in these countries.
Of the above countries, particularly the Indian economy continues to grow at a good pace and holds a strong position on the global map. The country’s GDP has been growing at an average rate of 8.5% for the last five years, despite the global slowdown. It is one of the most attractive destination for business and investment opportunities with the available large manpower base, diversified natural resources and strong macroeconomic fundamentals. India is also the second most populous country in the world and has more than 50% of its population below the age of 25 and more than 65% hovers below the age of 35. Allowance of 100 foreign Investment for most of the activities/ sectors has further strengthen the India’s position as favourite destination for business houses across the world.
Despite of the attempts of Government to ease out the procedure for setting up business in India to attract more and more of foreign Investment, establishing business in India still requires many compliances to be complied with as mandated by various legislations and Acts of parliament.
In order to fulfil the compliances required by different legislations to establish and operate business in India, foreign Investors, as commonly seen end up appointing multiple consultants for honouring these compliances. Appointment of multiple consultants leads to hazels of multiple contact points, improper co-ordination between various consultants which consequently delays business set up procedure.
To provide a solution for the above mentioned problems faced by foreign Investors, J J J And Company LLP (JJJ) has come up with a unique service called “ Business Set up Services In India”. Under this service we act as a single point of contact for all the compliances and services that are required by foreign investors to establish business in India.
We at J J J And Company LLP provides a “TOTAL SOLUTION” under one roof to its global clients to avoid unwarranted hassles, inconvenience, wastage of time and enhances the smooth expansion of the client’s business. We have panel of expert professionals who have several years of experience in providing business setup services.
We assures the client a better flow of their operations in matters involving Business Setup. We are the quality service provider and aims at assisting the offshore clients in services involving business set up in India.
PRE BUSINESS SETUP PHASE OVERVIEW
FOLLOWING ARE THE COMPLETE LIST OF SERVICES THAT ARE OFFERED BY J J J AND COMPANY LLP IN POST BUSINESS SET UP PHASE –
COMPANIES ACT, 2013 COMPLIANCES SERVICES OVERVIEW
We at J J J And Company LLP have a dedicated division for Companies Act Compliances through which following services are being rendered.
INCORPORATION OF COMPANY
- Private Limited Company A private limited company is a company which has minimum paid up capital of INR 1,00,000 or such higher paid up capital as may be prescribed and by its articles restricts the right to transfer its shares, if any.
- Public Limited CompanyA public limited company is a company which has minimum paid up capital of INR 5,00,000Or such higher paid up capital as may be prescribed.
Difference between Private limited company and Public limited company-
|Private limited company||Public limited company|
|A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000.||A Public Company must have a minimum paid-up capital of Rs. 5,00,000.|
|Minimum number of members required to form a private company is 2.||Public Company requires atleast 7 members|
|Maximum number of members in a Private Company is restricted to 50.||There is no restriction of maximum number of members in a Public Company.|
|There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association.||There is no restriction on the transferability of the shares of a Public company|
|A Private Company may have 2 directors.||A Public Company must have atleast 3 directors.|
|A Private Company can commence its business immediately after its incorporation.||A public company cannot start its business until a Certificate to commencement of business is issued to it.|
|A Private Company cannot issue Share Warrants against its fully paid shares||A public Company can issue Share Warrants against its fully paid up shares.|
J J J And Company LLP offers following services related to incorporation of company in India.
OBTAINING DIRECTOR IDENTIFICATION NUMBER (DIN) AND DIGITAL SIGNATURE CERTIFICATE (DSC)
Digital Signature Certificate is electronic certificate which is required to electronically sign various e-forms to be submitted by company to Registrar of companies and other Authorities. Atleast one applicant of the company shall procure DSC.
SEARCH FOR COMPANY NAME AVAILABILITY
APPLICATION FOR NAME APPROVAL OF COMPANY.
DRAFTING OF MEMORANDUM OF ASSOCIATION (MOA) AND ARTICLE OF ASSOCIATION (AOA)
FILING E- FORMS WITH REGISTRAR OF COMPANIES
- Form 1 ( For incorporation Documents, including MOA and AOA)
- Form 18 ( For notice of situation of registered office
- Form 32 ( Notice of Directors along with their personal Details)
ONLINE PAYMENT ON BEHALF OF CLIENT OF ROC FEES AND STAMP DUTY
REPRESENTATION SERVICES BEFORE REGISTRAR OF COMPANIES
Once the documents are submitted to ROC and fees are paid, Documents are verified by ROC before issuing certificate of Incorporation for company. In case, any query is raised by authorities, we represent our client before the authority and get the queries cleared for authorities.
Income Tax Act, 1961 Compliances Services Overview
Presently, in India the powers and authority to collect taxes in India are vested with Central Government. Central government exercises this power through Central Board of Direct Taxes (CBDT), which functions under Department of revenue, Ministry of finance.
Although there are not so many compliances directed by Income Tax Act, 1961, still few compliances remains which need to be honoured. J J J And Company LLP through a dedicated division provides following services related to Income Tax Act, 1961.
OBTAINING PERMANENT ACCOUNT NUMBER
(PAN) is registrations of person with Income Tax authorities. 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. PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.
To Apply PAN, form 49A prescribed by Income tax Act is required to be filled in. This form can be filed online. After the form is submitted online successfully, an acknowledgement is displayed. This shows a unique 15 digit acknowledgement number. This acknowledgement must be saved and printed for further process. The acknowledgement form must be sent to the Income Tax department. Before sending this, you will need to attach a few documents along with the acknowledgment form. This includes a proof of address and a proof of identity. Your name which is mentioned in these documents should be in the same format as that in the PAN application form.
OBTAINING TAX DEDUCTION ACCOUNT NUMBER (TAN)
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates. The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns
TAX PLANNING AS PER INDIAN LAWS AND TAX TREATIES
Tax Planning is a process in which Organizations evaluate their financial profile with the aim of minimising tax liability. Corporate Tax Planning activities generally seek to avoid legally triggering tax costs rather than illegally evading an existing obligation to pay tax. It is a forward looking activity which encompasses the strategic structuring of business operations in order to minimize taxliabilities. Under this service J J J And Company LLP undertake the analysis of Client’s requirement in terms of structure planning and sync those requirement with action that can be taken care off in pre business Set up phase so as to minimising future tax liability We help you in structuring your business transactions so that you maximise your after tax profit. We analyse your business activities and recommend alternatives consistent with your business requirement and also the applicable laws.
Indirect Tax Laws Compliances Services Overview
We, at J J J And Company LLP, have dedicated team of experts providing multidimensional professional services in various Indirect Tax Laws. Our team gives you the perspective and support to manage indirect taxes more effectively and efficiently. We assists our client in the following service that are required in pre Business Set up Phase-
Obtaining Registration Under Goods And Service Tax Act
GST is a huge reform for indirect taxation in India, the likes of which the country has not seen post-Independence. GST has simplified indirect taxation, reduced complexities, and has removed the cascading effect. It is believed that it will have a huge impact on businesses both big and small, and change the way the economy functions. GST has subsumed all of the current indirect taxes. Plus, by bringing in a unified taxation system, across the country, it will ensure that there is no more arbitrariness in tax rates.
“Goods and Service Tax” is a tax imposed on transactions of goods and services in India. Every person doing business of selling goods and/or services over and above 20 lakhs required to obtain GST registration number once his turnover exceed INR 19 Lakhs. Its registration and compliances have to be done in a timely manner and tax to be paid on prescribed rates.
GST Registration no is 15 letter PAN based and state wise code for an entity. We provide service for obtaining GST registration for the establishments for PAN India Locations.
Obtaining Import Export Code Number
Foreign Exchange Management Act, 1999 (FEMA) Consultancy Services Overview
J J J And Company LLP Provide following services to its clients related to FEMA in pre Business Set up phase
Foreign Direct Investment Planning and Determining FDI Limits.
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. We plan FDI for our client by understanding client’s business and determining ways through which Investment can be done in India. Also there are various sectors in which FDI is restricted upto a certain level. WE understand our client’s nature of business and help determining level of FDI in particular Sector.
Every manufacturer of dutiable goods.
First and second stage dealers desiring to issue Cenvatable invoice.
Persons holding warehouses for storing non‐duty paid goods.
Planning Entry And Exit (Repatriation) Route
Obtaining approval from Reserve Bank of India
Valuation of shares as per prescribed pricing guidelines.
- SEBI guidelines in case of listed companies.
- Not less than fair value of shares determined by a SEBI registered Merchant Banker or a Chartered Accountant as per the Discounted Free Cash Flow Method (DCF) in case of unlisted companies
J J J And Company LLP being a Chartered Account firm is eligible for such valuation of shares.
Share issue related services.
Every communication of individual and corporate with RBI has to route thrugh authorised agents appointed by Reserve bank of India. In order to avoid our client’s problem of coordinating with these authorised agents for any communication with RBI, we provide representational services to our clients, where we represent our client before authorised agents for any communication with RBI.
External Commercial Borrowing Consultancy.
When a foreign Investor intends to being funds to India by way of Debt, instead of equity, then again a different set of guideline has been prescribed by Reserve Bank of India through Foreign Exchange Management Act. We ensure that our client complies with all the guideline and prescribed rules while infusing debt funds to his company\organisation.
OTHER VARIOUS DOCUMENTS PREPARATION AND ATTESTATION SERVICES.OTHER VARIOUS DOCUMENTS PREPARATION AND ATTESTATION SERVICES.
Special services for J J J And Company LLP are those services which are not core services for any Chartered Accountant or Business consultant. However, while starting the service “Business Set up services in India” our main focus was to provide a one stop solution to foreign Investors willing to establish Business in India. Keeping in mind this focus we have put an extra foot forward and has achieved specialisation in services which are ancillary to our core services. These include
Selection of Place of Business
Also there are various special economic Zone which are declared by government for dedicated sectors and industries. These Zones offer special facilities and concessions to particular Industry. In this service we assist our clients in locating such zones or special places which could reap them special advantages.
Recruitment of Personnel
OBTAINING INDUSTRY SPECIFIC LICENCES
POST BUSINESS SETUP PHASE OVERVIEW
J J J And Company LLP in post business set up phase assist its clients in all activities and services in effective and efficient manner so as to lead timely establishment of business. We put a strong focus on providing integrated business setup service to clients internationally.
FOLLOWING ARE THE COMPLETE LIST OF SERVICES THAT ARE OFFERED BY J J J AND COMPANY LLP IN POST BUSINESS SET UP PHASE
COMPLIANCE WITH VARIOUS LAWS
Companies Act Compliance Services
Foreign exchange Management Act (FEMA) Compliance services
Direct Taxation Services
Indirect Taxation Services
Workmen Related Laws
Determining the eligibility of applicability of the Act
Liaisioning with C & F Agents
Operation review and Industry Comparatives
SOP’s and System Implementation
Special Audit Services
COMPANIES ACT COMPLIANCE SERVICES
A common seal is the official stamp or “signature” of an association. As a body corporate, an association is entitled to a common seal, and the Act requires an association’s rules to provide for the “custody and use of a common seal”. An incorporated association must have a common seal, which is the official stamp of the association.
At JJJ we take care of the procedure regarding obtaining the common seal that is required to be met by company under companies’ law.
Alterations, modifications and changes with respect to the names of companies, objects, share capital, situation of registered office, amendments and alterations in the Memorandum and Articles of Association.
Allotment, consolidation/sub-division of shares, share transfer and transmission, conversion of shares into stocks or warrants, issue of shares certificates, dematerialization of shares, forfeiture of shares etc.
MAINTAINING & UPDATING THE REGISTERS PRESCRIBED.
Filing annual balance sheet, profit & loss account, return & compliance.
Filing of the specific event-based forms with ROC (Form 2, 5, 8, 18, 32, etc.)
BOOK KEEPING SERVICES
We help you maintain accurate and regular financial records which in turn allow you to monitor the success or failure of your business. Regularly monitoring your business activities will help you operate more efficiently, control your cash flow, and increase your profitability.
PREPARATION OF ANNUAL REPORT
Our Financial Statements Preparation (FSP) team can reduce the workload for your finance department. We produce quality financial statements for both public and private companies, funds and other organisations obliged to report to their members.
STATUTORY AUDITING SERVICES
FOREIGN EXCHANGE MANAGEMENT ACT (FEMA) COMPLIANCE SERVICES
Annual Reporting under FEMA – At the end of the Accounting year the company has to prepare its Annual report of the International Transactions which are governed by FEMA guidelines. We produce quality financial statements for both public and private companies, funds and other organisations obliged to report under the FEMA.
CONSULTANCY OF VARIOUS FEMA REGULATIONS
Investments in India (Overseas Investments)
Investments by Foreign Enterprises, Foreign Residents in India (FDI)
Non Resident Indians (NRI)/ Persons of Indian origin (PIO)
FIPB (Foreign Investment Promotion Board)
External commercial Borrowings (ECB) etc.
ADVISORY SERVICES ON IMPORT AND EXPORT
We provide legal opinions and consultancy on Import and Export laws which helps you to implement best practices in your business.
CONSULTANCY REGARDING COMPOUNDING OF OFFENCES
The following offences are compoundable-
Offences punishable with fine only.
Offences punishable with fine or imprisonment.
Offences punishable with fines or imprisonment or both.
We provide opinions and consultancy relating to compounding of offences.
DIRECT TAXATION SERVICES OVERVIEW
REGISTRATION, COMPUTATION, PREPARATION AND FILING OF RETURN OF INCOME
The government of India imposes an income tax on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, and body of individuals, local authority and any other artificial judicial person. Every individual and corporates has to assess its tax liability and has to prepare and file his return of income periodically as per the Income Tax Act, 1961 guidelines.
OBTAINING LOWER /NIL TDS CERTIFICATES
It is the duty of every person deducting tax to issue a TDS certificate. TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. To reduce the hardships of Tax payers, the government of India has provided the facility of low or nil TDS certificate.
FILING OF QUARTERLY RETURNS
The person responsible for deducting TDS amount has to deposit such amount with Income Tax Department on Quarterly basis as per the provisions of Income Tax Act, 1961. The Government of India to reduce the hardship and paper work has provided the facility of E-filing (online) of TDS.
COMPLIANCE WITH TAX AUDIT REPORT PROVISIONS (IF REQUIRED)
An Assessee is required to get his tax audit done by Chartered Accountant mandatorily if in the previous year if:
The person is carrying on the business and his sales or turnover exceeds INR 1crore.
The person is carrying on a profession and his gross receipts exceed INR 25 lakhs. And has to file tax audit report on or before 30th of September.
DOCUMENTATION AND COMPLIANCE WITH TRANSFER PRICING PROVISIONS
EXPATRIATES TAX PLANNING
TAX STRUCTURING OF THE COMPANY AS A WHOLE
INDIRECT TAXATION SERVICES OVERVIEW
MAINTENANCE OF STATUTORY RECORDS REQUIRED UNDER ALL INDIRECT TAX LAWS
Every assesse conducting business in India is required to maintain receipts, Purchase, manufacture, storage, sales or delivery of goods including inputs, Capital goods and receipt, procurement or payment of input service, stock account etc. which are required to be maintained under all Indirect Tax laws and submit periodically the prescribed returns.
FILING OF PERIODICAL (MONTHLY, QUARTERLY, SEMI-ANNUALLY, ANNUALLY) STATUTORY RETURNS UNDER CENTRAL EXCISE, SERVICE TAX, VALUE ADDED TAX AND CENTRAL SALES TAX LAWS
Leveraging on the skills and knowledge factor of our expert personnel, we offer impeccable Indirect Tax Return Filing Services. Every assesse registered under various Indirect taxes laws has to comply with the filing of Statutory returns requirements under Central Excise , Service Tax, VAT and Central Sales Tax Laws.
OBTAINING VARIOUS BONDS, UNDERTAKING, FORMS UNDER DIFFERENT LAWS
An Assesse is required to execute bond, undertaking etc. for obtaining goods without payment of duty, provisional release of seized goods, provisional assessment of goods for export of goods without payment of duty etc.
We at JJJ help our client in obtaining and executing various bonds, undertakings etc. effectively and efficiently leaving a little room for hassles.
DETERMINATION AND DEPOSITION OF CUSTOMS DUTY PRIOR TO CLEARANCE OF GOODS BY CUSTOMS AUTHORITY
Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Taxable event is import into or export from India.
Import duties are generally of the following types:-
Basic duty, additional customs duty, Anti-dumping duty, education cess etc.
AUDITING AS PER IDT RULES AND REGULATIONS
We, at J J J And Company LLP, have dedicated team of experts providing auditing services as per IDT rules and regulations. Our team gives you the perspective and support to manage indirect taxes more effectively and efficiently.
To prevent the problem of co-ordinating with IDT Authorities we at JJJ provide the representational services to our client, where we represent our client before the IDT Authorities.
TAX STRUCTURING OF THE COMPANY AS A WHOLE
DEVELOPING STANDARD OPERATING PROCEDURES (SOPS) ENSURING COMPLIANCES WITH ALL INDIRECT TAX LAWS
We at J J J And Company LLP assist our clients in obtaining licences of varied nature (EPCG, DFIA etc.) and help them to evaluate the benefits admissible under Foreign Trade Policy.
PREPARATION AND FILING OF WEALTH TAX RETURN
IPR ACT OVERVIEW
J J J And Company LLP Provide following services to its clients related to IPR in post Business Set up phase-
Registration of IPR with various laws like Copyright Act, Patents Act, etc. IPR consists of trademark, copyright, patents, geographical indication, designs, etc. The registration of IPR shall be granted subject to following conditions. We at JJJ help our clients in registration of IPR matters.
Maintaining prescribed registers, records and filing of required documents from time to time. Maintaining adequate proof of your Intellectual Property rights is helpful for enforcing the rights of the company in accordance with Local laws. Receipts, records, invoices, and other documents related to adoption and first use of Intellectual Property, yearly amount of product sold that features IPR are to be maintained regularly
We at JJJ help our client in maintaining prescribed registers, records and filing of documents.
WORKMEN RELATED LAWS OVERVIEW
Generally, labour law covers:
Industrial relations – certification of unions, labour-management relations, collective Bargaining and unfair labour practices;
Workplace health and safety;
Employment standards, including general holidays, annual leave, working hours, unfair Dismissals, minimum wage, layoff procedures and severance pay.
We, at J J J And Company LLP, have dedicated team of experts providing multidimensional professional services in various Workmen Related Laws. . Our team gives you the perspective and support to comply with Labour Laws more effectively and efficiently. We assist our client in the following services that are required in post Business Set up Phase-
DETERMINING THE ELIGIBILITY FOR APPLICABILITY OF THE ACT
SPECIAL SERVICES LIAISIONING WITH C & F AGENTS OVERVIEW
At JJJ our core focus is to reduce the Liaisioning burden on our clients so that they can concentrate on business activities.
OPERATION REVIEW AND INDUSTRY COMPARATIVES OVERVIEW
SOP’S AND SYSTEM IMPLEMENTATION
SPECIAL AUDIT SERVICES OVERVIEW
Internal auditing is an independent & objective assurance designed to add value and to improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic & disciplined approach to evaluate and improve the effectiveness of risk management, control and management.
An inventory audit is an accounting procedure designed to keep track of a company’s products and merchandise. Inventory is a current supply count of company owned products.
A compliance audit is carried out to determine whether the organization is following specific procedures, rules or regulations set by a higher authority. Results of compliance audits are reported to the specific persons or authority seeking an assurance in the concerned matter.
An operational audit is a review of any part of an organization’s procedures and methods for the purpose of evaluating efficiency and effectiveness. At the completion of an operational audit we will submit recommendations for improving operations.
Revenue audit is directed towards identifying any possible revenue leakages in the form of absence / non-operation of internal control policies, frauds & errors on part of the personnel, system codification error, or in any other manner.
As vital business decisions are taken by the top management in any entity, an assessment of their competencies after certain point of time is required to be done by an independent agency. This maintains optimum independency in analysing the concerned individuals’ skills & capabilities in managing his area of operations.